WINE CATEGORY OVERVIEW November 2018 THE AUSTRALIAN OFF PREMISE - - PowerPoint PPT Presentation
WINE CATEGORY OVERVIEW November 2018 THE AUSTRALIAN OFF PREMISE LIQUOR MARKET The Australian Off Premise liquor market is valued at $17.9B and in growth +3.6%in Value but declining -0.5% in Volume. Volume decline is being driven by Beer
WINE CATEGORY OVERVIEW
November 2018
THE AUSTRALIAN OFF PREMISE LIQUOR MARKET
Source: IRI-Aztec MarketEdge to MAT 30/9/18 Value
Cider
Spirits +2.9% Wine +4.8% RTD’s +7.5% Beer +1.9%
The Australian Off Premise liquor market is valued at $17.9B and in growth +3.6%in Value but declining -0.5% in Volume. Volume decline is being driven by Beer (Mainstream) and Cider.
Growth
36.7% 26% 20.7% 2.8% 13.9%
HIGHLY CONCERNTRATED RETAIL ENVIRONMENT
Bricks and Mortar Retail Channel
60%
E-Commerce Channel On premise Channel
26% 11%
Direct-To-Consumer Channel
3%
1. Euromonitor International 2015, Aztec MAT to January 2017, Company estimates 2. The ANZ Wine Industry Directory, 2016 ^ On-line sales overlap with bricks and mortar sales
Highly Concentrated Highly Fragmented Top 10 customer = ~5% of sales
~ 44,000
On-Premise customers
Growth & New Entrants^ Cellar Doors
THE BOTTLED WINE MARKET IS DOMINATED BY STILL WINE
Bottled Sparkling Bottled White Wine Bottled Red Wine Bottled Rose
Sou5rce: AZTEC WTD Value Share MAT 14/10/18 Bottled Wine
38.2% 35.7% 21% 3.1% +7.2%
Valued at $4.3B and growing at +5.2% value and +1.6% volume. The fastest growing of all liquor segments, except RTD.
+0.7% +5.6% +47.9%
Rose, a small but emerging segment, driving category growth and penetration in the category, attracting new shoppers to wine.
6
Source: IRI MarketEdge Unweighted Data to: 30/09/18
Bottled Wine Category is echoing the trend of all Liquor, with Premiumising
4.9 3.0 7.1 3.8
5.9 2.8 Total Bottle Total Bottle <$10 Total Bottle $10-$14.99 Total Bottle $15-$25 Total Bottle >$25
Australia Liquor Unweighted I Val % Growth YA
MAT To 14/10/18 Quarter To 14/10/18 13.3 11.1 Value Share of Total Bottle
31.2% 29.0% 27.9% 12.0%
Volume Share of Total Bottle
52.0% 27.2% 17.6% 3.2%
6.5 5.6 17.9
0.7 5.1 6.4 15.9
1.9 Total Bottled Red Shiraz Total Bottled Red Total Bottled Red Pinot Cabernet Sauvignon Noir Total Bottled Red Cabernet Merlot Total Bottled Red Merlot
Australia Liquor Unweighted I Val % Growth YA
MAT To 14/10/18 Quarter To 14/10/18
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Source: IRI MarketEdge Unweighted Data to: 14/10/18
The Top 5 Red Varietals represent 80% value share of Segment
Value Share of Total Bottle
38.5% 18.3% 10.8% 6.4% 6.3%
Volume Shareof Total Bottle
35.7% 18.1% 7.8% 8.6% 9.0%
Pinot Noir illustrating very strong growth, with the lighter style very appealing to shopperswho are tuning into the Wellness trend. Pinot Noir growth coming from new shoppers, but also from growth in spend, with AUP of Pinot $16.80 vs red wine AUP of $12.40.
1.0 2.5
15.2
0.0 1.4
12.9
Total Bottled White Sauvignon Blanc Total Bottled White Chardonnay Total Bottled White Semillon Sauv Blanc Total Bottled White Pinot Gris/Grig Total Bottled White Moscato
Australia Liquor Unweighted I Val % Growth YA
MAT To 14/10/18 Quarter To 14/10/18
Source: IRI MarketEdge Unweighted Data to: 14/10/18
Top 5 White Varietals represent 91% of value of the segment
Value Share of Total Bottle
46.1% 18.6% 11.4% 9.7% 5.4%
Volume Share of Total Bottle
45.3% 19.3% 13.7% 8.1% 6.0%
Within the White Wine Segment, 39% of the value of the segment is Commercial & 57% of the volumeof the segment. T
up to masstige. Within White Wine, the growth varietal is Pinot Gris, again a lighter, more refreshing style wine, whichis driving spend up as well as penetration, with AUP $11.80 v Total White Wine$10.10.
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36.6 34.4 2.1 1.1 4.3 2.1 10.2 10.6 1.8
Total Bottled Sparkling White Total Bottled Sparkling Champagne White Total Bottled Sparkling Prosecco Total Bottled Sparkling Rose Total Bottled Sparkling Moscato Pink Spk
Australia Liquor Unweighted I Val % Growth YA
MAT To 14/10/18 Quarter To 14/10/18
Source: IRI MarketEdge Unweighted Data to: 14/10/18
Top 5 Sparkling Varietals represent 92% of the value of the Segment, but top 2 varietals represent 71%
Value Share of Total Bottle
46.5% 24.4% 10.4% 6.8% 2.0%
Volume Share of Total Bottle
58.0% 6.4% 10.0% 8.7% 3.1%
Sparkling a tale of two coins, with Sparkling White 58% volume & 46% value but Champagne White,
Again the growth varietal, Prosecco is driving penetration, attracting younger shoppers to thecategory. Note the recurring theme to growth varietals, Rose, Pinot Noir, Pinot Gris &Prosecco, lighter styles,as shoppers tap into the wellbeing trend and seeking lighter more refreshingwines.
The top 5 varietals make up over 50% of the value of the category
Chardonnay Sauvignon Blanc Shiraz SparklingWhite Cabernet Sauvignon
16.6% 14.3% 7.0% 6.9% 9.4%
10 Source: IRI MarketEdge Unweighted Data to: 14/10/18
Ensure appropriate range to shelf space allocation to capture the needs of most shoppers.
Top growth varietals contribute over 30% of category growth
Rose Prosecco Pinot Noir
+34.4% +47.9% +15.9
Pinot Gris
+12.9
So1u1rce: IRI MarketEdge Unweighted Data to: 14/10/18
Ranging growth varietals and positioning within prominent positions in store will drive category growth through penetration and basket size spend.
Total Cans segment is valued at $4.2m and is growing in response to shopper needs of refreshment, portability, single serve/ portion control
Source: IRI Liquor MarketEdge Data MAT To 14/10/18
✓Top 4 cans in the Market are TWE products ✓22% of TWE can wine shoppers are new to the wine category ✓40% of TWE can wine shoppers spent more than on their previous shopping trip ✓TWE cans have a repeat purchase rate 44% higher v category average ✓TWE cans attracting a younger shopper to wine category ✓56% TWE can shoppers <40 v category average 19%
75% drink wine frequently
9.7 Million
Australians drink wine at least once a week
75%
6.1 Million
Australians drink wine at least twice a week
51%
THE AUSTRALIAN WINE DRINKER
Source: Wine Intelligence,ABS
Australians
population
Settlers
shoppers Seekers
I just want to enjoy it
shoppers
I also want to learn more about wine
Source: Project Propeller Shopper Research Brandhook 2017
What Wine Shoppers want…
Ease of shop enhanced by clear signage & discovery sections
Wine is a drink that gives people pleasure
Two Thirds
are happy with their level of wine knowledge
Wine Purchase is driven by Occasion
Occasion Price Band Brand Varietal/ Region In Store Out of Store
$
Source: Project Propeller Shopper Research Brandhook 2017
Remind shoppers in store of wine occasions to drive additional purchase
Source: Shopper Tracker 2018
Store Choice Driver Shopper Mission
Single Buys
63% 37%
Age Profile
The Convenience Wine Shopper Who
Gender
Why
Displays drive Incremental Purchase Highest Immediate Consumption. 18-34yrs 27% 35-54yrs 36% 37% 55+yrs
Occasions
Socialising Events
1.8 vs ave 2.4
Basket Size
Ave $38 More Likely $11-$30/bottle
High impulse shopper, who doesn't mind paying more & buys “because they feel like it”. Importance of good range in fridge for immediate consumption, don’t over price promote. Displays off location, outside wine section to drive incremental purchase.
Relax with Partner Socialise
Close to Home
Shopper Dynamics
Frequency
Frequency of Consumption 2.4/mth 7/mth
Promotional Response
Spend Driver
X
Least Planned
Over index Gifting
Convenience
The Convenience Shopper
influence in store
very important
feel like it”
Source: Shopper Tracker 2018
More likely to be Female More likely to be younger Socialite / Low/Med Party Time Involved
Most likely bought for Immediate consumption
64% within hours 86% that day Main Occasion: Catching up with Friends 52% Shoppers want Trusted Brands Purchases are more likely to be Unplanned 38% of Shoppers want to be in &
70% of all wine purchased is consumed within that day so the fridge is the first port of call for shoppers – get the range right & make the fridge easy toshop
The All Important Wine Fridge
Appeal to Lower Involved shoppers with range of mainstream brands, giving them confidence in purchase. Appeal to fridge shopper with on trend refreshing varietals such as Rose & Prosecco clearly signposted for ease of shop for shopper unfamiliar with the category. Shoppers are looking for a quick and easy shopping experience and going to share with friends therefore more likely to rely on trusted brands, ensure fridge is stocked with trusted brands .
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