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Another study agrees: We buy wine on price

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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.”

Five things that make me crazy when I buy wine

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Which price am I going to pay for this wine? And why are there so many prices anyway? It makes me crazy.

Negotiating the Great Wall of Wine at the grocery store (or any retailer, for that matter) is difficult enough. But why is it that so many in the wine business go out of their way to make it even more difficult? Hence, the five things that make me crazy when I buy wine:

1. Wine shelved incorrectly, where Chilean wine is in the Spanish section, French wine is in the Italian section, and so forth. Some of my irritation is because I’m the son and grandson of retailers, and they taught me the need to stock inventory correctly. But most of it is because that kind of mistake makes it more difficult for people to buy the wine they want. If you’re looking for malbec, and it’s not in the Argentine section, you’re more likely to forgo wine or buy beer.

2. Sweet red wines that don’t say they’re sweet on the label. If I have trouble figuring out whether it’s sweet or dry, and I do, how much trouble does the average consumer have? Using the adjective smooth, which seems to be the winespeak of the moment for sweet, isn’t enough. You’re making sweet red wine because people want sweet red wine, so what’s wrong with telling them it’s sweet?

3. The boxed wine ghetto, where all the boxed wine — regardless of quality — is stuck on a dusty shelf in the back of the store or wine section. One reason that Yellow + Blue, a great cheap wine, isn’t better known is that it comes in a 1-liter box. That means you’ll find it with the Almaden and Franzia 5-liter boxes, and about the only thing the Yellow + Blue has in common with those is the box. It’s like putting Italian-made shoes next to flip-flops, and who does that?

4. Three — or four or even five — prices for the same bottle of wine. There’s the regular retail price. And the club price. And the sale price. And the “buy six, get a discount” price. And the “buy 12 and get a discount” price. The consumer isn’t sure what the price is, and ends up paying more than they thought they would. Which, sadly, may be the point.

5. That every winery in New Zealand seems to have a bay in its name — Oyster Bay, Monkey Bay, Destiny Bay, Cable Bay, Brick Bay, Pegasus Bay, Clifford Bay, Picton Bay, and so on and so forth. It’s one thing when the winery, like the respected and well-known Cloudy Bay, is actually located on a bay. But when the winery doesn’t exist, and the name is made up to sell private label wine or by Big Wine to establish a New Zealand brand, enough is enough.

Slider image courtesy of Houston Press food blog, using a Creative Commons license

Winebits 331: Powdered alcohol, last call, and best quote ever

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Winebits 331: Powdered alcohol, last call, and best quote ever

“Wonder what Palcohol will do to this crappy wine?”

When real booze isn’t enough: Not happy with liquid alcohol? Then how about the powdered version, Palcohol, which has been approved for consumer use. It comes in seven flavors, including “cosmopolitan,” “lemondrop,” and “powderita.” Yum yum. No word yet on whether the company will release a pink moscato flavor, with appropriate Millennial marketing: “Dude, your wine is super lame — try this.” The Wine Curmudgeon’s cynicism notwithstanding, I checked with the blog’s offical liquor lawyer, who sighed (he does that a lot when I talk to him). His analysis: “I’ll bet it lasts about 10 minutes. A few years ago all the regulators got panicky over vaporized alcohol. Supposedly made you drunk in .05 seconds and they couldn’t figure out how to make it illegal. Turns out it didn’t work and nobody gave a damn. Maybe this will be the same way, but stand by for screams of alarm.”

When regular closing time isn’t enough: How does 5:30 in the morning sound? That’s the plan for bars in several Montreal neighborhoods this summer, part of a scheme to ease congestion in those area when the bars close. The Wine Curmudgeon, despite more than a passing knowledge of drinking in Montreal (and where I have had some great Canadian wine), is still confused. Can there be a city where so many people are drinking so late into the night that last call resembles a shopping mall parking lot on Black Friday? If so, I need to get out more often. Or at least drink somewhere besides Dallas.

If not the best quote ever, close to it: Hardy Wallace gained fame — and quite a bit of notoriety — when he won a gig several years ago as the official blogger for the Murphy-Goode wine brand. Wallace makes wine now, and notoriety still follows him. Consider this, from an interview with a San Francisco-area business newspaper: “It’s overwhelming generality that vintners are doing a horrible job communicating with consumers. … You do not stand in a room and scream, ‘Buy this!’ and, ‘We sell this!’ ” Sounds like the Wine Curmudgeon on a rant, no?

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