Wine Loses Share On-Premise

In the latest 52-week period, Wine has lost 1.1 percentage points in value share to the Spirits & Beers categories, according to CGA by NielsenIQ.

It's not because just over a quarter of U.S. consumers  (26.5%) drink wine when they visit bars, restaurants, and pubs – with female consumers over-indexing, and this segment tending to skew older.

Rather, 21% of U.S. On-Premise visitors say they are noticing fewer items on menus, and of those consumers nearly 2 in 5 say there are fewer wine options available – presenting a significant challenge to wine suppliers looking to target both existing and new consumers. Menu rationalization makes earning new and maintaining existing points of distributions (PODs) more valuable.

Additionally, the number of Fine Dining outlets, which are a key channel for Wine suppliers, have decreased by 3.8% from August 2021 to August 2022. Understanding how wine offerings can be positioned to suit different venues could be key to the category’s growth across new consumer segments – with the growth of Casual Dining Chains representing an opportunity as 3 in 10 consumers drink wine in these types of venues, CGA's analysts say.

They add that it's essential for wine brands to understand is how to drive consumption into new segments, recruit new drinkers and the role that venue type can play in both instigating trial and facilitating trade-up in this space.