2022 presents significant opportunities for US-based wine brands, according to latest CGA On Premise Measurement (OPM) data
CGA research has already highlighted how On Premise has adapted to the challenges of COVID-19, and new analysis is looking at how these changes have affected the wine category.
November 12 – Globally, wine faces the challenge of meeting projected increases in consumption during 2022 while dealing with production issues – including inclement weather, taxes and import charges. Using CGA’s OPM service, this latest research examines the current state of wine in the United States from a sales perspective and examines how these challenges will impact on On Premise.
CGA’s OPM service is the only fully designed and widely validated measure of alcoholic beverage performance in American On Premise. Used to track shares and trends for all major beverage suppliers, OPM is the strongest view of sales performance for bars and restaurants ever produced in the United States.
At the top line level, it is not surprising that table wine holds the largest share in the category (87.5%). However, sparkling wine is a growing segment that has always been popular among consumers recently and now holds a 10.7% share. The sparkling segment has always been the preferred choice of wine drinkers on celebratory and treat occasions, and pent-up demand following closures has only increased the growth of this segment.
In terms of the division between white wine and red wine, there is a fairly even split with red holding a share of 47.5%, white sitting at 45.5% and the rest consisting of rosé and blends. .
In terms of country of origin, US consumers tend to buy local, with national wines holding a 67% share, while Italian (11.8%) and French (5.3%) wines rank second, respectively. and the third place in terms of popularity. Due to the tax challenges and import costs faced by many non-US based wine producers, there are even more opportunities for domestic wines to increase their US share on site.
Analysis of the different grape varieties available in the United States on site reveals that three of them hold a significant market share for each color. In red wine, Cabernet Sauvignon is the most popular with 31.8% market share, with Pinot Noir (19.3%) and Merlot (12.8%) in second and third places. For white wine, Chardonnay (34.6%) is the most popular, followed by Pinot Grigio (16%) and Sauvignon Blanc (10.9%).
When it comes to brands, wine is extremely competitive, with the top ten brands accounting for just 17% of the category as a whole – compared to beer where the top brands have a 58% share. This intensely disaggregated competitive landscape has not eased since COVID-19, which means suppliers and distributors must be on their toes to generate substantial market share gains. Strong tactics based on solid data have never been more important here.
Global wine consumption is also expected to increase during 2022 and CGA’s OPM service will continue to monitor and analyze this dynamic, supporting wine suppliers and distributors with robust market metrics combined with local narratives and fact-based sales stories.
Patrick Bannon, CGA Client Director for the Americas, said, “Now that consumers have properly returned to On Premise, it is important to understand whether the consumption choices they have made at home will be reflected in their On Premise selections. Premise. For a category so tied to experimentation, some current operational challenges are a threat. Our latest Path to Purchase study showed that only 36% of customers read the full menu when that menu is delivered digitally. This is compared to 63% of consumers who consider the offer complete when they have a physical menu in hand. It’s a challenge for all categories related to experimentation and exchange, but nothing more than wine.
Overall, with a landscape of intense innovation and competition for throat share from other categories, 2022 will be a hugely important year to cement and grow the brand’s commitment to the wine category. CGA will continue to offer unique proprietary data and global channel expertise to support its clients during this time.
One way to stay in touch with consumers on-site is to use CGA’s On-Site Impact Report which tracks consumer sentiment on topical issues such as emerging concerns about pandemic variants, intentions for specific events and changing patterns of category engagement. CGA’s latest on-site impact report, along with other special reports released in recent weeks, can be found here: https://cgastrategy.com/on-premise-impact-us/
To learn more about the opportunities and challenges in wine, as well as to help you understand category, segment and brand level trends within On Premise, contact Matthew Crompton at [email protected]