Christmas trade-up?

After the sledgehammer blow inflicted by Rachel Reeves' tendentious budget,  one might expect to find a subdued dose of Yuletide cheer in the run up to Christmas 2024.  Yet sommeliers and proprietors remain hopeful that, despite the corrosive impact of stubborn inflation, consumers are still in the mood to celebrate this year.

For the beleaguered (but resilient) hospitality sector, this has never been more vital: margins have been squeezed out of all recognition over the past 12 months, a concomitant of high energy prices and rising staff costs. Sommeliers are therefore under immense pressure to successfully communicate the added value of trading up – and capitalise on a temporary surge in group occasions.  In 2024, the phrase “drink less but better” has become a hospitality rallying cry.

Profit and promotions

But how, exactly, do savvy professionals tempt consumers away from Prosecco and lead them to the brioche-infused flavours of deluxe Champagne?  Milena de Waele, head sommelier at Pétrus, believes that offering guests a unique discount on blue-chip labels is the most effective way of encouraging a higher spend – tapping into that insatiable desire for a (relative) bargain.

 “As Christmas approaches, we are delighted to offer guests the opportunity to purchase and enjoy iconic fine wines at closer cost price from Châteauneuf-du-Pape to a Champagne prestige cuvée, which is a super-exciting opportunity for wine lovers,” enthuses De Waele.

“The festive period is always a time when guests are out celebrating with family, friends and colleagues more than any other period throughout the year, so often there is an uplift in spend per guest on wine, or other alcoholic drinks.”

In 2019, Pernod Ricard UK invested £5m in a Christmas marketing campaign, undertaking research on  consumer behaviour and “the stratification of festive occasions”. A key tenet of the initiative was encouraging operators to adjust their promotional efforts to accommodate “a series of moments and occasions that run throughout November and December”, with opportunities ranging from “popping in” and buying for gifts, which begins in mid–November, to December’s Christmas parties and beyond.

Meanwhile, Owen Morgan, co-founder of the Bar 44 group, advocates a policy of encouraging guests to order their wines 'pre event' on email. “It takes any on-the-day stress out of 'wine list fear' from the organisers of their group, who aren't always necessarily versed in wine, and nudges people to some more interesting/premium wine, plus naturally what pairs well across the board with the menu choice,” he says.

Taking the temperature of Christmas 2024, Morgan predicts that “Spanish reds will do very well for us –  Crianza/Reserva/Gran Reserva Rioja.”

He adds: “Lighter and chilled reds have been doing extremely well for us all year, but in December they will be dwarfed by the classics. Sparkling will also be flying this December. Aged cavas will be pushed, and our ancestral wines too.”

Seasonal classics

Of course, different venues will have contrasting priorities and visitor expectations. Yet when discussing the nitty gritty of upselling wine, many sommeliers – and suppliers – coalesce around the importance of offering a consumer-facing ‘pull’ list in the first place; a portfolio that showcases on-trend styles and food-friendly wines, sold with panache.

“We have been working with our producers of higher-value wines for the past two decades to establish a trust in the label that enables our customers to feel confident selling them due to their quality. Christmas or not, you always need to look after the basics – well-trained staff and clear communication of the reason to trade up,” observes David Gleave MW, co-founder and chairman, Liberty Wines.

Stuart Skea, group head sommelier at Aizle Restaurant in Edinburgh, outlines a major opportunity for fortified in December – a category that has been fighting to stay relevant in recent times.

According to Skea: “An essential and simple strategy is to have adequate stock and offer that little glass of Madeira, vin santo and/or tawny port at the end of a meal as people are more likely to partake in the festive period.”

He continues: “Christmas is inevitably a time for increased dessert wine sales – consumers feel like treating themselves with a delicious golden-hued elixir like Klein Constantia, Tokaji or Sauternes.”

Skea also advises buyers to stock up on “grower Champagne and English sparkling”, arguing that there is a burgeoning desire to look beyond big brands. “We have been selling a lot of grower Champagne - the general public are increasingly knowledgeable and experimental,” he says.

“We find people are willing to go out on a limb to try a producer they have never heard of before – consumers are realising that the quality can be exceptional, often at a fraction of Grande Marque prices, and an increased focus on sustainable and organic farming goes hand in glove with smaller estates.”

Owen Morgan reveals that throughout December, Bar 44 maintains wine-of-the-week cards on the table, “always with a couple of interesting options that either aren't usually by the glass, or on our current list”. This, Morgan claims, encourages people to “trade up” as patrons often desire something new and interesting.

“Our drinks list is also big on sherry flights, offering five flights of three sherries, or even a 'mega flight' with eight samples in it.  And, although sherry is not just for Christmas, sales do peak at this time.”

An evolving landscape

But, while many in the trade are fairly bullish, sommeliers are nonetheless being kept on their toes by a rapidly evolving consumer landscape. Indeed, it is highly likely that the continued decline of buyer confidence will have an adverse impact on seasonal spend nationwide; we are living in an age of moderation at a time when businesses desperately need to claw back revenue. Historically, 'essential' pleasures such as entertainment were often ring-fenced at Christmas, even if there was a general move towards belt-tightening. That may no longer be the case today.

“I still think Christmas is a time when people indulge – and perhaps overindulge – although this is definitely diminishing over time,” agrees Skea.

And yet, there are reasons to remain cautiously optimistic: the growing low/no market presents an opportunity to drive premiumisation as the category broadens out to include premium and super-premium brands. Despite the macroeconomic uncertainty, evidence from many sources indicates that people are willing to trade up, even if alcohol is not part of the equation.

“We have seen an exponential increase in demand for low and no alternatives,” reports De Waele.

“In September, we added a non-alcoholic wine pairing to the menu at Pétrus, which our guests have very much embraced; the wine pairs with the menu just as well as the alcoholic pairing options available to guests. We have also added to the menu a range of low and no-alcohol options for our guests to choose from, including sparkling tea, low-alcohol beer and, of course, non-alcoholic cocktails.”

Ultimately, there isn't a one-size-fits-all approach to maximising Christmas revenue in this very challenging and mercurial age. Yet a sharp focus on current trends, while remaining sensitive to delivering value across the price spectrum, can still yield Santa-sized rewards.