THE PROLIFERATION OF BRANDS, A HIT AND STICK STRATEGY?
It seems like wine, spirits and beer companies are always pumping out new products whether it’s the latest critter label, a flavored vodka brand or a remote craft beer. This leads us to ask – are any of them making money? Nick Lake of Nielsen reports that in the 52 weeks to April 2007, wine by far had the highest number of new products in the past year at 1,659 SKUs, followed by beer at 682 and spirits at 645.
The nearly 2,000 new wine products introduced in the year to April generated roughly $109 million in sales, which makes up about 1.3% of total category sales. Nick reports that only 18 new SKUs (1%) achieved over $1 million in sales, however. Imported wines introduced a whopping 898 new products, while domestic wines released about 600.
In comparison, the spirits category rolled out 645 new SKUs in the past year, amounting to approximately $47 million in sales. New products represent 0.7% of total spirits category sales (same as beer). Only 10 SKUs (1.6%) achieved more than $1 million in sales. Most new spirits products fit in the cordials sub-category, 140 in all, followed by vodka at 127.
The beer industry had 682 new brands in the past year, producing close to $87 million in sales. Only 17 SKUs achieved over $1 million which amounts to 2.5% of new products.
Nick says “new items have the strongest impact in tequila, FMBs, and imported wines.”
In all, the alcohol beverage industry launched 3,717 new products, which makes up about 2.5% of the entire category. This appears in line with other consumer goods industries, because as we know, it’s hard to always know what the consumer wants.
The nearly 2,000 new wine products introduced in the year to April generated roughly $109 million in sales, which makes up about 1.3% of total category sales. Nick reports that only 18 new SKUs (1%) achieved over $1 million in sales, however. Imported wines introduced a whopping 898 new products, while domestic wines released about 600.
In comparison, the spirits category rolled out 645 new SKUs in the past year, amounting to approximately $47 million in sales. New products represent 0.7% of total spirits category sales (same as beer). Only 10 SKUs (1.6%) achieved more than $1 million in sales. Most new spirits products fit in the cordials sub-category, 140 in all, followed by vodka at 127.
The beer industry had 682 new brands in the past year, producing close to $87 million in sales. Only 17 SKUs achieved over $1 million which amounts to 2.5% of new products.
Nick says “new items have the strongest impact in tequila, FMBs, and imported wines.”
In all, the alcohol beverage industry launched 3,717 new products, which makes up about 2.5% of the entire category. This appears in line with other consumer goods industries, because as we know, it’s hard to always know what the consumer wants.
posted at 1:42 PM
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