session two nielsen presents: the right pack
TRANSCRIPT
Yountville, CA │ August 8, 2019 #wvpack
NIELSEN PRESENTS: THE RIGHT PACKS E S S I O N T W O
SPEAKERS: Peggy GsellKelly Nielsen
Copyright © 2019 The Nielsen Company. Confidential and proprietary.
NIELSEN PRESENTS:THE RIGHT PACKAugust 8, 2019 - Yountville, CA
Peggy Gsell- Nielsen Client Business PartnerKelly Nielsen- Vice President Alcohol Beverage Vertical, Nielsen Innovation BASES
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DISAPPEARING LINES FOR THE BEVERAGE DRINKER
BEER WINE
SPIRITS
BEYOND BLURRING: THE NEW TOTAL BEVERAGE DRINKER
WHAT WE USED TO KNOW ABOUT BEER, WINE, AND SPIRITS DRINKERS…
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INNOVATING ACROSS CATEGORIES (AND INDUSTRIES!)
Big Beer Spirits
Big Beer Wine
Wine Craft Beer
Craft Beer Spirits
Big Beer/Big Spirits Collaboration
Beyond Bev Al Collaboration
Beer Beyond BevAl
Carb Bev BevAl
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MEET YOUR (NEWER) COMPETITORS
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GROWTH IN NON-ALC BEV CATEGORIES
Source: Nielsen XAOC+Conv; YTD 6/30//19
Top 10 Fastest Growing Non-Alc Beverage CategoriesActual Dollar Change ($M) YTD vs Year Ago
1045
14691
1517
Energy BeveragesSoft Drinks
Water + Value Add WaterSparkling / Seltzer Water
Sport DrinksRTD CoffeeFruit DrinkKombuchaLiquid Tea
Tonic Water
Non-Alc Beverages +$2B YTD,
+$8B vs 4 yrs ago
$ Millions4,0003,5003,0002,5002,0001,500,0005000
% Chg
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Sparkling WaterKombuchaEnergy Beverages
Source: Nielsen Homescan Panel, Total US, 52 Weeks Ending 12/29/18
WINE & SPIRIT BUYING HOUSEHOLDS Average Annual $ Spend on Growing Non-Alcoholic Beverage Segments
+$17 +$6 +$6 +$5 +$4
WINE DRINKERS VERY ENGAGED IN NON-ALCOHOLIC BEVERAGES
Sports Drinks Value Add Water
Average HH Spirits HH Wine
$85$96
$80
$31 $32 $32 $31 $34 $34$27 $27 $27
$21 $23 $20
+$5
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HARD SELTZERS – LESS ‘RULES’ IN PACKAGING
Source: Nielsen Total U.S. All Outlets (xAOC + Liquor Plus + Conv + Military); 52 w/e 6-15-2019 (annual time periods)
100
3020
5040
7060
9080
Dol
lar S
ales
in M
illio
ns
4 Years Ago 2 Years Ago 1 Year Ago Lat. 52 Weeks
# of
Item
s Se
lling
200
6040
10080
140120
180160
3 Years Ago
Dollar Sales # of Items
10
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ALTERNATIVE PACKAGING – DRIVING GROWTH IN WINE
Source: Nielsen Total U.S. All Outlets (xAOC + Liquor Plus + Conv + Military); 52 w/e 7-13-2019)
$ Share $ % Chg750ml Glass 73% +2%
1.5L Glass 14% (4%)Alt Packs 13% +6%Alt Packs
(less 4/5 Glass & 5L Box) 10% +9%
580
4286193336
9331
203235226178
411
3L P
rem
ium
Box
1.5L
Box
187m
l
187m
l Gla
ss
187m
l Pla
stic
Tetr
a
500m
l Tet
ra
1L T
etra
Can
250m
l Can
375m
l Can
187m
l Can
375m
l
Pouc
h
100%
75%
50%
25%
0%
Dol
lar %
Cha
nge
Dollar Sales in Millions
Total Wine +1.6% 93
213.1%
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CANNED WINES – STILL ON A TEAR
Source: Nielsen Total U.S. All Outlets (xAOC + Liquor Plus + Conv + Military); 52 w/e 6-15-2019 (annual time periods)
10
0
30
20
50
40
70
60
90
80
100
Dol
lar
Sal
es in
Mill
ions
4 Years Ago 2 Years Ago 1 Year Ago Lat. 52 Weeks
# of
Item
s S
ellin
g
50
0
150
100
250
200
350
300
450
400
500
3 Years Ago
Dollar Sales # of Items
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YOUNGER WINE CONSUMERS ATTRACTED TO ALTERNATIVE PACKAGING
Source: Nielsen Total U.S. All Outlets (xAOC + Liquor Plus + Conv + Military); 52 w/e 6-15-2019 (annual time periods)
YOUNGER WINE CONSUMERS ATTRACTED TO ALTERNATIVE PACKAGING
0
% o
f $
Total W
ine
20
40
60
80
100
187m
l Spark
ling
187m
l Tab
le
375m
l Glas
s
3L Prem
ium Box
500m
l Tetr
a
1L Tetr
a
250m
l Can
375m
l Can
Wine Pouch
Wine Glas
s
10
14
21
23
32
14
13
28
22
24
710
36
18
29
16
13
20
18
32
14
26
16
18
26
15
17
28
15
25
6
15
38
26
15
35
21
19
10
15
17
21
34
25
4
13
18
19
19
31
711
17
11
54
21-34 35-44 45-54 55-64 65+
Copyright © 2019 The Nielsen Company. Confidential and proprietary.
PACKAGING EFFECTIVENESSExploring Alternative Wine Packaging
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ACROSS INDUSTRIES, ALTERNATE PACK FORMATS AND SIZES DRIVE INCREMENTAL INNOVATION
Solve unmet consumer needs
Expand usageoccasions
Change the way consumers interact
with the category
Mini Cans Occasion Appropriate Containers Taster Sets
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EXPLORING ALTERNATIVE WINE PACKAGING: WHAT DO CONSUMERS THINK?
Nielsen’s Design Solutions are used to understand consumer perceptions of wine packaging.
• Alternative wine packages identified
• Removed branding to focus on pack form
• Red and white labels added for clarity
• Category buyers recruited
• Consumers evaluated pack forms
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UNBRANDED WINE PACK FORMS EVALUATED
Glass Bottle(Standard)
Aluminum Cans(250 ML)
Aluminum Can (375 ML)
Aluminum Wine Bottle
(250 ML)
Box (3L)
Box (5L)
Plastic Bottle Four Pack
(187 ML)
Tetra Pack (1L)
Tetra Pack(500 ML)
Wine Glass
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OPPORTUNITY FOR NEW PACKS IN OUTDOOR CONSUMPTION
30%
40%
50%
60%
70%
80%
90%
100%
At Home Smal l Get Together(At Home)
CasualBar/Restaurant
Fancy/Romatic Meal Nightclub Concert/MusicVenue
Special Event BBQ/Picnics Beach/Pool Tailgating/SportingEvent
Camping/Hiking
OCCASIONSTop 2 Box: Completely or somewhat agree
Glass Bottle (750ml) Aluminum Cans 4PK (250ML) Aluminum Can (375ML) Aluminum Wine Bottle (250ML)Box (3L) Box (5L) Plastic Bottle 4PK (187ML) Tetra (1L)Tetra (500ML) Wine Glass Single Serve
While the standard glass bottle leads in at-home occasions, new forms show promise outside of the home.
AT HOME; MEAL OCCASIONS VENUE & EVENT OUTDOORS
This is a product that I would consume at [insert occasion]. 5-Scale Results: Completely Agree -> Completely Disagree.
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3L BOX, PLASTIC BOTTLE 4PK, AND ALUMINUM BOTTLEARE ASSOCIATED WITH UNIQUE OCCASIONS
Box 3L Plastic Bottle 4 Pack (187 ML) Aluminum Wine Bottle (250 ML)
BBQ/Picnics BBQ/PicnicsBeach/Pool Tailgating/Sporting Event
BBQ/Picnics Beach/Pool Tailgating/Sporting Event
Concert/Music Venue
Camping/ Hiking
Camping/ Hiking
“Box is great if outdoors on the patio, no need to keep getting up to refill your glass.”
“I like the idea of having small bottles of wine. This makes things more convenient when a person is
traveling or camping”
“I like that you could take it with you and it not get crushed in your purse”
“Perfect size for one person at outdoor parties”
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WHILE RESEALABILITY ALIGNS WITH OUTDOOR USAGE, GLASS BOTTLE SCREW CAP IS ALSO GAINING TRACTION
Cork 43%Resealable Screw Cap 35%No Preference 21%
Would not purchase in cork or resealable screw cap 1%
Glass Bottle (Standard)
If this product were available with both a cork and resealable screw cap, which would you be more likely to purchase?
PREFERENCE: CORK V. SCREW CAP
FOUR YEAR GROWTH
+36%
+6%
Screw Cap
Cork
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1
2
3
4
5
6
7
8
9
Portable Convenient Feminine Tasty Traditional
Personality Traits – Alternative FormatsAssociation Ranking
Aluminum Cans 4PK (250ML) Aluminum Can (375ML) Aluminum Wine Bottle (250ML)
Box (3L) Box (5L) Plastic Bottle 4PK (187ML)
Tetra (1L) Tetra (500ML) Wine Glass Single Serve
THE PLASTIC BOTTLE 4PK IS PERCEIVED TO BE THE MOST PORTABLE, CONVENIENT, FEMININE, AND TASTY…
Box (5L) is the least portable/convenient. Both 5L and 3L Boxes are seen
as the most traditional.
Though fairly portable, the single serve Aluminum
Can falls short on femininity and taste
relative to other packs.
“Perfect when you'reon the go”
Which of these would you MOST/LEAST describe as [TRAIT]?Glass Bottle (750 ML)
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… WITH ALUMINUM BOTTLE SEEN AS MOST MODERN, MEMORABLE, AND HIGH-END
1
2
3
4
5
6
7
8
9
Modern Memorable Sophisticated Premium Quality
Personality Traits – Alternative FormatsAssociation Ranking
Aluminum Cans 4PK (250ML) Aluminum Can (375ML) Aluminum Wine Bottle (250ML)
Box (3L) Box (5L) Plastic Bottle 4PK (187ML)
Tetra (1L) Tetra (500ML) Wine Glass Single Serve
Aluminum Can and Wine Glass single serve packs fall
short of other alternative packs on being modern and high-end.
Which of these would you MOST/LEAST describe as [TRAIT]?
“It looks premium”“Looks very prominent”
“The shape and design looks sleek and
modern.”
Glass Bottle (750 ML)
3L Box also leads alt. packs in being perceived as memorable and high-end. Though, 5L Box
falls to bottom.
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TASTE PERCEPTIONS FOR ALUMINUM CANS COULD BE HIGHER FOR VARIETALS WITH BETTER FIT
Aluminum Cans 4 Pack Aluminum Cans
What varietals, if any, do you associate with this package?
Varietal Association (Top 4 Rank)
Sparkling White
Sparkling Red
Rose
Red Blend
Chardonnay
Aluminum cans tend to be associated with sparkling.
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TETRA PACK NEEDS TO PLAY UP DIFFERENTIATED BENEFITS/FEATURES TO CUE UNIQUE OCCASIONS…
30%
40%
50%
60%
70%
80%
90%
100%
At Home Smal l Get Together(At Home)
CasualBar/Restaurant
Fancy/Romatic Meal Nightclub Concert/MusicVenue
Special Event BBQ/Picnics Beach/Pool Tailgating/SportingEvent
Camping/Hiking
OCCASIONSTop 2 Box: Completely or somewhat agree
Glass Bottle (750ml) Aluminum Cans 4PK (250ML) Aluminum Can (375ML) Aluminum Wine Bottle (250ML)Box (3L) Box (5L) Plastic Bottle 4PK (187ML) Tetra (1L)Tetra (500ML) Wine Glass Single Serve
This is a product that I would consume at [insert occasion]. 5-Scale Results: Completely Agree -> Completely Disagree.
AT HOME; MEAL OCCASIONS VENUE & EVENT OUTDOORS
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… AND DRIVE DISTINCT PERCEPTIONS; THERE MAY BE OPPORTUNITY TO OWN SUSTAINABILITY
1
2
3
4
5
6
7
8
9
Modern Portable Convenient Feminine Memorable Sophisticated Premium Quality Tasty Traditional
Personality Traits – Alternative FormatsAssociation Ranking
Aluminum Cans 4PK (250ML) Aluminum Can (375ML) Aluminum Wine Bottle (250ML)Box (3L) Box (5L) Plastic Bottle 4PK (187ML)Tetra (1L) Tetra (500ML) Wine Glass Single Serve
Which of these would you MOST/LEAST describe as [TRAIT]?
“It doesn't have the sophistication or elegance
associated with bottled wine.”
“While this is portable, it isn't the most sophisticated”
“Sustainablepackaging”
“As environmentally-friendly as this packaging is, it
still looks cheap”
“Recyclable; Great for the environment”
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WHILE 3L & 5L BOXES AND PLASTIC BOTTLE 4PK CUE FORM LEADER BRAND ASSOCIATION…
Box 3L Box 5L Plastic Bottle 4 Pack 187ML
Brand Associated 86% 91% 81%
Top Brand Association Black Box Franzia Sutter Home
No Brand Associated 14% 9% 19%
Brand Association
What brands, if any, do you associate with this package?
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…THERE’S GREATER OPPORTUNITY TO OWN NEW TYPES LIKE ALUMINUM, TETRA, AND SINGLE SERVE
Aluminum Cans 4 Pack
250ML
Aluminum Can 375ML
Aluminum Wine Bottle
250MLTetra Pack 1L Tetra Pack
500MLWine Glass Single Serve
Brand Association 70% 63% 63% 71% 72% 61%
No Brand Association 30% 37% 37% 29% 28% 39%
Brand Association
What brands, if any, do you associate with this package?
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DESIGN IS THE GREATEST INFLUENCE ON CONSUMER BRAND & PRODUCT PERCEPTIONS
Package Design
Advertising
Trade Promotion
Consumer Promotion
Social Media
LowCost
HighlyStrategic
HighReach
Only Pack Design:
• Reaches 100% of likely buyers at the first moment of truth where 50-80% of purchase decisions are made
• Requires a relatively low investment
• Embodies the brand and product strategy
Sources: PRS; Nielsen CPG Package Design Study
Design and branding drives equity and sets expectations at shelf.
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TOP BRANDS ALSO EVALUATED FOR EACH PACK FORM
Glass Bottle(Standard)
Aluminum Cans(250 ML)
Aluminum Can(375 ML)
Aluminum Wine Bottle
(250 ML)
Box (3L)
Box (5L)
Plastic Bottle Four Pack
(187 ML)
Tetra Pack (500 ML)
Tetra Pack (1 L)
Wine Glass
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BRANDED
BLACK BOX BRANDING ELEVATES UNBRANDED 3L BOX’S CHEAP PERCEPTIONS TO PREMIUM AND QUALITY
UNBRANDED
FREE ASSOCIATION: BOX 3L
“Cheap”
“It has a sophisticated and elegant design that stands out and looks premium”
“Beautiful packaging. So sophisticated and lovely. Premium quality packaging”
“I feel that box packaging suggest short term storage and not high quality”
“It doesn't seem as premium as bottled wine and looks generic”
“Premium”“Quality”“Tasty”
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FREE ASSOCIATION: TETRA 1L
BRANDING AND CORRESPONDING DESIGN MAY HELP TETRA FORM PLAY IN UNIQUE SPACES AND STAND OUT
BRANDEDUNBRANDED
“I’m just not sure quality wine comes like this”
“Convenient opening without the need for a corkscrew”
“The scenery is simple, yet unique and captivating like it's telling a story”
“Convenient to open/close, preserves wine and makes very portable”
“Cheap”“Convenient”“Portable”
“Modern”“Portable”“Unique”
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• Alternative packaging is driving growth in wine
• New pack forms offer potential category disruption
• Incremental opportunity with unique, active occasions
• Leverage design & branding to reframe and elevate pack perceptions beyond the functional benefits of pack form
IN SUMMARY:
ALTERNATIVE WINE PACKAGING ON THE RISE