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Nutrition, Vitamins & Supplements for Seniors
Fountain of Youth in Napa? Sales of Red Wine Boom on
Health, Aging Benefits
Boomers, senior citizens especially interested in the
health effects
 April 2, 2007 - When Juan Ponce de Leσn landed in
Florida to find the fountain of youth, maybe he failed because he was on
the wrong coast. Many Americans are thinking it must be in Napa Valley,
California, where they bottle it and call in red wine. Sales of red wine
out gained all wine sales by 40 percent in the 20 weeks prior to March
10, according to The Nielsen Company, which says the hot sales are due
to recent studies highlighting the health benefits of red wine.
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"The November studies from the Harvard Medical
School and the National Institute on Aging garnered significant positive
attention for red wine," said Danny Brager, vice president, client
service, Nielsen Beverage Alcohol.
"Our latest figures show that the extensive
coverage, including the February 2006 cover of Fortune Magazine, which
proclaimed 'Drink Wine and Live Longer', may be impacting consumer
choice within the wine category. As consumers search for products that
promise better health and guard against aging, it would be reasonable to
assume that recent favorable press has tipped some decisions towards red
wine."
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 numbers show red wine dollar sales up
8.5% versus total wine sales up by 6.0%.
In early November, newspapers and media outlets
nationwide covered medical studies finding that daily doses of
resveratrol, a substance in red wine, may slow the aging process.
The most recent Nielsen figures are in sharp
contrast to the full-year results ending in October 2006, just before
the studies were released. 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.
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.
"The bump in sales from the recent health-related
press only adds to the overall strength of the wine category," Brager
said.
"Both ends of the age spectrum have been drawn to
wine in recent years. The younger, millennial generation, once a surer
bet for domestic beers, are increasingly turning to wine and other adult
beverages, while boomers and seniors, who often have significant
discretionary incomes, may be especially interested in the health
effects of red wine."
Brager also noted that the wine industry has been
very successful at making their products accessible to wider groups of
consumers, broadening sales in grocery, convenience stores and other
channels, 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.
"At the same time, we're seeing many consumers
'drinking better,' trading up to more expensive, premium brands," Brager
said. "Based on our comprehensive review of the numbers through
mid-March of this year, 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."
The results are from The Nielsen Company's 2006
Beverage Alcohol Annual Review, an annual, in depth performance study
for the Wine, Beer, Flavored Malt Beverage and Spirit categories across
all retail channels tracked by Nielsen.
About The Nielsen Company
The Nielsen Company is a global information and
media company with leading market positions and recognized brands in
marketing information (ACNielsen), media information (Nielsen Media
Research), business publications (Billboard, The Hollywood Reporter,
Adweek), trade shows and the newspaper sector (Scarborough Research).
The privately held company has more than 42,000 employees and is active
in more than 100 countries, with headquarters in Haarlem, the
Netherlands, and New York, USA. For more information, please visit,
www.nielsen.com.
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