Wine’s Low- And No-Alcohol Segment Gains Momentum With Younger Drinkers
June 20, 2024While the overall wine market in the U.S. has seen volume decline lately—slipping 2.8% to 319 million cases last year, according to Impact Databank—the relatively nascent low- and no-alcohol wine segment has been steadily gaining traction. Total wine dollars decreased 1.3% to $19.5 billion in Nielsen/NIQ off-premise channels in 2023, but the “better for you” sector rose 11.4% to $788.5 million.
“Predominantly, the consumer driving this trend seems to be the legal drinking age to 35-year-old group, although other groups are increasingly exploring this category as well,” Cindy Leonard, Southern Glazer’s executive vice president and general manager, Fine Wine, tells SND.
Younger consumers are entering the low- and no segment “from a desire for a healthier lifestyle on the whole, or simply wanting to participate in in the culture of wine with friends—using wineglasses, eating a well-prepared meal, or simply socializing but choosing to forgo alcohol,” she adds. “Some producers have called these wines the ‘Monday through Thursday’ wine options.”
Producers are seizing the opportunity in the lower-alcohol space by upgrading their offerings in terms of look and feel to meet consumers’ expectations. “We’re beginning to see labeling that looks like customary wine labels, more grown up, and appealing to the dining table experience,” Leonard notes. The entrance of established brands to the category—with well known franchises like Bota Box, Yellow Tail, Kim Crawford, Kendall-Jackson, Meiomi, Cupcake, and others among the leaders—is also attracting more consumers to the low and no segment.
While much of the action is currently in the retail channel, restaurant and bar operators are also taking notice. “On-premise is beginning to grow in the independent channel as more non- or low-alcohol wines are added as options to wine lists,” says Leonard.
Sparkling wines are also participating, dovetailing with the trend toward more sparkling consumption outside traditional occasions like holidays and celebrations. “As more and more of these newer no- and low-alcohol still and sparkling wines are grown globally, and harvested and produced in much the same way as their standard counterparts, with barrel aging and blending, they’re offering a true to taste experience with the price beginning to premiumize on lists as well,” Leonard says.
Overall, the low- and non-alcohol segment is currently growing at over 30%, “which is significantly outpacing the core wine and spirits business,” adds Zach Poelma, Southern Glazer’s senior vice president of Supplier Strategy & Insights.—Daniel Marsteller
| U.S.—Leading Low-Calorie Wine Brands (thousands of 9-liter case depletions) |
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| Brand | Company | Origin | 2022 | 2023 | Percent Change |
|---|---|---|---|---|---|
| Bota Box Breeze | Delicato Family Wines | California | 550 | 710 | 29.1% |
| Fitvine | O’Neill Vintners | California/Italy | 263 | 220 | -16.3% |
| Yellow Tail Pure Bright | Deutsch Family Wine & Spirits |
California | 203 | 212 | 4.3% |
| Cupcake Lighthearted | The Wine Group | California | 241 | 180 | -25.3% |
| Kim Crawford Illuminate | Constellation | New Zealand | 168 | 171 | 1.6% |
| Avaline | Avaline | Multiple Origins | 80 | 142 | 77.5% |
| Bev | Gallo | California | 110 | 125 | 13.5% |
| Sunny With A Chance Of Flowers |
Scheid Family Wines | California | 92 | 107 | 15.8% |
| Matua Lighter | Treasury Wine Estates | New Zealand | 64 | 83 | 31.1% |
| Meiomi Bright | Constellation | California | 5 | 66 | + |
| Kendall-Jackson Lower Calorie Chardonnay |
Jackson Family Wines | California | 30 | 39 | 30.1% |
| Simi Brightful | Constellation | California | 8 | 15 | 90.8% |
| Total Leading Brands2 | 1,814 | 2,069 | 14.1% | ||
| 1 Based on unrounded data. 2 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2024 |
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Tagged : Bota Box, Cupcake, kendall-jackson, Kim Crawford, Meiomi, Southern Glazer's, Yellow Tail
