However, sales are up just 0.8 per cent, showing that prices are up and consumers are spending more on a bottle.
It means middle of the road brands such as Hardys and Echo Falls are down £60 million, while posher rivals like Barefoot and Yellow Tail are up 30 per cent.
Prices are up due to weaker sterling and a year of poor harvests, according to The Grocer magazine.
Laura Christen, of analysts Kantar Worldpanel said: “Premiumisation and Brexit-fuelled uncertainty have driven up prices across almost all sectors.”
This has prompted shoppers to turn to more affordable supermarket own-label brands.
Sales of big name champagne brands are down by 19 per cent, while own-label is up 23 per cent, said Kantar Worldpanel.
This has hit brands such as Lanson and Heidsieck particularly hard, the analysts said.
Even sales of prosecco are slowing, up seven per cent in the past year, compared with a 30 per cent rise in 2016.
In wine, shoppers have been attracted to lower prices of own-label.
Meanwhile, some pricier own-label lines such as Sainsbury’s Taste the Difference are becoming more popular than big-name brands of wine.
WINE SALES (year to February 2018)
Still red £2.17 billion
Still white £2.07 billion
Still rose £490 million
Prosecco £372 million
Cava £103 million
Champagne £137 million
Other sparkling £92 million
Asti £24 million
Lambrusco £3 million