Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
Executive Summary
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- Recession changes consumer perceptions about wine
- Competitive context: The influence of price
- Positive and negative market factors create a neutral outlook
- Domestic wines control market—gaining acceptance amid recession
- Supercenters and club stores provide growth
- Changing dynamics among top suppliers to market
- Brand focus: Black Box Wines
- Innovation works to evolve category to increase appeal
- The wine consumer
- Trends in household wine consumption
- Choices in retail and packaging
- Attitudes about wine
- Attitudes towards spending
Insights and Opportunities
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- Going after the competition
- Wooing the cocktail consumer
- Wine can be a good value and cool, too
- Marketing to men
Inspire Trends
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- Trial without error
- What’s it about
- What we have seen
- Implications for the wine industry
- Indigenous Wines
- What’s it about
- What we’ve seen
- Implications
Market Size and Forecast
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- Key points
- Wine sales drop influenced by changing consumer behavior
- Signs of stabilization in 2009
- What’s in store
- Sales and forecast of wine
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- Figure 1: Total U.S.* sales and forecast of wine** at current prices, 2004-14
- Figure 2: Total U.S.* sales and forecast of wine** at inflation-adjusted prices, 2004-14
Competitive Context
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- Competition from other alcoholic beverages
- Beer advantage: Inexpensive and widely promoted
- Spirits: Costly but offer flavor diversity
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- Figure 3: Trends in table wine consumption versus other alcoholic beverages, 2004, 2006, and 2009
- Ongoing recession hurts wine sales
- Trading down…
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- Figure 4: Trends in table wine consumption, by retail price segment, 2005, 2007, and 2008
- … and out
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- Figure 5: Impact of recession on alcoholic beverage choice, July 2009
Segment Performance
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- Key points
- Domestic wines fuel growth and dominate sales
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- Figure 6: Total U.S. volume sales of table wine, domestic vs imported, 2004-08
- Figure 7: Total U.S. volume sales of table wine, domestic vs imported, 2006 and 2008
Segment Performance—Domestic Wine
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- Key points
- Price increases aide dollar sales over time; recession modifies behavior
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- Figure 8: Total FDMx dollar and volume sales and average price of domestic wine, 2004-08
- Domestic wine sales through FDMx growing faster than total market
- Sales and forecast—domestic wine
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- Figure 9: Total U.S. volume sales of domestic wine, 2004-08
Segment Performance—Imported Wine
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- Key points
- Critter brands attract new consumers and add dollar sales
- Trading down trend impacts imported wines
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- Figure 10: Total FDMx dollar and volume sales and average price of imported wine, 2004-08
- Sales and forecast—imported wine
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- Figure 11: Total U.S. volume sales of Imported wine, 2004-08
Retail Channels
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- Key points
- On-premise sales fall due to pull back in restaurant spending
- Consumers looking for retail outlets offering best wine prices
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- Figure 12: U.S.* sales of wine**, by retail channel, 2007 and 2009
Retail Channels—On-premise
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- Key points
- Recession causes consumer pull back in restaurant spending
- Stabilizing sales in 2009
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- Figure 13: Consumer Sentiment Index, by quarter, 2001-09
- On-premise wine sales
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- Figure 14: U.S. sales of wine at on-premise channels, 2004-09
Retail Channels—Other
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- Key points
- Steady decline in “other” outlets due to increased competition
- Other channel wine sales
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- Figure 15: U.S. sales of wine at other channels, 2004-09
Retail Channels—Supermarkets
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- Key points
- Growth slows
- Supermarkets cater to price-sensitive consumer
- Supermarket wine sales
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- Figure 16: U.S. sales of wine at supermarkets, 2004-09
Retail Channels—Supercenters and Warehouse Clubs
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- Key points
- Driving market sales through retail expansion
- Reputation for value
- Supercenter and warehouse club wine sales
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- Figure 17: U.S. sales of wine at supercenters and warehouse clubs, 2004-09
Retail Channels— Natural Channel
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- Sales of wine in the natural channel
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- Figure 18: Natural product supermarket retail sales of wine, at current prices, 2007-09*
- Figure 19: Natural product supermarket retail sales of wine, at inflation-adjusted prices, 2007-09*
- Red wine is the best seller at natural channel
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- Figure 20: Natural product supermarket retail sales of wine, by segment, 2007 and 2009
Market Drivers
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- Baby boomers key consumers; Millennials offer growth potential
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- Figure 21: Population aged 21 or older, 2004-14
- Women are primary consumers, but are budget-conscious
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- Figure 22: Female population, by age, 2004-14
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- Figure 23: Consumption of table wine versus other alcoholic beverages, by gender, February 2008-March 2009
- Wine’s connection with good health promotes growth
- Restaurant wine sales challenged by poor economic conditions
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- Figure 24: Restaurant spend compared to last year, February 2009
- Economic woes put pressure on blue laws
- Foreign trade
- Imports
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- Figure 25: Imports of wine to the U.S, by exporting country, 2004-09
- Exports
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- Figure 26: Exports of wine from the U.S, by importing country, 2004-09
Leading Companies
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- Key points
- Changing dynamics among top suppliers to wine market
- E. & J. Gallo continues to dominate market
- The Wine Group aligning with value
- Constellation Brands “premiumizing” its brand portfolio
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- Figure 27: Wine sales of leading companies, by volume, 2007 and 2008
Brand Share—Domestic Wine
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- Key points
- Unpretentious, value-priced wines deliver strong growth
- Premium wines struggle amid changing consumer perception of wines
- Manufacturer and brand sales—domestic wine
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- Figure 28: Selected domestic wine brand sales by volume, 2007 and 2008
Brand Share—Imported Wine
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- Key points
- Growth for Yellow Tail stifled by rising prices for imported wines
- Leading imported brands yield above-average performance
- Manufacturer and brand sales—imported wine
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- Figure 29: Selected imported wine brand sales by volume, 2007 and 2008
Brand Qualities
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- Black Box: Crushing the box wine stereotype
Innovation and Innovators
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- Key points
- Packaging innovation continues in the category
- Screw caps
- Environmentally-friendly packaging: An effort to attract “green” consumers
- Wine on the go for active lifestyle
- Unique and non-traditional wine labels
- Wine with animal, critter names
- Celebrity-inspired labels
- Artisan wine
- Wine targeted to be paired with certain foods
- Fruit wines
- Organic and fair-trade certified wines
Advertising and Promotion
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- Wine experiences the biggest cut in marketing spend among all alcoholic beverages
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- Figure 30: Advertising expenditure, alcoholic beverages, by sector, 2007 and 2008
- Major players axe advertising and promotion
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- Figure 31: Advertising expenditure on wine, by producer and brand, 2007-08
- Print advertising
- TV advertising
- Yellow tail ads deviate from the traditional: an effort to bring young and cool to drink wine
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- Figure 32: Yellow Tail mermaid television ad, 2008
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- Figure 33: Yellow Tail godzilla television ad, 2008
- E. & J. Gallo: celebrate with family and friends
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- Figure 34: Gallo wines we are together television ad, 2008
The Consumer: Usage, Types and Frequency of Use
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- Key points
- Trends in consumption of wine versus other alcoholic beverages
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- Figure 35: Trends in consumption of table wine versus other alcoholic beverages, 2004-2009
- Trends in wine consumption
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- Figure 36: Trends in consumption of table and sparkling wine, by color and imported vs domestic, 2004-09
- Trends in wine consumption
- Wine versus other alcoholic beverages
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- Figure 37: Consumption of table wine versus other alcoholic beverages, by gender, February 2008-March 2009
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- Figure 38: Consumption of table wine versus other alcoholic beverages, by age, February 2008-March 2009
- Women primary wine consumer; men lose interest in wine during 2004-09
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- Figure 39: Consumption of wine, domestic/imported and color, by gender, 2004-09
- Youngest wine-drinking consumers move away from wine
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- Figure 40: Consumption of wine, domestic/imported and color, by age group 21-34, 2004-09
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- Figure 41: Consumption of wine, domestic/imported and color, by age group 35-54, 2004-09
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- Figure 42: Consumption of wine, domestic/imported and color, by age group 55-65+, 2004-09
- Income and location influence wine consumption; high-income group exhibits highest attrition during 2004-09
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- Figure 43: Table wine consumption, domestic vs imported, by household income and region, February 2008-March 2009
- Consumption of domestic wine by type
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- Figure 44: Domestic table wine consumption by type, by gender, February 2008-March 2009
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- Figure 45: Domestic table wine consumption by type, by age, February 2008-March 2009
- Italian wines are most popular in the U.S.
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- Figure 46: Imported table wine consumption by country of origin, by race/Hispanic origin, February 2008-March 2009
- Frequency of drinking wine
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- Figure 47: Trends in the frequency of drinking domestic and imported table wine in the past 30 days, 2004-09
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- Figure 48: Average number of glasses of wine drunk in past 30 days, imported vs domestic, by key demographics, February 2008-March 2009
The Consumer: Choice of Retail Channels and Packaging
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- Key points
- Choice of retail channel
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- Figure 49: Retailer type where wine is bought, by age, July 2009
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- Figure 50: Retailer type where wine is bought, by region, July 2009
- Wine purchase by the type of packaging
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- Figure 51: Type of packaging in which wine is bought, by age, July 2009
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- Figure 52: Type of packaging in which wine is bought, by household income, July 2009
The Consumer: Attitudes Towards Wine
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- Key points
- Occasions or places to drink wine
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- Figure 53: Occasions or places to drink wine, by gender, July 2009
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- Figure 54: Occasions or places to drink wine, by age, July 2009
- Health perception of wine
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- Figure 55: Health perception of wine, by age, July 2009
- Attitudes towards wine names and fruit wine
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- Figure 56: Attitude towards fun names and fruit wine, by age, July 2009
- Influence of family on wine consumption
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- Figure 57: Raised in family that enjoys wine, by age, July 2009
- Wine and food
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- Figure 58: Wine and food, by gender, July 2009
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- Figure 59: Wine and food, by age, July 2009
Attitudes Towards Spending and Purchase Behavior
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- Key points
- Attitudes towards expensive wine
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- Figure 60: Attitudes towards cost vs. quality of wine, by age, July 2009
- Decision-driving attributes in purchasing wine
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- Figure 61: Factors influencing and impacting the decision to buy wine, by gender, July 2009
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- Figure 62: Factors influencing and impacting the decision to buy wine, by age, July 2009
- Spending on wine by the purpose of consumption
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- Figure 63: Mean* spending on wine by purpose of consumption, by gender, July 2009
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- Figure 64: Mean* spending on wine by purpose of consumption, by age, July 2009
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- Figure 65: Mean* spending on wine by purpose of consumption, by household income, July 2009
Wine and Consumer Need for Economy, Status and Concern for the Environment
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- Wine and economy
- Wine and environment
- Wine and status
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- Figure 66: Impact on wine buying and drinking of economy, perceptions of status, and environment, by age, July 2009
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- Figure 67: Impact on wine buying and drinking of economy, perceptions of status, and environment, by household income, July 2009
Impact of Race and Hispanic Origin
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- Key points
- Blacks and Hispanics, the high-growth population groups, exhibit the lowest incidence of drinking wine
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- Figure 68: Table wine consumption, domestic vs imported, by race/Hispanic origin, February 2008-March 2009
- Wine-makers need to bring in Mexican Hispanics into the category to grow sales
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- Figure 69: Table wine consumption, by Hispanic origin and country of origin, February 2008-March 2009
- Consumption of imported wine by country of origin
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- Figure 70: Imported table wine consumption by country of origin, by race/Hispanic origin, February 2008-March 2009
- Retail destinations to purchase wine
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- Figure 71: Retailer type where wine is bought, by race/Hispanic origin, July 2009
- Occasions or places to drink wine
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- Figure 72: Occasions or places to drink wine, by race/Hispanic origin, July 2009
- Attitudes towards wine
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- Figure 73: Attitude towards fun names and fruit wine, by race/Hispanic origins, July 2009
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- Figure 74: Wine and food, by race/Hispanic origin, July 2009
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- Figure 75: Factors influencing and impacting the decision to buy wine, by race/Hispanic origin, July 2009
- Mean spending on wine by purpose of consumption
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- Figure 76: Mean* spending on wine by purpose of consumption, by race/Hispanic origin, July 2009
- Hispanics are more price-sensitive than the average during the recession in the wine market
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- Figure 77: Impact on wine buying and drinking of economy, perceptions of status, and environment, by race/Hispanic origin, July 2009
Cluster Analysis
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- Frequent friends and family
- Who they are
- Opportunity
- Unpretentious and barless
- Who they are
- Opportunity
- Budgeting loyalists
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 78: Wine drinker clusters, July 2009
- Figure 79: Attitudes towards wine and health perception, wine and food, by wine drinker clusters, July 2009
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- Figure 80: Attitudes towards cost vs. quality of wine, by wine drinker clusters, July 2009
- Figure 81: Factors influencing and impacting the decision to buy wine and Impact on wine buying and drinking of economy, perceptions of status, and environment, by wine drinker clusters, July 2009
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- Figure 82: Type of packaging in which wine is bought, by wine drinker clusters, July 2009
- Figure 83: Occasions or places to drink wine, by wine drinker clusters, July 2009
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- Figure 84: Retailer type where wine is bought, by wine drinker clusters, July 2009
- Demographic tables:
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- Figure 85: Wine drinker clusters, by gender, July 2009
- Figure 86: Wine drinker clusters, by age, July 2009
- Figure 87: Wine drinker clusters, by household income, July 2009
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- Figure 88: Wine drinker clusters, by race, July 2009
- Figure 89: Wine drinker clusters, by Hispanic origin, July 2009
- Cluster methodology:
Custom Consumer Groups
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- Affluent Suburbia: Who are they?
- America’s wealthiest exhibit the highest consumption of wine
- Differences within the groups of affluent suburbia
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- Figure 90: Consumption of wine, domestic/imported and color, among Mosaic group affluent suburbia, February 2008-March 2009
- Unacculturated Hispanics prefer Spanish wine; offer opportunity to increase consumer base for domestic wine
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- Figure 91: Consumption of wine, domestic/imported and country of origin among Hispanics, by country of origin and by language spoken at home, February 2008-March 2009
- Wine makers need to target young men—aged 21-34—to generate loyalty at older age
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- Figure 92: Consumption of wine (by color and origin) versus other alcoholic beverages, by age and gender, February 2008-March 2009
- Wine consumption varies among different races within different age groups
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- Figure 93: Consumption of wine versus other alcoholic beverages, by age and Hispanic origin, February 2008-March 2009
Appendix: Other Useful Consumer Tables
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- Consumption of domestic wine by type
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- Figure 94: Domestic table wine consumption by type, by household income, February 2008-March 2009
- Consumption of imported wine by country of origin
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- Figure 95: Imported table wine consumption by country of origin, by gender, February 2008-March 2009
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- Figure 96: Imported table wine consumption by country of origin, by age, February 2008-March 2009
- Choice of retail channels
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- Figure 97: Retailer type where wine is bought, by household income, July 2009
- Occasions or places to drink wine
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- Figure 98: Occasions or places to drink wine, by household income, July 2009
- Health perception of wine
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- Figure 99: Health perception of wine, by gender, July 2009
- Decision-driving attributes
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- Figure 100: Factors influencing and impacting the decision to buy wine, by household income, July 2009
Appendix: Trade Associations
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