Research News South Africa

Think inside the cask: Premium wine trend withstands cooling economy

As the economy weathers day after day of choppy economic news, consumers are cutting back on away-from-home consumption of wine, beer and spirits. New research from The Nielsen Company and Bevinco reveals that on-premise sales of alcoholic beverages have been considerably impacted by the declining economy.
Think inside the cask: Premium wine trend withstands cooling economy

Danny Brager, Vice President, Client service, Beverage Alcohol, The Nielsen Company states: "Watching their wallets, a growing number of consumers are simply opting to stay home more often than go out for dinner or drinks. As a result, sales of alcohol beverage purchases at restaurants, bars and nightclubs are declining as consumers seek ways to economise. In contrast, some off-premise alcoholic beverage segments continue to grow, including the explosive 3-litre Premium Cask segment which for the fourth year is up over 30% versus a year ago," Brager stated.

Because 3L wine casks cost less to produce and transport than bottles, wine consumers save cash while they help to save the earth. A 3L cask, holding the equivalent of four standard 750ml bottles of wine, typically sells for the same price as three bottles of wine. This is real savings in today's hard economic times. And, the savings don't stop there. Once opened, BIB wine stays fresh for a minimum of six weeks. The plastic lining compresses as it empties and protects the wine from damaging contact with oxygen. No wine is dumped down the drain and there is no need to buy another bottle to accompany tomorrow night's dinner; nor a need for expensive vacuum pumps or other wine-saving gadgets.

To offer consumers more choices in the 3L Cask format, The Wine Group has recently completed national distribution for JP Chenet 3L Premium Cask.

In South Africa, JP Chenet, one of the world's best-selling French wine brands, is distributed nationwide through DGB.

With a charming French café scene on its package, JP Chenet utilizes bag-in-box technology which preserves the fresh taste for at least 6 weeks once opened, saves over 55% in carbon efficiency and has 85% less packaging waste than glass bottles. The line includes Syrah-Cabernet Sauvignon and Chardonnay. JP Chenet spokesperson Nicolas Tucker states, "Its rapid growth in distribution is due to the trade focusing more on value and environmental issues, and the consumer on value with quality."

For a complete download of The Nielsen Company research go to: www.nielsen.com

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