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October 2006 > Feature
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The Emperor's New Clothes

By Jeffrey Klineman


Used to be, the guy who showed up at the party with the box o’ wine was quickly ordered to drop it next to the cases of Natural Light and all the other drinks reserved for consumption when all the good booze had been emptied.

Times have changed, though. A new group of slimmer, classier boxes have appeared on the market, directed toward the wine consumer who is confident enough to recognize that what’s in the package is much more important than the perception of the package itself. Joining this new generation of high-end boxed wines is a complementary group of innovative containers that, taken together, are fast changing the way retailers and consumers think of acceptable wine packaging.

Many of these new packages, including Tetra- Pak boxes in traditional 750 mL and single-serve sizes called “187s,” half bottles and jugs, pouches and upscaled champagne cans, even aluminum bottles, are fast gaining traction among consumers and are showing profits that are making retailers very happy indeed. Products like Black Box, French Rabbit, Three Thieves, Sofia Blanc de Blancs and dtour are showing that wine in alternative packages sell, and sell productively. Sales of premium bag-in-box wines, the fastest-growing nontraditional packaging segment, were up more than 50 percent in sales last year, according to ACNielsen; overall, they made up just over 2 percent of the wine market, but that’s changing.

With wines growing quickly as a category – they’ve gone back and forth with beer as the most popular alcoholic beverage option for Americans in recent years – the pressure is on for retailers across all channels to come up with interesting presentations and value pricing, and these new packages seem to have shaken off their low-end stigma.

“Consumers are starting to realize that the three liter box isn’t necessarily the sugar water you used to get in the five liter,” says Scott Kamp, the wine buyer for Meijer, a 176-store grocery chain in the Upper Midwest. “We’re making good money on a good margin, and the consumers have responded to it very positively.”

They’re responding well because they know more, according to Ryan Sproule, the original inventor of Black Box wines, which grew from oddity to national phenomenon when they were purchased by Constellation in 2003.

“It’s appealing to people who are daily drinkers of wine, and who have outgrown the pomp and ceremony,” Sproule says. “For them, having a practical, price-effective package is a good thing.”

Wines have taken off in the past decade in America as a result of a increased mass culture attention and the introduction of accessible “New World” tastes like Yellowtail Australian Shiraz and Sauvignon Blanc, as well as many California products that share the Aussies’ style of fun labeling and unintimidating twist-off caps, such as Twin Fin and Big House Red.

“There’s more willingness to go to fun packaging as a result of Yellowtail,” says Charles Bieler, one of the founders of Three Thieves, a fast-growing brand of wines that has broken ground in Tetra-Pak and other alternative packaging methods, including jugs. “But I’m also talking about real differentiation, not just a different kind of label or twist- off cap.”

According to Bieler, while the “Critter Wines” might have introduced the much sought-after millennial group of 21-to-35 year-olds to a whole new way to consume alcohol, they’ve also helped them learn enough about wine to not have to stand on ceremony when it comes to the packaging of the productlf. In fact, if they’re aware of the past stigma associated with the packaging, it adds to the attraction. It hits a sweet spot in the hipster sensibility, combining environmental sensitivity, a feel for modern design and an ironic love for low-end imagery.

“Everyone wants to be considered ‘in the know,’ on the verge of the latest thing,” says Alberto Pecora, the regional manager of A.V. Imports in Columbia, MD. “The appeal of these packages is to get into the ‘in crowd.’”

A.V. has gone into the far reaches of alternative packaging, marketing a wine that’s as deeply anchored in fashion trends as it is in the worship of Bacchus. With a double-capped, cylindrical bottle, one marketed in upscale magazines and retailers, A.V.’s Voga was a success in its first year, shipping more than 150,000 cases. A new offering, Quattro, will offer retailers a triangular 15-pack with a case card built right into the case.

“Packaging is changing in all other categories,” Bieler says. “Tradition in winemaking might be one of its strengths, but with more accessible wines, the increase in approachability is bringing in way more new sales. The new people buying wine are buying the fun wines.”

Nevertheless, for Bieler, the scion of a multigenerational wine making family, Three Thieves didn’t begin as an offering to everyday wine drinkers, but as a challenge to smaller wine dealers to have fun and not take the product too seriously.

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