RED WINE FLYING OFF SHELVES
After researchers at The Harvard Medical School and the National Institute of Aging announced that a natural substance in red wine, resveratrol, helped extend and improve the health of middle-aged, obese mice, red wine has flown off the shelves. At the beginning of November, virtually every major newspaper in the country had a story on its front page suggesting that consumption of red wine may help people live longer.
Although red wine typically increases share in the colder months, sales doubled their expected growth rate last month, setting a new record in market share of total wine consumed by U.S. consumers.
Lower-priced wines (like Yellow Tail) have especially benefited from the health news, reportedly more than premium wines.
"Consumers are drawn to trustworthy sources providing hope for anti-aging elixirs," stated Danny Brager, VP client service for ACNielsen's Beverage Alcohol Team.
ACNielsen data shows that for the four weeks ending Nov. 18, red wines accounted for a new high of 52.4% of table wine dollar sales in U.S. food, drug and liquor stores, compared to just under 50% in the immediately preceding 4-week period. Furthermore, red wine was up 51% in the comparable period a year ago.
Red wine volume sales had been growing at 3.3% for the full year ending just prior to the recent favorable press. They then shot ahead by almost double that to a growth rate of 8.3% for the most recent 4-week period vs. last year, and over 11% in dollar gains.
The overall surge in red wine sales led to a very strong increase in sales for the entire table wine category, up by 4.3% in volume and 8.4% in dollars, representing an increase of almost $50 million in retail sales vs. the same period last year across U.S. food, drug, and liquor stores.
"When you combine this press with the overall increase of older age groups within the U.S., it's very reasonable to assume that there is a strong linkage between the red wine sales trends we see, and credible medical studies related to the subject of health," said ACNielsen's Brager.
Not only has red wine shot through the roof, but resveratrol supplements have reached an unprecedented high.
HOW CAN WINERIES MARKET THE HEALTH BENEFITS? Although federal law prevents wineries from advertising health benefits, there are certainly brand positioning moves they can use to take advantage of the recent findings. However, until regulations are changed or modified, wine companies will have to refrain from blatantly advertising what might be one of the best free publicities the industry has ever received.
Michael Mondavi of Folio Fine Wine Partners told the New York Times: “Yes, we’d all like to make hay of this, and we’ll do what we can, but we are very constrained.”
“We have to sit on our hands and wait for someone else to pick up the story.”
Although red wine typically increases share in the colder months, sales doubled their expected growth rate last month, setting a new record in market share of total wine consumed by U.S. consumers.
Lower-priced wines (like Yellow Tail) have especially benefited from the health news, reportedly more than premium wines.
"Consumers are drawn to trustworthy sources providing hope for anti-aging elixirs," stated Danny Brager, VP client service for ACNielsen's Beverage Alcohol Team.
ACNielsen data shows that for the four weeks ending Nov. 18, red wines accounted for a new high of 52.4% of table wine dollar sales in U.S. food, drug and liquor stores, compared to just under 50% in the immediately preceding 4-week period. Furthermore, red wine was up 51% in the comparable period a year ago.
Red wine volume sales had been growing at 3.3% for the full year ending just prior to the recent favorable press. They then shot ahead by almost double that to a growth rate of 8.3% for the most recent 4-week period vs. last year, and over 11% in dollar gains.
The overall surge in red wine sales led to a very strong increase in sales for the entire table wine category, up by 4.3% in volume and 8.4% in dollars, representing an increase of almost $50 million in retail sales vs. the same period last year across U.S. food, drug, and liquor stores.
"When you combine this press with the overall increase of older age groups within the U.S., it's very reasonable to assume that there is a strong linkage between the red wine sales trends we see, and credible medical studies related to the subject of health," said ACNielsen's Brager.
Not only has red wine shot through the roof, but resveratrol supplements have reached an unprecedented high.
HOW CAN WINERIES MARKET THE HEALTH BENEFITS? Although federal law prevents wineries from advertising health benefits, there are certainly brand positioning moves they can use to take advantage of the recent findings. However, until regulations are changed or modified, wine companies will have to refrain from blatantly advertising what might be one of the best free publicities the industry has ever received.
Michael Mondavi of Folio Fine Wine Partners told the New York Times: “Yes, we’d all like to make hay of this, and we’ll do what we can, but we are very constrained.”
“We have to sit on our hands and wait for someone else to pick up the story.”
posted at 2:00 PM
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