H1 Wine Trends: Boxed & Sparkling Wine Still Soaring

July 24, 2018
Wine & Spirits Daily
Wines in the higher priced tiers continue to outgrow and take share from those on the lower end. In fact, year-to-date through June 16, all table wine price segments below $11 lost share, according to recent IRI data.

The $4-$7 price segment saw the biggest losses as sales in all channels declined by 2.6%, costing the segment 1.5 dollar share points for the period. The segment did grow sales (3%) in the convenience store channel, but it still lost nearly a full dollar sharepoint there as well.

Looking strictly at 750 mls, the super premium price segment ($11-$15) saw the largest share gains for the six months (+0.8 share points) and 8% sales growth.

Other notable gains and losses for H1:
. Value ($0 - $4.50) segment decreased sales by 3%.
. Popular ($4-$7) segment sales declined by 2.6%.
. Premium ($8-$10) segment sales were up 2%.
. Ultra premium segment ($15-$19) grew sales by 11%.
. Luxury segment ($20-$25) grew sales by 11.6%.
. Super Luxury ($25+) grew sales by 10.4%.

BOX DOMINATES C-STORES. Boxed wine has been on a roll in convenience stores for the first half of the year. Sales of domestic premium boxed wine were up 23% for the period, gaining nearly 1.5 dollar share points. The category now represents close to 10% of c-store wine share, per IRI data.

The category is also doing well in the food/grocery channel, up around 15% for the six months through June, and adding half a dollar sharepoint to its collection. Though, it represents a smaller share of the channel at about 5%.

SPARKLING WINE UP ACROSS PRICING TIERS. Sparkling wine sales in total were up 11% for the first six months of the year, driven by the super premium ($13-$18) and ultra premium ($18-$34) price segments.

The super premium category increased sales by 17%, picking up nearly a full dollar sharepoint, while ultra premium segment sales were up 24%, gaining 0.6 dollar sharepoints.

The full list of gains by price segment for H1:
. Popular ($0-$8) segment grew sales by 5%.
. Premium ($8-$13) segment increased sales by 10%.
. Super premium ($13-$18) segment grew sales by 17%.
. Ultra ($18-$34) segment grew sales 24.5%.
. Luxury ($35+) segment grew sales 12%.