INEXPENSIVE WINE STILL #1 IN VOLUME

Although sales of more expensive wines are growing like weeds, wines under $6 are still the craze among the average consumer. ACNielsen data shows that between July 2003 and February 2006, wines priced $15 and above gained 123% and have continued to grow. And while their cheaper counterparts – which include jug and boxed wine - are still the highest volume of wine sold in food channels, the category’s share continues to decline. Between February 2005 and February 2006 wines in the ultra-value group lost 6% share with the average bottle costing $3.36. So, while group like Image Seekers and well-seasoned wine drinkers are willing to shell out more money for a good product, you always have your value-sniffers that keep the sub-premium category alive.