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12 October 2005
Schaumburg, IL
While still representing a small percentage of all table wine sold in supermarkets, three-liter boxed table wine – also known as “cask” wine – is selling considerably faster than any other wine segment. The trend, reported today by ACNielsen, counters boxed wines’ heritage of value-priced wine sold in larger containers.
As the chart below shows, while the entire table wine category is enjoying strong growth, dollar volume of three-liter cask wines is growing nearly nine times faster than the overall category. The highest-priced segment of 3L cask wines – those selling for $16 or more per unit – is growing nearly 61 times faster.
|
$ Volume 52 Weeks Ending 7/30/05 |
$ Volume % Change vs. Year Ago |
Equivalized Unit* Volume 52 Weeks Ending 7/30/05 |
Equivalized Unit* Volume % Change vs. Year Ago |
| Total Table Wine |
$3,890,686,430 |
+8.8% |
63,775,926 |
+3.5% |
| Total Boxed Table Wine |
$231,000,872 |
+12.0% |
11,436,020 |
+3.7% |
| |
5L |
$199,083,397 |
+5.4% |
10,525,342 |
+1.0% |
| |
3L |
$30,681,268 |
+77.0% |
890,904 |
+47.4% |
| |
|
<$12 |
$18,060,006 |
+24.8% |
651,128 |
+19.2% |
| |
|
$12-$15.99
|
$3,925,152 |
+161.2% |
82,784 |
+155.3% |
| |
|
$16+ |
$8,696,255 |
+536.7% |
156,991 |
+515.0% |
Source: ACNielsen, U.S. Supermarkets. * One equivalized unit is equal to 9 liters.
An ACNielsen Homescan® consumer panel “source of volume” analysis found that while the majority (91%) of three-liter cask volume is being generated by wine buyers who are shifting some of their purchasing to the segment, 9% is incremental volume (7% is coming from wine buyers who are increasing their wine purchasing; 2% is coming from first-time wine buyers). Of wine buyers who are shifting some of their purchasing to three-liter cask wine, the vast majority are shifting from bottled wine, not other boxed wines.
Danny Brager, vice president of the ACNielsen Beverage Alcohol team, said, “Wine marketers are driving renewed interest in boxed wine by focusing on the smaller three-liter package, offering premium varietals such as Shiraz/Syrah and Pinot Grigio in that size – neither of which is available in a five-liter box – and, in some instances, by using uniquely shaped and brightly colored boxes. Clearly, their efforts are resonating with a segment of wine drinkers.”
As the chart below shows, of the nine highest dollar volume varietals sold in three-liter casks, most are delivering strong gains.
| 3L Cask Varietals |
$ Volume 52 Weeks Ending 7/30/05 |
$ Volume % Change vs. Year Ago |
Equivalized Unit* Volume 52 Weeks Ending 7/30/05 |
Equivalized Unit* Volume % Change vs. Year Ago |
| Chardonnay |
$8,802,783 |
+134.4% |
225,830 |
+101.8% |
| Merlot |
$5,623,609 |
+147.2% |
140,916 |
+103.9% |
| White Zinfandel |
$4,540,876 |
+33.3% |
162,419 |
+36.4% |
| Blush |
$2,834,174 |
-1.6% |
110,255 |
-9.0% |
| Cabernet Sauvignon |
$2,430,705 |
+480.5% |
45,489 |
+435.0% |
| Shiraz/Syrah |
$2,199,218 |
+162.7% |
45,714 |
+156.8% |
| White |
$1,920,472 |
-5.0% |
73,809 |
-12.5% |
| Red |
$1,789,413 |
+7.9% |
70,270 |
0.7% |
| Pinot Grigio |
$497,557 |
+537.1% |
15,064 |
+467.4% |
Source: ACNielsen, U.S. Supermarkets. * One equivalized unit is equal to 9 liters.
Much of the three-liter cask volume is coming from new entrants to the size segment (brands introduced within the last two years). In fact, more than half of the three-liter volume is from such brands.
About ACNielsen
ACNielsen, a VNU business, is the world’s leading marketing information provider. Offering services in more than 100 countries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen’s market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns.
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