EXCLUSIVE: Premium Boxed Wine Thrives, As Black Box Nears 3 Million Cases
March 20, 2013The premium three-liter boxed wine segment continues to enjoy strong momentum in the U.S., up 25% by value and 27% by volume in the 52 weeks through February 24, according to SymphonyIRI. The segment still appears to have plenty of upside, acccounting for just 2% of the U.S. table wine market. It has consistently been led by Constellation’s Black Box, which last year reached nearly 2.7 million nine-liter cases on 29% growth, earning Impact “Hot Brand” status.
Black Box marketing director Kim Moore tells Shanken News Daily the brand’s consistent double-digit growth trend of recent years is expected to continue in 2013 “due to new points of distribution, line extensions and greater consumer adoption.” For 2013, Black Box ($24.99 a 3-liter box) is projected to surpass the 3-million-case mark. “We’re seeing more acceptance not only of alternative packaging such as bag-in-box and screw-cap closures, but also non-traditional grape varietals and imported wines,” says Moore. Last year, Black Box—which features 10 varietals in its portfolio—embarked on its first-ever TV advertising push last year, under the tagline “Shattered Perceptions.”
Meanwhile, Black Box is looking to expand its appeal with its 500-ml. Tetra Pak format, which launched in 2011. Intended to target outdoor and recreational drinking occasions, the Tetra Pak line comes in five varietals priced at $4.99 each.
One of Black Box’s top competitors, Delicato Family Vineyards’ Bota Box, also continues to grow at double-digit rates. Retailing in the $20 a 3-liter price range, Bota Box leapt 28% to more than 2 million cases last year, earning a Hot Brand award in the process. DFV’s largest brand, Bota Box grew 28% last year to surpass 2 million cases, according to Impact Databank. Mark Koppen, senior portfolio manager at DFV, recently told Shanken News Daily that Bota Box is also having success with the Tetra Pak format, which is “bringing in new consumers and, more importantly, creating new occasions for the brand,” due to the portability factor.
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Tagged : Constellation Brands, Delicato Family Vineyards, wine
