Monday, November 06, 2006

AC Nielsen on the Box Wine Boom

There's been lots of talk since last summer about the ACNielsen report on trends in the wine market. The focus of all the buzz has been the phenomenal growth of the boxed wine segment. Since we all keep talking about it, I thought I'd go ahead and post some of the article, Three-Liter Boxes the Fastest Growing Wine Packaging Segment, from Wine Business Insider.

According to scan data from ACNielsen, premium three-liter boxed wine sales are the fastest-growing premium wine packaging segment, with 204 percent growth since September 2003. In terms of volume, premium three-liter boxed wines have grown 107 percent over the same timeframe.

While the growth has been phenomenal, it is still a very small category in terms of market share - three-liter boxed wine sales account for less than 1 percent of overall dollar sales and just 1.5 percent of total volume. Then again, in September 2003, three-liter wine market share was about half what it is now.

There are myriad factors for the rapidly increasing sales of the three-liter category, but one of the main reasons has been the increased acceptance by the trade.

While the greatest volume of three-liter boxed wines is seen in the under-$12 category, those priced above $12 are showing the greatest growth rates. Wines in the under-$12 have grown 72 percent since September 2003, while those priced between $12 and $15.99 have grown 126 percent in the same time period. In terms of market share, the lowest-priced three-liter boxes account for fully half of all three-liter box sales, while the mid-tier, priced between $12 and $15.99, claims under 10 percent of the three-liter market.

Three-Liter Boxes the Fastest Growing Wine Packaging Segment

Even with the growth, note that 3L box still accounts for only 1% of dollars, and 1.5% of wine volume. That's a far cry from the percentages in Australia and the Scandinavian countries.

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