Wine - US - October 2012

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Figure 1: U.S. sales and fan chart forecast of wine, at current prices, 2007-17
Market factors
Alcohol consumption on the decline
Figure 2: Wine consumption, by percentage of consumers, March 2008-March 2012
Millennials highly engaged, but price conscious
Market segmentation
Figure 3: U.S. volume sales of wine, by segment, 2010 and 2012
Retail channels
Figure 4: Total U.S. off-premise dollar sales of wine, by channel, at current prices, 2010 and 2012
Innovation
Figure 5: Wine launches, by top five claims, 2007-12*
The consumer
Nearly six in 10 consumers drink red, white, or sparkling wine
Figure 6: Frequency of wine consumption, by type, June 2012
21-24s over index in wine consumption, 25-44s also key groups
Figure 7: Frequency of wine consumption, “any consumption” by type, by age, June 2012
What we think
ISSUES IN THE MARKET
How can the category grow its base of users?
What role do marketers and retailers play in consumer wine education?
How receptive are consumers to product packaging innovations?
INSIGHTS AND OPPORTUNITIES
A focus on health may engage older consumers
Clarify inherent health benefits/risks
Address other health/wellness needs
Grow interest among men
Encourage everyday enjoyment
TREND APPLICATIONS
Trend: Guiding Choice
Trend: Minimize Me
Inspire 2015 Trend: Access Anything Anywhere
MARKET SIZE AND FORECAST
Key points
Wine sales grow to $40 billion in 2012
Sales and forecast of wine
Figure 8: U.S. retail sales and forecast of wine, at current prices, 2007-17
Figure 9: U.S. retail sales and forecast of wine, at inflation-adjusted prices, 2007-17
Figure 10: Total U.S. volume sales of wine, 2007-12
Fan chart forecast
Figure 11: U.S. retail sales and fan chart forecast of wine, at current prices, 2007-17
MARKET DRIVERS
Key points
Alcohol consumption on the decline
Figure 12: Wine consumption, March 2008-March 2012
Figure 13: Reasons for drinking fewer alcoholic beverages at home, March 2012
Slow economy impacts sales, consumer confidence
Wine makers/marketers should address consumer interest in health
Millennials highly engaged, but price conscious
Figure 14: Population, by age, 2007-17
Growth in Asian and Hispanic populations good for the category
Figure 15: Population, by race and Hispanic origin, 2007-17
COMPETITIVE CONTEXT
Key points
On-premise wine sales challenge retail performance
Figure 16: Total U.S. on-premise dollar sales of wine, at current prices, 2007-12
Figure 17: Occasions that motivate alcoholic beverage purchases, by gender, March 2012
Wine sales outpace spirits and beer
Figure 18: Changes in liquor consumption at home, by type, March 2012
SEGMENT PERFORMANCE
Key points
Imported wine struggles 2010-12
Sales of market, by segment
Figure 19: U.S. volume sales of wine, by segment, 2010 and 2012
SEGMENT PERFORMANCE—DOMESTIC WINE
Key points
Domestic wine sales grow 15% from 2007-12
Sales of domestic wine
Figure 20: U.S. volume sales of domestic wine, 2007-12
Sales of domestic table wine
Figure 21: U.S. volume sales of domestic table wine, 2007-12
Sales of domestic sparkling wine
Figure 22: U.S. volume sales of domestic sparkling wine, 2007-12
Dessert, fortifieds, vermouth/aperitif struggle
Sales of domestic dessert and fortified wine
Figure 23: U.S. volume sales of domestic dessert and fortified wine, 2007-12
Sales of domestic vermouth and aperitif
Figure 24: U.S. volume sales of domestic vermouth and aperitif, 2007-12
SEGMENT PERFORMANCE—IMPORTED WINE
Key points
Imported wine struggles, may see future turnaround
Figure 25: U.S. volume sales of imported wine, 2007-12
Sales of imported table wine
Figure 26: U.S. volume sales of imported table wine, 2007-12
Sales of imported sparkling wine
Figure 27: U.S. volume sales of imported sparkling wine, 2007-12
Sales of imported dessert and fortified wine
Figure 28: U.S. volume sales of imported dessert and fortified wine, 2007-12
Sales of imported vermouth and aperitif
Figure 29: U.S. volume sales of imported vermouth and aperitif, 2007-12
RETAIL CHANNELS
Key points
“Other” channels command sales, drug stores show improvement
Sales of wine, by channel
Figure 30: Total U.S. off-premise dollar sales of wine, by channel, at current prices, 2010 and 2012
RETAIL CHANNELS—SUPERMARKETS
Key points
Supermarket wine sales grow by 25% from 2007-12
Figure 31: Giant Eagle TV ad, “Huge Selection,” 2011
Supermarket sales of wine
Figure 32: U.S. supermarket dollar sales of wine, at current prices, 2007-12
Supermarkets under the gun to stand out from the competition
Figure 33: Wine consumption, by food lifestyle segmentation, January 2011-March 2012
RETAIL CHANNELS—DRUG STORES
Key points
Wine sales at drug channel small, growing strong
Drug store sales of wine
Figure 34: U.S. drug store dollar sales of wine, at current prices, 2007-12
RETAIL CHANNELS—OTHER CHANNELS
Key points
“Other” sales channels grew sales by 26% from 2007-12
Other channels sales of wine
Figure 35: Dollar sales of wine through other off-premise channels, at current prices, 2007-12
LEADING COMPANIES
Key points
Manufacturer sales of wine
Figure 36: Wine sales of leading companies, by volume, 2010-11
BRAND SHARE—DOMESTIC
Key points
Value wines lose share to high-end, private labels
Brand performance for domestic table wines
E.&J. Gallo digs toes deeper in the sand
The Wine Group’s Cupcake continues its upward climb
Brand growth lifts Trinchero’s ranking
Constellation sales flat as portfolio grows
Treasury’s continued struggles
Sales of leading domestic table wine brands
Figure 37: Sales of leading domestic table wine brands, by volume, 2010-11*
Domestic sparkling wine
Sales of leading domestic sparkling wine brands
Figure 38: Sales of leading domestic sparkling wine brands, by volume, 2010-11*
Dessert and fortified wines continue decline
Sales of leading domestic dessert and fortified wine brands
Figure 39: Sales of leading domestic dessert and fortified wine brands, by volume, 2010-11*
Vermouth sales down
Sales of leading domestic vermouth and aperitif brands
Figure 40: Sales of leading domestic vermouth and aperitif brands, by volume, 2010-11*
BRAND SHARE—IMPORTED
Key points
Imported Table wine brand performance
Deutsch’s Yellow Tail: People love this roo
Banfi Vintners’ sales stagnant
Gallo’s Alamos, Palm Bay’s Santa Rita hit strides
Treasury plagued by problems
A roller coaster at Constellation
The Wine Group sweetens up
Sales of leading imported table wine brands
Figure 41: Sales of leading imported table wine brands, by volume, 2010-11*
Champagne and sparkling wine led by Verdi Spumante
Sales of leading imported Champagne/sparkling wine brands
Figure 42: Sales of leading imported Champagne/sparkling wine brands, by volume, 2010-11*
Port and sherry sales flat, sake consumption surges
Ports embrace roots
Sales of leading imported dessert and fortified wine brands
Figure 43: Sales of leading imported dessert and fortified wine brands, by volume, 2010-11*
Imported vermouth and aperitifs
Sales of leading imported vermouth and aperitif brands
Figure 44: Sales of leading imported vermouth and aperitif brands, by volume, 2010-11*
INNOVATIONS AND INNOVATORS
 NEW PRODUCT LAUNCH TRENDS
Figure 45: Wine launches, by launch type, 2007-12*
Ethical and packaging claims lead product launches
Figure 46: Wine launches, by top 10 claims, 2007-12*
Boxes
Pouches
Single serving
How sweet it is
Blends
Moscato
Flavored
Organic
MARKETING STRATEGIES
Overview of brand landscape
Brand analysis: Yellow Tail
Figure 47: Brand analysis of Yellow Tail, 2012
Online initiatives
TV presence
Figure 48: Yellow Tail TV ad, “Holiday Party,” 2011
Print and other
Constellation refreshes brands
Brand analysis: Constellation’s Black Box
Figure 49: Brand analysis of Black Box, 2012
TV presence
Figure 50: Black Box TV ad, “Lose The Bottle,” 2012
Print and other
Constellation educates consumers
Kim Crawford asks consumers to ‘undo ordinary’
Brand analysis: Cavit
Figure 51: Brand analysis of Cavit, 2012
TV presence
Figure 52: Cavit TV ad, “Certain Thing (Lunetta Prosecco),” 2011
Print and other
Brand analysis: Concha Y Toro
Figure 53: Brand analysis of Cavit, 2012
TV presence
Figure 54: Concha Y Toro TV ad, “The Devil,” 2012
Brand analysis: Cupcake
Figure 55: Brand analysis of Cupcake, 2012
TV presence
Figure 56: Cupcake TV ad, “It’s A Treat,” 2011
Online initiatives
Beam’s Skinnygirl encourages women to ‘drink like a lady’
Ste. Michelle Wine Estates
Chateau Ste. Michelle offers women relief from every day roles
FREQUENCY OF WINE CONSUMPTION
Key points
Nearly six in 10 consumers drink red, white, or sparkling wine
Figure 57: Frequency of wine consumption, by type, June 2012
Men represent an opportunity for growth in wine sales
Figure 58: Frequency of wine consumption, by type, by gender, June 2012
21-24s over index in wine consumption, 25-44s also key groups
Figure 59: Frequency of wine consumption, by type, by age, June 2012
Wine suffers from stigma of high cost
Figure 60: Frequency of wine consumption, by type, by household income, June 2012
TYPES OF DOMESTIC WINE CONSUMED
Key points
Red wine consumption on the rise, white down slightly
Figure 61: Types of domestic dinner/table wine consumed, March 2008-March 2012
Men over index in red wine consumption
Figure 62: Types of domestic dinner/table wine consumed, by gender, January 2011-March 2012
Younger consumers appear drawn to lighter wine
Figure 63: Types of domestic dinner/table wine consumed, by age, January 2011-March 2012
TYPES OF IMPORTED WINE CONSUMED
Key points
Australian wine struggles, Chilean and Argentinean gain favor
Figure 64: Kinds of imported dinner/table wine consumed, March 2008-March 2012
Men more likely than women to consume all types of imports
Figure 65: Kinds of imported dinner/table wine consumed, by gender, January 2011-March 2012
Future may be bright for Spanish wine
Figure 66: Kinds of imported dinner/table wine consumed, by age, January 2011-March 2012
Wines perceived as having a good value enjoyed by high-income HHs
Figure 67: Kinds of imported dinner/table wine consumed, by household income, January 2011-March 2012
ATTITUDES TOWARD WINE
Key points
Men are more likely than women to claim wine expertise
Figure 68: Attitudes toward red, white, and rosé wine, by gender, June 2012
21-34s most engaged in wine experience
Figure 69: Attitudes toward red, white, and rosé wine, by age, June 2012
Wine knowledge spans income, lower-income earners price sensitive
Figure 70: Attitudes toward red, white, and rosé wine, by household income, June 2012
ATTITUDES TOWARD CHAMPAGNE AND SPARKLING WINE
Key points
Attitude toward sparkling wine positive, especially among women
Figure 71: Attitudes toward Champagne and sparkling wine, by gender, June 2012
21-34s open to sparkling wine, but drawn to Champagne
Figure 72: Attitudes toward Champagne and sparkling wine, by age, June 2012
IMPORTANT ATTRIBUTES WHEN BUYING WINE
Key points
Familiarity important among wine drinkers
Figure 73: Important attributes when buying wine, 2011 and 2012
Women prioritize familiarity, price
Figure 74: Important attributes when buying wine, by gender, June 2012
Under 45s prioritize more wine attributes
Figure 75: Important attributes when buying wine, by age, June 2012
WINE PACKAGING
Key points
Corks reign, but 36% of wine drinkers buy screw-top bottles
Figure 76: Wine packaging types bought, by gender, June 2012
Women may be more open to product innovation
Figure 77: Attitudes toward wine packaging, by gender, June 2012
Price, not preference, may drive 21-34s’ interest in format variety
Figure 78: Wine packaging types bought, by age, June 2012
Figure 79: Attitudes toward wine packaging, by age, June 2012
High-income HHs more likely to have tried a variety of packaging options
Figure 80: Wine packaging types bought, by household income, June 2012
Figure 81: Attitudes toward wine packaging, by household income, June 2012
PRICE RANGE
Key points
Consumers appear most comfortable with $5-15 bottles
Figure 82: Usual price range for buying wine, June 2012
Women are more price conscious than men
Figure 83: Usual price range for buying wine, by gender, June 2012
Higher-income HH allows for, but doesn’t necessitate, higher purchase price
Figure 84: Usual price range for buying wine, by household income, June 2012
PERCEPTION OF WINE BY REGION
Key points
California wine favored for variety, trusted brands, value
Figure 85: Perceptions of Californian wine, June 2012
Italian wine offers variety, quality, and trusted brands
Figure 86: Perceptions of Italian wine, June 2012
French wine offers variety, quality, and sophistication
Figure 87: Perceptions of French wine, June 2012
Australian wine offers variety, value, and trusted brands
Figure 88: Perceptions of Australian wine, June 2012
Argentinean wine offers variety, value, and quality
Figure 89: Perceptions of Argentinean wine, June 2012
Chilean wine offers variety, value, and quality
Figure 90: Perceptions of Chilean wine, June 2012
New Zealand wine offers variety, value, quality, and brands
Figure 91: Perceptions of New Zealand wine, June 2012
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Asian and Hispanic consumers appear as key targets for wine sales
Figure 92: Frequency of wine consumption, by type, by race/Hispanic origin, June 2012
Opportunity to grow Hispanic participation with red, black with white
Figure 93: Types of domestic dinner/table wine consumed, by race/Hispanic origin, January 2011-March 2012
Regional preferences abound
Figure 94: Kinds of imported dinner/table wine consumed, by race/Hispanic origin, January 2011-March 2012
Asians identify with being wine smart, Hispanics price conscious
Figure 95: Attitudes toward red, white, and rosé wine, by race/Hispanic origin, June 2012
Asians consumers open to size variation
Figure 96: Wine packaging types bought, by race/Hispanic origin, June 2012
Asians consumers appear brand aware
Figure 97: Important attributes when buying wine, by race/Hispanic origin, June 2012
Black respondents look for low cost, Asians willing to spend more
Figure 98: Usual price range for buying wine, by race/Hispanic origin, June 2012
APPENDIX—OTHER USEFUL TABLES
Brand usage
Figure 99: Brands of domestic dinner/table wine consumed past 30 days, January 2011-March 2012
Figure 100: Brands of imported dinner/table wine consumed past 30 days, January 2011-March 2012
Figure 101: Brands of Champagne & sparkling wine consumed past 30 days, January 2011-March 2012
Figure 102: Brands of port, sherry, & dessert wine consumed past 30 days, January 2011-March 2012
Frequency of wine consumption
Figure 103: Frequency of wine consumption, by type, by region, June 2012
Types of domestic wine consumed
Figure 104: Types of domestic dinner/table wine consumed, by household income, January 2011-March 2012
Attitudes toward Champagne and sparkling wine
Figure 105: Attitudes toward Champagne and sparkling wine, by household income, June 2012
Important attributes when buying wine
Figure 106: Important attributes when buying wine, June 2012
Figure 107: Important attributes when buying wine, by household income, June 2012
Price range
Figure 108: Usual price range for buying wine, by frequency of wine consumption, by type, June 2012
APPENDIX—TRADE ASSOCIATIONS