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w w w. v w m m e d i a . c o m N o v - D e c 2 015 | V I N E YA R D & W I N E RY M A N A G E M E N T 9 3 starts to notice it and wonder if they should offer something as well," he said. "There are now sec- tions in stores devoted to (alterna- tive wine packaging), so you know it's not a passing fad anymore." The benefits of non-glass con- tainers have been touted through the years as the driving force that will power consumer uptake: por- tability, no breakage, easy to open, and the ability to keep the wine fresh. They're also economical for the consumer. For example, a 3 L cartons and pouches has been the improved quality of the wine t h e y c o n t a i n . C o n s u m e r s a r e learning that these wines – high- quality, varietal offerings – have won awards in wine competitions. "There have been plenty of blind taste tests that validate that there's good wine in this package," Austin said. "I think consumers are start- ing to understand there's a shift in the category." Getting consumers to try wines in boxes might be the hardest part; but once they've tried them, they're usually won over. "We tend to find repurchase rates very high," Brager said. "Getting someone to do something different is the big- gest obstacle." MILLENNIAL DRIVEN A s t h e b u y i n g b e h a v i o r s o f younger consumers indicate, that hurdle is diminishing. According to David Moynihan, president of pouch packaging manufacturer AstraPouch, based in Penfield, N.Y., drinking from single-serve boxes and pouches comes naturally to Gen Xers. "They probably had a Capri Sun (juice pouch) every day for 10 years," he said. In fact, Eileen Fredrikson of box contains the equivalent of four 750 mL bottles of wine and often retails for around $20. The eco-friendly aspect of alter- native packaging also is a draw for some winemakers and consumers. Compared to glass, many formats take less energy to manufacture, weigh less and take up less space, which translates to better transpor- tation efficiency. "I think there's an environmen- tal story to tell with bag-in-box," said Randy Austin, product line manager with Scholle IPN, based in Northlake, Ill., which manufactures bag-in-box packaging. "Our packag- ing suits the move toward sustain- able or Biodynamic wineries. I think (wineries) are able to communi- cate that better with a carton than through glass." QUALITY BROADENS APPEAL Wine producers, recognizing increased willingness on the part of consumers to explore more than traditional glass packaging, are put- ting a wider range of varietals into alternative packaging. "It's not the old (5 L) boxes, it's the new boxes; and the variety is broad," Brager said. "It hits all the key and hot varieties." But the biggest boost for boxes, Danny Brager of Nielsen says 3 L bag-in- box wines are still hot. + Bag-in-box and Tetra Pak containers still dominate the "alternative packaging" category for wine. + An expanded range of wines and improved quality are helping to win consumers. + Nontraditional packaging appeals most to Millennial and Generation X consumers. + Repurchase rates are high once a consumer tries alter- natively packaged wine. AT A GLANCE 3L BOX AND TETRA POSTING THE STRONGEST GROWTH RATES, WHILE 750 ML STILL SOLID Sales Share Package Size/ Type Segment Value % Change Volume % Change Avg Unit Price Value Volume 100% 100% Ttl Table Wine +4.0% +1.3% $9.45 70.0% 49.8% 750 mL Glass +5.0 +2.5 $9.51 17.7% 24.9% 1.5 L Glass -1.1 -0.8 $9.63 4.0% 12.4% 5 L Box +1.0 -2.9 $14.55 3.1% 5.0% 3 L Box +14.4 +11.9 $16.72 2.1% 2.2% 187 mL +4.0 +3.0 $3.96 0.9% 1.1% Tetra +24.9 +24.9 $4.00* 0.8% 2.3% 4 L Glass +/-0 +/-0 $13.19 0.7% 1.7% 3 L Glass -9.7 -9.9 $12.17 Source: Nielsen, 52 weeks ending 6/20/2015 *500 mL price