today’s choices: u.s. wine consumption trends · 2020. 1. 16. · global wine trends. global...

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


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


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


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)


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)



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



Domestic California

67.7%

Imported26.5%

Domestic Other States

5.8%

Sources U.S. Table Wine Share by Volume, 2007



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



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



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)


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%


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%


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)


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


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


Demographics TrendsDo you most often drink liquor, wine, or beer?


Preferred Alcoholic Beverage, drinkers aged 30-49


Preferred Alcoholic Beverage, drinkers aged 18-29


Preferred Alcoholic Beverage, drinkers aged 50+(Gallup Poll)


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%)


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 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: [email protected]


The good news is…

you are making WINE, not SUV’s ☺

today’s choices: u.s. wine consumption trends · 2020. 1. 16. · global wine trends. global...

Documents