WINE retailer Majestic yesterday toasted the changing tastes of British consumers, as it announced a 24 per cent rise in annual profits.

The wine warehouse chain attributed its success to the trend for people to "trade up" to more expensive bottles. It recorded a 50 per cent increase in sales of bottles of still wine costing £20 or more, after a successful strategy to target more affluent customers.

Chief executive Tim How said: "We operate in an expanding market, where consumers continue to show a strong interest in a greater choice of better quality wines."

Wines from Bordeaux, Italy, South Africa, New Zealand, Chile and Argentina sold particularly well, while there was also strong growth in sales of champagne.

Mr How said the impending UK smoking ban was likely to help sales if it led to more people entertaining at home instead of going out.

Majestic, which has 122 outlets, including branches in Darlington, Newcastle, York and Harrogate, North Yorkshire, posted profits of £13.2m for the year to March 28.

Like-for-like sales, which ignore the impact of store openings and closures, were 8.3 per cent higher during the period. Like-for-like sales grew seven per cent in the first ten weeks of its new financial year.

Total sales rose by 9.6 per cent to £162.5m.

The average price of a bottle of wine bought at Majestic during the year rose to £5.51 from £5.40.