KING WINE LEADS THE INDUSTRY IN GROWTH
It keeps going and going and going -- wine that is.
Wine consumption has steadily increased for years now as American consumers take more of a liking to this once intimidating beverage. Approachable, easy-to-read labels, eye-catching names and color-coded varietals have made the wine aisle a fun place to be. Any old Joe-schmo can pick up a bottle of wine without batting an eye, AND acquire the upscale image that comes with purchasing a bottle without actually having to know anything about it.
And it’s that “image” that drives consumers to increasingly trade up as well. Wine is one of life’s affordable little luxuries – such as an I-Pod, craft beer, organic food or eating at PF Changs - and so people are more willing to spend that extra bit of money on wine. The $9 and up bottle segment is the fasted growing in the category and continues to drive sales, while wines priced below $6 experience declines.
In addition to trading up, consumers are taking advantage of all the alternative packaging, including boxed wine, screw caps and the tetra pak.
That being said, wine consumption increased 2.9% in 2005, according to AC Nielsen, with domestic wines dominating the category at 73%. However, Americans love New World wines as a whole. New World wines are leading the growth in the import category with Australia at #1, and New Zealand and South Africa trailing behind. Italy and France are behind Australia as the second and third biggest import countries, while Spain and Germany are quickly growing in volume.
In food, drug and liquor stores, Pinot Noir and Chardonnay have gained share while white Zin and Cabernet Sauvignon have declined. Multiple varietals, such as Pinot Grigio, Riesling and Syrah are especially hot right now, led by Pinot Noir (thanks Sideways!). Red wine (42.5%) generally outsells white wine (40.8%) by a little bit, while blush wine (16.7%) share continues to go down in retail.
Wine consumption has steadily increased for years now as American consumers take more of a liking to this once intimidating beverage. Approachable, easy-to-read labels, eye-catching names and color-coded varietals have made the wine aisle a fun place to be. Any old Joe-schmo can pick up a bottle of wine without batting an eye, AND acquire the upscale image that comes with purchasing a bottle without actually having to know anything about it.
And it’s that “image” that drives consumers to increasingly trade up as well. Wine is one of life’s affordable little luxuries – such as an I-Pod, craft beer, organic food or eating at PF Changs - and so people are more willing to spend that extra bit of money on wine. The $9 and up bottle segment is the fasted growing in the category and continues to drive sales, while wines priced below $6 experience declines.
In addition to trading up, consumers are taking advantage of all the alternative packaging, including boxed wine, screw caps and the tetra pak.
That being said, wine consumption increased 2.9% in 2005, according to AC Nielsen, with domestic wines dominating the category at 73%. However, Americans love New World wines as a whole. New World wines are leading the growth in the import category with Australia at #1, and New Zealand and South Africa trailing behind. Italy and France are behind Australia as the second and third biggest import countries, while Spain and Germany are quickly growing in volume.
In food, drug and liquor stores, Pinot Noir and Chardonnay have gained share while white Zin and Cabernet Sauvignon have declined. Multiple varietals, such as Pinot Grigio, Riesling and Syrah are especially hot right now, led by Pinot Noir (thanks Sideways!). Red wine (42.5%) generally outsells white wine (40.8%) by a little bit, while blush wine (16.7%) share continues to go down in retail.
posted at 12:07 PM
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