Nielsen: Store Brand Wine Growth Outpaces National Brands

February 16, 2010

wine Although store brand represents a small piece of retail wine and spirits volume, Nielsen data shows its growth considerably outpaces national brands.

Private-label/exclusive table wine and spirits brands now represent 3.3 percent and 4.6 percent of volume respectively in total U.S. food, drug, convenience and liquor store sales, according to Nielsen data shared during a webinar about off- and on-premise beer, wine and spirits reported by Marketing Daily.

Sales volume for store brand table wines and spirits grew 29.4 percent and 7.8 percent, respectively, off of those small bases during the 52 weeks ending Jan. 9 versus the same year-ago period. Meanwhile, the table wine and spirit categories as a whole saw volume growth of just 1.6 percent and 0.9 percent, respectively, the report said.

"Wine is a highly fragmented category, and we believe that in many cases, consumers are not even aware that they're buying private-label wines -- the wines come in attractive bottles and don't actually bear a retailer's name," one of Nielsen’s Vice Presidents/Group Client Directors Danny Brager told Marketing Daily.

Conversely, store brand beer has not gained a significant foothold due to dominant national players; it also has not been as vulnerable to downward price pressures, according to Nielsen.

The average price of 100 leading beer products in food, drug, liquor and convenience stores rose 5.8 percent between January 2008 and Jan. 9, 2010, including a 0.9 percent increase during the past year, according to Nielsen.

Meanwhile, prices for 100 leading table wines and spirits in the same retail channels (excluding convenience stores) rose 1.4 percent and 2.7 percent, respectively, since January '08. In the past year, however, the average price of wine 1.4 percent, while average price of spirit brands rose 0.4 percent.

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Keywords: business, companies, food and beverage, industry, markets, nielsen, private label beer, private label research, private label wine, store brand beer, store brand beverages, store brand research, store brand wine

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