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FROM THE GRAPEVINE: August 2019

FROM THE GRAPEVINE: August 2019

FROM THE GRAPEVINE: AUGUST 2019

Originally published in London Wine Fair's Grapevine: 220819

By Richard Siddle

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Here's a study that should make the UK wine industry wake up in a cold sweat. Particularly those supplying the on-trade.

A recent report in the US by Morgan Stanley estimates home restaurant delivery services could take up to 40% of the overall restaurant market by 2020, up from 7% in 2016. The equivalent of $220 billion in sales compared to $30bn now.

What's particularly eye popping for the drinks supply sector is the fact that 43% of the current home deliveries being made are replacing a meal that people would normally have gone to a restaurant to have. The time when they would normally have ordered a bottle or glass or two of wine to go with that meal.

Take those meal occasions away and that leaves more than a gaping hole in the number of occasions when people are going to be even in a restaurant to buy the wine the wine trade has so diligently travelled the world to source, buy and make available to those same restaurants to sell to their customer.

Yet how many of those on-demand meal deliveries ever include a bottle with it, or even the chance to buy wine? That's where the wine supply chain needs to be concentrating its efforts. Not just on wine lists in restaurants, but the home delivery menus for on-demand.