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Alternative packaging key to growth in alcohol industry

Alternative packaging key to growth in alcohol industry

Improving customer experience and exploring alternative packaging is key to growth in the alcohol beverage industry according to new research by wine giant E. & J. Gallo.

Gallo's consumer and shopper understanding project, Knowledge Unearthed for Business Expansion (KUBE), surveyed more than 23,000 drinks consumers for its 2018 Consumer Alcohol Beverage Survey.

The research looked at nearly 100,000 usage and purchase occasions – across on premise, off premise and e-commerce.

It found that getting the in-store experience right is key to purchase. Around 43% of wine shoppers said that store tastings have a strong influence on what they buy; while 73% of wine drinkers said they would enjoy a wine tasting class.

Meanwhile, 65% of alcohol beverage shoppers said that speed and efficiency drives their shopping experience; while 39% of wine shoppers said that shopping for wine can be confusing.

It found that while premium wine drinkers are more exploratory, more knowledgeable, and more social in their consumption than drinkers of lower price points, with new interest in fine wine being driven by having an "Aha!" wine moment, or a friend who introduces them to the world of fine wine.

Innovation in the areas of alternative packaging and occasions continues to drive purchase. Wine in cans, Tetra packs and single serve formats are helping to expand wine occasions to include instances where wine may not be top-of-mind, such as outdoor gatherings. 

Providing a diverse range of wine styles, spirits offerings, packaging formats and more, ensures there is something for everyone. Around 41% of wine consumers said they would buy it in alternative packaging if they knew the wine was high quality, while 25% of wine consumers said they were more open to try new wines if they didn't have to buy a full-size bottle.

Rose continues to be the booming market, with 1 in 5 wine consumers enjoying a glass in the last month.

In the spirits sector, 60% of drinkers say that classic cocktails such as Manhattans and martinis are stylish again; 69% of spirit drinkers said that making craft cocktails was a fun way to experiment; and 17% are drinking more expensive or premium spirits than they used to.

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