Today’s Choices:
U.S. Wine Consumption
Trends
Natalia Kolyesnikova, Ph.D.
Associate Director
Texas Wine Marketing Research Institute
Texas Tech University
Texas Tech University
Texas Wine Marketing Research Institute
Global Wine Trends
Global consumption is down 0.8% from
2007’s level
Decline in consumption in Europe negates
any gains in the emerging markets
New World countries’ collective share of
global wine exports rise to 30%
Americans top the world in winedrinking as global consumption shrinks
Texas Tech University
Texas Wine Marketing Research Institute
Total U.S. Wine Consumption
1996-2007
(Millions 9-Liter Cases)
231.4 233.7
225.3
209.6 214.7 217.5
1996
1997
1998
1999
2000
2001
245.5
2002
258.2
2003
268.1 273.7
283
292.1
2004 2005 2006 2007
Texas Tech University
Source: The Beverage
Information
Group Marketing
Wine Handbook, 2008
Texas
Wine
Research Institute
Consumption of Total Wine
in Texas, 1998-2007 (9-Liter Cases)
13,847,390
13,414,400 13,331,100 13,676,740
12,791,300
11,630,800 11,528,000
12,047,300
10,677,500
10,041,700
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
In consumption of total wine ranked by state Texas ranks 4th (2007)
Texas
Tech35University
th (2007)
ranks
In per capita consumption of total wine ranked by state, Texas
Texas Wine Marketing Research Institute
Percent Change in Total Wine Consumption
in Texas, 1998-2007
(Based on 9-Liter Cases)
8.2%
5.7%
6.2%
5.9%
4.9%
4.3%
2.6%
1.2%
-0.6%
-0.9%
1998
1999
2000
2001
2002
2003
2004
2005
Texas
Source: The Beverage Information Group Wine Handbook,
2008
2006
2007
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Texas Wine Marketing Research Institute
Percent Change in U.S. Wine Consumption
by Category, 1997 vs. 2007
Total Wine
Wine Coolers
Dessert &
Fortified
36.1%
-96.3%
-17.1%
8.1%
-4.8%
Champagne &
Sparkling
Vermouth
/Aperitif
45.7%
Table Wine
Texas Tech University
Institute
Source: The Beverage
Information
Wine Handbook,
2008
Texas
WineGroup
Marketing
Research
Sources U.S. Table Wine Share by Volume, 2007
Domestic
Other States
5.8%
Imported
26.5%
Domestic
California
67.7%
Source: The Beverage Information Group Wine Handbook, 2008
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Texas Wine Marketing Research Institute
Imported vs. Domestic Wine Share
by Category, 2007
48%
73.6%
62.8%
73.5%
91.3%
52%
26.4%
37.2%
26.5%
8.7%
Dessert & Fortified
Table
Champagne &
Sparkling
Vermouth/Aperitif
Total Wine
imported
domestic
Source: The Beverage Information Group Wine Handbook, 2008
Texas Tech University
Texas Wine Marketing Research Institute
U.S. Table Wine Share by Varietal, 2007
Chardonnay
24%
Others 28%
Red Zinfandel
1%
Merlot 13%
Syrah/Shiraz
2%
Pinot Noir 3%
Pinot Grigio
3%
Sauvignon
Blanc 4%
White
Zinfandel 9%
Cabernet 13%
Texas Tech University
Texas Wine Marketing Research Institute
Source: The Beverage Information Group Wine Handbook, 2008
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)
Texas Tech University
Texas Wine Marketing Research Institute
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 / Ecommerce
67%
52%
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Texas Wine Marketing Research Institute
Wine Clubs
Sixty-four (64%) of U.S. wineries now
have wine clubs
Primary Sources of Wine Clubs Sign-Ups
Tasting Room
77%
Web / E-commerce
7%
Consumer Events
6%
Referrals
4%
Direct Mail / Other
6%
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Texas Wine Marketing Research Institute
Wine Club Lessons
Wine 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 month
Interest about joining the wine club should not
come from a hard-sell approach
Provide complete experience: tell a story,
educate, entertain, taste, and ask for the sale
For cancellations: offer a reduced club (fewer
shipments, with the option to upgrade later)
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Texas Wine Marketing Research Institute
Direct to Consumer Lessons
Tasting room traffic should not be the only
source of DTC sales
View tasting room traffic as the jumping- off
point for all future relationships.
“ABC” – Always Be Collecting – customer
information, that is.
Become technology savvy
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Texas Wine Marketing Research Institute
Spending Trends:
Do Americans drown recession blues in wine?
High-end reds sales slowed dramatically
Mid-range and lower price points wines sales
are stable
Conspicuous consumption has gone out of
favor. Frugality becomes hip
Consumers are not buying less wine. But
they are buying less expensive wines
Total wine sales in 2008 are still up, but most
of the growth comes from the under $10
category
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Texas Wine Marketing Research Institute
Demographics Trends
Do you most often drink liquor, wine, or beer?
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Texas Wine Marketing Research Institute
Preferred Alcoholic Beverage, drinkers aged 30-49
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Texas Wine Marketing Research Institute
Preferred Alcoholic Beverage, drinkers aged 18-29
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Texas Wine Marketing Research Institute
Preferred Alcoholic Beverage, drinkers aged 50+
(Gallup Poll)
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Texas Wine Marketing Research Institute
Other Trends: Women’s Wine Drinking Habits
Global Vinexpo Survey:
4300 women (France, Germany, Japan, UK, and U.S.)
Among U.S. respondents:
Prefer reds
Drink it most often with meals
Purchasing 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%)
Texas Tech University
Texas Wine Marketing Research Institute
Other Trends: Millennials
Experts say wine consumption will
continue to grow among young adults
The Millennials are:
willing to experiment
brand savvy
prefer to buy on visual appeal and name
recognition rather than winemaking region
Technology (social networking) is the
key in targeting this generation
Texas Tech University
Texas Wine Marketing Research Institute
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-ResearchInstitute/109109897221
(or search for “Texas Wine Marketing Research Institute”
within Facebook)
Email:
texaswine@ttu.edu
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Texas Wine Marketing Research Institute
The good news is…
you are making WINE,
not SUV’s ☺
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Texas Wine Marketing Research Institute