Tag: Wine Trends

Wine News: Bourgogne wines held up on the International Market in 2020

BIVB has announced their 2020 export report –  After a very good November in terms of volumes, exports of Bourgogne wines over the first 11 months of 2020 were slightly higher than over the same period in 2019 (up 0.5%), confirming a trend already witnessed in October. Revenue was also close to the record level seen in 2019, down just 2.6% by the end of November, having recovered from being down 9% just a month previously.

However, these figures should be set within a sluggish economy, impacted by both COVID and the 25% Boeing/Airbus tax, which severely penalized sales to the United States, down 14% by volume and 21% in terms of revenue, representing a loss of some €44 million. However, with volumes up 16% equating to 2.2 million bottles, the British market almost entirely offset the loss in volumes from the United States and once again became the leading export destination for Bourgogne wines.

Several territories saw big upticks in numbers, like Sweden, up 18.4% by volume and 14.2% in terms of revenue compared to the same period in 2019, and Denmark, up 24% by volume and 25.6% for revenue. Others enjoyed more moderate growth but for big volumes, like Canada (up 6.4% by volume and 6% in terms of revenue) and Belgium (1.2% and 5.5% respectively).

In France, Bourgogne wines grew their position in the retail sector, up 4.7% by volume and 5.7% in terms of revenue over the first 10 months of 2019, thanks in particular to their popularity in convenience stores and via click-and-collect. As yet, there is no data regarding the restaurant sector, which is in free-fall, or for wine stores that are enjoying a boom.

#winenews #wineeconomics #wineexports #frenchwine #Burgognewines #winesales #winemarketing #winelovers #wine #bivb #burgundy #winetrends

 

Vivino Raises $155 Million in Series D Funding

Vivino, the world’s most downloaded mobile wine app and largest online wine marketplace closed (this week) a $155m Series D funding round led by Swedish based investment firm Kinnevik with Sprints Capital accompanying as a new investor. Additional participants include GP Bullhound and existing early-stage investor Creandum. This latest round brings Vivino’s total funds raised to date to $221 million and includes a mix of primary and secondary investment.

Vivino currently boasts a community of 50 million wine enthusiasts, who turn to the platform for its personalized recommendations, unbiased rating system, and expansive selection of wines from more than 700 marketplace partners worldwide. The new capital will enable Vivino to improve its core technology and artificial intelligence platform to create better and more personalized recommendations for Vivino users. The company will also deepen its focus on select markets with the greatest potential for growth, including the US, Germany, the UK, Italy, Japan, and Portugal.

“This is a testament to the remarkable work that our teams around the globe have done to build an extraordinary business,” said Heini Zachariassen, Vivino’s Founder and Chief Executive Officer. “This round has raised important capital for our rapidly growing company and drawn some exceptional new leaders to our board. The funding will enable us to continue to build on our core strengths, expand industry partnerships drawing more merchants and wineries to our marketplace, and support our continued global growth.”

Alcohol e-commerce sales worldwide have grown immensely, and it is estimated that by 2024, they will exceed $40 billion. Zachariassen credits the company’s growth to this continued shift in consumer behavior. “Our user retention rates are high, and we’re seeing a steady conversion of app users to wine buyers. That’s a good move in the right direction. By creating more value for our users, we also create more value for the company and industry at large.”

Since its Series C raise in February 2018, led by Vivino’s current board chairman, Christophe Navarre and former CEO and Chairman of Moët Hennessy, Vivino has increased its user base from 29 million to 50 million and has significantly grown its marketplace business, which connects wineries and wine merchants to its community. The company has posted a 100% annual growth rate for the last seven years and a 103% increase in year-over-year sales in 2020.

#vivino #vivinonews #winenews #ecommerce #winemarketing #winesales #consumerbehavior #AI #mobleapp #economics #winebusiness #winelovers #winelover #wine #wineapp #vivinoapp #winetrends #winetechnology

Wine Not? American Airlines Launches Flagship Cellars, an at-home Wine Experience

Each year, a dedicated team of wine experts carefully reviews 2,000 bottles to select wines that will join the award-winning American Airlines wine program. For the first time you can enjoy these premium wines by having them delivered straight to their door with American’s new Flagship® Cellars at-home wine experience.

American Airlines has built a reputation for its thoughtful selection of award-winning wines that represent unique regions and flavors from around the world. “Flagship Cellars” is a wine passport to the world with flexible wine subscriptions or build-your-own case options. The curated collection features exclusive ultra-premium wines at a lower price and with AAdvantage® mileage benefits.

“For wine lovers around the world, wine provides a deeper connection to the places they enjoy visiting,” said Alison Taylor, Chief Customer Officer at American. “We created Flagship Cellars to provide more ways for customers to enjoy our Flagship wine even if they aren’t flying in one of our premium cabins.”

How the Flagship Cellars wine experience works:

American Airlines will hand-pick wines from its Flagship wine collection, chosen by an award-winning master sommelier exclusively for American.

Anyone 21 years or older can select their wine preferences at vinesse.com/flagshipcellars.

Customers can select from curated collections of mixed wines, build their own custom box, or purchase a monthly wine subscription that includes three prestigious wines for $99.99 USD, which includes delivery.

Subscriptions may be for a limited time (while supplies last) and can be canceled at any time. The introductory offer includes an extra complimentary bottle of wine. Program and availability limitations on orders vary by state.

In addition, members of the American Airlines AAdvantage® loyalty program can earn two miles per dollar spent on every order when they provide their AAdvantage number during checkout (excluding taxes, shipping and fees). Not an AAdvantage member? Join for free at aa.com/loyalty/enrollment/enroll.

Wines considered for the American Airlines wine program undergo a thorough process. Twice a year, the wine experts identify top selections based on their notes and historical data on what has been most popular with customers around the world. The team meets with its award-winning master sommelier to blind taste wines before presenting final options to a variety of American team members to solicit feedback and identify which wines are best suited for onboard and in lounges.

American has more Global Traveler Wines on the Wing awards than any other U.S. carrier, including four first-place wins in the past year. Since 2015, American has been the top airline for first- and business-class wines in North America.

Silicon Valley Bank: The US wine industry will bound back in 2021

The US wine industry is poised to bounce back in 2021, according to a report by Rob McMillan, Founder, Silicon Valley Bank, with a consumer desire to celebrate set to help drive wine sales this year.

Silicon Valley Bank’s 20th annual review of wine industry prospects predicts that temporary gains will yield to long-term declines. The report raises doubts that this year’s expected sales momentum will carry very far into 2022.

Wineries that have established strong direct-to-consumer sales during the Covid-19 pandemic, as well as online retailers, can expect more gains in 2021, the report says, while bricks-and-mortar retailers, urban-based grocers and restaurants will take years to recover.

Restaurants will drastically need new investment to survive or to re-appear. Yet, the report predicts a quick recovery for the industry as a whole, although the relative importance of individual sales channels will shift dramatically.

Online wine retailers had major growth in sales during 2020, and that is expected to continue into 2021. This channel, and wineries’ own online efforts, “will represent 20% of an average winery’s sales within five years,” the report predicts.

McMillan stressed that wineries, in spite of the loss of tasting room sales, are not in the same financial straits as restaurants. “Wineries seldom go bankrupt,” he said, “even if they are over-leveraged. If they have financial problems, there’s always a willing buyer.”

One problem that was lurking in the US at this time last year, according to the report, was an over-supply of wine. But damage to crops from last year’s fires and smoke, as well as diminished tasting room sales, resulted in supply now being back in balance with demand.

However, one problem that has not gone away is the changing ages of wine drinkers. As Baby Boomers continue to retire, they are being replaced by younger drinkers with different agendas.

While the decrease in demand by Boomers for wine purchases at all price levels has not been as precipitous as once predicted, the decline is not being offset by younger drinkers, who often see better value in craft beers and in spirits.

“The digital world parallels the real world,” McMillan said, “and the new consumer is not one who wants to rely on advice from most current sommeliers. We need to consider the values of younger drinkers, and they value things in the wine world differently.”

Download the full report

https://www.svb.com/trends-insights/reports/wine-report

Wine in a can is a robust trend and not a short-term fad

With the traditional wine market in the US growing at an increasingly slow pace, successful wineries 10 years from now will be those that have adapted to a different consumer with different values.  Wine in a can is no new thing; it was first seen in World War 1 when the French army had their wine rations delivered this way.

WICresearch.com has done an in-depth study of the drivers that are affecting the boom in the wine-in-can market and it is predicted that the trend will continue to grow as it has done exponentially in its infancy.  The most important factors to consumers when it comes to wine-in-can are taste, quality and value, followed by convenience, portability and fun.  From 2017-2108 the wine-in-can market grew by 43%.  It is a market that cannot be ignored as the industry needs new growth places.

There are 6 main drivers that are promoting the expansion of wine-in-can, as follows:

Convenience

This is the most obvious benefit and relates to the carrying, opening and finishing of the product.  One is able take a can where it is illegal or inconvenient to bring a bottle or any glass.  The single-serve size also allows for zero waste of the contents, and it removes the need for traditional wine paraphernalia: foil cutters, corks screws. Under the convenience banner, the wine vending machine is also a trend that is starting to gain traction, certainly opening new markets in terms of novelty and availability.

Occasion expansion

This is based on both location and event. Location involves places where taking a bottle of wine is not suitable nor practical: boats, beach, swimming pools.  Event expansion is where offering a single-serve beverage is desirable e.g.BBQ, picnic.

It is interesting that wine-in-can drivers such as these are not cannibalizing the existing market with its meagre growth of 1-4% but it is rather creating an extension of markets or even new markets and thus creating strong double-digit growth.

Sustainability and cost savings

Aluminum is 100% recyclable and so the environmental footprint is greatly reduced, and the product attracts an eco-friendly consumer who values sustainability.  Research has shown that 51% of Millennials check the packaging before purchase for sustainability claims.

 Facts:

  • Sustainable products grew 4x the rate of non-sustainable products (Nielsen)
  •  Consumers are willing to pay 15% more for sustainable packaging (McKinsey)
  • 66% of consumers will pay more for sustainable brands (Nielsen)

Packaging in aluminum cans also produces a saving of 15-20% with some manufacturers suggesting 40% due to efficiency of packing and transport, lack of breakage, and lighter weight.  Therefore, carbon emissions for transportation are also lower. Also, savings occur in establishments serving wine by the glass, as there is total accuracy over the serving size with no shrinkage.

Portion control and variety

Apart from the benefit of not having to open a whole bottle when you would like to enjoy a glass, there is also no issue of dealing with unfinished wine.  The wine-in-can movement is very popular with restaurants that have less waste and leftover wine, or the problem of customers wanting to cork their bottle to take it home which is illegal in many parts of the world.

Due to the small serving, wine drinkers can enjoy different varieties of wine with different courses, instead of a full bottle of the same wine.

Visual image and branding

An aluminum can has a 360-degree label rather than just a front and a back.  It gives the product a cooler, more photographable, Instagrammable look.

“With 64% of consumers trying a new [wine] product simply because the package catches their eye, packaging design is one of the most underappreciated marketing levers” (Freeman, 2016).

Designers can go so far as to make the packaging glow in the dark.

Quality

“You actually have a really stable environment in a can…There’s no UV penetration or oxygen exchange like there would be through a cork and glass bottle” (Drinks News, 2018).

For still and sparkling wine, the integrity of the product can easily be preserved.  The dark, oxygen-free environment for still wine is ideal while for sparkling, the effervescence is contained in a small space.

There is ongoing research for different types of cans, linings and filling systems to ensure further integrity of the product as well as preserving its future life which is, as yet, unproven.

It is interesting to note that the wine-in-can purchase is not affected by gender, education nor generational group.  There is also no difference in self-reported wine knowledge i.e. consumers with a high level of wine knowledge are just as likely to buy wine in cans.

In a 2019 a blind taste test of wine-in-can versus wine-in-bottle was conducted. The identical wine from the same winery in both packaging formats was poured.  There were 4 different varietals and the experiment was done in 2 different locations.  51.1% said they either preferred the wine-in-can or that they could tell no difference between the two.

Wine-in-can is a growing market and innovation and interesting marketing tools are emerging every day.  It will be a very interesting space to watch over the next decade.

WICresearch.com

Jenny Ratcliffe-Wright
Cape Wine Master