CALIFORNIA WINE, AN AFFORDABLE LUXURY
With all the complaints of bulk wine shipments lately, it’s easy to forget just how good California has it.
The consumer trend of “trading up” has taken a positive toll on California wine as it continues to dominate the premium category of bottles costing $15 and up, according to an economic study released Thursday by MKF Research. Good news for California, especially since the premium and super-premium wine sector is only expected to grow.
Based on 2005 sales, the study found that California has cornered about 85% of the U.S. market for the $15 and up sector, which may be one reason why the industry generated nearly $52 billion last year for the California economy, the report said.
The sub-premium sector is where the problem lies. California wines are losing out to imports in the under-$8 segment, especially critter labels (Yellow Tail), that often attracts younger buyers. It’s for that reason that imports account for about 27% of wine consumed in the U.S., up from 18% in 1998, according to MKF.
WINE ISN’T SCARY ANYMORE. If you haven’t noticed, wine has slowly become a drink for the masses, and it all has to do with its presentation. Marketing is everything.
Yellow Tail. Red Bicycle. Little Penguin. Smoking Loon. The latest group of imports is making waves here at home with its clever marketing and catchy appearances. The new labels featuring wild colors, names and pictures appeal mostly to younger generations, like millennials – so much so that companies like Kendall Jackson and The Wine Group have launched divisions designed specifically to market to that age group.
The leading importer in 2005 was Italy, according to the report, and Australia was second, largely because of the popularity of Yellow Tail wines that sold about 8 million cases in the U.S. last year. The countries with the biggest growth in imports were New Zealand and South Africa, but each represents less than 1% of wine sales in the U.S.
The consumer trend of “trading up” has taken a positive toll on California wine as it continues to dominate the premium category of bottles costing $15 and up, according to an economic study released Thursday by MKF Research. Good news for California, especially since the premium and super-premium wine sector is only expected to grow.
Based on 2005 sales, the study found that California has cornered about 85% of the U.S. market for the $15 and up sector, which may be one reason why the industry generated nearly $52 billion last year for the California economy, the report said.
The sub-premium sector is where the problem lies. California wines are losing out to imports in the under-$8 segment, especially critter labels (Yellow Tail), that often attracts younger buyers. It’s for that reason that imports account for about 27% of wine consumed in the U.S., up from 18% in 1998, according to MKF.
WINE ISN’T SCARY ANYMORE. If you haven’t noticed, wine has slowly become a drink for the masses, and it all has to do with its presentation. Marketing is everything.
Yellow Tail. Red Bicycle. Little Penguin. Smoking Loon. The latest group of imports is making waves here at home with its clever marketing and catchy appearances. The new labels featuring wild colors, names and pictures appeal mostly to younger generations, like millennials – so much so that companies like Kendall Jackson and The Wine Group have launched divisions designed specifically to market to that age group.
The leading importer in 2005 was Italy, according to the report, and Australia was second, largely because of the popularity of Yellow Tail wines that sold about 8 million cases in the U.S. last year. The countries with the biggest growth in imports were New Zealand and South Africa, but each represents less than 1% of wine sales in the U.S.
posted at 1:15 PM
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