Thursday, March 01, 2007

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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Corbett Canyon Merlot 3 Liter Box

The first California Merlot on the list of bag-in-box wines:

Corbett Canyon Merlot
Corbett Canyon Vineyards (The Wine Group)
California
3 liter box, vintage dated
Also available in bottle
About $10 - $15

Our Merlot is medium bodied with deep blackberry aromas and a soft, satisfying finish. Enjoy its smooth flavors with grilled pork chops, braised lamb and roast chicken.

Corbett Canyon Vineyards: Merlot


Reviews in the press:

Carol Emert, December 4, 2003, San Francisco Chronicle
The 2001 Corbett Canyon California Merlot ($10) is exceptionally good for the price. It displays a cherry-and-cigar nose along with tasty cherry, plum and cranberry on the palate. The long finish combines bright plum with caramel.

Box wine is getting better all the time


Mike Dunne, December 10, 2003, Sacramento Bee
Corbett Canyon 2001 California Premium Wine Cask Merlot ($10): Yep, $10. That works out to $2.50 a bottle. At that price, you can't expect a blockbuster merlot, but you do get a very drinkable take on the varietal -- bright, young and juicy, with fair-enough suggestions of merlot's frequent plumlike fruit and mint. I found it just as plummy, herbal and spicy on Nov. 22 as it was when I first tasted it from the same box on Oct. 1. I also compared the same wine in a bottle Nov. 22 and found no significant difference.

Dunne on wine: Winemakers think inside the box


Carol Emert, January 6, 2005, San Francisco Chronicle
The 2002 Corbett Canyon California Merlot ($10) is fruity and complex with a nose of cherry, green olive and hickory smoke with complementing flavors of dried cranberry, dried cherry, pomegranate and smoked meat. There is plenty going on in this wine -- particularly impressive at the equivalent of $2.50 a bottle.

A bevy of boxes have room inside for value, flavor


Chris Sherman, July 27, 2005, St Petersburg Times
Merlot, Corbett Canyon, California, 2003: Strong blackberry jam nose with berries and cherries on the palate but flat, thin and too acidic. $9.49

Taste: Uncorked: Think inside the box


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Tuesday, February 27, 2007

South Florida Boaters Love Boxed Wine

Ryan Sproule of Black Box Wines knows that boaters love boxed wine. The Miami New Times blog reports that boaters make south Florida the second biggest market for Black Box Wines.

February 20, 2007
Wine in a Box

Ryan Sproulee sauntered into the New Times office Friday afternoon, yet another vendor in town for the boat show.

The chipper, silver haired man produced three black milk-carton sized boxes containing the equivalent of 12 bottles of wine –the finest box wine, Sproulee conteded, in the country.

Sproulee began his venture in 2003, selling high-end bulk wine in vacu-sealed bladders. The wine would stay fresh for up to four months after opening and, at $22 dollars a box, it worked out to roughly $5.50 a bottle. Today his product, “Black Box Wines, ranks number seventeen in wine sales nationwide.

The second largest market, outside of northern California, is South Florida. The reason? Mainly boaters. “They just love the stuff,” Sproulee giggled, as he shot a foamy stream of decidedly drinkable Cabernet into a small glass. “It’s just a major part of the culture… boating and drinking.” The boxes, he says, are selling like hot cakes.

So the next time you’re out on the water and some yacht comes careening towards you –keep a lookour for that little black box. It may not help much with the wreck, but it’ll sure get you drunk while you wait for the Coast Guard. –Calvin Godfrey


miaminewtimes.com Riptide » Wine in a Box


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FishEye Campaign Has Begun

The FishEye TV ad campaign has begun. I've missed it so far. I may have to watch one of those TV shows I've never even seen before.

Premium boxed wine maker starts $4.5 million ad campaign
East Bay Business Times
February 26, 2007
by Chris Rauber

Fisheye Wines, a unit of the Wine Group specializing in wines packaged in 3 liter casks, rolled out a $4.5 million national TV ad campaign on Oscar night, aimed at 25- to 40-year-old wine drinkers.

The campaign premiered last week, airing during E! Channel's Academy Awards' Red Carpet shows on Sunday and on ABC's Grey's Anatomy and Boston Legal earlier in the week, said David Kase, president of San Francisco-based Kase Media Solutions, which plans for and purchases media time and space for its clients.

It features "hip" 30-second spots targeting young wine drinkers. The ads will run throughout the first half of the year on prime-time first-run episodes of ABC's Desperate Housewives, Lost, Grey's Anatomy, Brothers and Sisters and Boston Legal.

The new ads are meant to reinforce the growing popularity of both Fisheye Wines and "premium cask" or boxed packaging, say officials at Fisheye and its marketing partners. AC Nielsen data, for example, shows the category is the fastest growing segment of the wine business, up 44 percent over the past year, compared to just 3 percent growth in overall table wine sales.

According to Fisheye, each of its three-liter casks -- which are cardboard packages holding a collapsible bag holding the wine -- store the equivalent of four bottles of wine in a package that fits neatly into a refrigerator. That's slightly less than other boxed wines in 5-liter containers, which hold the equivalent of seven bottles. "Clearly the focus is, as the tag line says, 'Better wine, better idea,' " said John Randazzo, president of San Francisco's B.A.R.C. Communications, the marketing agency that developed the campaign, noting that "casks" sounds better than "boxes" when describing the product, and that Fisheye came to his agency looking for a way to link its packaging to the industry's traditional casks.

The Wine Group, based in San Francisco, is one of the nation's largest wine producers -- it sold about 42 million cases in 2005, according to Wine Business Monthly. Fisheye's brands include six premium vintage-dated varietals -- shiraz, chardonnay, merlot and cabernet sauvignon, sauvignon blanc and pinot grigio. Its Fisheye 2005 pinot grigio in a 3-liter cask was recently awarded a Gold Medal at the 2007 San Francisco Chronicle Wine Competition.

Fisheye used B.A.R.C. to produce computer-enhanced imagery linking Fisheyes' contemporary-looking cardboard casks with the heavy-duty wooden casks used for centuries to store fine wines. One spot opens on a painting in the William Hogarth tradition, depicting 18th century revelers tapping into a cask of wine. Using stop-motion animation, the Hogarth era characters come alive and move into a modern-day pop art gathering.

"As screw caps replace corks, wine aficionados are increasingly looking for alternative ways to keep wine fresh longer," Alan Blavins, B.A.R.C.'s creative director, said in a statement. "Smarter-designed casks can maintain optimal taste for as long as six weeks. This campaign helps convey both the quality inside the cask and the quality of the cask itself."

Rauber is a reporter for the San Francisco Business Times.

Premium boxed wine maker starts $4.5 million ad campaign - East Bay Business Times:


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Monday, February 26, 2007

SF Chronicle Wine Competition - 2007 Results

These are the California boxed wines that placed in the 2007 San Francisco Chronicle Wine Competition (as far as I could glean from just skimming the lists).
  • Trove 2005 Chardonnay - Bronze
  • FishEye 2005 Pinot Grigio - Gold
  • Black Box 2005 Pinot Grigio - Silver
  • Delicato 2005 Pinot Grigio - Bronze
  • Trove 2005 Pinot Grigio - Bronze
  • Delicato 2005 Shiraz - Gold
  • Glen Ellen 2004 Cabernet Sauvignon - Bronze
  • Killer Juice 2004 Cabernet Sauvignon - Bronze
The FishEye PG is going on my next shopping list.

No Glass

From The May 8, 2006 edition of the New York Post, No Glass - Wine in a Box Is No Longer a Joke, looks at the alternative wine packaging trend. It's a good article, though I can hardly agree with the statement that "the packaging revolution started in July 2003." Maybe that's when the writer first noticed it.

No Glass
Wine in a Box Is No Longer a Joke
by Andrea Strong
May 7, 2006

DO you know the satisfying "pop" you hear when you pull a cork out of a bottle of wine? Savor that memory, because with a slew of new wine packages - from jug to box, tub and even tetra pak - bottled wine may soon be obsolete.

The packaging revolution started in July 2003 when three men in the biz - Charles Bieler (Chateau Routas), Joel Gott (A Napa Valley winemaker) and Roger Scommegna (a Mendocino county vineyard owner) - got together to make wine more accessible to the masses. The trio launched Three Thieves, high-quality wine sold in a rogue glass container: a squat, screw-top jug. What started with just a zinfandel now includes cabernet sauvignon, syrah, pinot noir and an un-oaked chardonnay that will debut in New York City next month.

"Three Thieves was our opportunity to be free of the rules and kick the industry in the ass a little bit," says Bieler. "We wanted solid quality wine at about $10, and consumers realy love it."

Bouyed by the success of the Three Thieves jugs, the trio took things one step further with Bandits - a line of wine sold in 250-milliliter tetra paks, the laminated paperboard containers often used for soy milk. Priced at $8.9 for a four-pack, the wines debuted just over a year ago and feature merlot, pinot grigio and California cabernet.

"The paks are not bulky, heavy or breakable; they're an enviromentally renewable resource; and they're inexpensive," say Bieler. "The entire carton costs less than a wine cork, and the interior lining is a neutral and consistent way of packaging the wine so there's no concern about off flavors."

The tetra-pak Bandits are part of an even bigger trend toward 3-liter premium bag-in-a-box wines. Forget those 5-liter boxes you (justifiably) scoffed at in the 70s. This is actually stuff you're going to want to drink. The wines are fresh, vibrant, dry and refreshing - perfect for summer picnics or lazy evenings of grilling. And you can chose from among nearly a dozen premium boxed wines for your next summer bash.

From California, there's Black Box ($19.99 to $21.99 for 3 liters), Wine Block ($11.99 for 1.5 liters) and Delicato Bota Box ($16.99 for 3 liters); and from Australia, Banrock Station ($16 for 3 liters) and Hardy's Stamp of Australia ($16 for 3 liters). From France comes Cuvee de Pena 2003 vin de pays ($17.99 for 3 liters) and Dtour's "wine in a tube," a 2004 Macon-Villages chardonnay ($17.99 for 3 liters) created by chef Daniel Boulud, Sommelier Daniel Johnnes and winemaker Dominique Lafon.

"These wines have that Pabst Blue Ribbon effect," says Bieler. "This isn't wine to impress your mother-in-law. This is wine for watching 'Deadwood' and eating pizza."

While you gain the cachet of being on the cutting edge of a new trend, you won't be sacrificing quality. These premium bag-in-a-box wines are made the same way as bottled wines, but have the advantage of being kept in an air-free zone without the risk of being ruined by a faulty cork.

Sure, some of the romance is lost. But for easy-to-drink wines that you might sip at home, use for cooking or take to a party, you'll save money (because the packaging is so inexpensive) and help the environment (glass bottles take much more energy to recycle than paper), and the wine will last longer (four to six weeks after opening, thanks to the vacuum-sealed bags).

And you can be sure that the retro-chic packaging does not sacrifice quality.

"There's enough technology out there now that the boxes are not harming the wine at all," says Kym Apotas, assistant wine buyer at Astor Wines. "It's best for easy-drinking wines that you won't store for a long time."

These arguments go a long way to explain why premium boxed wine sales have grown 70 percent over 2005. But the question remains: Would you order a box of wine at dinner?

They guys behind Dtour are betting your answer is yes. DTour is now poured at DB Bistro, where it is decanted and served by the carafe for $17.

"It's and ideal wine for by-the-glass programs," says Daniel Johnnes, "because it alleviates the problems of corkiness and oxidation that are common with wines by the glass."

But not everyone agrees boxed wine should grace the inside of a restaurant.

"I know DB is serving boxed wine, but he wouldn't be selling it unless it was his own product," says Jamie Pollak, wine director of the Carlyle Hotel. "Idon't think you will see bag-in-a-box wines in restaurants."

Her fellow wine wags agree: "I don't see it unless it's part of wine-by-the-glass service," says Fred Dexheimer, beverage director for BLT restaurants. "Wine service at a restaurant is all about bringing a bottle over and the ritual of beautiful wine. I don't mind it, but it's best for home use."

"It depends on the situation," says Sheri de Borchgrave, wine columnist for Hamptons Cottages & Gardens. "When you are outside in the summer serving wine, it's perfect. The quality is not lessened by a more pedestrian enclosure."
the strong buzz, by andrea strong


I do agree that boxed wine in restaurants will only really have a place in by-the-glass (or carafe) programs. Avec restaurant in Chicago sells the Cuvee de Pena 3L box for over $80. I would only spend that much on wine in a restaurant to serve a large party. And in a group large enough to consume that much, I would prefer a variety of several bottles, rather than a single selection.

Many diners don't realize that the Inglenook house wine they slurp by the glass at the neighborhood restaurant comes out of a 10 liter box. The trend in premium boxed wines now makes possible by-the-glass offerings of vastly better quality. A few restaurants are taking advantage of this now, and most certainly this will become more and more common.

Of course for home glass-a-day consumption, and active outdoor life, the box is the bomb!

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Taborga Chilean Wine In a Box

Look for a new boxed wine offering from Chile. It's good to see a Fair Trade and certified organic product offered in this economical and fuel-thrifty bag-in-box package.

TABORGA Chilean Wines Introduce First 3L Bag-in-Box Wine From Chile

TABORGA Chilean wines, produced by award-winning, FLO Fair Trade and IMO Organic certified vineyard, Lomas de Cauquenes from the Maule Valley of Chile, are offering the first available 3L Bag-in-Box wine for the US market.

Coral Gables, FL (PRWEB) February 13, 2007 -- TABORGA Chilean wines will begin offering the 3L Bag-in-Box to the US market as one of the first entrants from Chile in this segment.

TABORGA Chilean wines are the entry level line offered by ViƱa Lomas de Cauquenes and C&C Imports, LLC. They are estate bottled and produced by the first Organic Certified vineyard and 1 of only 2 FLO Fair Trade certified producers in Chile. TABORGA wines recently received Silver and Bronze medals from the Beverage Testing Institute in the World Value Wine Challenge in the under $8 category. TABORGA wines decided to offer the 3L Bag-in-Box to the US market after researching the success in Northern Europe of the size, the lack of a Chilean offering in the US and the current segment success since 2003 which has made it the leading packaging segment in terms of growth.

TABORGA table wines offer incomparable value, artistically designed labels and explosive point of sale advertisements in the $5 retail range. The labels were painted by a young Chilean artist, of which the wine also bears her name, who uses her unique yet traditional style to accentuate the contents of these incredible wines. TABORGA wines began with the sale of Red (Cabernet/Pais blend) and White (Moscatel/Semillon blend) table wines characterized by their corresponding colored labels. The brand is expected to grow at the national level and accomplish a top market presence within the year.

About C & C Imports, LLC
C&C Imports, LLC, (www.candcimports.com) the U.S. importer, was founded in January 2005 in Miami, Florida and is based on a cooperative agreement with ViƱa Lomas de Cauquenes located in the Maule Valley of Chile who is producing and estate bottling Melania, Melania "Coleccion Especial", Melania "O" and Taborga brands, Fair Trade (FLO) certified Chilean wines.

TABORGA Chilean Wines Introduce First 3L Bag-in-Box Wine From Chile


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