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Wine - US - October 2014

Published By :

Mintel

Published Date : Nov 2014

Category :

Alcoholic Beverages

No. of Pages : 139 Pages

While indications point to an advantage for off-premise merchandisers, shifts in the market, including the expansion of sales locations, are making the wine retail landscape increasingly competitive. While this is good news for the category, growing the reach of wine, it’s requiring sellers to adopt more creative sales models.
Table of Content

Scope and Themes

What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations

Executive Summary

The market
Dollar sales of wine increase by 21% from 2009-14
Figure 1: Total US retail sales and forecast of wine, at current prices, 2009-19
Leading companies
E. & J. Gallo Winery and Constellation Brands comprise a third of MULO sales
Figure 2: MULO sales of wine, by leading companies (top five), rolling 52 weeks 2013 and 2014 ($millions)
Segment performance
Champagne/sparkling leads growth, remains fraction of total sales
Figure 3: US volume sales of wine, by segment, 2009-14
The consumer
Wine faces competition from other alcoholic beverages
Figure 4: Alcoholic beverage purchases, by generations – any consumption, February 2014
Sparkling wine/Champagne popular among young drinkers, table wine holds attention
Figure 5: Type of wine consumed, by age, August 2014
What we think

Issues and Insights

How does wine fare against beer and spirits with consumers?
Issue
Insight: Wine can use the popularity of alcohol consumption as a springboard
How can wine sellers position products in a way that resonates with consumers?
Issue
Insight: The category can take ownership of its strengths, and move into the future
How can wine maintain relevance to consumers across age groups?
Issue
Insight: Hone the breadth of the category with a targeted focus

Trend Applications

Trend: Life – An Informal Affair
Trend: Secret, Secret
Trend: Sense of the Intense

Market Size and Forecast

Key points
Sales and forecast of wine
Figure 6: Total US retail sales and forecast of wine, at current prices, 2009-19
Figure 7: Total US retail sales and forecast of wine, at inflation-adjusted prices, 2009-19
Total US volume sales of wine
Figure 8: Total US volume sales of wine, 2009-14
Continued growth projected, but at a slower pace
Figure 9: Total US retail sales and forecast of wine, at current prices, 2009-19
Forecast methodology

Market Factors

Wine market fares well
Wine maintains a small advantage over other alcohol types
Figure 10: Alcoholic beverage purchases, by generations – any consumption, February 2014
Figure 11: Wine-related statements (competitive), by age, August 2014
Expanding casual wine offerings may increase consumption
Figure 12: Agreement with attitudes toward wine (occasion), by age, August 2014
Figure 13: Alcoholic beverage purchases, by usage of wine– any consumption, February 2014
Figure 14: Wine-related statements (competitive), by type of wine consumed, August 2014
Wine has health advantage over other alcohol types
Figure 15: Agreement with attitudes toward wine (health), by age, August 2014

Segment Performance

Key points
Champagne/sparkling wine continues to lead growth
Figure 16: US volume sales of wine, by segment, 2009-14
Imports see losses
Figure 17: US volume sales of wine, by origin, 2009-14
Domestics make up 78% of table wine market
Figure 18: US volume sales of table wine, by origin, 2009-14
Imports gain share on domestic sparkling
Figure 19: US volume sales of Champagne/sparkling wine, by origin, 2009-14
Domestics dominate dessert/fortified wine
Figure 20: US volume sales of dessert and fortified wine, by origin, 2009-14
Domestics/imports split vermouth/aperitif share
Figure 21: US volume sales of vermouth and aperitif, by origin, 2009-14

Sales Channels

Key points
Off-premise continues to outperform on-premise
Figure 22: US volume sales of wine, by channel, at current prices, 2009-14
Figure 23: Alcoholic beverages where consumed – Wine, by age, January 2013-March 2014
Wine fights for shelf space off-premise
Whole Foods Market focuses on education and convenience
Kroger recognized for expanding accessibility
Walmart seeks the advantage through exclusive offerings
Young shoppers more interested in taste descriptors than varietal
Figure 24: Purchase drivers, by age, August 2014
Limited shelf space may benefit online sales
Club W targets younger drinkers
Tasting Room aims to limit the risk
On-premise sales could benefit from offers of exclusivity and inclusivity
Give them something they can’t get anywhere else
or extend access to the masses

Leading Companies and Brand Analysis

Key points
Two companies comprise a third of MULO sales of wine
Figure 25: MULO sales of wine, by leading companies, rolling 52 weeks 2013 and 2014
Gallo and Constellation lead MULO sales of domestic table wine
MULO sales of domestic table wine
Figure 26: MULO sales of domestic table wine, by leading companies, rolling 52 weeks 2013 and 2014
Deutsch Family brands top MULO sales of imported table wine
MULO sales of imported table wine
Figure 27: MULO sales of imported table wine, by leading companies, rolling 52 weeks 2013 and 2014
Gallo comprises nearly a quarter of sherry/vermouth/Champagne sales at MULO
MULO sales of sherry/vermouth/Champagne
Figure 28: MULO sales of sherry/vermouth/Champagne, by leading companies, rolling 52 weeks 2013 and 2014

Innovations and Innovators

Ethical claims lead among product launches
Figure 29: Wine launches, by top 10 product claims, 2010-14
Figure 30: Union Wine Company, “Relationship Problems,” YouTube Video, September 2014
Range extensions rise as new products slump
Figure 31: Wine launches, by launch type, 2010-14
Seasonal claims take aim at holiday buyers
Food pairings target casual meal occasions

Wine Consumption

Key points
Seven in 10 consumers aged 22+ drink wine at home
More than half of 25-34s drink wine at least once a week
Figure 32: Frequency of wine consumption, by age, August 2014
Figure 33: Domestic dinner/table wine (excluding vermouth), January 2013-March 2014
Figure 34: Imported dinner/table wines (excluding vermouth), January 2013-March 2014
Figure 35: Champagne and sparkling wines, January 2013-March 2014
Figure 36: Port, sherry, and dessert wines, January 2013-March 2014
More than half of HHs earning $150K+ drink wine weekly
Figure 37: Frequency of wine consumption, by household income, August 2014
More than two thirds of sparkling drinkers drink wine weekly
Figure 38: Frequency of wine consumption, by type of wine consumed, August 2014
Red wine most popular among men
Figure 39: Type of wine consumed, by gender, August 2014
Figure 40: Domestic dinner/table wine (excluding vermouth), by gender, January 2013-March 2014
Nearly one third of men look for wine heritage
Figure 41: Agreement with attitudes toward wine (type), by gender, August 2014
Nearly half of 25-34s drink sparkling wine/Champagne
Figure 42: Type of wine consumed, by age, August 2014
Figure 43: Domestic dinner/table wine (excluding vermouth), by age, January 2013-March 2014
Sweet flavors resonate with young drinkers
Figure 44: Wine-related statements (type), by age, August 2014
Young consumers say wine represents them
Figure 45: Agreement with attitudes toward wine (type), by age, August 2014
Champagne prices lower earners out of the market
Figure 46: Type of wine consumed, by household income, August 2014
Figure 47: Domestic dinner/table wine (excluding vermouth), by household income, January 2013-March 2014
Figure 48: Imported dinner/table wines (excluding vermouth), by household income, January 2013-March 2014
Frequent drinkers say wine represents them
Figure 49: Agreement with attitudes toward wine (type), by consumption frequency, August 2014
Champagne drinkers are image conscious
Figure 50: Agreement with attitudes toward wine (type), by type of wine consumed, August 2014
High earners open to domestic
Figure 51: Domestic dinner/table wine (excluding vermouth), by household income, January 2013-March 2014

Purchase Location and Trial

Key points
Supermarkets rule, 25-34s most flexible
Figure 52: Purchase location, by age, August 2014
Young respondents are primed for wine trial
Figure 53: Wine-related statements (trial), by age, August 2014
In-store trial might attract lower earners
Figure 54: Wine-related statements (trial), by household income, August 2014
Club stores a go-to for Champagne/sparkling wine buyers
Figure 55: Purchase location, by type of wine consumed, August 2014
Wine sellers can guide newbie users
Figure 56: Agreement with attitudes toward wine (trial), by consumption frequency, August 2014
Ratings appreciated by supermarket shoppers
Figure 57: Purchase location, by purchase drivers (1 of 2), August 2014
Figure 58: Purchase location, by purchase drivers (2 of 2), August 2014

Purchase Price

Key points
Wine buyers spend more on others than on themselves
Figure 59: Purchase price, by occasion, August 2014
Young men spend most on selves/others, women/seniors are thrifty
Figure 60: Average purchase price, by gender and age, August 2014
Figure 61: Agreement with attitudes toward wine (price), by gender and age, August 2014
One third of low earners spend less than $10/bottle on themselves
Figure 62: Purchase price for drinking alone at home, by household income, August 2014
Figure 63: Average purchase price, by household income, August 2014
Frequent drinkers invest a bit more in themselves
Figure 64: Purchase price for drinking alone at home, by consumption frequency, August 2014
Figure 65: Agreement with attitudes toward wine (price), by consumption frequency, August 2014
Specialty positioning may warrant higher spend
Figure 66: Purchase price for drinking alone at home, by type of wine consumed, August 2014

Wine Packaging

Key points
Nearly one quarter of 25-34s drink small formats
Figure 67: Format of wine consumed, by age, August 2014
Figure 68: Wine-related statements (packaging), by age, August 2014
Younger drinkers open to alternative formats
Figure 69: Agreement with attitudes toward wine (packaging), by age, August 2014
Middle income earners most interested in innovation
Figure 70: Agreement with attitudes toward wine (packaging), by household income, August 2014
Room exists to promote smaller sizes among singles, groups
Figure 71: Format of wine consumed, by household size, August 2014
Boxed wine might be a good option for frequent drinkers
Figure 72: Format of wine consumed, by consumption frequency, August 2014
Figure 73: Agreement with attitudes toward wine (packaging), by consumption frequency, August 2014
Smaller formats may extend sparkling wine/Champagne usage occasion
Figure 74: Format of wine consumed, by type of wine consumed, August 2014
Figure 75: Wine-related statements (packaging), by type of wine consumed, August 2014

Impact of Race and Hispanic Origin

Key points
Home consumption should be the area of focus among Hispanics
Figure 76: Frequency of wine consumption, by race/Hispanic origin, August 2014
especially higher income earning Hispanics
Figure 77: Frequency of wine consumption, by Hispanic origin and household income, August 2014
More than half of Hispanics aged 22-44 drink wine at home at least once a week
Figure 78: Frequency of wine consumption, by Hispanic origin and age, August 2014
Figure 79: Domestic dinner/table wine (excluding vermouth), by Hispanic and age, January 2013-March 2014
Hispanics are significantly more likely to buy wine at club and mass outlets
Figure 80: Purchase location, by race/Hispanic origin, August 2014
especially young Hispanics
Figure 81: Purchase location, by Hispanic origin and age, August 2014
Hispanics tie price to quality
Figure 82: Agreement with attitudes toward wine (price), by race/Hispanic origin, August 2014
Hispanics spend more than others on wine for personal home consumption
Figure 83: Purchase price for drinking alone at home, by race/Hispanic origin, August 2014
Hispanics prefer products with heritage
Figure 84: Agreement with attitudes toward wine (type), by race/Hispanic origin, August 2014

Cluster Analysis

Cluster 1: In Moderation
Demographics
Characteristics
Opportunity
Cluster 2: I Got This
Demographics
Characteristics
Opportunity
Cluster 3: When the Occasion Calls
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 85: Target clusters, August 2014
Figure 86: Frequency of wine consumption, by target clusters, August 2014
Figure 87: Type of wine consumed, by target clusters, August 2014
Figure 88: Format of wine consumed, by target clusters, August 2014
Figure 89: Purchase location, by target clusters, August 2014
Figure 90: Purchase price for drinking alone at home, by target clusters, August 2014
Figure 91: Purchase price for drinking with friends/family at home, by target clusters, August 2014
Figure 92: Purchase price for bringing to a party, by target clusters, August 2014
Figure 93: Purchase price for wine as a gift, by target clusters, August 2014
Figure 94: Purchase drivers, by target clusters, August 2014
Figure 95: Wine-related statements, by target clusters, August 2014
Figure 96: Agreement with attitudes toward wine, by target clusters, August 2014
Cluster demographic tables
Figure 97: Target cluster by demographic, August 2014
Cluster methodology

Appendix – Other Useful Consumer Tables

Frequency of wine consumption
Figure 98: Frequency of wine consumption, by gender and age, August 2014
Types of wine consumed
Figure 99: Type of wine consumed, by gender and age, August 2014
Figure 100: Wine-related statements (type), by gender and age, August 2014
Figure 101: Type of wine consumed, by race/Hispanic origin, August 2014
Figure 102: Domestic dinner/table wine (excluding vermouth), by race and age, January 2013-March 2014
Figure 103: Domestic dinner/table wine (excluding vermouth), by Hispanic and age, January 2013-March 2014
Figure 104: Domestic dinner/table wine (excluding vermouth), by race/Hispanic origin, January 2013-March 2014
Figure 105: Type of wine consumed, by consumption frequency, August 2014
Figure 106: Wine-related statements (type), by consumption frequency, August 2014
Figure 107: Type of wine consumed, by occasion, August 2014
Purchase location
Figure 108: Purchase location, by gender and age, August 2014
Figure 109: Wine-related statements (trial), by gender and age, August 2014
Figure 110: Purchase drivers, by household income, August 2014
Figure 111: Purchase location, by consumption frequency, August 2014
Figure 112: Wine-related statements (trial), by consumption frequency, August 2014
Figure 113: Wine-related statements (trial), by type of wine consumed, August 2014
Figure 114: Agreement with attitudes toward wine (trial), by type of wine consumed, August 2014
Figure 115: Purchase location, by occasion, August 2014
Purchase price
Figure 116: Agreement with attitudes toward wine (price), by type of wine consumed, August 2014
Figure 117: Purchase price for drinking alone at home, by occasion, August 2014
Purchase drivers
Figure 118: Purchase drivers, by gender and age, August 2014
Figure 119: Purchase drivers, by consumption frequency, August 2014
Figure 120: Purchase drivers, by type of wine consumed, August 2014
Figure 121: Purchase drivers, by occasion, August 2014
Packaging
Figure 122: Format of wine consumed, by gender and age, August 2014
Figure 123: Wine-related statements (packaging), by gender and age, August 2014
Figure 124: Agreement with attitudes toward wine (packaging), by gender and age, August 2014
Figure 125: Format of wine consumed, by race/Hispanic origin, August 2014
Figure 126: Agreement with attitudes toward wine (packaging), by type of wine consumed, August 2014
Attitudes toward wine
Figure 127: Attitudes toward wine, August 2014

Appendix – Trade Associations

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