Has 'Sideways' put wine sales on an upward trajectory?

In the Academy Award-nominated movie, "Sideways", the central character, an incorrigible wine snob named Miles (played by actor Paul Giamatti), extols the virtues of Pinot Noir while dismissing Merlot as he and a friend explore the wineries of California's Santa Ynez Valley.

The hit movie thus far has inspired a cult-like following, boosting tourism in the wine country near Santa Barbara and generating at least anecdotal evidence of increases in Pinot Noir sales. According to ACNielsen, the world's leading provider of consumer and marketplace information, while Pinot Noir sales have been on the rise for several years, the varietal has, in fact, enjoyed especially strong sales since the movie's release.

The ACNielsen analysis reveals that Pinot Noir sales in the U.S.* are at record levels, reaching nearly 370,000 cases (one case is equal to nine liters of wine) for the 12 weeks between October 24, 2004 and January 15, 2005 - up nearly 16% versus the same period a year earlier. The movie was released on October 22, 2004.

What is particularly unique about recent Pinot Noir sales is that domestic Pinot Noir is driving the varietal's growth, whereas last year both domestic and imported Pinot Noir sales were growing strongly.

Further examination shows that sales of Pinot Noir within California, where the movie was set and the state where overall wine consumption is highest, have been especially strong.

Table 1: Wine Sales in Case Volume and Change vs. Same Period Year Ago

Source: ACNielsen, *grocery/drug/liquor store channels combined, ** grocery channel sales

According to Danny Brager, vice president, ACNielsen Beverage Alcohol Team, "It's difficult to quantify the exact impact that 'Sideways' has had on wine sales. However, given the movie's focus on Pinot Noir, it looks like more than a coincidence that this varietal's sales have been stronger than ever since the movie's release."

Before the movie came out, Pinot Noir represented 1.1 percent of all table wine sold in the U.S. through the combined food/drug/liquor store channel. In the most recent four-week period (four weeks ending January 15, 2005) the varietal has grown to 1.4 percent of all table wine sold. In California, Pinot Noir has grown by almost a full point to just over 2% of total table wine sales.

Merlot, despite being the subject of Miles' disdain in the movie, continues to sell well and still ranks as the largest red varietal, ahead of Cabernet Sauvignon. It represented 11.6 percent of all table wine sold in the U.S. through the combined grocery/drug/liquor store channel prior to the movie's release. For the four weeks ending January 15, 2005, it was up to 12.2 percent.

Using data from its Homescan® consumer panel, ACNielsen also analyzed changes in the percentage of households who buy Pinot Noir and Merlot, the frequency with which they buy the varietals, and the percentage of households that buy each varietal more than once. ACNielsen compared the figures for the 12 weeks following the movie's release with those from the same period a year earlier.

As the chart below shows, more people are trying Pinot Noir, especially in California, where the number of households buying the varietal grew by half a percentage point, representing an increase of over 50% more buying households. Repeat purchasing is up as well. For Merlot, the figures were mostly flat nationally, with moderate increases in household penetration and repeat purchasing in California.

Table 2:

Source: ACNielsen Homescan, all channels combined

Brager said, "The movie 'Sideways' exemplifies a new reality of marketing today - that non-traditional methods such as product placements can be effective at cutting through all the clutter to generate interest and trial in products that people may not have been familiar with before."

ACNielsen is the leading provider of sales analysis and consumer insights for the beverage alcohol industry. It tracks wine sales in grocery and drug stores nationally and in liquor stores in 13 markets.

ACNielsen, a VNU business, is the world's leading consumer and marketing information provider. Offering services in more than 100 countries, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen's market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns.