• by Nina Lentini  @Nina_Lentini, April 3, 2007

New figures out from the Nielsen Company appear to show a distinct correspondence between news announcements that linked the consumption of red wine to health benefits and a surge in volume sales of said red wine.

In the 20 weeks ending March 10, the sales growth of red wine outpaced sales growth of the category by 40%, says Danny Brager, vice president/client services for Nielsen Beverage Alcohol. "Sales of red wine were up 8.5% versus the period a year ago, while sales of white wine were up only 4.8% and total wine sales were up 6%," he says. "Before this period, white wine was growing faster than red."

The studied period stretches back into October, just before studies from the Harvard Medical School and the National Institute on Aging were released and published and broadcast in media nationwide. The studies found that daily doses of resveratrol, which is found in red wine, may slow the aging process.

Until then, white wine growth at 9.3% was outpacing red wine increases of 8.4%. Since then, red wine dollar gains of 8.5% are in significant contrast to white wine increases of 4.8%. In even sharper contrast, blush wines sales dollars shrunk by -2.8% in the 20 weeks through mid-March versus the same period a year ago.

In the 20-week period ending March 10, red wines accounted for 52.9% of table wine dollars--up from 51.5% in the comparable period last year.

The top two red wine varietals--Cabernet Sauvignon and Merlot--experienced surges in volume growth for the 20 weeks ending March 10, up 12.9% and 5.3% respectively, while Pinot Noir's +24.0% volume growth leads all others in percentage gains as the halo effect from the popular 2004 movie "Sideways" continues.

Brager also attributes the sales growth to an attraction to wine on the part of millennials, who had been known for their interest in domestic beer, and to Boomers and seniors, who are especially interested in the health effects of red wine.

Marketing has been instrumental as well, Brager says, by making products accessible to wider groups of consumers; broadening sales in grocery, convenience stores and other channels; and benefiting from regulatory changes that allow direct shipping, while also capitalizing on new and more convenient packaging innovations, such as screw tops and premium boxed wines. Brager says ACNielsen figures show sales of boxed wines are up more than 40%. "They provide a good price and a good value," he says, and they're convenient.

"They have the potential for upward mobility since they are relatively small but are growing faster than any other packaged type segment," he says. Labels, too, are responsible for luring wine drinkers. "A healthy segment of the population is attracted by labeling. Look at Yellow Tail; its success is attributable to its [kangaroo] labels, and since then there have been all sorts of other ones--a barrage of critters.

"You don't need to know how to pronounce the name of the product anymore," Brager says. "Marketing widened the names that they use."

Concurrently, Nielsen notes a trend of consumers trading up to more expensive brands. "We are seeing continued favorable trends for wine in general, and particularly for red wines. The health benefits--real or perceived--will continue to favorably impact red wine consumption," he says.