Italy is drinking outside the box

From the New York Times:

Drink Outside the Box

August 18, 2008
By TYLER COLMAN
Op-Ed Contributor

ITALY’S Agriculture Ministry announced this month that some wines that receive the government’s quality assurance label may now be sold in boxes. That’s right, Italian wine is going green, and for some connoisseurs, the sky might as well be falling.

But the sky isn’t falling. Wine in a box makes sense environmentally and economically. Indeed, vintners in the United States would be wise to embrace the trend that is slowly gaining acceptance worldwide.

Wine in a box has been around for more than 30 years — though with varying quality. The Australians were among the first to popularize it. And hardly a fridge in the south of France, especially this time of year, is complete without a box of rosé. Here in America, by contrast, boxed wine has had trouble escaping a down-market image. But now that wine producers are talking about reducing their carbon footprint — that is, the amount of carbon dioxide emitted in the transportation of wine — selling the beverage in alternative, lighter packaging instead of heavier glass seems like the right thing to do.

More than 90 percent of American wine production occurs on the West Coast, but because the majority of consumers live east of the Mississippi, a large part of carbon-dioxide emissions associated with wine comes from simply trucking it from the vineyard to tables on the East Coast. A standard wine bottle holds 750 milliliters of wine and generates about 5.2 pounds of carbon-dioxide emissions when it travels from a vineyard in California to a store in New York. A 3-liter box generates about half the emissions per 750 milliliters. Switching to wine in a box for the 97 percent of wines that are made to be consumed within a year would reduce greenhouse gas emissions by about two million tons, or the equivalent of retiring 400,000 cars.

But here’s another reason to sell wine in a box. America will soon become the largest wine market in the world. In recent years, we overtook Italy, and France is now in our sights. (This is total consumption, not per person; we are still well behind by the latter measure.) As Americans drink more wine, we will be drinking it not only on special occasions like dates and weddings, but also on Monday nights with pizza. That’s a lot of wine — and potentially a big carbon footprint.

Although some sommeliers may scoff at wine from a plastic spigot, boxes are perfect for table wines that don’t need to age, which is to say, all but a relative handful of the top wines from around the world. What’s more, boxed wine is superior to glass bottle storage in resolving that age-old problem of not being able to finish a bottle in one sitting. Once open, a box preserves wine for about four weeks compared with only a day or two for a bottle. Boxed wine may be short on charm, but it is long on practicality.

Which leads to a final reason for boxed wine: it’s so much more economical. Having an affordable glass of wine may be the best way to keep our 15-year bull market for wine consumption running. It also would help keep per-glass prices of wine from rising as the dollar falls.

The main obstacle to a smaller carbon footprint for wine is the frequently abysmal quality of wine put in boxes. But that’s an easy fix: raise the quality.

In the past few years, the boxed wine sold in America has shown some signs of improvement. There’s been wine in a stylish cardboard tube made by a top winemaker in Burgundy. There’s a good, old-vine grenache from the Pyrenees sold in a box. A succulent unoaked malbec from organically grown grapes in Argentina is now available in the United States thanks to the 1-liter TetraPak, which is also being used by three renegade Californians who have a line of wines that are sold in 250-milliliter packages — about the size of juice boxes, but without straws. And then, of course, there’s the news from Italy.

Producers everywhere need to deliver better wine in a box — and make it snappy. Perhaps they will if consumers start to demand that everyday wines that don’t need to age in a bottle be sold in a box. If you’re sorry about the change, squeeze off another well-preserved, affordable, low-carbon serving of boxed wine and mull it over.

Op-Ed Contributor - Wine in a Box Protects the Environment and Saves You Money - Op-Ed - NYTimes.com

Global shortage of bottles

Overproduction, market saturation, factory closures, and now ... a shortage of sand in France??? From The Scotsman, Edinburgh:

Wine-lovers lose their bottle
By Lindsay McIntosh and Max Orbach
April 12, 2008

THEY are the final resort of partygoers who should have left the barbecue some hours before – the cheap boxes of wine with their last dregs of plonk.
But these boxes with their limp bags of booze could soon be the centrepiece of the most affluent tables as the wine in-dustry struggles to cope with a global shortage of bottles.

An over-production in Europe in recent years brought the market to saturation, forcing the closure of factories, and now, though there is a shortage, they have not reopened.

At the same time, there has been a massive increase in wine production and consumption – meaning manufacturers are struggling to find receptacles for their products.

Jean-Michel Gauffre, the owner of La Garrigue restaurant in Edinburgh's Jeffrey Street, said there was "a severe shortage of bottles".

He said: "In the last couple of years, there's been a shortage of sand in France for bottles and apparently they have to import a huge amount of glass.

"Even though they can't get the glass, all the factories which closed down didn't reopen so there's a shortage of bottles. The production is too slow and can't keep up with the demand due to the rapid globalisation of wine- making."

Alex Hunt, a London-based wine importer who deals with Scottish firms, said the factory closures had stiffened the price of wine, which had gone up by 10 per cent across Europe in the last year.

He said: "Even if bottles are more expensive, this is only one part of the cost, but it has meant that every supplier in Europe is now under significantly more pressure."

Mr Gauffre said the "big new thing" was "the bag in a box with the tap". It was going to be the "short-term solution – and maybe the future – for the vast majority of people".

He said most Europeans were now buying wine from the supermarket rather than manufacturers – even in France – and buying in bigger quantities because it is cheaper by the box. In the US, litre juice cartons are also being used by vintners, a concept likely to be exported to the UK soon.

Philippe Larue, the managing director of Edinburgh wine merchants l'Art du Vin, revealed that a popular wine called Yellow Jersey was being marketed in Canada in plastic bottles, with great success.

He added: "In France, bag-in-a-box wine packaging is very popular. People will go out to a small vineyard and buy anything up to five litres of wine.

"It's very good if you plan to drink the wine in the next few days, although obviously it will not keep very well because too much air gets into it. By the end of the week, you will pretty much be left with vinegar."

Mr Gauffre said: "The important thing for the wine-makers is simply to sell the wine. So if at the end of the day the customer is happy to buy the wine in a bag-in-a-box or a juice carton, then so be it.

"The most important thing is to sell the product. I think for a person who drinks wine every day – which I hope everyone does – the boxes are best."

It's an open secret – glass has more class

DRINKING wine that comes from a bottle is important because of the sheer sense of anticipation that goes with opening it.

The ceremony of uncorking, or even unscrewing, a bottle should be savoured; it's like the difference between going to a restaurant and eating food out of a can.

There is a lot to be said for taking life more ponderously, as they do in France and Italy, and I think slowly savouring a bottle of wine is part of a more enjoyable lifestyle.

Of course, anyone fortunate enough to have a wine cellar will realise that you certainly can't keep a box down there for very long.

The best wines need to be kept in a bottle because they need time to breathe.

Although a lot of wines are now produced to be quaffed in the first couple of years, even Australian wines really benefit from being stored in a cool place for a while.

And, of course, there is nothing quite so good as that moment when you find a bottle of wine which you have been storing in a cold, dark corner for a few years.

Wine bottles, like so many good things, were developed by the Romans. Before that, wine was carted around in clay amphorae, which – though sturdy – were exceedingly heavy.

Bottles were, of course, much more convenient and
have remained the container of choice right up to the present day.

Another wonderful aspect of the wine bottle is that it comes in a variety of shapes and sizes.

Italian wine producers are particularly good at designing them and shape is very important when your wine is struggling for position on the shelf.

Recently, a lot of wine bottles have got much taller because – as well as looking very fine and slim – this also gives the psychological appearance of the bottle containing more wine.

Another art that would be lost with the death of the wine bottle is label design.

Whereas traditionally the Europeans tended to produce rather dull, white labels, the New World producers ratcheted up the competition by creating vividly coloured labels which really leapt out from the shelf.

• Michael Romer is a partner in Edinburgh independent wine seller Peter Green & Company

Wine-lovers lose their bottle - Scotsman.com News

box boxed cask bag-in-box BiB bottle wine

Innovations: Beyond BiB in Southern France

How to improve on BiB??? How about get rid of the cardboard? Check this out:

Other innovations include the Kube, a clear plastic box with a bag of wine inside -- one up on the plastic pouch plus cardboard surround bag-in-box type structure. It is better, say producers, because it is more easily recyclable, being all plastic, rather than a plastic paper mix, and you can also, if desired, stick it in the snow or a river.

From AFP:

New world wines of southern France
Feb 19, 2008

MONTPELLIER, France (AFP) — Southern France is one of the world's oldest, toughest wine-making regions, and now is seen as both the most innovative and biggest regional exporter.

A pleasant turnaround say exhibitors at this years 8th Mediterranean wine trade fair, Vinisud, given that this part of France only five or six years ago was one of the hardest hit by competition from so called "New World" producers -- Australia, America, Chile, Argentina, to name a few.

In the last two or three years it has earned itself the title of most innovative and is now volume the leading regional exporter of French wines with seven million hectolitres shipped abroad in 2007.

"Last year 1.3 million bottles of Arrogant Frog were exported to Australia, a 20 percent increase on 2006," said Jean Claude Mas, the wines Languedoc-based producer. Mas says those figures make it the most imported French wine in Australia.

Asked why, he points to the label showing a jaunty frog in a red jacket and beret, swinging a walking stick. "It is constructive self derision. We have always been told we are second rate, by Bordeaux, by Burgundy, so we have to go at things another route."

The producing region of southern France broadly includes Languedoc-Roussillon, Rhone, Provence, Midi-Pyrenees and Corsica -- but the Languedoc and the Rhone are probably the best known outside of France.

Eye-catching names such as Arrogant Frog, Fat Bastard, the Rhoning Stones and Bois-Moi (Drink Me), are certainly part of the story, as is the willingness to try ever newer, ever slicker packaging.

"As far as I know this is the first ever wine in a full size aluminium bottle," said Stephane Oudar, export director of Boisset, a producer already famous for putting its Languedoc wines, red, white and rose, in a tetra pack and calling it French Rabbit.

Next year, or sooner, Boisset will launch its new range of Organic French Rabbit in a tetra pack. To date both the tetra pack and the aluminium bottle, to be launched in the US in two months, are aimed mainly at export markets rather than "traditional" -- meaning French and other European consumers -- ones.

Other innovations include the Kube, a clear plastic box with a bag of wine inside -- one up on the plastic pouch plus cardboard surround bag-in-box type structure. It is better, say producers, because it is more easily recyclable, being all plastic, rather than a plastic paper mix, and you can also, if desired, stick it in the snow or a river.

Apart from the names and the packaging however, there is the wine itself, which tastes better than many mid-range wines from Bordeaux or Burgundy.

"We dont bother with Vinexpo (the major Bordeaux wine trade fair held in alternate odd numbered years), the value is here," said Peter Ward, a buyer from Ireland.

The reasons for this, say both local and outside producers, are the ideal weather and soil conditions for wine growing.

There is also a far wider range of wine-making techniques for those who choose to make wines in the lesser ranking, but more innovative, Vins de Pays dOc category.

"It is a more liberal system here, with the vin de pays appellation," said Ruth Simpson, producer of Le Coq DOc wine. Simpson, who owns Domaine Sainte Rose with her husband, moved to the region to produce wine five and a half years ago and says they chose the region for that reason.

"You can use wood chips, wood planks, you can irrigate, you can plant different, more commercially useful grape varieties. It is a microcosm of the new world," Simpson said.

For the organisers of this years Vinisud, which started in 1994 and is held in every even numbered year, that is precisely the point.

Everywhere around the show posters proclaim "The New French Style" and both buyers and exhibitors are happy to claim comparisons to the new world, that might be an insult elsewhere in the country.

Indicating further progress in the region, Vinisud 2008 is also boasting increased exhibitor figures of 1,600 stands, increased visitor numbers, expected to reach 35,000 people and a 200 percent increase in foreign buyers.

"This area is now competing with New World," said James Nicholson, a buyer for the UK and Ireland. "In Bordeaux, the top 30 chateaux can just sell what they make. Here everyone has to be innovative."

Even apart from trade show figures, however, Simpson points out another telling sign of success. The shadowy militant group -- the Comite Regional d'Action Viticole (CRAV) -- known for its emptying of wine vats in the middle of the night, sabotaging of railway lines, and sweeping of foreign wines off supermarket shelves, has not been in the news recently.

"CRAV has certainly calmed down since prices went up," she said simply.

sk/ccr/hd

AFP: New world wines of southern France

Technorati Tags: box, boxed, cask, wine, BiB

Boxed Wines Market Growing

From Adams Market Research in October:

Boxed Wines Growing at Grocery and Liquor Stores Nationwide

NAPA, CA -- Boxed wines have been around for quite awhile. Indeed, millions of cases of wine packaged in 5-liter boxes are being sold each year under the Franzia (The Wine Group), Peter Vella (E&J Gallo) and Almaden (Canandaigua) labels. Some studies suggest that about 20% of all wine consumed in the U.S. is poured from wine-in-a-box. Recently, these popular 5-liter packages have been joined on the shelves by 3-liter boxes; however, these 3-liter boxes contain premium wine from wineries such as Sonoma Hill, Trinchero, Corbett Canyon, BRL Hardys and the latest, Delicato.

The quality of these wines refute the belief -- apocraphyl or not -- that bag-in-the-box wine is run-of-the-mill at best. Indeed, several reports have pointed out that good-quality wine has been available in boxed packages in Europe and Australia for several years now.

Though its look is hardly upscale, the proponents of boxed wine say it has several advantages over conventionally bottled wine, the most significant of which is boxed wine's ability to stay fresh for a much longer period of time after opening. The interior collapsible bag protects the wine from the harmful effects of air, which can oxidize the wine in an opened bottle after three or four days. In addition, the box itself keeps the harmful effects of light away from the wine. Thus, boxed wine producers say, their wines stay fresh for four to six weeks.

Convenience is another advantage, proponents of boxed wine say. For example, someone who might want to drink just one glass of wine might hesitate to open a bottle. Boxed wine allows that wine drinker to consume a single glass and then put away the wine for several days without fear of it going bad.

From a winery's point of view, shipping costs are greatly reduced because the boxes weigh less than the equivalent volume of glass bottles. And for consumers, the cost is very competitive compared to the price of an equivalent amount of premium wine in a bottle. For example, late last year Delicato Family Vineyards released three award-winning premium varietal wines in its 3-liter Bota Box, which boasts its own specially designed spigot and collapsible bag to prevent oxygen from reaching the wine. The 3-liter boxes of Delicato Shiraz, Merlot and Chardonnay all retail for about $18, which is equivalent to about $4.50 per 750 ml bottle.

Adams Market Research Alcohol Beverage Industry

box boxed cask wine

The Brown Box is Green

We've noticed the big change to Delicato's Bota Box wine packaging. Of course when one sees this kind of package (kraft paper, no coating, no bright colors), one wonders whether the "environmentally friendly" concept is more an impression than a reality. Apparently in this case the environmental friendliness of the printing process is a reality.

One of the business segments Proactive Packaging hoped to capture with the opening of its Stockton, CA, plant was the agriculture market due to its proximity to produce-growing regions and Napa Valley winemakers. One such winemaker, DFV Wines of Napa, CA, took notice. DFV Wines (www.dfvwines.com) is in the midst of re-launching its Botabox wine as its own brand and was in need of a boxmaker to create an environmentally-friendly package with vivid graphics. John Garaventa, Botabox brand manager, wanted to print directly on kraft and have the graphics speak for each of the wines. The box would hold 3 liters of premium wine. After being told by numerous other printers that they could not print directly on kraft, DFV approached Proactive for test runs and liked what they saw. Not only was Proactive able to hold the graphics in register on kraft, Garaventa also learned that the way it was printed, with the VSOP press and EB curing, was environmentally-friendly as well. “We were really excited when we found out that the press is environmentally-friendly,” he says. “It was the icing on the cake. This (new) box is better all the way around (in comparison to the previous Botabox design).”

Beyond the brown box - 9/1/2007 - Converting Magazine

From PR Newswire:

NAPA, Calif., Oct. 1 /PRNewswire/ -- In a response to a growing consumer demand for Eco-friendly products, DFV Wines announced today that their successful Bota Box wines have received an extreme green makeover with a new look. The award winning Bota Box is a 3 liter wine in a box with a new package that is more environmentally-friendly from a container that is made with 95% post consumer fiber and the box is recyclable. The print on the package is now done on unbleached Kraft paper and the ink used is water based versus petroleum based and the paper layers are held together with cornstarch instead of glue.

As a leader in the fastest growing category in the wine industry, Bota Box is vintage dated and is available in the five popular varietal types: Chardonnay and Pinot Grigio for the white wine offerings; Merlot, Shiraz, and Cabernet Sauvignon for the red wine selections. Bota Box is available nationally and the suggested retail price is under $20 in most markets. The Bota Box borrows its name from bota bag, the old world custom of transporting a beverage in a pouch usually made from an animal skin which became quite popular in the '60s and '70s to concert goers, hiking enthusiasts, campers, and other outdoor recreations.

"DFV Wines are committed to the consumer. Bota Box is one of the ways to respond to wine drinkers that choose an eco-friendly package that is convenient as well," says Chris Indelicato, CEO - President. "Our family winery is dedicated to sustainable farming, smart winemaking, and responsible marketing and we believe that our new Bota Box is the right package at the right time."

DFV Wines has farmed premium vineyards in California and produced wine for over 80 years. It continues to be family owned and operated by the 2nd and 3rd generation Indelicatos. DFV Wines include Bota Box, Clay Station, Delicato, Gnarly Head, Irony, Joe Blow, King Fish, Loredona, 337, Twisted, and Chateau Maris.

DFV Wines :: Bota Box Wine Goes Green

box boxed cask wine packaging

Going green with the box in England

According to this article from Reuters, attitudes towards boxed wine are changing in England, although there is still resistance to the alternative forms of wine packaging.

Bagged or boxed? - Wine targets green shoppers

By Sylvia Westall
LONDON, July 18 (Reuters) -

Set the dining table, light some candles and crack open a nice bag of wine.

Serving guests wine from a plastic pouch or box may no longer be a social faux pas, say some in the wine industry -- as consumers warm to packaging that is seen as kinder to the environment than glass bottles.

"At the moment, these are seen as a niche packaging format," said Kate Coleman, spokeswoman for Britain's Wine and Spirit Trade Association, commenting on the new types of packing.

"But take screw caps -- people have grown used to them and now find them very acceptable."

Unlike with most materials, recycling some types of glass can produce slightly more harmful greenhouse gases than if they were thrown away, according to preliminary research commissioned by the Waste and Resources Action Programme (WRAP).

WRAP, a government-funded body, is also researching whether the new forms of wine packaging have environmental benefits.

But some wine companies, perhaps scenting the potential of the 'green' consumer market, are hoping to shake off the image of boxed or bagged wine as poor quality.

Wine company Ehrmanns is working with its South African exporter to launch a plastic wine pouch in mid-August.

The pouches will be filled with two-bottles' worth of its 'Arniston Bay' brand of white Chardonnay or Rose.

"There's so many foodstuffs, like soups, where you get premium products ready in pouches, so the pouch has got a very strong premium element," said Johan Hewitt, brand and business development manager at The Company of Wine People, which is exporting the wine.

Hewitt estimates 200,000 pouches will go on sale for about 9.49 pounds ($19.28) in Britain's Tesco supermarkets, and will be aimed at beach-goers and barbeque enthusiasts.

Even though the pouches cannot be easily recycled, the company says their carbon footprint is 80 percent smaller because the lightweight packs use less energy to produce and transport.

Similarly, Trinchero Family Estates, a California-based wine producer, sells some of its wine in slim purple boxes, which it says are more environmentally friendly to transport.



QUALITY CONTROL

The total UK market for bag-in-box wine stands at 390 million pounds, with a steady annual growth of 2 percent, according to Tesco.

In its own stores, Tesco says the bag-in-box category represents the 5th biggest section in wine behind bottles from Australia, France, the U.S. and Italy.

But shoppers outside a supermarket in central London were unsure new 'green' packaging could give wine a premium image.

"Opening a bottle is social occasion," said Xavier Bonnard, a 35-year-old French banker loading up the top box of his motorbike with shopping.

"Maybe it will be like people driving electric cars -- if it looks nice then people will eventually accept it. But not now, no, no."

Statistician Nadine Seeward, 34, who said she usually spends between 5-11 pounds on a bottle of wine, was also dubious.

"The connotation is that wine in a box is really poor quality, so you would have to change attitudes," she said.

"I'd have to taste to see if it was of the same quality."

Supermarket Waitrose says it is nonetheless also looking into stocking more wines in alternative packaging.

"The category is growing, which we think would at least in part be due to the better quality inside the pack," a spokeswoman said.



BOTTLES FOREVER

For those who work with wine, the problem is not the taste of wine in alternative packaging but its persistent negative image.

"The quality of bag-in-box wine has improved tremendously in recent years. But I think the perception of the consumer is very different," said professional wine taster Susan Hulme, from the Association of Wine Educators.

She said wine in the new forms of packaging would compare well to bottles from the cheaper end of the wine market, which each cost 5-7 pounds.

Increased environmental concerns, however, did not signal the end for the glass bottle.

"I can't see some of the very prestigious, very famous wines going into bag-in-box in the near future," she said.

While some wine companies use their packaging to attract environmentally conscious customers, WRAP stresses the country of origin is key to the product's carbon footprint.

"The UK market is important as 98-99 percent of our wine is imported," WRAP said in a statement.

FEATURE-Bagged or boxed? - Wine targets green shoppers | Reuters

Technorati Tags: box, boxed, cask, wine, England

It had to happen

Bag in box, without the box. From Arniston Bay Wines in South Africa comes a 1.5 litre pouch:

Take it easy with Arniston Bay wines in pouches

Just in time for the party season, Arniston Bay wines have laid up a surprise for wine lovers. They are presenting two of their fine wines in new easy to carry resealable 1.5 litre lifestyle pouches, holding twice as much as a traditional bottle at a fraction of the weight. The good news for those who are concerned about the environment is that Arniston Bay’s pouches have 80% less of a carbon footprint and take up 90% less landfill compared with a glass bottle equivalent.

Party goers and outdoor enthusiasts who want their wine in lightweight, easy to carry packaging can now take it easy. As can spectators at events where alcohol is permitted only in non-glass containers. Quick chilling, the pouches look good enough to serve with pride to friends at home.

Top selling

Arniston Bay Chenin Chardonnay 2007 is a masterfully blended white wine with lovely pineapple and ripe melon aromas and flavours of fresh lime. Delicious served chilled on its own, this wine is versatile with foods like salads, barbecued fresh fish or grilled chicken kebabs.

Arniston Bay Pinotage Rosé 2007 is as evocative on the eye as it is on the palate where delicious strawberry and violet flavours entice and then gently linger. Excellent served chilled as an aperitif, or with grilled prawns, salads and cocktail snacks.

Arniston Bay - Escape to Arniston Bay

Peter May at the Pinotage Club blog reports that at the Morrison's supermarket chain in the UK, where the pouch was trialled this fall, sales were exceeding expectations.

Delicato Announces Bota Box Goes Green

The newly redesigned Bota Box from Delicato Family Vineyards is showing up on the shelves. It appears that Delicato is spinning off the Bota Box Wines as a seperate product line, distancing it from the Delicato name. I searched for "Delicato" on the box, and if it was there, it was well hidden. I did not find it.

Bota Box Wine Goes Green

NAPA, Calif., Oct. 1 /PRNewswire/ --

In a response to a growing consumer demand for Eco-friendly products, DFV Wines announced today that their successful Bota Box wines have received an extreme green makeover with a new look. The award winning Bota Box is a 3 liter wine in a box with a new package that is more environmentally-friendly from a container that is made with 95% post consumer fiber and the box is recyclable. The print on the package is now done on unbleached Kraft paper and the ink used is water based versus petroleum based and the paper layers are held together with cornstarch instead of glue.

As a leader in the fastest growing category in the wine industry, Bota
Box is vintage dated and is available in the five popular varietal types:
Chardonnay and Pinot Grigio for the white wine offerings; Merlot, Shiraz,
and Cabernet Sauvignon for the red wine selections. Bota Box is available
nationally and the suggested retail price is under $20 in most markets. The
Bota Box borrows its name from bota bag, the old world custom of
transporting a beverage in a pouch usually made from an animal skin which
became quite popular in the '60s and '70s to concert goers, hiking
enthusiasts, campers, and other outdoor recreations.

"DFV Wines are committed to the consumer. Bota Box is one of the ways
to respond to wine drinkers that choose an eco-friendly package that is
convenient as well," says Chris Indelicato, CEO - President. "Our family
winery is dedicated to sustainable farming, smart winemaking, and
responsible marketing and we believe that our new Bota Box is the right
package at the right time."

DFV Wines has farmed premium vineyards in California and produced wine
for over 80 years. It continues to be family owned and operated by the 2nd
and 3rd generation Indelicatos. DFV Wines include Bota Box, Clay Station,
Delicato, Gnarly Head, Irony, Joe Blow, King Fish, Loredona, 337, Twisted,
and Chateau Maris.

Bota Box Wine Goes Green

Technorati Tags: wine, box, boxed, cask, Delicato, Bota

Boxed Wine Growing in Popularity Since 2002

This is from Wines & Vines, May 2002

Is it time for wine boxes? - bag-in-box wine growing in popularity
Wines & Vines, May, 2002 by Larry Walker

Tony Norskog, owner and winemaker of Nevada County Wine Guild in Nevada City, Calif., has a challenge for some daring Napa County winemaker: Bag it. That is, put a Napa County Cabernet Sauvignon in a bag-in-box. "The first Napa County Cabernet Sauvignon sold in bag-in-box will reap a million dollars in publicity," he said.

Norskog is something of a pioneer himself when it comes to bag-in-box. His 1.5 liter Our Daily Red is, as far as can be determined, the first organic wine ever to be sold in a bag-in-box.

I admire his courage (and his wine, too), but it must feel kind of lonely out there. People in the wine trade know that most U.S. wine sold in a box is, to put it mildly, not likely to win any gold medals. The attitude in California (unlike Australia) seems to have been "any wine will do as long as it hasn't actually turned to vinegar yet."

But there are signs that may be changing. Jon Fredrikson of Gomberg, Fredrikson & Associates noted that the overall market for bag-in-box in 2001 grew about 2%. However, the interesting numbers are for box varietals. White Zinfandel grew by 14%, and on a small base, box Chardonnay grew by 16%. There is a new box Shiraz from Franzia, and Franzia and Almaden box Merlot are both doing well, Fredrikson said.

Also, he believes that the average consumer seeking value is attracted to the 5-liter box where wine can be found that would cost only about a $1.60 a bottle in a 750m1.

"We have an enormous supply of wine around now, waiting for somebody to come out with a good quality wine, even if it was priced at the equivalent of $3 a bottle," he said.

Fredrikson said that technically bag-in-box is better than ever as a means to keep wine fresh. "I guess the paradox is that even though it is a good package, people in the United States won't pay more because of the box image."

Fredrikson said that 17 million units (5-liter bags) were sold in food stores last year at a dollar value of about $171 million. Fredrikson estimated that the 5-liter bag accounts for 95% to 98.5% of the market.

The Major Players

The three major players in the market are Franzia (which has a number of different labels), Canandaigua (Almaden) and Gallo's Peter Vella. Industry sources calculate that Franzia holds some 60% of the market; Almaden, 22%; and Vella, 17% but moving up fast. In fact, Peter Vella appears to be the leader in the White Zinfandel and Chardonnay market segments.

On Jan. 1, 2001, a change in regulations led to a major change in the market, Fredrikson said. Until that time, the "other special natural wines," which are wines with added flavoring and no minimum actual wine content, were allowed to list a wine varietal on the box. "The big story last year was the loss of that market," he said. "When they had to conform to minimum varietal labeling standards, Gallo jumped it."

Norskog said his organic box was selling well. When I spoke to him in February, the product was sold out in the San Francisco Bay Area. But it has the advantage of following the success of Our Daily Red in a bottle, which sells for about $6 on the West Coast and about $8 on the East Coast. The wine is made from Central Valley organic grapes. No sulfites are added, and the wine has good distribution in natural food stores.

Asked why he went for the box technology, Norskog said, "I've always thought the box was an abused package. Look at Australia and how well they do with 'cask' wines. It just has a low quality image in the U.S."

(Our Daily Red is a blend of Carignane, Cabernet franc and Carmine. It's a deep red color with lively blackberry and black pepper spice on the nose; it's medium weight in the mouth, with added dark berry fruit and a lingering finish. In short, a wine that I would be happy to have in my glass anytime. Or in my bag.)

Norskog added that the trade itself has more bias toward the package than the consumer. "You know, in the U.S., we have to sell wine three times. First to the distributor, then to the store and finally to the consumer. Only about half of my distributors picked it up, then about half the stores picked it up. That's one problem I'm facing," he said.

"I think the consumers really appreciate it for what it is. They can buy a box wine and drink a glass a day or a glass a week," Norskog said. He said he has tested the package and found the wine was still good a year after being put in the box.

Norskog said he had not made a decision yet about continued use of the box despite some success in the market. "The cost of producing one 1.5 liter package equals the cost of bottling a case of bottles," he said. Each box must be assembled manually, another person fills the interior bag and another stuffs it into the box and glues the box shut--a labor-intensive operation for sure. Norskog uses a Scholle AF900 semi-automatic, single-vale filler and a DuraShield 45 Scholle bag. Norskog admitted that it would make more sense from a labor standpoint to use a larger box size, 3 or 5 liter. "But I decided on the 1.5 to keep my price under $10," he said. "On a larger box, I would have better margins, but will people spring for an $18 box of wine?"

French Going for Bags

There is apparently a growing market for box wines in France, both for the national market and export market. According to Roberta Morris of Scholle, the French bag market is currently only 1% of the wine market, but on a volume basis, it's almost as big as the U.S. market. The 3-liter package tops the market in France, though there are also 5-liter boxes and 10-liter boxes, sold mostly for home consumption. Scandinavia and the United Kingdom are major markets for French box wines. Morris said Scholle had also been pitching box wines for use in wine-by-the-glass programs.

In Australia, truly premium wine is sold in 2-liter boxes, and the 5-liter box is known as the party box. The 10-liter size is also popular.

Morris said that Scholle is looking for a mid-sized California winery to use bag-in-box to break into a new market and help create and expand the wine market.

Scholle is introducing a new clear film for their bags called Dura-Shield45. Morris said the new film provides better protection and extended shelf life for the wine. The Scholle bags also have a new dispenser called the FlexTap, which Morris says is durable and easier to use.

Christophe de Carbonnieres, the business development manager with Smurfir Bag-in-Box USA, says his company is one of the only companies to offer a one call bag-in-box package. Smurfit can do the whole number, from graphic design to the final product ready for the retail shelf, including the box, the bag and the pour spout. The company, which was formed in Europe, has been in the U.S. market for about tow years.

"We really feel that the winemakers in the U.S. will come to realize that bag-in-box packaging can be used to serve wine lovers and the food service industry here, just as it does in Europe, Australia and Canada," he said.

He said that the Smurfit product has a shelf life of at least 10 months and will keep the wine fresh six or seven weeks after opening. "We are trying to make the U.S. wine industry understand that bag-in-box packaging can be very successful, especially in a wine-by-the-glass program, for example," he said in a telephone interview.

Another plus for bag-in-box packaging mentioned by several suppliers and producers is the opportunity for added graphics and information to be displayed. For example, the entire box turns into point-of-sale for Our Daily Red. The graphics are attractive, and winemaker Norskog uses the back of the box to point out the advantages of buying wine in a box and explains just what organic grape growing is. The best wine marketing tells a story about the wine, and Norskog's package does just that.

Bag-in-Box Market Share for 2001

PRODUCT % OF MARKET

White Zinfandel 17
Chablis 17
Other Special Natural 16
Blush chablis 13
White Grenache 11
Chardonnay 8
Merlot 3
Cabernet Sauvignon 3
Other 12

Source: Gomberg, Fredrikson & Associates

RELATED ARTICLE: Putting It In A Box

Bag-in-box wines would be a mess without boxes, and Pacific Southwest Container is one of the major suppliers of boxes. According to Brian Smith, executive vice president and sales manager, the company makes the boxes for Gallo, Canandaigua and The Wine Group.

The company has a graphics department, although Smith said most wine companies did the graphics design. Smith said there is a constant effort to make the box more user-friendly and to work with wineries to increase the impact of the graphics.

"I know there are some wineries now researching and testing putting good quality wines in bag-in-box," Smith said. "There is a movement toward better quality."

Pacific Southwest Container did the box for Our Daily Red from the Nevada County Wine Guild. For more information, contact Pacific Southwest Container at 4530 Leckron Road, Modesto, Calif. 95353, phone (209) 526-0444, fax (209) 522-8746 or visit the Web site teampsc.com.

Almaden Targets Japanese Market

In February, Almaden announced plans to introduce bag-in-box wines to Japanese consumers. To distribute the brand in Japan, Canandaigua Wine Company formed on alliance with Japan's Asahi Breweries, Ltd., which also serves as a major wine importer.

In a press release, Doug Kahle, VP of Canadaigua Wine's International Division, said, "we believe this product is being introduced at the right time in the Japanese market. Wine consumption is growing steadily in Japan, and consumers are looking for accessible, quality wines at affordable prices. For these reasons, we believe that Almaden Bag-in-the-Box will attract and satisfy consumers in this market."

Almaden bag-in-box wines will be available in 5 liters in both red and white wines.

Cribari Cooking Wine In A Bag

Canandaigua Wines has introduced an innovative box wine designed for restaurant kitchens. The Cribari Cellars 5-Liter Bag-in-the-Box offers a Marsala or Sherry style wine exclusively for chefs. The new culinary boxes build on the Cribari reputation for cooking wines, and the recyclable cardboard containers eliminate glass in the kitchen. The culinary bags also ensure that the wine stays fresher than it would in a bottle.

"We are very excited about Cribari Cellars 5-Liter Bog-in-the-Box," says John Heinz, vice president of National Accounts and On-Premise Sales for Canandaigua Wine Company. "Orders for the new package hove already been secured with independent restaurants and national accounts. Cribari Cellars 5-Liter Bag-in-the-Box is an affordable, easy-to-use premium cooking wine for every on-premise establishment."

Is it time for wine boxes? - bag-in-box wine growing in popularity Wines & Vines - Find Articles

Technorati Tags: box, boxed, cask, wine

98 Points??? Double Gold??? Two-Buck Chuck Chard WIns Big

So, OK, Two-Buck Chuck is not boxed wine, but I'm going to include this item here because I have had so many conversations about Two-Buck Chuck vs premium boxed wines. I must admit, I am stunned. The California State Fair Wine Competition judged the Charles Shaw 2005 California Chardonnay best best of class. This was on yesterday's Business Wire. The news is apparently so fresh that the results are not even up on the State Fair website yet. Here's a segment of the article.

$1.99 Chardonnay Judged California’s Best

SACRAMENTO, Calif.--(BUSINESS WIRE)--California’s wine world turned upside down – pricewise – today when the Charles Shaw 2005 California Chardonnay (yes, the $1.99 “Two-Buck Chuck” made by Bronco Wine Company and sold through Trader Joe’s) was judged the Best Chardonnay from California at the California State Fair Commercial Wine Competition.

G.M. Pucilowski, Chief Judge and director of the competition, said, “Since we judge all wines totally by variety, without different brackets for price, this double-gold achievement by the Bronco winemakers is astounding.” While the complete results are to be announced July 12, Renata Franzia of Bronco’s Franzia family received the news today and the word is spreading. The Chardonnay received 98 points, a double gold, and the accolades of Best of California and Best of Class.

Dr. Richard Peterson, veteran winemaker and a State Fair judge for 20 years, said, “We have the most open judging I know. There is nothing to bias the judging: we get numbered glasses; we don’t know region, brand or price; we evaluate the judges frequently to make sure they’re tops in the field. Charles Shaw won because it is a fresh, fruity, well-balanced Chardonnay that people and judges, though maybe not wine critics, will like!”

$1.99 Chardonnay Judged California's Best

Related Tags: Charles, Shaw, Two, Buck, Chuck, Chardonnay, Wine, competition

Three Liter Box Wine Volume Up 44 Percent in US

From the Orlando Sentinel

Cheers! Outside-the-box drinking
The Associated Press
June 27, 2007

Box wine is now the fastest-growing wine category. According to data from AC Nielsen, 3-liter box wine volume grew 44 percent in the past year, compared to a 3 percent gain in overall table-wine volume.

Although wine has been packaged in a box for some time, the new boxes aren't like those 5-liter jugs of sweet, headache-inducing wines of the past. Although those are still readily available, there are now premium varieties that show more complexity. Of course, premium box wines are more pricey. A chardonnay can run $20 a box that has the equivalent of four bottles, whereas lower-quality 5-liter boxes range from $6 to $10 for more than six bottles of wine. Premium boxes are still a steal, however, since a quality bottle of wine easily can cost $10-$30 or more.

Cheers! Outside-the-box drinking -- OrlandoSentinel.com

Wine Packaging Trends in France

From Expatica

Wine packaging: Bag-in-box, plastic bottles, cork comeback?

BORDEAUX, France, June 22, 2007 (AFP) - In the past 12 years, France, the world's leading wine producer, has fostered just one revolution in the world of packaging -- the bag-in-box, or BIB.

The slow pace of change has been offset however by the fact that French BIB wine tastes much better than that in Britain -- sometimes called the "scourge of the summer party" -- or in the United States.

Holding back innovations in both French packaging and branding has been the complexity of its wine classifications system, as opposed to the simplicity of new world producers such as Australia, South Africa, New Zealand and the US.

"Wine is very complex in France, the customer therefore wants reassurance, not novelty," said Olivier Mouchet, wine director at Auchan, a leading French supermarket chain, at this year's Vinexpo, the world's biggest wine trade show.

BIBs, introduced in France in the 1980s, were largely ignored until recently when sales grew as buyers switched from older non-airtight "cubies", which once opened had to be transferred to bottles at home or drunk as soon as possible.

New-age BIBs, plastic air-tight containers with a self-sealing tap, allow wine-lovers to drink by the glass without spoiling the wine or altering its taste.

Mouchet said the rise of BIBs, which now represent 15 per cent of French supermarket wine sales, has doubled Auchan's sales in the last five years.

On the international wine scene, the future holds higher quality wine in BIBs, lighter glass bottles, and light plastic bottles made from PET, or polyethylene terephthalate, a compound developed in the 1970s that is now coming into its own due to its recyclability.

...

Wine packaging: Bag-in-box, plastic bottles, cork comeback?, French News, France, Expatica

French Boxed Wine Comes to China?

This little news bit is from China Wines Information Website

The first unique store of French wine bag-in-box was established in Shanghai

Beaujolais wine which had a long history for 102 years was from one of ten major wine regions in France. Recently, the first unique store of Beaujolais wine was set up in Shanghai.

At the wine-tasting for opening, a lot of people spoke highly of the wine. The taste of it was good and its bag-in-box package was convenient for people to take it away. It's welcome in Shanghai.

This French wine had hundreds of varieties including red, white and rose wines. They were separately from Burgundy, Beaujolais, Bordeaux and other ten major wine regions.

The first unique store of French wine bag-in-box was established in Shanghai - wines-info

Related Tags: box, boxed, bag-in-box, cask, wine, French, China

Boxed Wine Consumption in Australia Continues to Drop

The Herald Sun, Melbourne, Australia, reports today on the rising consumption of bottled wine, and an accompanying decline in boxed wine consumption.

The strong economy, wine discounting and consumers trading up to better quality wine have all been linked to the rising consumption of bottled wine.

. . .

Bottled red wine consumption rose by 9 per cent to 100,964 million litres in the same time.

It occurred while cask wine consumption continued to decline, falling by 2.7 per cent to 174,580 million litres, the lowest level for many years. The result was a 3.4 per cent jump in total domestic wine sales to 447 million litres in the 12 months to the end of April.

Drinking leap is a bottler | Herald Sun

Related Tags: box, boxed, cask, bottle, bottled, wine, Australia

Is It Wine?

There's apparently still a battle going on between the Washington State Liquor Control Board and Washington's wine industry over Franzia's labeling. An article on Seattlest on May 16 quotes Syd Abrams, former lobbyist for the California Wine Institute, now a partner in a large Washington vineyard: "It's not wine. It's not right."

Looking out for his private interests now, Abrams finds it curious that Washington State's notoriously slack Liquor Board was letting one particular California producer get away with the enological equivalent of murder. Boxed "wine" from Franzia, specifically. Turns out, it's not even wine...an affront to legitimate producers, and a violation of the Liquor Board's own injunction against labeling that misleads consumers.

The phrase in question is "Table Wine With Natural Flavorings." In fact, says Abrams, the contents of the Franzia box should be called "Flavored Wine Product," which would require Franzia to list the ingredients (including whatever distilled products are used to provide the alcohol content; Abrams doubts that it's actually wine) and taxed as such. Franzia does provide a nutrition chart that skirts the question.

Seattlest: It's Not Wine

Actually, the "wines" in question represent one third of Franzia's lineup. Five of their fifteen boxed wines are the highly questionable "table wines with natural flavors." These are the five wines offered in the "House Wine Favorites" group.

Another five of Franzia's wines are the "Old World Classics." These are "American wines" and laws state that this description allows them to contain up to 25% imported product. Wine industry sources state the import is usually bulk wine from Australia. These wines are not labeled "table wine with natural flavors," and they are apparently unadulterated wine.

The last five wines are the "Vintner Select" group. These are labled "California" wines. To comply with California law, any wine labled "California wine" must contain California wine, and ONLY California wine. No "natural flavors," no Australian bulk wine. To be sure, there is clearly a lot of blending going on to produce a consistently inoffensive product, but again, it is all unadulterated wine.

Personally, I find Franzia's "House Wine Favorites" to be quite undrinkable. Kool-Aid with alcohol. A pounding headache in a box. I would run away screaming if someone offered me a glass of Franzia "Chillable Red."

Related Tags: box, boxed, wine, Franzia

Beverage World Looks at Image of Box Wines

Yesterday on Beverage World, a look at the changing image of boxed wine.

Image of Box Wines is Improving

May 11, 2007

. . .

With better wine varieties now available in boxes, wineries are attempting to give the category a new identity far from the rowdy boating trips and fraternity parties that gave boxed vino its cheap, low-quality image.

The effort seems to be slowly paying off.

Box wine is now the fastest growing wine category.

. . .

Beverage World

Take a look at the article on Beverage World to read the views of a number of individuals in the wine industry, including: Jeff Jenkins, wine manager of Total Wine & More in Chestrfield Co, VA; Terry Creaturo, wine coordinater for Kroger's mid-Atlantic region; Matt Reilly, Morningstar analyst; Ryan Sproule, Black Box Wines founder; Steph Waller, composer-turned-writer; and Leslie Jospeh, VP of Consumer Research, Constellation Brands.

Related Tags: box, boxed, bag-in-box, cask, wine

Wine Enthusiast Magazine Looks at Alternative Packaging

There's a great article about alternative wine packaging in this month's Wine Enthusiast. In Beyond The Bottle, Paul Gregutt looks at bag-in-box, Tetra Pak, aluminum cans, and plastic bottles. Here's and exerpt covering bag-in-box wines:

Bag-in-a-box or “cask” wines are going mainstream. Although five-liter boxes of nondescript, generic wines initially gave boxes a bad rep, the arrival of upscale, vintage-dated varietal wines in three-liter packages has dramatically changed the playing field.

ACNielsen scan data identifies the three-liter boxed wines as the fastest-growing premium wine packaging segment. Volume sales have roughly doubled over the most recent three-year period, as has market share.

A standard three-liter package is the equivalent of four glass bottles. Unlike bottles, boxes are disposable, unbreakable, easy to stack, store and carry and they require no corkscrew to open (at least until the sommeliers figure something out). Once chilled, boxes hold their temperature longer than bottles, and offer extra protection from the damaging rays of the sun.

Most boxes are stamped with a “packaged on” or “drink by” date, a useful guarantee of freshness. They have explicit instructions (usually on the bottom of the box) for opening, and there is nothing cheap or cheesy about the functionality of the airtight bag or dripless spout. Because the bag collapses as it is emptied, the wine is never exposed to air. Freshness is guaranteed for a month or more. You can enjoy a small glass with dinner and it will be as fresh on day 30 as it was on day one.

The bag-in-a-box format is especially popular in Scandinavia (ACNielsen reports that almost two-thirds of the wine purchased in Sweden is box wine), but on the production side the trend first took hold in Australia. Hardy’s Stamp and Banrock Station are brands that offer excellent value; unsurprisingly, the Chardonnay and Shiraz are best in show.
These days, you’ll find wines from Italy, France and other formerly tradition-bound countries trying the box format. A South African brand, Rain Dance, is offering Chardonnay and Shiraz in three-liter cartons, emphasizing that the product stays fresh for weeks after opening.

In California, Black Box has introduced vintage-dated varieties such as Paso Robles Cabernet Sauvignon and Napa Valley Chardonnay. Black Box is part of the Pacific Wine Partners (Constellation Wines U.S.) portfolio, and talks up the value aspect of boxed wine: “The more you know about wine, the less you have to pay.”

Another California winery, Delicato, has succeeded with well-made, vintage-dated Pinot Grigio, Chardonnay, Shiraz, Merlot and Cabernet in their three-liter Bota Box. And now The Wine Group’s Fish Eye brand is launching an ambitious network television advertising campaign that promises to do for the box what Aldo Cella did for the jug several decades ago.

Washington wineries have also begun to jump on the trend. The three-liter line of Washington Hills “is on fire as a brand,” according to its Seattle distributor. A project dubbed Revelry takes the bag-in-box idea, sizes it down to 1.5 liters, and offers Chardonnay, Merlot and Cabernet Sauvignon in a hip and colorful package. Same bag, but papa’s got a brand new box.

Beyond The Bottle | Articles | Wine Enthusiast Magazine

Gregutt closes with a very good point, the observation that the wines offered in these alternative packages are "drink now" wines, not intended for cellaring. And since the "drink now" category covers the lion's share of what's on the market these days, we'll likely see more and more of it offered in these packages in the next 5 to 10 years.

A Boxed Wine Makes the Top 100 Bordeaux

I'm still waiting for FreeRange wines to come to my part of the country, and now with even greater anticipation.

The Bordeaux Wine Bureau has just released it's latest list of 100 top Bordeaux. The list, entitled "Today's Bordeaux 2007," includes the FreeRange 2005 Red Bordeax, in a 3 liter bag-in-box package, from JuiceBox Wine Company. This Bordeaux is produced by Eric Dulong of Dulong Freres et Fils in his Saint Savin winery, using a blend of 60% Merlot, 30% Cabernet Sauvignon, and 10% Cabernet Franc.

The Selection Process: Today's Bordeaux were selected from more than 270 wines nominated by importers and retailers across the country priced $8 to $25 retail. In February 2007, the jury tasted all entries grouped by price in a blind panel. Wines were selected in the top 100 that were an excellent representation of Bordeaux within the given price range

The 2007 Today's Bordeaux Jury: Paul Chaconas, Bordeaux category manager for retailer Total Wine & More; Mark Oldman, author of the best-selling Oldman's Guide to Outsmarting Wine (Penguin Books); and Cat Silirie, Wine Director of Boston's No. 9 Park restaurant. Read more about this esteemed panel.

Today's Bordeaux: Top 100 Bordeaux

FreeRange wines (not to be confused with any bottle sporting a very large rooster) are only available in BiB packaging, and are available in the northeast US. JuiceBox tells me that they will be available in the southeast region this spring. Looking forward to it guys!!

Ernest Gallo, 1909 - 2007

Ernest Gallo died yesterday at age 97.

E&J Gallo Winery is the largest wine company in the US, with annual US sales of 75,000,000 cases (2005 estimate, Wine Business Monthly). Among the wines in the Gallo family: Barefoot Cellars, Livingston Cellars, Red Bicyclette, Redwood Creek, Boone's Farm, Turning Leaf, Peter Vella (5 liter box), Carlo Rossi (available in a 4 liter box), Bella Sera, Black Swan (which also recently came out with a 3 liter box), and more.

From the Gallo website:

MODESTO, Calif. (March 6, 2007) – Ernest Gallo, who with his brother Julio, helped build the American wine industry and, in turn, achieved one of the greatest American business successes of the twentieth century, died today at his home in Modesto, California. He was 97. Julio passed away in 1993. Ernest had a younger brother, Joseph, who had his own business interests and passed away earlier this year.
. . .
The son of Italian immigrants, Ernest was born March 18, 1909, in Jackson, California, about 90 miles east of San Francisco in the Sierra Nevada foothills. His parents, Giuseppe (Joe) and Assunta (Susie), ran a boardinghouse for immigrant miners. It was not an easy life. After moving several times, in the early 1920s Joe bought a small farm in Modesto, California, about 70 miles east of San Francisco. Ernest and Julio, who was one year his junior, were required to come home directly from school to work in the fields, and they worked all weekend as well. It was here, in the late 1920s and the early 1930s, that the family’s grapes were harvested and loaded on rail cars for shipment to Chicago for sale to home winemakers, a small market dominated by immigrant communities in the big cities of the East and Midwest. By age 17, Ernest was already displaying his talent for salesmanship, traveling by himself to Chicago, where he was able to sell his family’s grapes and hold his own against older and wiser men. The experience instilled in him an independent, self-assertive nature and a fierce work ethic that remained with Ernest throughout his life.
. . .
The Gallo brothers pursued a dream few could ever envision. Their starting capital was limited to less than $6,000, with $5,000 of that borrowed from Ernest’s mother-in-law. In the first few years after Repeal in 1933, hundreds of companies were entering the wine business – more than 800 in California alone, some of them with extensive pre-Prohibition experience and access to millions of dollars. The brothers began without knowing how to make wine commercially. Ernest and Julio learned by reading old, pre-Prohibition pamphlets put out by the University of California and retrieved from the basement of the Modesto Public Library.
. . .
The sacrifice was often great. During the company’s infancy, the Gallo brothers often worked around the clock, sometimes 36 hours straight. In the first year, the winery produced 177,847 gallons of wine and earned its first profit. It became routine to work 18 hours a day, seven days a week. Although he cut back in recent years, Ernest remained active in the business on a daily basis until his death.

Gallo Public Relations

They founded the E.&J. Gallo Winery in 1933, at the end of Prohibition, when they were still mourning the murder-suicide deaths of their parents. Ernest and Julio rented a ramshackle building, and everybody in the family pitched in to make ordinary wine for 50 cents a gallon — half the going price. The Gallos made $30,000 the first year.

Winemaker Ernest Gallo dies at 97 - U.S. Business - MSNBC.com

technorati tags: box, wine, Gallo, Peter Vella

The Packaging Industry Considers Boxed Wine

From the July 1, 2006 edition of Brand Packaging:

Consumers Not Boxed In By Wine Packaging
By Dana Dratch

With more premium offerings entering the box format, Americans are beginning to think outside the bottle.

In the past few years, a host of American wineries have joined a global trend in packaging their products in boxes.

In Sweden, 65 percent of wines sold are in the box format, according to ACNielsen data. In Australia, the figure is 52 percent. And in Norway, boxed wines make up 40 percent of all wines sold.

“The whole world is going toward convenience packaging,” says Chris Indelicato, CEO of Delicato Family Vineyards, which has been packaging some of its wines in boxes for three years.

And it’s not just for the sake of novelty.

“The marketing world is full of gimmicks,” says Ryan Sproule, president and founder of Black Box Wines. “This is one of those things where there are real tangible benefits.”

Such as, wine in a box that is opened keeps for a month, instead of a few days. It is also lighter to carry and ship, so it’s less expensive.

“It’s 40 percent lighter than its equivalent in a glass bottle,” notes Diana Pawlik, marketing director for the Centerra Wine Company, maker of the Trove brand. That means it’s less expensive to ship, less expensive for consumers and easier to carry to special events. Boxed wine is also becoming popular with small independent restaurants, because it’s easy to store and keeps so much longer.

And while no one is predicting the demise of the bottle (a wine tradition several thousand years in the making), more and more American winemakers are adding the box to their packaging menu.

Perception or reality?

Not so many years ago, wine connoisseurs looked down on alternate packaging formats. Their general consensus: if it comes in anything but glass with a cork, it must be a lesser quality.

Can today’s boxed wines overcome that prejudice? One fact that is changing public perception: good wine going into boxes.

“There’s been a renaissance with boxed wine of late—particularly at the premium level—as people figure out it’s just a container, you can put whatever you want in it,” says Charles Bieler, co-founder of Three Thieves, a U.S. pioneer of the box format.
Indeed, winemakers are putting more varieties into boxes—everything from chardonnay to merlot, cabernet sauvignon, and pinot noir.

Ryan Kukol, associate brand manager for the Select Brand of Kendall-Jackson Wine Estates, agrees that the time is ripe for premium boxed wine. “I think it’s becoming more accepted in the United States,” he says, likening the issue to a similar industry debate over screw caps. “It’s just a matter of time before the American consumer catches up.”

In Australia, where boxed wines account for about half the wine sold, the Hardy Wine Company claims more than a third of the boxed wine market. Three years ago, it launched Hardys Stamp in the United States and offered the same varieties in both bottles and boxes. According to Sally Osborne, marketing director for Pacific Wine Partners, maker of Hardys Stamp, there is still a “stigma” in the United States that the boxed wine industry is trying to overcome. As a result, she says, the company made a direct effort to communicate that the box had the same tine—the same quality of wine—in a box.

A premium look

As better wine is beginning to go in, the box itself is also getting a makeover. Today’s winemakers are using a variety of high quality inks and finishes on their boxes to signal that the product within is equal to its bottled brethren. Manufacturers are using more high-end printing processes, embossing, debossing, and foil stamping and higher end inks to give a more premium look to the boxes, which are looking and functioning more like traditional graphic-intensive wine labels these days.

Some brands are also starting to experiment with different sizes. While five liter and three liter boxes (the fastest growing segment of the market) were once the standard, 1.5-liter formats have also hit the market within the past few years.

Several winemakers are also tinkering with the shape of the box. Hardys Stamp, for example, elected to use a square box, rather than the rectangle typical for many of the five-liter boxes. “Consumer research said that they find that shape to be more premium,” says Osborne.

And DTour, which packages premium wine in a tube-like container, believes that the brand’s unique package may help avoid the stigma that most boxed wines face. “The nice thing about the tube is that it feels more like a wine bottle than a box, and I think that works in our favor,” says Sam Potts, a principal with Sam Potts Inc., the New York design company that created the packaging.

The company kept the design simple, and used an understated but warm color palette of cream, red and blue.

“The typography is very simple and clear. That’s based on the simplicity of the package itself,” says Potts. “This isn’t something that’s too fancy and unusual for the average wine buyer. At the same time, it’s not something that’s too cheap-looking for the higher end wine buyer.”

Hardys Stamp also wanted its packaging to stand out but wanted to position the brand as “very approachable wines made to be enjoyed when they’re young and fresh,” says Osborne. So the brand used hot bright pinks, purples, greens, yellows, reds and blues to indicate various varieties.

With the Wine Block, Kendall-Jackson also chose bright colors. Depending on the wine variety, the dominant color on the package might be mango, purple or fuchsia. It was “a nod to women” (who, industry stats show, do most of the purchasing), says Kukol. “And we had things in mind like the Apple computer and iPod—very youthful, appetizing colors.”

Black Box did just the opposite with its color scheme, using black as the primary color of its packaging. “Black is often associated with quality or luxury. That’s why I chose it,” says Sproule. “And I wanted something to stand out—all of the other boxes were white.”

Usability has also been a key point of difference, with consumers reporting that they love pressing a button on the package and instantly having a drink in hand. “There are a lot of convenience factors there,” says Sproule. “And we made it the same size as a milk carton so it would fit all the places a milk carton would. I’ve always been annoyed trying to get wine to fit in the fridge.”

Sproule notes that the Black Box package includes a description of the wine and the vintage date. “I tried to do all the things you would expect on a $12 bottle of wine,” he says.

Though he also points out that Black Box doesn’t hide from its packaging approach; it’s part of the company’s slogan: “Think inside the box.”

“Lots of wines are apologetic about being in a box,” he says. “We’re in a box, and we’re proud of it.”

Who drinks boxed wines?

Typical boxed wine drinkers range from the mid 20s to mid 50s and they have good salaries and good educations, according to several vintners.

The premium three-liter buyers are “much closer to the profile of a 750 ml (bottle) buyer,” says Danny Brager, vice president of client service for the beverage alcohol team at AC Nielsen, which has studied sales and buying habits in the category.

And there seems to be a marked difference between the five-liter purchaser, which declined five percent in sales volume last year, and who is buying three liters, which increased in sales volume 70 percent according to ACNielsen reports.

Three-liter buyers “tended to be younger, more affluent more educated,” Brager says. “Basically, to me, a different kind of consumer.”

“The typical consumer is very much the 750 ml (bottle) premium wine consumer,” says Pacific Wine Partner’s Osborne, adding that buyers are educated with a degree of wine knowledge. “I think we see them in their mid-30s to mid-50s. We know that women are buying the majority of wine, and women are doing the majority of grocery shopping. But [consumption of the product] doesn’t seem to be leaning male or female.”

For the Wine Block, drinkers tend to be 21 and on up to their mid-30s, according to Kukol. “[They are] really interested in discovering wine and becoming interested in wine,” he says. “Not as resistant to change. Don’t have any of the stigmas attached to boxed wine that older consumers might. Generally more educated.”

In fact, with the current generation of boxed wines, consumer education is a big piece of the marketing plan for many winemakers.

When Black Box launched three years ago, word of mouth was one of the most important components of the company’s marketing effort. “I started out only selling to shops that had clerks on the floor,” says Sproule. “I was afraid if I put it in a grocery store, it would just die. There was lots of hand selling the first year or so.”
One point that’s helping many boxed brands: growing acceptance of wine as an everyday staple.

“A nice package, endorsed by people used to quality, sends the message that it’s OK,” says Daniel Johnnes, who along with Daniel Boulud and Dominique Lafon, formed the trio behind DTour. “Everyday consumption, not a special occasion, that’s the idea of the package.”

Brand Packaging: The only publication focused on the marketing impact of packaging; by Stagnito Communications, Inc.

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