Wine - US
Report description
The biggest sensation (and failure) was the Pennsylvania Liquor Control Board's (LCB) experiment with 30+ self-serve wine kiosks in supermarkets. The initiative generated a lot of press but was plagued with problems from day one. Launched in October 2010, the kiosks were intended to provide consumers with convenience while helping grocery stores be a one-stop shopping destination, says Convenience Store News (Aug. 15, 2011). The machines offered about 40 types of wine.
Table of contents
SCOPE AND THEMESWhat you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creat ive
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Wine sales slow down due to the impact of the economy
Domestic wines grow at the expense of imported wines
Off-premise channels gain; on-premise sales remain challenged
E.&J. Gallo continues to be the topmost wine producer
The online market is limited
Wine consumption remains stable during 2006-11
Chardonnay is the most popular white wine; merlot tops in red wine
Wine drinkers show low interest in nontraditional packaging
INSIGHTS AND OPPORTUNITIES
Winning and losing with new selling formats
Supermarket w ine kiosks
Hyatt ’s be tter n otion
Starbuc ks’ w inners and losers
The Whole w ine quest ion
INSPIRE INSIGHTS
Inspire Trend: “Snack Society”
Inspire Trend: “Eco and Ego”
MARKET SIZE AND FORECAST
Key points
U.S. wine growth continues, albeit at a slower rate
Sales and forecast of wine
Figure 1: Total U.S. dollar sales and forecast of w ine, at current prices, 2006-16
Figure 2: Total U.S. dollar sales and forecast of w ine, at inf lat ion-adjusted prices, 2006-16
Figure 3: Total U.S. volume sales of w ine, 2006-11
Fan chart forecast
Figure 4: Fan chart forecast of total U.S. retail sales of w ine, at current prices, 2006-16
MARKET DRIVERS
Challenging economy beleaguers wine
Figure 5: Gross domestic product
(Un)employment
Figure 6: Percentages of unemployed adults aged 16+, 2001-11
Figure 7: Unemployment status (seasonally adjusted) among civilian non-institutional population, by age, gender, and race/Hispanic origin, September 2010-September 2011
Baby Boomers and Millennials embrace wine
Figure 8: U.S. populat ion aged 21 or older, 2006-16
Ethnic wine drinkers
Figure 9: Incidence of drinking domestic w ine among Hispanics, by languages spoken, February 2010-March 2011
Figure 10: Hispanics w ho drink imported w ine, by languages spoken, February 2010-March 2011
Figure 11: Population aged 21 or older, by race and Hispanic origin, 2006-16
Cont rol state stores and privatization
Figure 12: Control States
COMPETITIVE CONTEXT
Wine outpaces beer and sprits
Figure 13: Trends in table w ine consumpt ion versus other alcoholic beverages, January 2006-March 2011
Figure 14: w ine consumption in the U.S.
Down Under, overproduced
SEGMENT PERFORMANCE
Total volume sales of wine, by segment
Figure 15: U.S. volume sales of w ine, by segment, 2006-11
Figure 16: U.S. volume sales of w ine, by segment, 2009 and 2011
SEGMENT PERFORMANCE—DOMESTIC WINE
Key points
Chardonnay leads table wine
Figure 17: U.S. volume sales of domestic w ine, 2006-11
Figure 18: U.S. volume sales of domestic table w ine, 2006-11
Sparkling for every day
Figure 19: U.S. volume sales of domestic sparkling w ine, 2006-11
Dessert and fortified wines decline
Figure 20: U.S. volume sales of domestic dessert and fortif ied w ine, 2006-11
Vermouth is flat
Figure 21: U.S. volume sales of domestic vermouth/aperitif , 2006-11
SEGMENT PERFORMANCE—IMPORTED WINE
Key points
Import performance is mixed
Figure 22: U.S. volume sales of imported w ine, 2006-11
Figure 23: U.S. volume sales of imported table w ine, 2006-11
Champagne and sparkling wine
Figure 24: U.S. volume sales of imported Champagne and sparkling w ine, 2006-11
Saké buoys imported dessert, fortified wines
Figure 25: U.S. volume sales of imported dessert and fortif ied w ine, 2006-11
Vermouths, aperitifs down
Figure 26: U.S. volume sales of imported vermouth/aperit if , 2006-11
RETAIL CHANNELS—ON-PREMISE
Key points
Off-premise trumps on-premise
Figure 27: Total U.S. on-premise dollar sales and forecast of w ine, at current pr ices, 2006-16
Figure 28: Total U.S. off-premise dollar sales and forecast of w ine, at current pr ices, 2006-16
Wine, the priciest option
Inventory management
Figure 29: Alcoholic beverage consumpt ion, by beverage type and channel, December 2010
Types of wine consumed
Figure 30: Top 10 alcoholic beverages, by incidence, Q4 2007-Q4 2010
Local w ines
Fine dining fights back
Casual restaurants
RETAIL CHANNELS-OFF-PREMISE
Specialty stores
Figure 31: Retail channel choice to purchase w ine, July 2011
Grocery stores
Figure 32: U.S. supermarket w ine sales, 2006-11
Convenience stores
Drug stores
Figure 33: drug store w ine sales, 2006-11
Warehouse clubs
The online market is limited
A boom for w ineries
COMPANIES AND BRANDS
Key points
Figure 34: Wine sales of leading companies, by volume, 2009 and 2010
BRAND SHARE—DOMESTIC TABLE WINE
Key points
Value versus high end
California w ines dominate
Domestic table wine brand performance
Shoes of f to E.&J. Gallo
Th e Win e Gr oup ’s Fish Ey e an d Cu pcake are t op perf ormers
Bronco’s Tw o Buck Chuck declines
Constellat ion Brands improves f inancial position
Trinchero brands grow
Treasury’s f irst-year challenges
Figure 35: U.S. domestic table w ine brand sales by volume, 2009 and 2010
Domestic sparkling wine
Figure 36: U.S. domestic sparkling w ine brand sales by volume, 2009 and 2010
Dessert and fortified wines decline
Figure 37: U.S. domestic dessert and fortif ied w ine brand sales by volume, 2009 and 2010
Gallo vermouth dominates
Figure 38: U.S. domestic vermouth/aper itif brand sales by volume, 2009 and 2010
BRAND SHARE—IMPORTED WINE
Key points
Italy dominates imports
Imported table wine brand performance
De utsch’s Yellow Tail isn ’t w agging
Banf i Vin tners’ sa les are f la t
Palm Bay’s Santa Rita grow s
Treasury notes
Co nstellat io n’s u ps and dow ns
Figure 39: U.S. imported table w ine brand sales by volume, 2009 and 2010
Verdi Spumante dominates Champagne
Figure 40: U.S. imported Champagne and sparkling w ine brand sales by volume, 2009 and 2010
More interest in Port, sherry, and saké
High-end sherry imports grow
Japanese drink less saké
Figure 41: U.S. imported dessert and fortif ied w ine brand sales by volume, 2009 and 2010
Imported vermouth and aperitifs
Figure 42: U.S. imported vermouth/aperit if brand sales by volume, 2009 and 2010
PRIVATE LABEL TRENDS
On-premise house wines
No price competit ion
Figure 43: Hyatt private label
Off-premise private labels
Supermarkets
Convenience stores
Other channels
INNOVATIONS AND INNOVATORS
Product claims decline in 2010
Consumers rebuf f convenient packaging
Figure 44: Top 10 claims in new w ine products, 2010 and 2011
Emphasis on country of origin
Wine with a hint of fruity, floral notes
Limited edition
Organic maintains momentum
Wines with a good cause
Wine blends
MARKETING STRATEGIES
Figure 45: w ine ad spending by media, 2009-10
Wine as a “group thing”
Television
Figure 46: top 10 broadcast TV advertisers
“Millen nial” bra nds on TV
Figure 47: Cupcake, TV ad, 2010
Figure 48: Freixenet , TV ad, 2010
Figure 49: Simply Naked, TV ad, 2010
“Trad itiona l” bran ds
Figure 50: Jacob ’s Cree k, TV ad, 2011
Figure 51: San Giuseppe Wines, TV ad, 2011
Billboards
Figure 52: Baref oot ce llars’ trash a d
Online promotions
Social media and Millennials
Does social media drive sales?
Specialty retailers
Wine suppliers
Mobile marketing
On-premise iPad w ine lists
THE CONSUMER—USAGE, FREQUENCY OF USE
Key points
Wine versus other alcoholic beverages
Figure 53: Table w ine consumpt ion versus other alcoholic beverages, by gender, February 2010-March 2011
Figure 54: Table w ine consumpt ion versus other alcoholic beverages, by age, February 2010-March 2011
Trends in wine consumption
Figure 55: Trends in table, sparkling, dessert w ine consumpt ion, January 2006-March 2011
More women than men consume wine
Figure 56: Personal consumpt ion of w ine, by gender, February 2010-March 2011
Figure 57: Consumption of domestic w ine by type, by gender, February 2010-March 2011
Figure 58: Average volume consumpt ion of dif ferent types of w ine, by gender, February 2010-March 2011
WINE PURCHASE BEHAVIOR: TYPE AND VARIETAL
Key points
Favorite white wines
Figure 59: Wine purchase behavior for w hite w ine varietals, July 2011
Favorite red wines
Figure 60: Wine purchase behavior for red w ine varietals, July 2011
WINES CONSUMED BY BRAND, COUNTRY
Key points
Value brands dominate domestics and imports
Favorite domestic wine brands
Figure 61: Consumption of domestic w ine by brands w ith at least 7% penetration, by gender, February 2010- March 2011
Wine consumption by country of origin
Figure 62: Consumption of imported w ine by country of origin, by gender, February 2010-March 2011
Favorite imported brands
Figure 63: Consumption of imported w ine by at least 7% brand penetration, by gender, February 2010-March 2011
Favorite brands of sparkling and other wines
Figure 64: Consumption of Champagne and sparkling w ine by at least 9% brand penetration (domestic and imported), by gender, February 2010-March 2011
Figure 65: Consumption of Port, sherry, and dessert w ine (domestic and imported) by at least 7% brand penetration, by gender, February 2010-March 2011
IMPACT OF AGE ON WINE CONSUMPTION
Key points
Older adults and Millennials
Figure 66: Personal consumpt ion of w ine, by age, February 2010-March 2011
Frequency and amount consumed
Figure 67: Average volume consumpt ion of dif ferent types of w ine, by age, February 2010-March 2011
Types of wine, by age
Figure 68: Consumption of domestic w ine by type, by age, February 2010-March 2011
Lower-priced wines dominate
Convenience store wines
Figure 69: Consumption of domestic w ine by top brands, by age, February 2010-March 2011
Country versus brand
Millennials drink French wine
Figure 70: Consumption of imported w ine by country of origin, by age, February 2010-March 2011
Figure 71: Consumption of imported w ine by at least 7% brand penetration, by age, February 2010-March 2011
IMPACT OF HOUSEHOLD INCOME
Key points
Nuances of wine and income
Restaurants
Figure 72: Personal consumpt ion of w ine, by household income, February 2010-March 2011
Figure 73: Average volume consumption of dif ferent types of w ine, by household income, February 2010-March 2011
Domestic wine types and brands
Figure 74: Consumption of domestic w ine by type, by household income, February 2010-March 2011
Figure 75: Consumption of domestic w ine brand, by at least 7% usage, by household income, February 2010-March 2011
Imported wines and brands
Figure 76: Consumption of imported w ine by country of origin, by household income, February 2010- March 2011
Figure 77: Consumption of imported w ine by at least 7% brand penetration, by household income, February 2010-March 2011
IMPACT OF REGION ON WINE CONSUMPTION
Key points
The Grapey Northeast
Exceptions on the income f ront
Top metro areas
Other variables
Figure 78: Personal consumpt ion of w ine, by region, February 2010-March 2011
Figure 79: Average volume consumpt ion of dif ferent types of w ine, by region, February 2010-March 2011
WINE—IMPORTANT INFLUENCES AND ATTITUDES
Key points
Influencing decisions
Organic/trade certif ied
Figure 80: Importance of various attributes w hen buying w ine, by gender, July 2011
Figure 81: Importance of various attributes w hen buying w ine, by age, July 2011
Confidence versus income
Figure 82: Importance of various attributes w hen buying w ine, by household income, July 2011
Attitudes regarding price and value
Aff luent w ine drinkers
Figure 83: Att itudes tow ard price, quality, pac kaging, and domestic vs. imported, by age, July 2011
Figure 84: Attitudes tow ard price, quality, packaging, and domestic vs. imported, by household income, July 2011
Low interest in alternative packaging
Figure 85: Wine purchase by packaging type, by age, July 2011
Figure 86: Wine purchase by packaging type, by household income, July 2011
Quality and value of country of origin
Figure 87: Opinion about quality, sophistication, fun, and value of w ine f rom dif ferent countries, by July 2011
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Consumption patterns
Overlooked ethnic groups
Figure 88: Table w ine consumption versus other alcoholic beverages, by race/Hispanic origin, February 2010- March 2011
Figure 89: Personal consumpt ion of w ine, by race/Hispanic origin, February 2010-March 2011
Figure 90: Average volume consumption of dif ferent types of w ine, by race/Hispanic origin, February 2010- March 2011
Types of wine consumed
Figure 91: Consumption of domestic w ine by type, by race/Hispanic origin, February 2010-March 2011
Favorite domestic and imported brands
Figure 92: Consumption of domestic w ine by top brands, by race/Hispanic origin, February 2010-March 2011
Figure 93: Consumption of imported w ine by at least 7% brand penetration, by race/Hispanic origin, February 2010-March 2011
CUSTOM CONSUMER GROUPS
Key points
Wine purchasing by type and price range
Figure 94: Wine purchase by type and most of ten used price range, February 2010-March 2011
Experian Simmons consumer segmentation findings
Retail shopper segmentation
Figure 95: Personal consumpt ion of w ine, by retail shopping segment, February 2010-March 2011
Figure 96: Consumption of domestic w ine by type, by retail shopping segment, February 2010-March 2011
Figure 97: Consumption of imported w ine by country of origin, by retail shopping segment, February 2010-March 2011
Economic outlook segmentation
Figure 98: Personal consumpt ion of w ine, by economic out look segment, February 2010-March 2011
Figure 99: Consumption of domestic w ine by type, by economic out look segment, February 2010-March 2011
Figure 100: Consumption of imported w ine by country of origin, by economic outlook segment, February 2010- March 2011
Health and wellbeing segmentation
Figure 101: Personal consumption of w ine, by health and w ellbeing segment, February 2010-March 2011
Figure 102: Consumption of domestic w ine by type, by health and w ellbeing segment, February 2010-March 2011
Figure 103: Consumption of imported w ine by country of origin, by health and w ellbeing segment, February 2010-March 2011
CLUSTER ANALYSIS
Persnickety Palates
Demographics
Characterist ics
Opportunity
Apprentice Connoisseurs
Demographics
Characterist ics
Opportunity
Bargain Shoppers
Demographics
Characterist ics
Opportunity
Cluster characteristic tables
Figure 104: Wine consumer clusters, July 2011
Figure 105: Incidence of drinking dif ferent types of w ine, by w ine consumer clusters, July 2011
Figure 106: Attitude tow ard w ine, by w ine consumer clusters, July 2011
Figure 107: Importance of w ine attributes in making purchase dec ision, by w ine consumer clusters, July 2011
Figure 108: Wine purchase by packaging type, by w ine consumer clusters, July 2011
Figure 109: Wine purchase by price range, by w ine consumer clusters, July 2011
Cluster demographic tables
Figure 110: Wine consumer clusters, by gender, July 2011
Figure 111: Wine consumer clusters, by age, July 2011
Figure 112: Wine consumer clusters, by household income, July 2011
Figure 113: Wine consumer clusters, by race, July 2011
Figure 114: Wine consumer clusters, by Hispanic origin, July 2011
Figure 115: Wine consumer clusters, by education, July 2011
Figure 116: Wine consumer clusters, by employment, July 2011
Cluster methodology
ADDITIONAL TABLES
Wines consumed by brand, country
Figure 117: Consumption of Champagne and sparkling w ine by at least 9% brand penetration, by age, February 2010-March 2011
Figure 118: Consumption of Port, sherry, and dessert w ine by at least 7% brand penetration, by age, February 2010-March 2011
Figure 119: Consumption of Champagne and sparkling w ine by at least 9% brand penetration, by household income, February 2010-March 2011
Figure 120: Consumption of Port, sherry, and dessert w ine by at least 7% brand penetration, by household income, February 2010-March 2011
Wine consumed by region
Figure 121: Consumpt ion of domest ic w ine by type, by region, February 2010-March 2011
Figure 122: Consumpt ion of domest ic w ine by top brands, by region, February 2010-March 2011
Figure 123: Consumpt ion of imported w ine by country of origin, by region, February 2010-March 2011
Figure 124: Consumption of imported w ine by at least 7% brand penetration, by region, February 2010-March 2011
Figure 125: Consumption of Champagne and sparkling w ine by at least 9% brand penetration, by region, February 2010-March 2011
Figure 126: Consumption of Port, sherry, and dessert w ine by at least 7% brand penetration, by region, February 2010-March 2011
Attributes and attitudes
Figure 127: Attitudes tow ard price, quality, packaging, and d omest ic vs. imported, by gender, July 2011
Figure 128: Wine purchase by packaging type, by gender, July 2011
Wine purchases by price range
Figure 129: Wine purchase, by price range, July 2011
Figure 130: Wine purchase by price range w ine drinkers use most of ten, by gender, July 2011
Figure 131: Wine purchase by price range w ine drinkers use most of ten, by age, July 2011
Figure 132: Wine purchase by price range w ine drinkers use most of ten, by household income, July 2011
Attitudes, quality and value
Figure 133: Opinion about quality, sophist ication, fun, and value of w ine f rom France, by age, July 2011
Figure 134: Opinion about quality, sophist ication, fun, and value of w ine f rom Italy, by age, July 2011
Figure 135: Opinion about quality, sophist ication, fun, and value of w ine f rom Argent ina, by age, July 2011
Figure 136: Opinion about quality, sophist ication, fun, and value of w ine f rom Chile, by age, July 2011
Figure 137: Opinion about quality, sophist ication, fun, and value of w ine f rom Australia, by age, July 2011
Figure 138: Opinion about quality, sophist ication, fun, and value of w ine f rom New Zealand, by age, July 2011
Figure 139: Opinion about quality, sophist ication, fun, and value of w ine f rom California, by age, July 2011
Impact of race/Hispanic origin
Figure 140: Consumption of imported w ine by country of origin, by race/Hispanic origin, February 2010-March 2011
Figure 141: Attitudes tow ard price, quality, packaging, and domestic vs. imported, race/Hispanic origin, July 2011
Figure 142: Consumption of Champagne and sparkling w ine by at least 9% brand penetration, by race/Hispanic origin, February 2010-March 2011
Figure 143: Consumption of Port, sherry, and dessert w ine by at least 7% brand penetration, by race/Hispanic origin, February 2010-March 2011
Figure 144: Wine purchase by packaging type, by race/Hispanic or igin, July 2011
Figure 145: Wine purchase by price range w ine drinkers use most of ten, by race/Hispanic origin, July 2011
APPENDIX—TRADE ASSOCIATIONS
APPENDIX: RESEARCH METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Sampling
Global Market Insite (GMI)
Secondary Data Analysis
Experian Simmons National Consumer Studies
Statistical Forecasting
Stat istical modelling
Qualitat ive insight
The Mintel fan chart
Weather analogy
APPENDIX: WHAT IS MINTEL?
Mintel provides industry-leading market intelligence
Mintel Solutions:
Mintel Oxygen Reports
Mintel GNPD
Mintel Inspire
Mintel Beauty Innovat ion
Mintel Menu Ins ights
Mintel Research Consultancy
Mintel Comperemedia
Related research categories
By sector: Wine (in Wine & Champagne)
By market: United States (in North America)
The just-drinks office is currently: Open
Office opening hours
Mon-Thursdays 9:00am-5:30pm
Fridays 9:00am-4:30pm
The office is closed during weekends.
Current time at just-drinks headquarters: 1:47pm (Tuesday, 21 May 2013)
Do you need help finding the right report? Speak to a member of our research team online.
Why not check our FAQ section? Your question may have been answered already!
Need help? Contact the research team
