Welcome to 2018! The countdown has ended, the ball has dropped… and of course, all the bottles have been popped. With New Year’s Eve 2017 firmly in the rearview, Market Track’s Tom Pirovano took a peek at this year’s sparkling wine promotions to see which brands were featured most, and how that compared to last year. Here’s what Tom had to say:
Top Promoted Brands for New Year's Eve 2017
Source: Market Track, December 24-31, 2017 vs year ago
Some Quick Facts on Sparkling Wine Promotions for New Year's Eve 2017 Vs. 2016:
- Average Sparkling Wine promoted price in the U.S. for New Year's Eve 2017 was $16.47, down 13% compared to $18.94 for 2016.
- The highest promoted price for New Year's Eve 2017 was for Roederer Estate featured at $189.99 per bottle in Florida. By comparison, New Year's Eve 2016 saw 8 retailers and 9 brands priced above $200.
- Last year, Washington, DC saw the highest promoted pricing at $46.29 per bottle on average. (Inauguration celebrations?) This year's average price dropped 72% to $12.96 in Washington, DC.
- The lowest promoted price for sparkling wine was $1.99 for Martini & Rossi 187 ml mini-bottles in Buffalo. The lowest price for traditional 750 ml was $2.99 for Andre in Spokane.
- More Consolidation - The top 10 brands represent 59% of Sparkling Wine promotions for New Year's Eve 2017 vs. only 49% for 2016.
Retailer Opportunities Promoting Value Brands
U.S. retailers tend to promote mid-price sparkling wines with an average promo price of $16.47 per bottle. Out of 143 retail banners measured, only 39 (27%) promote any sparkling wines below $5. However, retailers like Rosauers and Super 1 Foods promote Andre for $2.99 on the front page to drive store traffic. Despite all the brand-building in the category, many New Year's shopping lists include "champagne" rather than a specific brand. Even as a loss leader, promoting a seasonal trip-driver (sparkling wine) during a key holiday (New Year's Eve) seems like a great strategy for retailers to attract shoppers.
Retailer Opportunities Promoting Super-Premium Brands
Many retailers go to great lengths to build an "up-scale" image for their stores with premium lighting, flooring and fixtures. But out of 143 retailers promoting sparkling wines, only 7 (5%) promote wines above $66 for New Year's Eve. While supermarkets may never sell brands like Steinway or Cartier or Tesla, they can promote Dom Perignon to project a more upscale image for their stores. Retailers define themselves by the products they promote.