WINE SALES GIVE A BOOST TO RETAILERS
Table wine continues to be the fastest growing segment among alcoholic beverages, including beer and spirits. In 2005, table wine dollar sales in the food channel ran laps around beer, which posted 1.4% gains as compared to 8.7% in the wine category. Table wine only slightly outpaced spirits, however, which experienced a growth of 8.3%. Liquor and drug channel showed similar trends, according to an ACNielsen study.
U.S. consumers are also spending more money on wine, increasing sales by 8.6% as compared to spirits and beer, which posted gains of 5.5% and only 0.7%. The data does not necessarily suggest that beer is losing out because it is still the most widely consumed alcoholic beverage. It does, however, hold testament to the table wine category’s surging popularity. Consumers are exhibiting an increasingly positive attitude toward the category as a whole, mainly due to influencers, like friends and family, and the almighty media/television/movie industries. As a result, wine is becoming much more of an everyday drinking occasion, especially premium table wine.
Table wine sales priced at $15 or higher shot up 18.2%, while wine priced at $12-$14.99 increased 16% and wine costing $9-$11.99 jumped 12.8%. Wines ranging less than $6 declined significantly, growing only 2.7%. A majority of people that drink wine want to come across as educated, experienced wine drinkers whether they are or not, which tends to prompt more expensive purchases.
Along with the desire to fit a certain image, most Americans feel they are getting a better quality wine if it costs more, which also factors into the slight increase in import consumption. Imports were up 0.5% this year, while domestic wines were down 1.1%. Australian imports continue to lead the way with a 39% volume share, up 9% from last year, with Italian and French imports ranking second and third.
Packaging also serves as a major determinant in wine sales, specifically “critter labels,” which refers to a wine label that features a depiction of an animal. Critter wines account for nearly 15% of the table wine category and significantly outpace sales of regular table wine (29% to 10.7%) According to ACNielsen, wine producers introduced 77 new critter brands in 2005 alone.
Grocery stores and liquor stores continue to be the dominant channels for the wine category, but clubs, supercenters, and natural food stores are leading the way in growth. ACNielsen reported that in 2005, natural food stores led all other channels in sales growth, up 19.7%, by focusing on nontraditional, higher-end brands (niche wine labels are currently more popular than larger brands.) C-stores surprisingly grew 18.1%, while the drug store channel holds the lowest position at 4%.
Table wine shows no promise of slowing down. It continues to dominate beer and spirits in terms of growth, and ranked as the second fastest growing category among all of the top 25 food and beverage categories that ACNielsen covers. Even retailers are adapting their wine aisles to fit consumers’ preferences. Progressive Grocer reports that many retailers are replacing tiled floors with hardwood, and moving to warm incandescent fixtures in the wine section. Furthermore, Target and Wal-Mart both announced plans to expand their respective wine aisles to keep pace with growing demands.
U.S. consumers are also spending more money on wine, increasing sales by 8.6% as compared to spirits and beer, which posted gains of 5.5% and only 0.7%. The data does not necessarily suggest that beer is losing out because it is still the most widely consumed alcoholic beverage. It does, however, hold testament to the table wine category’s surging popularity. Consumers are exhibiting an increasingly positive attitude toward the category as a whole, mainly due to influencers, like friends and family, and the almighty media/television/movie industries. As a result, wine is becoming much more of an everyday drinking occasion, especially premium table wine.
Table wine sales priced at $15 or higher shot up 18.2%, while wine priced at $12-$14.99 increased 16% and wine costing $9-$11.99 jumped 12.8%. Wines ranging less than $6 declined significantly, growing only 2.7%. A majority of people that drink wine want to come across as educated, experienced wine drinkers whether they are or not, which tends to prompt more expensive purchases.
Along with the desire to fit a certain image, most Americans feel they are getting a better quality wine if it costs more, which also factors into the slight increase in import consumption. Imports were up 0.5% this year, while domestic wines were down 1.1%. Australian imports continue to lead the way with a 39% volume share, up 9% from last year, with Italian and French imports ranking second and third.
Packaging also serves as a major determinant in wine sales, specifically “critter labels,” which refers to a wine label that features a depiction of an animal. Critter wines account for nearly 15% of the table wine category and significantly outpace sales of regular table wine (29% to 10.7%) According to ACNielsen, wine producers introduced 77 new critter brands in 2005 alone.
Grocery stores and liquor stores continue to be the dominant channels for the wine category, but clubs, supercenters, and natural food stores are leading the way in growth. ACNielsen reported that in 2005, natural food stores led all other channels in sales growth, up 19.7%, by focusing on nontraditional, higher-end brands (niche wine labels are currently more popular than larger brands.) C-stores surprisingly grew 18.1%, while the drug store channel holds the lowest position at 4%.
Table wine shows no promise of slowing down. It continues to dominate beer and spirits in terms of growth, and ranked as the second fastest growing category among all of the top 25 food and beverage categories that ACNielsen covers. Even retailers are adapting their wine aisles to fit consumers’ preferences. Progressive Grocer reports that many retailers are replacing tiled floors with hardwood, and moving to warm incandescent fixtures in the wine section. Furthermore, Target and Wal-Mart both announced plans to expand their respective wine aisles to keep pace with growing demands.
posted at 1:48 PM
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