SECRETS OF WINE’S SUCCESS

Image positioning and Australian imports are at the heart of wine’s success in the United States. Thanks to brands like Yellow Tail who jumped from 200,000 cases in ’01 to 6.5ml last year, wine no longer encompasses the snooty image it once possessed nor does it limit itself to an older, wealthier demographic. And of course because of Yellow Tail’s success, many brands such as Little Penguin and Smoking Loon are tripping over themselves to join the trend. The trick, it seems, is to make wine as approachable as possible in order to reach all potential drinkers. Strategies such as color-coded labels, screwcaps, synthetic corks, eye-catching packaging, and interesting titles have done wonders in reeling in 20 year-olds to those in their early 30s. “They represent about 70 million people, and their buying power is enormous,” said Ben Dollard of Twin Fin who was quoted by Jeffrey Klineman in the November/December issue of Beverage Spectrum. “They are really ready to try wine.” Studies show that “Image-seekers” buy these colorful, attractive wines to impress friends while inexperienced wine-drinkers are attracted to their approachable, non-snooty appeal.

And it doesn’t hurt that these image brands are much more readily available than in days of old. Says Ben, “There’s no doubt the channel approach for a brand like this has been a key part of its success. We’re in Albertson’s, Kroger’s, Publix…but it absolutely needs to be available in the convenience channel, too.” In the past c-stores were mainly just beer sellers, but wine brands now offer tough competition, especially since a bottle of Yellow Tail it equal in price to a six-pack of premium beer. Keep doing what you're doing wine guys because things are lookin' good.