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Craft Bev News Fetch
Published daily, M-F by Craft Beverage Insights & free to the trade thanks to our sponsors
July 15, 2016
Publisher/Executive Editor, Lewis Perdue + Editor, Becca Yeamans-Irwin
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TODAY'S TOP NEWS
LAWS & REGULATION
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MANAGEMENT & EMPLOYMENT
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GIVE US THIS DAY OUR DAILY DATA
Demand for high-end wines leaves room for under-$10 category to increase prices
Right-click chart to view a larger image.
Source: "Wine Pricing...No Longer Sour Grapes?" from RBC Capital Markets
Quick takeaways (lots more in full analyst report):
- When a consumer chooses to purchase wine that retails for more than $40, they are no longer buying that product as a consumer staple but rather as a lifestyle choice—and the same consumer who is able to afford and willing to pay more than $40 for a product has shown willingness to pay as much as $100 and above given that dynamic.
- Wine category dollar sales have grown 6.2% over the past year according to Nielsen (~300 bps faster than the average CPG category).
- This big trade-up on the high-end has provided room for sub-$10 brands to begin increasing price. And ultimately, pricing will directly result in margin progression.
CRAFT NEWS FETCH PLAYLIST:
While creating this issue:
Becca liked this song the best: Breathe by Telepopmusik
Lew liked this song the best: Evangeline by Los Lobos
Big, bold rosè with forward citrus and raspberries wrapped around an iron fist of tannin & tart. $12 Safeway/6pak.
I tried out a new set of photo filters. Nice effects, but it's a real dbag because it defaces every image with their logo. I've since deleted the app.
This Craft Bev News Fetch was hand-crafted for you by Editor Becca Yeamans-Irwin (The Academic Wino) and Publisher/Executive Editor, Lewis Perdue.
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