Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Half of wine buyers consider themselves “beginners”
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- Figure 1: Wine behavior – Beginner, by generation, August 2016
- Wine is not widely viewed as an artisanal/craft product
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- Figure 2: Wine statements – Artisanal/craft, August 2016
- Industry terms don’t resonate with wine buyers
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- Figure 3: Wine statements – Wine terms, August 2016
- The opportunities
- Sparkling share of sales continues to grow
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- Figure 4: US volume sales of wine, by segment, 2011-21
- Smaller formats may drive trial
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- Figure 5: Wine statements – Full-size bottle, by “beginner,” August 2016
- 85% of wine buyers purchase more around the holidays
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- Figure 6: Wine behavior – Holiday purchase, August 2016
- What it means
The Market – What You Need to Know
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- Volume sales of wine grow 7% from 2011-16
- Sparkling share of sales continues to grow
- Domestic wine comprises a higher percent of volume sales
- Off-premise sales makes up the largest share of the market
- Beer leads alcohol consumption
Market Size and Forecast
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- Dollar sales of wine are estimated to reach $61 billion in 2016
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- Figure 7: Total US on- and off-premise sales and fan chart forecast of wine, at current prices, 2011-21
- Figure 8: Total US on- and off-premise sales and forecast of wine, at current prices, 2011-21
- Figure 9: Total US on- and off-premise sales and forecast of wine, at inflation-adjusted prices, 2011-21
- Volume sales of wine grow 7% from 2011-16
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- Figure 10: Total US volume sales and forecast of wine, 2011-21
- Figure 11: Total US volume sales and forecast of wine, 2011-21
Market Breakdown
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- Sparkling share of wine sales continues to grow
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- Figure 12: US volume sales of wine, by segment, 2011-21
- Domestic wine comprises higher percent of volume sales
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- Figure 13: US volume sales of wine, by origin, 2011-15
- Off-premise sales makes up the largest share of the market
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- Figure 14: US volume sales of wine, by channel, at current prices, 2011-15
Market Perspective
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- Beer leads alcohol consumption
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- Figure 15: Alcohol consumption – Any drink*, October 2015
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- Figure 16: Correspondence Analysis – Perceptions of alcoholic drink types, October 2015
- Figure 17: Perceptions of types of alcoholic drinks, October 2015
Key Players – What You Need to Know
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- 19% of wine drinkers consume Barefoot table wine offerings
- 94% of table wine launches are in bottles
- Cap closures are gaining share among table wine launches
- Cans are gaining share among sparkling wine launches
Leading Wine Brands
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- 19% of wine drinkers consumer Barefoot table wine offerings
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- Figure 18: Leading brands consumed – Domestic table wine, 2012 and 2016
- 9% of wine drinkers consume Yellow Tail table wine options
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- Figure 19: Leading brands consumed – Imported table wine, 2012 and 2016
- 10% of wine drinkers drink Korbel
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- Figure 20: Leading brands consumed – Champagne/sparkling wine, 2012 and 2016
- Taylor and Harvey’s Bristol Cream lead Port/dessert wines consumed
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- Figure 21: Leading brands consumed – Port/dessert wine, 2012 and 2016
What’s Working?
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- 94% of table wine launches are in bottles
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- Figure 22: Table wine launches, by leading pack type, 2012-16*
- Cap closures are gaining share among table wine launches
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- Figure 23: Table wine launches, by closure type, 2012-16*
- Cans are gaining share among sparkling wine launches
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- Figure 24: Champagne/sparkling wine launches, by leading pack type, 2012-16*
- Ethical claims are on the rise among table wine launches
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- Figure 25: Table wine launches, by leading claims, 2012-16*
What’s Next?
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- Packaging innovation can already be seen in the category
- Cans
- Smaller sizes
- Boxes
- Capitalizing on other alcoholic beverage trends
- Focus on craft
- Make it sparkle
- Wine cocktails
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- Figure 26: Wine statements – Innovation, by generation, August 2016
- Figure 27: “Barefoot Courtside Cup Cocktail,” online video, June 2016
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- Figure 28: “Shipwrecked Margarita – Sutter Home Wine Cocktails,” online video, July 2016
The Consumer – What You Need to Know
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- 54% of adults 22+ purchase still table wine, 28% purchase sparkling
- Half of wine buyers consider themselves “beginners”
- Price leads purchase decision
- Wine is not widely viewed as an artisanal/craft product
- Industry terms don’t resonate with wine buyers
- 85% of wine buyers purchase more wine around the holidays
Wine Purchase
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- More than half of adults purchase still table wine, a quarter purchase sparkling options
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- Figure 29: Wine purchase, August 2016
- Wine purchase is pretty evenly split between men and women
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- Figure 30: Share of wine purchase, by gender, August 2016
- Millennials and Boomers make up largest share of wine buyers
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- Figure 31: Share of wine purchase, by generation, August 2016
- Hispanics make up a small portion of wine buyers
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- Figure 32: Share of wine purchase, by Hispanic origin, August 2016
- Close to half of wine buyers are from the highest income-earning HHs
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- Figure 33: Share of wine purchase, by HH income, August 2016
Wine Experience
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- The majority of wine drinkers drink wine multiple times per week
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- Figure 34: Wine behavior – Consumption, August 2016
- Men are more likely to be frequent drinkers
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- Figure 35: Wine behavior – Consumption, by gender, August 2016
- Half of wine buyers consider themselves “beginners”
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- Figure 36: Wine behavior – Beginner, August 2016
- Men are less likely than women to identify as a “beginner”
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- Figure 37: Wine behavior – Beginner, by gender, August 2016
- Millennials are most likely to identify as wine beginners
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- Figure 38: Wine behavior – Beginner, by generation, August 2016
- Vast range intimidates 37% of wine buyers
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- Figure 39: Wine behavior – Intimidation, August 2016
- Younger drinkers are most likely in need of guidance
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- Figure 40: Wine behavior – Intimidation, by generation, August 2016
- Figure 41: Wine behavior – Intimidation, by “beginner,” August 2016
Wine Formats
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- Packaging
- 41% of wine buyers purchase wine in boxes
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- Figure 42: Wine behavior – Format purchased, August 2016
- Figure 43: Wine statements – Interest in cans, August 2016
- Millennials make up the majority of nonconventional format buyers
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- Figure 44: Wine behavior – Share of format purchased, by generation, August 2016
- Purchase of alternative formats increases with income
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- Figure 45: Wine behavior –Format purchased, by HH income, August 2016
- Alternative formats continue to struggle with perception
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- Figure 46: Wine statements – Perception of alternative formats, August 2016
- Men are more likely to be open to alternative formats
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- Figure 47: Wine statements – Perception of alternative formats, by gender, August 2016
- Figure 48: Wine statements – Interest in cans, by gender, August 2016
- Millennials are the strongest target for canned wine
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- Figure 49: Wine statements – Perception of alternative formats, by generation, August 2016
- Figure 50: Wine statements – Interest in cans, by generation, August 2016
- Smaller formats may drive trial
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- Figure 51: Wine statements – Full-size bottle, August 2016
- Millennials are attracted to smaller sizes
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- Figure 52: Wine statements – Full-size bottle, by generation, August 2016
- Smaller formats may open the door to “beginners”
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- Figure 53: Wine statements – Full-size bottle, by “beginner,” August 2016
- Origin
- US wine buyers are more likely to purchase domestic options
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- Figure 54: Wine behavior – type purchased, August 2016
- Lower-income HHs are less likely to purchase imported wine
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- Figure 55: Wine behavior –Type purchased, by HH income, August 2016
- Italian wine leads imported consumption in the US
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- Figure 56: Types of imported wine consumed – Country of origin, 2012 and 2016
- Styles
- Merlot and cabernet sauvignon are most popular domestic wine types consumed
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- Figure 57: Types of domestic wine consumed, 2012 and 2016
Wine Pricing
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- Wine buyers have a fairly high threshold for value wine pricing
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- Figure 58: Price sensitivity – Mean, August 2016
- Women have a lower tolerance for high price
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- Figure 59: Price sensitivity – Mean, by gender, August 2016
- Millennials are more likely to see wine in higher price points
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- Figure 60: Price sensitivity – Mean, by generation, August 2016
- Wine buyers who prioritize price have a lower threshold
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- Figure 61: Price sensitivity – Mean, by price as a purchase factor, August 2016
Purchase Location
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- Off-premise purchase leads
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- Figure 62: Wine purchase location, August 2016
- Men are a stronger target for online, on-premise purchase
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- Figure 63: Wine purchase location share, by gender, August 2016
- 61% of on-premise wine buyers are Millennials
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- Figure 64: Wine purchase location share, by generation, August 2016
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- Figure 65: Wine purchase location – Off-premise, by generation, August 2016
- Lower earning HHs almost solely buy their wine at supermarkets, mass
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- Figure 66: Wine purchase location, by HH income, August 2016
Purchase Drivers
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- Price leads purchase decision
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- Figure 67: Wine purchase drivers – Top rank and any rank, August 2016
- Women are more price conscious than men
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- Figure 68: Wine purchase drivers – Any rank, by gender, August 2016
- Older wine buyers seek more traditional cues, Millennials look for recommendations
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- Figure 69: Wine purchase drivers – Any rank, by generation, August 2016
- Beginners are more likely to use price as a purchase factor
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- Figure 70: Wine purchase drivers – Any rank, by “beginner”, August 2016
- Price plays a smaller role among on-premise buyers
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- Figure 71: Wine purchase drivers – Any rank, by purchase location (Nets), August 2016
- Recommendations are useful to online shoppers
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- Figure 72: Wine purchase drivers – Any rank, by off-premise purchase location, August 2016
- Local does not appear as a strong purchase driver
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- Figure 73: Wine statements – Local, August 2016
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- Figure 74: Wine statements – Local, by generation, August 2016
Attitudes toward Wine
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- Wine is not widely viewed as an artisanal/craft product
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- Figure 75: Wine statements – Artisanal/craft, August 2016
- Industry terms don’t resonate with wine buyers
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- Figure 76: Wine statements – Wine terms, August 2016
- Straightforward descriptors are most likely to resonate with women
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- Figure 77: Wine statements – Wine terms, by gender, August 2016
- Appealing to Boomers can come from simplifying wine language
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- Figure 78: Wine statements – Wine terms, by generation, August 2016
- Those who base purchase decision on descriptors want simple ones
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- Figure 79: Wine statements – Wine terms, by importance of descriptions in purchase decision, August 2016
- Wine professionals are looked to for simple, straightforward guidance
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- Figure 80: Wine statements – Wine terms, by importance of recommendations in purchase decision, August 2016
- Figure 81: Wine statements – Wine terms, by wine experience, August 2016
- A quarter of wine drinkers are open to casualization
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- Figure 82: “Anthem,” online video, April 2016
- Figure 83: Wine statements – Casual, August 2016
Holiday Purchase
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- 85% of wine buyers purchase more around the holidays
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- Figure 84: “Add Sparkle to Your Table,” online video, December 2016
- Figure 85: “Woodbridge Chardonnay Applesauce,” online video, October 2016
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- Figure 86: “Woodbridge Pinot Garlic Butter,” online video, September 2016
- Figure 87: Wine behavior – Holiday purchase, August 2016
- The holidays are a good time to engage Millennial wine buyers
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- Figure 88: Wine behavior – Holiday purchase, by generation, August 2016
- Holiday gifting is a strong sales opportunity for high-income earners
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- Figure 89: Wine behavior – Holiday purchase, by HH income, August 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- Figure 90: US volume sales of wine, by segment, 2011-21
- Figure 91: US volume sales of wine, by origin, 2011-15
- Figure 92: US volume sales of table wine, by origin, 2011-15
- Figure 93: US volume sales of Champagne/sparkling wine, by origin, 2011-15
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- Figure 94: US volume sales of dessert and fortified wine, by origin, 2011-15
- Figure 95: US volume sales of wine, by channel, at current prices, 2011-15
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Appendix – Key Players
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- Figure 96: Leading brands consumed – domestic table wine, 2012-16
- Figure 97: Leading brands consumed – imported table wine, 2012-16
- Figure 98: Leading brands consumed – Champagne/sparkling wine, 2012-16
- Figure 99: Leading brands consumed – Port/dessert wine, 2012-16
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- Figure 100: Table wine launches, by pack type, 2012-16*
- Figure 101: Table wine launches, by closure type, 2012-16*
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- Figure 102: Champagne/sparkling wine launches, by leading pack type, 2012-16*
- Figure 103: Table wine launches, by leading claims, 2012-16*
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- Figure 104: Champagne/sparkling wine launches, by leading claims, 2012-16*
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Appendix – Consumer
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- Figure 105: Mean # glasses consumed, 2012-16
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- Figure 106: Types of domestic wine consumed, 2012-16
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- Figure 107: Leading types of domestic wine consumed, by age, 2016
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- Figure 108: Types of imported wine consumed – country of origin, 2012-16
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- Figure 109: Types of imported wine consumed – country of origin, by age, 2016
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