WINE LEADS GROWTH IN 2006
On behalf of Danny Brager of The Nielsen Company (formerly ACNielsen), WSD has gotten hold of wine and spirits trends for 2006. The majority of the data reflects the 52 week period ending January 13 as compared to the same period a year ago. Today we will present a little overview of all three alcohol beverage categories, and then focus more closely on wine and spirits throughout the week.
The wine category demonstrated the most percentage gains, followed by spirits, while beer remained the leader in absolute dollar gains and showed signs of recovery in 2006. Nevertheless, beer continues to lose share to wine and spirits.
In the 52 week period versus a year ago, wine sales grew 6.9% while volume was up 2.5%. Spirits value and volume increased 3% and 0.4%, respectively, while beer sales were up 3.2% and volume grew 0.9%. According to Nielsen, volume growth gaps have narrowed considerably through time, particularly over the past year.
Trading up remains a key trend in all three segments. According to Nielsen, “consumers are choosing products that ‘taste good’, ‘are good for you’, and allow them to indulge and feel good about themselves.” The result? The average price paid by consumers has risen. The average price by case for wine increased 4.1% to $5.66 from $5.44 the previous year. Beer grew 2% from $4.30 to $4.39, and spirits increased 2.6%, from $11.04 to $11.32. Price per serving grew 4.1% for wine, 2% for beer and 2.6% for spirits.
Wine and beer sales continued to be impacted by promotions (ads, displays, and TPR’s) much more so than spirits, while promotion volume increases surpassed non-promotion gains for both wine and spirits. Promotion dollars grew fastest for wine (up 7.5% from last year) and spirits (up 4%). Non-promotion dollars grew for all three categories, with wine taking the lead.
Grocery generally outperformed drug and liquor channels, while convenience stores remained a “very strong format,” especially for beer. Wine and spirits sales saw the most growth in food and convenience channels.
Beer sold the most in c-stores and by far did the best in the off-premise category, while wine sold the most in food stores. Likely due to various state regulations, spirits excelled in liquor stores.
The wine category demonstrated the most percentage gains, followed by spirits, while beer remained the leader in absolute dollar gains and showed signs of recovery in 2006. Nevertheless, beer continues to lose share to wine and spirits.
In the 52 week period versus a year ago, wine sales grew 6.9% while volume was up 2.5%. Spirits value and volume increased 3% and 0.4%, respectively, while beer sales were up 3.2% and volume grew 0.9%. According to Nielsen, volume growth gaps have narrowed considerably through time, particularly over the past year.
Trading up remains a key trend in all three segments. According to Nielsen, “consumers are choosing products that ‘taste good’, ‘are good for you’, and allow them to indulge and feel good about themselves.” The result? The average price paid by consumers has risen. The average price by case for wine increased 4.1% to $5.66 from $5.44 the previous year. Beer grew 2% from $4.30 to $4.39, and spirits increased 2.6%, from $11.04 to $11.32. Price per serving grew 4.1% for wine, 2% for beer and 2.6% for spirits.
Wine and beer sales continued to be impacted by promotions (ads, displays, and TPR’s) much more so than spirits, while promotion volume increases surpassed non-promotion gains for both wine and spirits. Promotion dollars grew fastest for wine (up 7.5% from last year) and spirits (up 4%). Non-promotion dollars grew for all three categories, with wine taking the lead.
Grocery generally outperformed drug and liquor channels, while convenience stores remained a “very strong format,” especially for beer. Wine and spirits sales saw the most growth in food and convenience channels.
Beer sold the most in c-stores and by far did the best in the off-premise category, while wine sold the most in food stores. Likely due to various state regulations, spirits excelled in liquor stores.
posted at 4:36 PM
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