“The market hears about fragmentation quite a bit, but its effects can’t be underestimated—even in categories that have historically boasted clearly defined paths-to-purchase. Today, information is everywhere, choice is rampant, and even the most traditional consumer journeys are shifting.”
Domestic table wines dominate the wine scene in restaurants, bars and other on-premise locations, according to a new report from Technomic. Generating $10.8 billion in sales, domestic table wine volume grew 1.2% to reach 48.1 million 9-liter cases and account for 69.4% of total on-premise wine in 2012. By comparison, imported table wine volume has been essentially flat, according to Technomic’s 2013 BarTAB report.
Beer has increased its edge over wine as the favorite adult beverage for U.S. consumers. And the overall consumption of these beverages has increased in the past year. These shifts in the market give advertisers plenty of reason to develop new campaigns for the upcoming holiday season.
Common wisdom has long held that the most lucrative market for wineries and wine retailers is comprised of older consumers who can afford expensive bottles of their favorite varietal. But new research suggests that marketers should rethink their assumptions. It turns out that a significant number of Millennials are regular wine drinkers
After enjoying robust growth rates for many years, wine producers and retailers have been struggling to regain momentum since the recession upended the economy. Merchants in this sector can optimize their performance by identifying and targeting the proper consumer groups. Promoting the beverage through the channels with the highest customer loyalty can also make a difference.
Consumers may be feeling a little better about the economy, but they haven’t returned to the free-spending ways that marked the boom years. For wine retailers, the new economic reality has meant stocking more inventory in the $10-$20 a bottle range. Nearly 6 in 10 wine merchants report that consumers have cut back their wine budget. But creative marketing tactics can help to boost sales.
Wine is quickly becoming a favorite beverage of choice for consumers as I noted in a blog post last month. For the first time ever, the number of consumers who prefer wine, 35%, is approaching the number who prefer beer, 36%. This shift in consumer preferences has big implications for marketers.
For decades, beer has been the top selling adult beverage, by volume, in the U.S. But wine has been steadily growing as a favorite drink and now enjoys a market position that threatens beer. In addition, younger drinkers are increasingly turning to wine, a situation that could threaten the future of beer. This trend is almost guaranteed to generate new marketing campaigns.
This holiday season consumers are sure to be lifting their glasses without guilt as Mintel research found that 85% of imbibers believe drinking wine in moderation can be good for your overall health. Consumers are also more likely to drink wine during the holiday season. Sixty-six percent of wine drinkers say they frequently drink wine on holidays and special occasions at home, compared to 22% who say they frequently drink wine at bars and 18% who say they drink wine at restaurants without a meal. “Wine consumption increases around the holidays, as does the average amount spent on a bottle,” adds Garima Goel Lal, senior analyst at Mintel. “The average amount spent for a special occasion or holiday party is about $26.71 per bottle, but the spending drops by roughly $4 per bottle when wine consumers drink wine at a restaurant or nightclub.”