Transcript PR Recommendation For Wine Market Council

The U.S. Wine Market –
Consumer Trends and Analysis
New York City
January 23, 2007
Kennewick, WA – February 6, 2008
Wine Market Council Key
Facts:
All Tiers of the Industry Involved
Promotion of Imported and
Domestic Wines
Focus on Expanding U.S.
Consumer Market for Wine
Wine Market Council
Mission Statement:
“…to establish the widespread
acceptance of wine as a rewarding part
of American culture and to encourage
the responsible enjoyment of wine by
current and future generations of adults
in the United States.”
Wine Market Council Initiatives
Ongoing Consumer Research


Quantitative studies
Focus groups and Internet studies
National Public Relations Campaign



Target marginal wine consumers
Mainstream consumer media
Raise comfort level with wine
2007: “Tipping
Point
New York
City Year”
January 23, 2007
Consumption Frequency
Segmentation, 2007
45%
55%
Core
Marginal
Source: Merrill Research
Total Wine Consumption – U.S.
(Millions of cases)
304*
259
212
98
225
99
Source: Impact Databank
229
00
231
01
270
279
290
245
02
03
04
05
06
07
*Estimate
U.S. Adult Per Capita Table Wine
Consumption v. Population Growth
Adult
134
Population
147
154
2.58
164
2.29
1.78
Gallons
per Adult
173
1.96
184
2.13
194
2.46
211
2.81
216*
3.02*
1.05
1970
1975 1980
1985
1990
Source: U.S. Census Bureau, Adams Beverage Group
1995
2000
2005 2007
*Estimate
Male v. Female Ratio of Wine Drinkers,
2007
(Percent by segment and generation)
50
50
Millennial
Source: Merrill Research
50
50
Gen X
47
53
Boomer
Male
Female
Net Gain in Wine Consumption, 2007
(Net gain “Drinking more wine” vs. year or two ago, by
gender)
25%
22%
Male
Source: Merrill Research
Female
Consumer Segments by Gender, 2007
Male 54%
Male 41%
Female 46%
Core
Source: Merrill Research
Female 59%
Marginal
Segments by Age, 2007
(Mean)
45.6
46.9
Core
Marginal
Source: Merrill Research
Younger Generations Drive New
Growth, 2007
(Net percent “drinking more wine” by generation)
47
37
Millennial
Gen X
Boomer
10
Source: Merrill Research
Beverage Alcohol Consumers, 2000
(Ages 21 – Plus)
Don’t drink wine 57%
64 M
49 M
Drink wine 43%
Source: Merrill Research
Beverage Alcohol Consumers, 2007
(Ages 21 – Plus)
Don’t drink wine 43%
56 M
75 M
Drink wine 57%
Source: Merrill Research
Consumer New
Segmentation
York City
January 23, 2007
Consumer Segments U.S. Adults, 2007
(Ages 21 – Plus)
Non-Drinkers 39.2%
Core 17.8%
Marginal 17.2%
Beer/Spirits 25.8%
Source: Merrill Research
Wine Drinker Consumption of Beer
and Spirits, 2007
(Percent by segment)
100
90
80
70
60
50
40
30
20
10
0
82
100
100
86
80
70
Beer
Spirits
Wine
Core
Source: Merrill Research
Marginal
Net Gain/Loss in Beverage Alcohol
Consumption, 2007
(Percentage gain or loss by beverage type)
23%
Wine
Beer
-7%
Spirits
-15%
Source: Merrill Research
Drinking Less Beer or Spirits but
More Wine: “Trade – Off” Drinkers,
2007
10%
Trade - Off
Others
90%
Source: Merrill Research
“Trade-Off” Consumers Skew Younger,
2007
70
(Percentages by generation)
60
50
39
40
30
20
Trade - Off
Total
34
24
24
27
19
15
18
10
0
Millennial Gen X
Source: Merrill Research
Boomer
Aged 62+
Reasons for Increased Wine
Consumption, 2007
(Percentage by statement)
57
37
34
28
26
17
More
occasions
Source: Merrill Research
More per
occasion
Both
Core
Marginal
“I would drink more wine if…” 2007
(Percentage by statement – drinking same or less than
year or two ago)
33
32
26
27
21
17
13
7
More
Spouse
Less $ in
restaurant affordable drank wine
Source: Merrill Research
No small
children
Core
Marginal
Purchase and Usage
New York City
Behaviors January 23, 2007
Frequency of Purchase by Price Point,
2007
(Frequent or occasional purchase)
81
74
63
65
64
45
38
Core
Marginal
37
29
25
17
9
<$3
$3 - $6
Source: Merrill Research
$6 - $10 $10 - $15 $15 - $20
>$20
Color Mix by Segment, 2007
19%
28%
35%
36%
46%
Core
Source: Merrill Research
36%
Marginal
Blush
White
Red
Appellation Mix Consumed by Segment, 2007
32%
26%
Imported
Domestic
68%
74%
Core
Marginal
Source: Merrill Research
Imported Wine Purchases by Country,
2007
(Percent have purchased wine by country in past 3
months)
Core
Marginal
52
44
41
32
26
23
26
18
It
Fr
Source: Merrill Research
Aus
Gr
26
23
22
16
Sp
12
Nz
18
9
Ch
14
6
Ar
6
Sa
Wine Purchases by State, 2007
(Percent have purchased wine by state in past 3 months)
90
79
28
24
18
CA
Source: Merrill Research
NY
Core
Marginal
23
13
WA
12
OR
Winery and Internet
New York City
Direct Markets
January 23, 2007
Membership in Wine Clubs – 2007
(Percent by membership and segment)
93
76
Core
Marginal
13
5
None
1 Club
Source: Merrill Research
6
2
2 Clubs
5
0
3+ Clubs
2007 - Ever Purchased Wine Directly
from a Winery?
(Percent by channel and segment)
59
44
Core
Marginal
15
15
7
6
At Winery Mail Order Web Site
Source: Merrill Research
2007 - Ever Purchased Wine Over
the Internet?
(Percent by segment)
50
40
30
Core
Marginal
18
20
9
10
0
Source: Merrill Research
Internet Wine Purchases by Channel,
2007
(Percent purchase by channel)
64
Winery
Retail
Auction
Other
35
8
3
Source: Merrill Research
Increase in Winery Online Sales, 2003 2007
(Percent “ever purchased from winery site”)
17
11
6
6
5
1
Core
Source: Merrill Research
Marginal
2003
2005
2007
MillennialNew
Generation
York City
January 23, 2007
American Generations
(Age ranges in 2008)
WW II (76 and over) 32 Million
Swing (63 - 75) 30 Million
Boomer (44 - 62) 77 Million
Generation X (32 - 44) 44 Million
Millennial (14 - 31) 70 Million
Source: American Generations
Segments by Generation, 2007
(Percentage by segment and generation)
43
35
26
22
21
18 17
18
Millennial
Source: Merrill Research
Gen X
Boomer
62-plus
Core
Marginal
Wine Consumed Most Often – Imports
vs. Domestic - by Generation, 2007
40%
32%
26%
Imported
Domestic
60%
Millennial
Source: Merrill Research
68%
74%
Gen X
Boomer
Imported Wine Purchases by Country,
2007
(Percent have purchased wine by country in past 3
80
months)
70
60
57
50
50
43
36 36
40
33
30
22 23
24 22
20
Millennials
All Respondents
27
18
18 17
1513
13
10
Ar
Sa
10
0
It
Fr
Au
Source: Merrill Research
Gr
Sp
Nz
Ch
Have Purchased Wine Online, 2007
50
45
40
35
30
25
20
15
10
5
0
23%
16%
11%
Millennial
Source: Merrill Research
Gen X
Boomer
Importance of Information from the
Internet when purchasing Wine, 2007
(Top 3 box)
49%
36%
21%
Millennial
Source: Merrill Research
Gen X
Boomer
The U.S. Wine Market –
Consumer Trends and Analysis
New York City
January 23, 2007
Kennewick, WA – February 6, 2008