The agency that gathered the information, Nielsen, concluded that this was "one of the worst years in living memory" for the on-trade (pubs and restaurants) and said that "we don't expect to see this trend alter".

This development comes on the back of news that Sainsbury's is pulling a comb through its range and will beef up its wine range under £4. As it stands the supermarket chain has an average price of £4.22, compared with £4 at Tesco and £3.70 at Asda, but wants to lower it to meet demand from consumers who are feeling the pinch with the credit crunch. Quite frankly, for the quality, wine in this country has never been cheaper and the thought of it getting even cheaper beggars belief. A few Saturdays ago I managed to pick up a couple of cases of Brown Brothers Tarrango 2007 at Sainsbury's for little over £3 a bottle. Not only had the supermarket reduced it from around £7 to around £4.50, it was also offering a further 25% off the discounted price if you bought six or more. No wonder staying in is the new going out.

But there is also another fascinating trend. While we all love a bargain we are actually trading up as well. Sainsbury's recently polled its customers and found that there is a genuine appetite for the £7 to £10 category. This is heartening for the band of small independent wine retailers out there. These enthusiasts, who have the relentless task of running retail shops, often offer surprising and novel wines. Perhaps their plight will not follow that of the butcher, the baker and the candlestick maker. On this evidence, it seems there is room for supermarkets and independents to live side by side.

Festival tastings

On that note, if there are still a few Festival stragglers hanging on for the last week, why not take a day trip down to North Berwick this Friday? Lockett Brothers (133 High Street, North Berwick, EH39 4HB, 01620 890799) is holding a Sauvignon Blanc tasting in the shop at 4pm with an impressive selection on offer from New Zealand, Australia and South Africa.

Bargains not to be sniffed at

A few deals this week: Perrier-Jouët Grand Brut NV, £32.99; buy two, save 40% = £19.79 (Majestic). Coteaux Du Tricastin, Rhone Valley, France 2007, £8.99, down to £4.49 (Morrisons). Montagne St Emilion, Bordeaux 2006, £8.99, down to £4.49 (Morrisons).