Wine Economics Archives

CGA’s December’s “US Consumer Impact Report” reveals that bars and restaurants are essential for driving awareness of drinks brands

CGA by NielsenIQ’s latest consumer research reveals that bars and restaurants are essential for driving awareness of drinks brands, with 61% of consumers more likely to look for new brands in the on premise as opposed in stores and 54% stating they’ve made an in-store purchase of a brand that they first tried in the on premise.

CGA’s Consumer Impact report highlights 1,600 consumer behaviors across Florida, Texas, California and New York. The latest research highlights that the frequency of visits to the on premise have remained stable, with 4 in 5 consumers visiting bars and restaurants 3 or more times in the last three months. Plans for visiting also remain very positive with around 73% of US consumers planning to go out in the next weeks.

Consumers continue to seek out new experiences in bars and restaurants, with consumers more likely to first try a new Spirits or Beer brand in the on premise over an in-store purchase – underlining how important venues are in building brand awareness and encouraging trial.

Trial of new drinks brands in bars and restaurants is highly likely to compel consumers in their purchasing decisions in the off premise too – with 54% of consumers agreeing they have made a purchase in store of brands that they first tried in the on premise. 3 in 5 consumers also agree that they are likely to look for new brands in store if they’ve already tried them at a bar or restaurant.

Not only are on premise purchases informing in-store buying behaviors, they also help to build loyalty – with two thirds of consumers agreeing that if they try a new brand they like in a bar or restaurant, they will continue drinking it on subsequent visits.

Ahead of the holiday season, two thirds of US consumers are planning to visit the on premise throughout this period, with 3 in 10 planning to visit on New Year’s Eve specifically. These consumers are planning to visit a range of food- and drink-led venues, with neighborhood bars, fine dining and sports bars leading the list of most popular venues, while beer is the drink of choice for New Year’s Eve.

Moving into the new year, almost 2 in 5 US consumers predict they will visit the on premise more or much more often than they did in 2022, while half plan to maintain their current frequency of visitation. A third of consumers predict their spend in bars and restaurants will increase over the next 12 months, with 2 in 5 consumers willing to spend more for better quality drinks compared to 2022 – providing significant opportunities for premium drinks brands.

Source: CGA Strategy

#winemarketing #winenews #winetasting #winelovers #beer #usconsumers #consumermarketing #wine #sommelier #sommlife #winetime #happyhour #wineoclock #beveragemarketing

US [on-premise] Wine Sales Total $14.8 Billion

Wine sales in the US on-premise sector totaled $14.8 billion in the 52 weeks ended October 8, 2022 according to CGA Strategy by NielsenIQ.

Latest data from the market research firm CGA Strategy reflects a 22% increase over the same period in 2021, but growth is slowing as the on-premise market recovery continues.

Sparkling wine continues to stand out with sales up 34% in the recent period to $2.6 billion. Total domestic wine sales came to $9.2 billion, up 20%, while imports totaled $5.5 billion. Sales of white wine came to $7.2 billion followed by red at $6.5 billion. Happy to say that rosé sales grew 27% to $904 million.

The growth comes in a competitive market marked by fewer outlets and fewer choices for drinkers. CGA reports the number of fine dining outlets has decreased 4.1% between October 2021 to October 2022, while consumer surveys found 21 % of diners report they have noticed fewer menu items and 40 % of those say there are fewer wine options.

In a webinar last week, Andrew Hummel, CGA client Solutions Director for North America, said surveys of on-premise consumers consistently find 50% report they drink something different at restaurants and bars than what they enjoy at home. “It’s really important to understand the on-premise consumer and segment them differently from the off-premise consumer,” he further states.

In terms of the different types of on-premise wine consumers, 37% of those surveyed by CGA who are wine drinkers fall into the company’s “curious and on a budget” category which represents about 30% of all consumers. These restaurant and bar patrons are “moderately engaged,” typically visiting in the early evening and enjoying trying new drinks yet are price sensitive and attracted to values.

To help wine producers navigate a changing market, CGA developed a new report that offers a “360-degree view” of wine in the on-premise sector. This new report blends market data with consumer surveys and “user” data as well as a channel strategy analysis into what the firm describes as its most comprehensive analysis of the on-premise market for wine. “Whether teams are considering a new brand launch in the market or managing a portfolio of legacy wines, the report will provide a robust set of insights across relevant topics to help drinks suppliers win in the on-premise,” states Matthew Compton, CGA’s regional director of North America.

Sources:
NielsenIQ
Wines Vines Analytics

#wine #whitewine #winenews #winelovers #redwine #rosewine #sparklingwine #champagne #USAwinemarket #wineeconomics #winetrends #winemarketing #winesales #winebusiness

OIV Report: Average Volumes for Vintage 2022

World wine production in 2022 is again expected to be slightly below average, with differences between the individual winegrowing zones and countries. The International Organisation of Vine and Wine (OIV) forecasts global production of between 257.5 and 262.3m. hl of wine and must in 2022. There will be regional differences in harvest volumes, but the market surplus will remain.

The average value of 259.9 mill. hl is about 1% below the previous year’s quantity. However, the OIV points out that no information is yet available from China and Russia.

Europe is the heart of global viticulture. The EU alone accounts for 60% of world wine production and production volume is expected to be average, with Italy, France, Romania and Germany, among others, reporting higher harvest volumes than last year. In contrast, Spain, Greece and Portugal have harvested rather low volumes.

In the USA, a slightly lower harvest volume than in 2021 has been reported; 23.1 mill. hl are expected. This would be 4% below the previous year and 6% below the 5-year average, the second lowest volume in the last five years.

After the record year of 2021, the wine-growing countries in the southern hemisphere produced average quantities overall this time, with almost all countries producing less than in the previous year – except for New Zealand, where after a poor harvest in the previous year, this time the largest production quantity ever (3.8 mill. hl, 44% above the previous year) came onto the market. Overall, the southern hemisphere is responsible for about 21% of world wine production in 2022.

#wine #winenews #winegrowing #vineyards #wineharvest #wineproduction #redwine #whitewine #winelover #winemaker #winetasting #oiv #viticulture #vino #vin #winetrade #wineeconomics

Source: OIV

The Liv-ex “Power 100” 2022 – All About Burgundy

The Liv-ex Power 100, produced in conjunction with The Drinks Business Magazine, their annual list of the most powerful brands in the fine wine market.

The Power 100 is a snapshot of the ever-changing landscape of the secondary market and this year’s list caught Burgundy at the very height of its latest upswing.

For the first time ever, no Bordeaux wines feature in the top 10. Not a single First Growth from either bank. This year they have been totally usurped by Burgundy and Champagne.

Rupert Millar, Liv-ex’s Managing Editor states:
“Already the direction of the market in 2022 suggests change is on the way. Just as we saw in 2019, Burgundy’s latest surge may be dizzying but could be swiftly stymied by a lack of supply and an increasing reluctance to pay such steep prices for handfuls of bottles. The higher it flies, the thinner the air, and the fewer buyers there are.”

Key findings: https://www.liv-ex.com/.

#wineinvestment #winelovers #winecollectors #burgundy #bordeaux #wine #power100 #livex #champagne #finewine #finewinecollectors

OIV Releases 2022 Global Wine Production Projections

OIV releases its report on 2022 Global Wine Production Projections and here are their findings:

Severe drought and extreme heat pose a new threat to wine production.

In 2022, despite the heat wave that touched many regions of the world, global wine production volume is expected to be at a level similar to the one observed last year. This would be the fourth consecutive year where the global production level can be considered as slightly below average.

This year’s harvest has been characterized by extreme heat and record-breaking drought that sped up ripening in vineyards all over the globe. A report recently published by the Global Drought Observatory indicated that almost two-thirds of the European territory was in a state of drought or on alert due to heat waves and extremely low rainfall: this has been the worst drought in the last 500 years. And Europe was not the only region impacted: from East Africa to California, extreme temperatures have been recorded this year.

Average production volume is expected in the EU, with positive performances recorded in Italy, France, and Germany, which balanced out the low harvests expected in Spain and Greece, which were particularly affected by the heat wave during summer.

First harvest forecasts in the USA indicate that production volume will be slightly lower than in 2021.

After the record-high figures of last year, Southern Hemisphere vineyards produced average volumes, with the only exception of New Zealand that, thanks to favorable climatic conditions, records the largest production ever.

Full Report

https://www.oiv.int/press/severe-drought-and-extreme-heat-pose-new-threat-wine-production

Source OIV

#OIV #winereport #winenews #winery #wineries #wineharvest #winelovers #wine #winetrade #wineproduction #wineproducer #wineeconomics #winetrends