[W]hen the Wine Market Council released it’s 2012 Market Forecast, the numbers looked encouraging. Overall table wine consumption increased in 2011. Core consumers (those who enjoy wine at least once a week) tally up 58% of the wine drinking population. Of those, 65% drink wine daily or several time a week.
There’s a great deal more basic data, most of it positive for the industry, but what is beginning to take shape as the numbers get parsed and digested is the marked consumption behavior differences based on age.
Millenials (ages 21-34) are showing behavior splits within themselves. Older Millenials (26-34) are highly engaged wine drinkers with 65% drinking wine daily or several times a week. Their younger counterparts come in at around 50% showing similar behavior. The difference is evidenced by age, but the reasons may also be influenced by economics. younger Millenials are hardest hit by our economic downturn, and view wine more as a special occasion experience as the skew higher in preferring spirit consumption.
Social media engagement by wine drinkers is also on the rise. Leading the way are the High End wine consumers, with a strong 60% reporting they used social media as a means of finding information about wine. As might be expected, the Baby Boomers were the least engaged with wine online (26%). Again, there was a strong difference in behavior between young and older Millennials (40% for younger vs 52%, older Millenials). Gen X (35-46) engagement with wine online is strong at 40%.
As we look at age, consider the hot wine-of-the-moment Muscato (and other sweet reds) which experienced a sharp increase in 2011 (up 73%), driven largely by younger drinkers. This trend is being compared to the (then) young Baby Boomers discovering wine in the 1960's. Do you remember Sweet Roses or Lancers or Mateus? These sweet and easy wines were the entree for a generation that ultimately fueled the American love affair with Chardonnay and Merlot in the 80's and 90's.
All this data is strong support for the bright future of the wine industry. But the behavior differences within generational groups point to a need for wine marketers to consider their audience as being made up of different segments, with different behaviors, rather than simply “wine consumers.”
Source :: MJR Creative Group
[A]lthough China's bustling metropolises and staid Bordeaux may seem worlds apart, the two are becoming increasingly intertwined. Indeed, China recently overtook the traditional strongholds of Germany and the United Kingdom to become Bordeaux's largest export destination. This transformation is particularly remarkable given the country's short history of mass wine consumption. Historically, beverages such as sorghum-based baijiu and beer have dominated Chinese alcohol consumption, with wine only recently gaining wide acceptance.
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[T]he worldwide wine business is a good case study in free trade, given that there are many producers and few restrictions on commerce. In recent years, the cost of wine has reflected this generally free global market in two ways – one good and the other bad, as George M. Taber argues in this op-ed piece. Taber is the author of four books on wine. His latest is titled, A Toast to Bargain Wines: How innovators, iconoclasts, and winemaking revolutionaries are changing the way the world drinks.
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The news is good for winemakers according to the recent presentation by the Wine Market Council. The council's sixth annual U.S. Wine Consumer Trends presentation confirmed that this new year marks 17 years of consecutive growth of wine consumption in the U.S.
John Gillespie, president of the Wine Market Council revealed that wine consumption continued to grow through two recessions, albeit at reduced rates. In 2010, U.S. consumers downed 276 million cases of table wine. But it is the core wine drinkers that really keep the numbers high. This group, defined as those who drink wine daily, several times a week or about once a week, is about 20 percent of the population (approximately 46 million U.S. adults). This dedicated group accounts for 91 percent of all wine consumption. Marginal drinkers defined as those who drink wine less often than weekly represent 31 million U.S. adults.
Wine drinking is on the rise in the Millennial group (ages 17 to 34). Six percent are drinking wine daily, 26 percent are drinking wine several times a week, and 19 percent drink wine once a week on average. Generation X (ages 35 to 46) and Baby Boomers (ages 47 to 65) are also consuming wine more regularly. The over-65 wine drinkers have the largest proportion of daily wine drinkers, perhaps because of doctors' recommendations.
The results also reveal some interesting figures on varietals. Baby Boomers are drinking Cabernet Sauvignon and Merlot and leaving behind Dry Rose and White Zinfandel or blush wines as well as drinking less Champagne and sparkling wines. Overall wine drinkers are still conscious of their wallet and looking for good value wines but there are also signs of slow growth at the mid and higher ranges.
Another intriguing part of the survey is the social media results. Two-thirds of core wine drinkers and 40 percent of marginals use the Internet to get information on wine," Gillespie said. More than half of all wine drinkers are on Facebook and 41 percent of core wine drinkers use a smart phone and, of those, 39 percent said they have wine, food or restaurant applications on their phones whereas only 25 percent of marginal drinkers use a smart phone.
Source :: Luxist
Pressure is mounting worldwide for alcoholic beverage producers to modify labels to make the health and nutritional information more clear to consumers. From Australia to America, it's a hot button issue that will impact alcoholic beverage brands worldwide this year.
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Rémy Cointreau has put its Piper-Heidsieck and Charles Heidsieck Champagne brands up for sale in a deal which could raise as much as 450 million euros. Possible suitors for the brands include other drinks conglomerates such as Diageo and Pernod Ricard but a private equity group could also snap up the champagne seller.
Decanter reports that Piper has never been profitable in the 20 years that Rémy Cointreau has owned it. While Piper president Anne-Charlotte Amory has spent the past few years trying to build the brand, the global recession chipped away at sales and the brand cut 45 jobs earlier this year.
By Deidre Woollard | Source :: www.luxist.com
The International Business Times reports that a massive imperial-size bottle of Cheval Blanc 1947 has set a new world record for a single bottle sold at auction. The bottle (which hold the equivalent of eight standard sized bottles) was found in the secret cellar of a wine collector.
It sold for $304,580 on Tuesday at the fine wine auction at Christie's in Geneva. Just last month the record for the most expensive wine bottle had been set in Hong Kong when three bottles of Châteaux Lafite-Rothschild 1869 sold at a Hong Kong auction by Sotheby's for an astounding hammer price of $232,692 a bottle (the Lafite-Rothschild is still the champ if you are measuring price per milliliter).
By Deidre Woollard | Source :: www.luxist.com
"With Chile much in the news (albeit for reasons unrelated to wine), I went looking for the cause for this particular sentiment. I found that the fault, in many ways, lies with Chilean winemakers themselves—at least with the producers of three decades ago. The wines exported then were fairly unremarkable but priced to compete with some of the cheapest wines in the U.S. While this strategy helped to secure Chilean wines a spot on the market, it tarnished their reputation among wine drinkers, who continued to associate all subsequent (though often superior) efforts with that first wave."
Read it at the Wall Street Journal.
Source :: Big Think
Patricia Kluge has thrown her heart, soul and no small amount of money into her Virginia wine business but that may not have been enough. C-Ville.com is reporting that Kluge Winery and Vineyard, the business that she and her husband Bill Moses opened in 1999, is in the hands of its lenders. Last month, Trevor Gibson, who had been the company's chief financial officer for five years, left Kluge Winery. Details of what happened aren't exactly clear but C-Ville.com has a statement from Bill Moses that says that the bankers have taken the first steps toward "dismantling the winery as an operating business as well as an auction of the property."
Kluge and Moses have Albemarle House, their 45-room English style manor, on the market for $48 million and earlier this year they sold off the contents at Sotheby's in a two-day buying bonanza that brought in $15.2 million. A sale of her jewelry brought in around $5 million.
TheHook.com says that a foreclosure notice list a total debt of $34,785,000. The assets of the Kluge Estate Winery and Vineyards include 907 acres in southern Albemarle County, 164 of which are vineyards. The sale would also include the Farm Shop and tasting room, as well as offices, production buildings, six employee houses, and a 34,000-square-foot former carriage museum. A sale scheduled for December 8 is set to take place at the vineyard office building on Grand Cru Drive in the southeastern part of the county while a second auction on December 11 in Madison would sell off 15,000 cases of Kluge Estate wine.
TheHook.com is also reporting that the lender Farm Credit filed a lawsuit against Kluge and Moses October 29 in Albemarle Circuit Court. According to that article, the couple also faced foreclosure on "Glen Love" a luxury spec house they developed at Vineyard Estates that was our estate of the day back in 2008 when it was listed at $6.8 million.
Kluge and Moses are still in negotiations with the lenders and may yet be able to save the winery before the auction.
By Deidre Woollard | Source :: Luxist
"The theory has its origins in the biodynamic movement, which Rudolf Steiner, an Austrian philosopher, began in the early 20th century. The ideas are simple, albeit eccentric. Biodynamic wine is created from grapes grown in harmony with nature. This means that the wine is not only organic, but also crafted with a heightened awareness of stars and planets—that is, the forces of cosmic energy. Because such wine growers view the vineyard as a living organism, they presume the grapes are affected by the moon, like other living things. Similarly, consumers should be mindful of when they drink such wine, as the phases of the moon affect the taste of the vintage."
Read it at Intelligent Life.
Source :: Big Think