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Premium Boxed Wine’s Double-Digit Growth Continues

March 28, 2017

Bolstered by the success of category leaders Black Box and Bota Box, premium boxed wine continues to show strong growth in the U.S. market. Constellation’s Black Box and DFV Wines’ Bota Box now combine for more than 10 million nine-liter cases annually, according to Impact Databank. The total premium boxed wine category was up 25% in IRI channels last year, compared with value boxed wine’s 1.6% decline.

Black Box reached 5.4 million cases on 21% growth last year, while Bota Box leapt 29% to 5.1 million cases. Both earned Impact “Hot Brand” honors. “We’ve seen boxed wine dramatically evolve, and the segment still has only a 4% share of the total wine market,” notes Black Box vice president of marketing Jaymie Schoenberg, citing potential for future growth.

Constellation-owned Black Box ($19-$21 a 3-liter) was introduced in 2003 and is led by its Cabernet Sauvignon, Chardonnay, Merlot and Pinot Grigio, though its fastest-growing expression is Pinot Noir. Black Box has also seen rising demand for its single-serve 500-ml. Go Pack extension, and is slated add a limited-edition rosé in the first half of this year. This summer, the brand will launch a national TV ad campaign, along with additional investment in the social media space.

Bota Box, meanwhile, is similarly positioned at $18-$20 a 3-liter. The brand currently features 10 varietals and two red blends, and will expand with a Bota Box Dry Rosé later this spring. Bota Box also has high hopes for its 1.5-liter Bota Brick extension, which debuted in 2014 and sold nearly 250,000 cases cases last year.

“Retailers are recognizing the growth opportunities in premium boxed wine,” says Delicato Family Vineyards president and CEO Chris Indelicato. “Millennial attitudes are also extremely important, and we see boxed wine resonating with them.”

E.&J. Gallo is also on the move in premium boxed wine. In 2014, Gallo launched The Naked Grape ($20 a 3-liter), which also offers bottled 750-ml. formats and sells more than 1 million cases in the U.S., according to Impact Databank. Gallo followed with premium boxed wine Vin Vault ($20 a 3-liter) in mid-2015. Vin Vault joined Bota Box and Black Box on the Impact “Hot Brands” list by rocketing to just under 500,000 cases in 2016, its first full year on the market. Its line includes a Cabernet Sauvignon, Merlot, Pinot Noir, Chardonnay, Malbec and red blend.—Christina Jelski

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