Issue link: http://read.dmtmag.com/i/89494
MANAGEMENT MARKET WATCH indeed. According to the Wine Intelligence study, in the U.K., half of the wine drinkers buy products that are 10.5% or lower, and their main motivation for choosing these wines is their low price and "taste preferences," which presumably means that they tend to be sweet. U.S. BLASÉ ON LOW ALCOHOL In the U.S., the market for fine wine has been steadily growing, but that's not the case in much of Europe. By contrast, Europe has seen a resurgence of wine-cool- er-style "spritz" drinks such as Veneziano, a drink that's become omnipresent in Italy. There is little or no indication that a wine actively marketed as "low alcohol" will have great success in the U.S. market anytime soon. Many have failed before with that selling strategy, and of the various kinds of wines that can be found in the under-12% category, almost none are marketed as low-alcohol wines. That's why companies like TFC, Skinnygirl and Constellation Brands are focused on characteriz- ing the low-alcohol wines they are making as "lighter," low-calorie or as lifestyle products appealing to young women drinkers. Retail chain Beverages & More cellarmaster Wilfred Wong said he doesn't have a lot of customers clamoring for low-alcohol wines. "I see insignificant gravitation toward low alcohol per se, but (increased sales) may be tied to the sugar (content) of sweet reds, those that are generally lower in alcohol, at 9 or 10%," Wong said. "There are a bunch of wines that are in that lower-alcohol area that have sugar. And so, I'm wondering if the two (trends) are tied together. "It's a newbie market. Arizona and the Inland Empire (in Southern California) are two strong markets for that kind of wine, and now it's moving from the south to the north. That category has been gaining traction in some 'normal' drinking markets like Northern California." Earlier this summer, Dr. Ruth Westheimer unveiled a new wine brand called Vin d'Amour. The 6% alcohol wine is supposed to make you frisky, but keep the lead in your pencil, too. As Dan Berger pointed out in a Press Democrat (Santa Rosa) newspaper article in June, at 6% alcohol, the wine is intended to be sold in grocery stores that can't sell regular-strength wine, so it won't even be sold next to table wine. The fact is, it's a ready-to- drink category "beverage" that happens to have some wine in it. Spirits brands made the same Skinnygirl wines are marketed for their low calorie content and refreshing character, rather than their low alcohol content. WWW.VWM-ONLINE.COM NOV - DEC 2012 VINEYARD & WINERY MANAGEMENT 29