Wine was key weapon in festive discount war

Wine was the weapon of choice in 2007's Christmas drinks discounting war, according to The Grocer's Christmas Price Watch survey.

Hardys Stamp, one of four key drinks brands monitored in the major multiples over the past six weeks, dropped to a low of £3.97 a bottle over Christmas week - a £2.52 drop from its high of £6.49 in week one of the survey in November.

Cream liqueur brand Baileys and lager brand Stella Artois, which have previously suffered from heavy discounting in retailers over the festive period, had a better year, maintaining higher prices than in the past two years.

Bell's whisky, meanwhile, managed a steady average price of £1.27 a litre.

Diageo-owned Baileys remained at around the £12.98-a-litre mark for most of the festive season, seeing only one major drop in its average price, in week three, due to a litre for £8 deal in Somerfield. Last year the brand had an average price of £12.50 per litre over the same period.

In the run-up to Christmas, Diageo had pledged to maintain prices on its spirits brands, which include Smirnoff, Gordon's Gin and Baileys, dropping its usual multi-buy festive promotional strategy.

"Much of the increased volume in the spirits category at Christmas is driven by light spirits buyers," said David Smith, Diageo sales director. "Some 62% of people who only buy spirits once a year do so at Christmas and multi-buy offers alienate them. 2007 was about getting a single price point right across the spirits sector to make it accessible for consumers."

Stella Artois, meanwhile, maintained a price of 16p per 100ml, a 5p increase on last year's low of 11p per 100ml. This will please brewer Inbev, which invested in its first value-added promotion for the brand this year. Under the new La Famille Artois umbrella (covering Stella Artois, Peeterman Artois and Stella Bock), it offered a branded chalice pint glass in a gift pack.