HAVE CRITTER LABELS SEEN THEIR DAY?
The influx of critter brands has been huge over the past couple of years, ever since a little brand called Yellow Tail (you may have heard of it) made a not-so-little impact in the U.S. – and now everybody wants a piece of the animal pie.
Or do they? WSD predicts that 2007 will be the beginning of the end when it comes to critter labels, although some might argue the end has already begun. But before we delve into our theory, let’s take a look at the record breaking numbers these cuddly labels have generated.
In March of 2006, ACNielsen put out a report dealing directly with our delectable friends. Not surprising, but shocking nonetheless, the study found that 77 (18%) of the 438 sustainable table wine brands introduced in the past three years feature animals on the bottle.
In combination with existing critter labels, sales of critter-branded wine reached over $600 million while new critter brands alone accumulated $74 million. In fact, the critter labels among the top 125 table wine brands account for almost 15% of category sales in food stores and outsell non-critter brands more than 2.5 to 1.
It’s not just that they’re cute to look at. About 5% of Critter labels tend to be priced at a slight premium as compared to traditional table wine, but are sold more on promotion and featured in displays than the rest of the category. There’s certainly a sizable consumer segment (usually millennials) that prefer the easy-to-read, colorful appeal that critter brands bring.
So case in point, most critter labels aren’t hurting for scratch. And who benefited the most from critter labels’ phenomenal success? Why Yellow Tail of course. For the first time an Australian import (Yellow Tail) became the top overall wine in dollar sales in the U.S. – a spot that was previously reserved for Beringer or Kendall Jackson. Remarkably, Yellow Tail produced sales of $621 million in 2005, up from its third place position in 2004, and accounts for 11% of the imported table wine market by volume.
But where there’s popularity, a backlash is sure to follow.
“It’s not just about the Yellow Tail and the critter label brands. It’s about quality. It’s about what’s inside the bottle, not necessarily outside – although packaging is a part of marketing,” said Scott McWilliam of McWilliam’s Winery.
He pointed out that nowadays, going into the wine aisle is like going to the zoo, and called critter labels “roadkill.”
Certainly there are others in the industry that follows Scott’s sentiments. WSD suspects that consumers may eventually turn from the familiar critter-faced labels to something they perceive as superior, perhaps returning to the labels of yore. According to an article in San Francisco Chronicle, even Constellation is turning its back on critter brands.
The company “has started speaking not in terms of an animal category but instead of ‘adventure labels,’ which lump emus and moose together with such brands as Twin Fin, which features surfboards and a convertible on the beach,” wrote Jon Bonne, wine editor of San Francisco Chronicle.
Critter labels have catapulted consumers, and vintners, into a new wave of advertising for the wine industry. They have taught consumers to purchase wine as an extension of their own personality, which may eventually end up hurting those now mainstream brands once consumers start looking for the next big thing. Today’s consumers are looking to trade up, to purchase goods that stand alone and hopefully above what their friends and peers buy. Once the product no longer defines them as an individual, they will look elsewhere.
It’s true, great packaging is vital, but once the label becomes more important than the wine inside, the brand is going to have problems – at least in the long-term. Thankfully, critter labels have succeeded in making wine a more mainstream, popular product while simultaneously launching a new wave of easy to drink wines. They’ve also served as an outlet for excess wine as many countries in the industry have faced grape gluts (but that’s a whole other article).
We think in the future, wine companies will likely opt for simpler, perhaps classier labels to stand out among the hundreds of critter brands roaming the aisles. In a way, critter brands serve as a gateway wine. They’re great for reeling consumers into the category, but once a wine-drinker learns more about what’s out there, they’ll likely move onto more sophisticated labels.
Or do they? WSD predicts that 2007 will be the beginning of the end when it comes to critter labels, although some might argue the end has already begun. But before we delve into our theory, let’s take a look at the record breaking numbers these cuddly labels have generated.
In March of 2006, ACNielsen put out a report dealing directly with our delectable friends. Not surprising, but shocking nonetheless, the study found that 77 (18%) of the 438 sustainable table wine brands introduced in the past three years feature animals on the bottle.
In combination with existing critter labels, sales of critter-branded wine reached over $600 million while new critter brands alone accumulated $74 million. In fact, the critter labels among the top 125 table wine brands account for almost 15% of category sales in food stores and outsell non-critter brands more than 2.5 to 1.
It’s not just that they’re cute to look at. About 5% of Critter labels tend to be priced at a slight premium as compared to traditional table wine, but are sold more on promotion and featured in displays than the rest of the category. There’s certainly a sizable consumer segment (usually millennials) that prefer the easy-to-read, colorful appeal that critter brands bring.
So case in point, most critter labels aren’t hurting for scratch. And who benefited the most from critter labels’ phenomenal success? Why Yellow Tail of course. For the first time an Australian import (Yellow Tail) became the top overall wine in dollar sales in the U.S. – a spot that was previously reserved for Beringer or Kendall Jackson. Remarkably, Yellow Tail produced sales of $621 million in 2005, up from its third place position in 2004, and accounts for 11% of the imported table wine market by volume.
But where there’s popularity, a backlash is sure to follow.
“It’s not just about the Yellow Tail and the critter label brands. It’s about quality. It’s about what’s inside the bottle, not necessarily outside – although packaging is a part of marketing,” said Scott McWilliam of McWilliam’s Winery.
He pointed out that nowadays, going into the wine aisle is like going to the zoo, and called critter labels “roadkill.”
Certainly there are others in the industry that follows Scott’s sentiments. WSD suspects that consumers may eventually turn from the familiar critter-faced labels to something they perceive as superior, perhaps returning to the labels of yore. According to an article in San Francisco Chronicle, even Constellation is turning its back on critter brands.
The company “has started speaking not in terms of an animal category but instead of ‘adventure labels,’ which lump emus and moose together with such brands as Twin Fin, which features surfboards and a convertible on the beach,” wrote Jon Bonne, wine editor of San Francisco Chronicle.
Critter labels have catapulted consumers, and vintners, into a new wave of advertising for the wine industry. They have taught consumers to purchase wine as an extension of their own personality, which may eventually end up hurting those now mainstream brands once consumers start looking for the next big thing. Today’s consumers are looking to trade up, to purchase goods that stand alone and hopefully above what their friends and peers buy. Once the product no longer defines them as an individual, they will look elsewhere.
It’s true, great packaging is vital, but once the label becomes more important than the wine inside, the brand is going to have problems – at least in the long-term. Thankfully, critter labels have succeeded in making wine a more mainstream, popular product while simultaneously launching a new wave of easy to drink wines. They’ve also served as an outlet for excess wine as many countries in the industry have faced grape gluts (but that’s a whole other article).
We think in the future, wine companies will likely opt for simpler, perhaps classier labels to stand out among the hundreds of critter brands roaming the aisles. In a way, critter brands serve as a gateway wine. They’re great for reeling consumers into the category, but once a wine-drinker learns more about what’s out there, they’ll likely move onto more sophisticated labels.
posted at 2:19 PM
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