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Another study agrees: We buy wine on price

winetrends

wine genome studyThe biggest surprise in the Wine Genome study from Constellation Brands, one of the biggest wine companies in the world? That one-fifth of us buy wine on price.

“We knew they were out there, but the widening span of the study showed how deeply the recession cut,” said Dale Stratton, the Constellation official who oversaw this version, the third, of the company’s Project Genome, designed to identify the most common types of of wine drinkers based on purchase behavior, motivation, and preferences. “The recession had a big impact and significantly changed consumer spending habits.”

Stratton laughed when I asked him about this. No, he said, it’s not that Constellation (whose brands include Rex Goliath, Mark West, and Robert Mondavi) didn’t expect price to be important. Rather, it’s that price-driven wine drinkers were the biggest category of the six, doubling the number of  Enthusiasts — those who “love everything about the wine experience,” including researching purchases, reading reviews, and sharing wine with others. In other words, the Winestream Media’s audience. The other thing to note here? The Enthusiasts account for 15 percent of profit, compared to 14 percent for the Price-Driven group. Harrumph.

The study, which updated a 2004 effort, is full of surprises — unless, of course, you visit here regularly (and you can see a nifty infographic describing each group here):

• The third-biggest group, at 19 percent, are Overwhelmed, which means pretty much what it says: “I don’t enjoy shopping for wine, and find it complex and overwhelming. This, says Stratton, reinforces the need for wine education, not only for consumers but for those who sell wine — distributors, retailers, and restaurateurs. Hearing this was surprising enough, but I almost dropped the phone when Stratton said that winespeak is one of the reasons the overwhelmed are overwhelmed. Maybe, he said, retailers and wine writers should find simpler terms to use.

• Women, who have traditionally skewed higher for wine purchases at the lower end, are becoming more important at the higher end. The Enthusiasts, who were about 65 percent male in 2004, were close to 50-50 this time. “This means more women see wine as a hobby,” says Stratton, and that means more women attend tastings and shop at wine-specific retailers.

• Wine snobs, called Image Seekers, are still with us, and in a big way. They account for 18 percent of wine drinkers, but contribute 26 percent of profits, more than any other group. Given the wine they drink, that’s probably not surprising.

• Welcome the Millennials to wine, in the form of the Engaged Newcomer at 12 percent. This group is young, wants to learn more, and recognizes that wine is intimidating. They also spend more on a bottle than the other groups, about $13.

One other point worth noting: This kind of study is common for consumer packaged goods like laundry detergent and ketchup. That Constellation can do for wine what Proctor & Gamble does for its products speaks volumes about how much the wine business has changed, and that it is becoming more mainstream.

“Wine is increasing household penetration at a good clip, and the audience has broadened,” said Stratton. “And it’s going to continue to change, as the American population changes.”

Wine trends in 2014

winetrends

Wine trends in 2014The wine business in 2014 won’t be so much about varietal or sweet, though both will matter. Rather, wine trends in 2014 will be about the continuing transformation of wine into a truly global business, focusing on:

• Increased retail availability — more wines in more and different kinds of stores, and especially grocery stores. This means attempts to change state laws where that’s illegal

• More consolidation among producers — not just the biggest getting bigger, the trend over the past decade, but consolidation among mid-sized wineries, which will be folded into companies specificially formed for that purpose.

• The growing importance of the consumer, who is beginning to drink what he or she wants and forcing the wine business to adjust, rather than the other way around.

Mixed in with this will be renewed attempts by the neo-Probhibitionists in goverment and medicine to reduce wine consumption. More, after the jump:

Winebits 307: Wine cities, Wine Spectator, wine revolution

winenews

More wine in Dallas, please: The Wine Curmudgeon has noted many times that Dallas residents treat wine as if they were afraid of it, and now we have statistical evidence to support my observation. A Harris Poll found that Dallas residents are the least likely of anyone in the country’s 10 biggest metro areas to drink wine, and that we lead the country in not drinking any alcohol at all. No wonder we spend way too much time obsessing over the Cowboys. Obviously, I have my work cut out for me, and will continue to urge responsible cheap wine drinking on the masses. It’s the least I can do.

Some wines are more equal than others: Kyle Schlachter at Colorado Wine Press, who has much more patience with the Winestream Media than I have, reports on what appears to be the Wine Spectator’s double standard for choosing wines to review. The magazine has said it won’t review some wines (in this case, from Colorado) if they they aren’t widely available. On the other hand, it recently reviewed several wines from France that weren’t widely available (10 cases or less in the U.S.). Schlachter seemed surprised by this contradiction, but that’s only because he hasn’t been dealing with this kind of hypocrisy for  as long as I have. The Spectator does what the Spectator does; that’s why it is the Spectator. And why it has a Curmudgie named after it.

Democratizing wine: David White of the Terroirist has a fine take on the changes in the wine business, led by consumers who make up their own minds about what they want to drink. He quotes Jancis Robinson, the preeminent European critic: ““No longer are wine critics and reasonably well-known wine writers like me sitting on a pedestal, haughtily handing down our judgments. Nowadays… [consumers] can make up their own minds. That’s altogether a lot healthier.” It’s also intriguing, from my perspective, that some of the best and most well-known critics in the world see this change and approve of it. That means they have the well being of wine and wine drinkers at heart, and not whether they continue to be important and famous.

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