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October 2006 > Feature
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The Emperor's New Clothes

By Jeffrey Klineman

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“We were bored by the idea that screwtops were the revolutionary idea,” Bieler says of himself and his two partners. “We got sick of the idea that the only way to present a different face is on the label. We wanted to change all notions of packaging in the business.”

Manufacturers are jumping into the alternative packaging trend en masse, albeit not as quickly as they embraced the development of critter wines. But the shipping, storage and display advantages of boxed wines and single-serves can create major supply chain efficiencies – and savings all around. And that could mean they’ll be even more popular in the long term.

“I think it’s where the future of wine is going in this country,” says Vincent Monaco, the corporate wine director for Kappy’s, a chain of package stores in the Boston area. “It won’t all be packaged that way, but you’ll see more and more available.”

According to Bieler, a case of his Tetra-Pak “Bandits” consisting of 15 4-packs of 250 mL single-serve boxes weighs 28 lbs.

“That’s nine pounds less shipping weight for three more liters than your regular case of 12,” he says. But the real advantage for retailers still lies in the novel aspects of the packaging, he adds. “There’s a lot of trepidation, but it’s a fantastic way to differentiate yourself among mass customers,” he says of retailers. “Just being like your neighbor is a pathway to mediocrity. This adds a lot of life to the store.”

And with consumer wine education on the rise, they’ll see the advantage of the packages, manufacturers say. Singles consumers, who have buoyed the market for “187s” (so named because they are 1/4 the size of the traditional 750 mL bottle, or 187 mL) know they can open one of the small “juice boxes” when they don’t want to uncork an entire bottle and see it go to waste. Meanwhile, steady consumers recognize the value of a four-bottle capacity box that can keep wine fresh for weeks, due to the fact that the bladder inside the box decreases the wine’s exposure to oxygen.

“It makes for nice portion control,” says Monaco. “Someone wants to have a glass a night, it’s easy, and it’s quick.”

Additionally, because the products cost retailers less, they appeal to cost conscious consumers, as well. A Black Box, for example, contains the equivalent of four bottles of an award-winning wine – at the low price of about $6 per liter.

“Consumers are more aware of what they’re drinking, and the energy market has really come into play from a supplier standpoint,” says Josh Schulze, director of packaging technology for Constellation Wines. “The price of oil is affecting glass manufacturing, and recyclability is much more of an issue. PET is also petroleumbased, so that takes energy, as well. And as consumers get more knowledgeable about our products, they become more aware of its costs, and so we are more aware of those costs as well.”

It’s not as if America is in the lead when it comes to marketing these packages to consumers. In Australia, the same place that launched the critter labels, bag-in-box wines account for more than 50 percent of wine sales overall; in Italy and other European countries, Tetra Pak bricks are common to many drinks and other liquids, including milk and broth. Recently, Tetra Pak products also became the darling of Ontario, Canada wine sellers, because a shortage of dump space meant that there was nowhere to put traditional bottles.

Dump space aside, it’s in-store spacing that’s the real key to selling boxed wines, according to Kamp, the wine director at Meijer.

“What I’ve actually done is separate the threeliter boxes from the fives, because those products, the Franzias of the world, are more in line with the traditional box,” he says. “In most stores, we’ve now got a four foot, five-shelf section. It’s really big, and we carry all the Black Box SKUs, a Blue Nun Riesling, some South African boxes, a Sangria from Spain, even Toad Hollow Pinot Noir.”

He’s devoting the extra space because, he says, “when the ‘cork dorks’ got ahold of Black Box, they realized it’s a beautiful box at a nice price.”

Those “cork dorks” are the group Monaco, of Kappy’s, describes when he says “there’s a different demographic that’s drinking this.”

Retailers indicate that the products in stayfresh boxes and single serve have the potential to fit many channels, from gas stations to manufacturers markets, as well as traditional package stores.

“I actually don’t know that boxes have a huge place in a bottle shop,” says Kamp. “You can hand-sell a bottle easier than a box. But in a big box store, a chain or drug, look out.”

Recently, Constellation began testing the sale of mid-priced wines through its beer distributors, selling it only by the case; other wine makers are trying to sell half bottles through convenience stores. It’s not that wine has gone downscale, it’s that knowledge has gone up, everywhere.

“We’re doing really well in all channels right now,” Sproule says of Black Box. “The only reason people weren’t doing it before was the stigma. Food and drug account for about 20 percent of our sales, and we’re also doing really well in Wal-Mart. There’s not a major chain we’re not in right now.”

Guess that means that, unlike his predecessors, the box wine guy now does pretty well at parties.

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