Beverage Dynamics

Beverage Dynamics Nov-Dec 2015

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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due to the maturation of tastes among younger wine consumers as they grow older and earn more disposable income. But other factors include efforts by our sales staff to make customers feel good about making a purchase at these price points and wine becoming more accepted for gifting." However, not everyone is seeing increases in these categories at the retail level. "Our wine sales have not recovered and have remained fl at to this day," says Don Carter at the Wine Seller, a hand-sell store in an affl uent North Jersey sub- urb. "Customers adjusted their spending patterns downwards in 2008, and it appears that those who once drank $30 wines have gotten used to drinking $20 wines." SUPPLIER-SIDE ECONOMICS Vintners must plan their business years in advance. Today, the smart money is clearly confident that consumers will continue to increase their per-bot- tle spend. The biggest players are responding by T he wine business is still shaking off the effects of the great recession, but there are brighter days ahead. The buzzword on everyone's lips has been 'premi- umization,' as wines over $10 have led in growth over the last fi ve years. Sales have long been fl at for wines under $10, and bottle rings are slowly but surely ticking upward. 2015 reports confi rm the underlying trend and bring even more hopeful news, showing continued double-digit growth in this tier being overtaken by even stronger performance at higher price points. "Premiumization is defi nitely here," says Amy Hoopes, Chief Marketing Offi cer for Wente Family Estates. "Wines under $10 are struggling, but we're seeing double-digit growth trends in the $15 to $20 category, and wines over $20 are growing even faster." Retailers may be more cautious in their outlook by na- ture, but national scan data shows good reason to be optimistic about fi ne wine prospects. "We've seen strong and steady growth in the $15 to $20 segment post-recession," says Lorena Ascencios, head buyer of Lower Manhattan's Astor Wines & Spirits, "though volume is higher in the next category down." At Sigel's, an upmarket Dallas retailer with 10 locations, di- rector of wine marketing Jasper Russo's is even more bullish on higher-end sales. "Every time the economy notches up, we see the price point shift upward," he says. "We see every stock market increase refl ected in our numbers." This movement is not restricted to wealthy en- claves. Even competitive national chains are report- ing the trend. "The key growth in our wine business is coming from the $15-and-above category," says Melissa De- vore, vice president of wine buying for Total Wine & More. "We are seeing extreme growth over $50 as well. This is partly T due to the maturation of tastes among younger wine consumers as they grow older and earn more disposable income. But other factors include efforts by our sales staff to make customers feel good about making a purchase at these price points and wine becoming more However, not everyone is seeing increases in these categories at the retail level. "Our wine sales have not recovered and have remained fl at to this day," says Don Carter at the Wine Seller, a hand-sell store in an affl uent North Jersey sub- urb. "Customers adjusted their spending patterns downwards in 2008, and it appears that those who once drank $30 wines have gotten used to Vintners must plan their business years in advance. Today, the smart money is clearly confident that consumers will continue to increase their per-bot- tle spend. The biggest players are responding by SUPER- PREMIUMIZATION BY MARNIE OLD A Sunny Forecast for the High Teens and Twenties ©ISTOCK.COM/DOROO

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