Post on 10-Oct-2020
transcript
Texas Tech UniversityTexas Wine Marketing Research Institute
Today’s Choices: U.S. Wine Consumption
Trends
Natalia Kolyesnikova, Ph.D.Associate Director
Texas Wine Marketing Research InstituteTexas Tech University
Texas Tech UniversityTexas Wine Marketing Research Institute
Global Wine TrendsGlobal consumption is down 0.8% from 2007’s levelDecline in consumption in Europe negates any gains in the emerging marketsNew World countries’ collective share of global wine exports rise to 30% Americans top the world in wine-drinking as global consumption shrinks
Texas Tech UniversityTexas Wine Marketing Research Institute
209.6 214.7 217.5 225.3 231.4 233.7245.5
258.2 268.1 273.7 283 292.1
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Total U.S. Wine Consumption 1996-2007
(Millions 9-Liter Cases)
Source: The Beverage Information Group Wine Handbook, 2008
Texas Tech UniversityTexas Wine Marketing Research Institute
10,041,70010,677,500
11,630,800 11,528,00012,047,300
12,791,30013,414,400 13,331,100 13,676,740
13,847,390
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Consumption of Total Wine in Texas, 1998-2007 (9-Liter Cases)
In consumption of total wine ranked by state Texas ranks 4th (2007)
In per capita consumption of total wine ranked by state, Texas ranks 35th (2007)
Texas Tech UniversityTexas Wine Marketing Research Institute
5.7% 5.9%
8.2%
-0.9%
4.3%
6.2%
4.9%
-0.6%
2.6%
1.2%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Percent Change in Total Wine Consumption in Texas, 1998-2007
(Based on 9-Liter Cases)
Source: The Beverage Information Group Wine Handbook, 2008
Texas Tech UniversityTexas Wine Marketing Research Institute
Table Wine
Vermouth/Aperitif
Champagne & Sparkling
Dessert & Fortified
Wine Coolers
Total Wine 36.1%
-96.3%
-17.1%
8.1%
-4.8%
45.7%
Percent Change in U.S. Wine Consumption by Category, 1997 vs. 2007
Source: The Beverage Information Group Wine Handbook, 2008
Texas Tech UniversityTexas Wine Marketing Research Institute
Domestic California
67.7%
Imported26.5%
Domestic Other States
5.8%
Sources U.S. Table Wine Share by Volume, 2007
Source: The Beverage Information Group Wine Handbook, 2008
Texas Tech UniversityTexas Wine Marketing Research Institute
8.7%26.4%
37.2%52%
26.5%
91.3%73.6%
62.8%48%
73.5%
Dessert & Fortified Table Champagne & Sparkling
Vermouth/Aperitif Total Wine
importeddomestic
Imported vs. Domestic Wine Shareby Category, 2007
Source: The Beverage Information Group Wine Handbook, 2008
Texas Tech UniversityTexas Wine Marketing Research Institute
Chardonnay 24%
Merlot 13%
Cabernet 13%White
Zinfandel 9%Sauvignon Blanc 4%
Pinot Grigio 3%
Pinot Noir 3%
Syrah/Shiraz 2%
Red Zinfandel 1%
Others 28%
U.S. Table Wine Share by Varietal, 2007
Source: The Beverage Information Group Wine Handbook, 2008
Texas Tech UniversityTexas Wine Marketing Research Institute
How the Recession is Affecting Tasting Room Sales and Wine Clubs (May 09)
Direct to Consumer (DTC) Channels:
Tasting Rooms (59%)Wine Clubs (16%)Events (8%)Web (8%)All other DTC Programs
Source: Wine Business Monthly (May 2009)
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Direct to Consumer Growth
Direct to Consumer
Growth, 2006-2007
Direct to Consumer
Growth, 2007-2008
Tasting Room 74% 63%Wine Club 79% 62%Web / E-
commerce67% 52%
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Wine Clubs
Sixty-four (64%) of U.S. wineries now have wine clubsPrimary Sources of Wine Clubs Sign-Ups
Tasting Room 77%
Web / E-commerce 7%
Consumer Events 6%
Referrals 4%
Direct Mail / Other 6%
Texas Tech UniversityTexas Wine Marketing Research Institute
Wine Club LessonsWine club attrition is fairly low, despite the weak economy (with an average19-24 months membership period)
Most wineries lose less than 1% of members on average each monthInterest about joining the wine club should not come from a hard-sell approachProvide complete experience: tell a story, educate, entertain, taste, and ask for the saleFor cancellations: offer a reduced club (fewer shipments, with the option to upgrade later)
Texas Tech UniversityTexas Wine Marketing Research Institute
Direct to Consumer LessonsTasting room traffic should not be the only source of DTC salesView tasting room traffic as the jumping- off point for all future relationships.“ABC” – Always Be Collecting – customer information, that is.Become technology savvy
Texas Tech UniversityTexas Wine Marketing Research Institute
Spending Trends: Do Americans drown recession blues in wine?
High-end reds sales slowed dramaticallyMid-range and lower price points wines sales are stableConspicuous consumption has gone out of favor. Frugality becomes hipConsumers are not buying less wine. But they are buying less expensive winesTotal wine sales in 2008 are still up, but most of the growth comes from the under $10 category
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Demographics TrendsDo you most often drink liquor, wine, or beer?
Texas Tech UniversityTexas Wine Marketing Research Institute
Preferred Alcoholic Beverage, drinkers aged 30-49
Texas Tech UniversityTexas Wine Marketing Research Institute
Preferred Alcoholic Beverage, drinkers aged 18-29
Texas Tech UniversityTexas Wine Marketing Research Institute
Preferred Alcoholic Beverage, drinkers aged 50+(Gallup Poll)
Texas Tech UniversityTexas Wine Marketing Research Institute
Other Trends: Women’s Wine Drinking Habits
Global Vinexpo Survey: 4300 women (France, Germany, Japan, UK, and U.S.)Among U.S. respondents:
Prefer redsDrink it most often with mealsPurchasing decisions based on entire product (grape
variety, label design, shape of bottle)
Reasons why drink wine:Like the taste (92%)Goes well with food (71%)Image is NOT a key concern (2% think wine is fashionable) Compatible with healthy, balanced diet (97%)
Texas Tech UniversityTexas Wine Marketing Research Institute
Other Trends: MillennialsExperts say wine consumption will continue to grow among young adultsThe Millennials are:
willing to experimentbrand savvyprefer to buy on visual appeal and name recognition rather than winemaking region
Technology (social networking) is the key in targeting this generation
Texas Tech UniversityTexas Wine Marketing Research Institute
Texas Wine Marketing Research Institute
Webpage: http://www.depts.ttu.edu/hs/texaswine
Twitter: www.twitter.com/twmri
Facebook: http://www.facebook.com/home.php?#/pages/Lubbock-TX/Texas-Wine-Marketing-Research-Institute/109109897221(or search for “Texas Wine Marketing Research Institute” within Facebook)
Email: texaswine@ttu.edu
Texas Tech UniversityTexas Wine Marketing Research Institute
The good news is…
you are making WINE, not SUV’s ☺