Drizly forecasts Chardonnay to continue driving off-premise wine sales2 Nov 2020
The alcohol delivery platform Drizly released its 2021 forecast and highlighted Chardonnay as a wine varietal that retailers should embrace rather than relegate to the back of the SKU priority list in favor of more niche varietals. On Drizly’s platform, it is the second-best selling varietal white wine, comprising 25.3 percent of white wine sales.
For American wine drinkers, Chardonnay remains a popular established varietal with Nielsen data showing that off-premise Chardonnay sales reached $2.6 billion in 2019. Although the category grew 3.8 percent from 2014 to 2019 – which is nearly two percentage points more than the overall wine category, per IWSR data – more recent sales figures indicate that the category is on a slow downward trajectory. Over 2019, Chardonnay sales were down 2.2 percent, falling slightly more than total white wine volume (-1.9 percent).
Nevertheless, this perennially popular white wine remains a powerful component of overall sales for retailers selling wine. Nielsen data showed that Chardonnay was responsible for 41% of total off-premise white wine sales in the Covid-19-affected sales period, which began this spring.
While the majority of Americans maintain a strong preference for American Chardonnay, particularly California Chardonnay which represents 81.7% of Drizly’s white wine sales in 2020, the alcohol delivery company’s forecast suggests that retailers may look into lesser known regions to liven up their portfolios and capture wine drinkers that are interested in novel grapes but that are still partial to familiar options. Washington state, Australia and Argentina were noted as regions where Chardonnay production has gained interest from consumers.
Price points are also a big advantage that Chardonnay holds over less common varietals. Due to the large production of Chardonnay by many wineries, producers are more likely able to sell their bottles within the $10 to $19.99 range, which accounts for 63.7% of sales on Drizly. Boxed wine also presents an opportunity for Chardonnay. Wine in large format boxes has increased in popularity over the last several years, led in large part by the tried and true Chardonnay variety. In the Chardonnay category, boxed wine represents 11.7% of sales — higher than the 7.9 percent share that boxed wine holds across all wine categories.
Despite these bright spots for this white wine, Nielsen data shows that the category is still losing share to more adventurous varieties that are arriving on American shores. Off-premise Chardonnay sales increased by 14.4 percent year-over-year during the 29-week, Covid-19-affected period ending September 19, but during the same time period, total white wine sales growth outpaced the Chardonnay category with 19.5 percent year-over-year growth across off-premise channels.
However, retailers should not write off this slow and steady category. Its prominence in the consumer consciousness gives Chardonnay a leg up, and the wide variety of styles that this grape can produce allows retailers to build a robust portfolio with interest and diversity that still relies on this single workhorse grape.
Drizly’s sales have grown exponentially this year due to the pandemic forcing many consumers to sample online retail and delivery. The company’s overall platform increased more than 350% compared to 2019, and white wine sales jumped 380% year-over-year. And now with a $50 million funding round closed in August that Drizly said it hopes to use to propel its alcohol delivery service further, it will be no surprise to see these sales figures grow further.
Pepsi debuts its own “Cocoa” Cola flavor
13 Jan 2021
PepsiCo is fanning the fires of the cola wars with the release of its new Pepsi “Cocoa” Cola flavor. The new soda reportedly has a taste that blends the classic Pepsi soft drink with flavors of hot cocoa and marshmallow.Read more
Coca-Cola cuts 2,200 jobs and restructures
5 Jan 2021
The saying, new year, new you has a whole new meaning for the soda corporation Coca-Cola that is reducing its workforce by 2,200 people in an effort to restructure and respond to ripple effects from the pandemic. Layoffs and buyouts in the U.S. will co...Read more
Plant-based Cure Hydration raises $2.6 million, plans expansion
18 Dec 2020
Functional hydration brand Cure Hydration announced it closed a $2.6 million seed funding round led by led by Lerer Hippeau with additional participation from M3 Ventures, Litani Ventures, Andy Roddick, Nas, Matthew Dellavedova, Philip Krim, co-founder...Read more
Finnish coffee brand Meira launches a bio-based sustainable cup
11 Dec 2020
Helsinki-based coffee roaster Meira released a new line of coffee called Vallilan Paahtimo with the aim of offering a more sustainable cup of coffee – both inside and out. The coffee is a single-origin, sustainably grown variety that is then packaged i...Read more
Abbott launches infant formula with immune component
10 Dec 2020
Infant nutrition company Abbott Nutrition launched its new Similac line Pro-Advance which is its “closest formulation to breast milk” and includes added 2’-FL HMO prebiotic for infant immune support. The company is launching this product in Canada wher...Read more
Lactalis moves more brands into Indian market
8 Dec 2020
French brand Lactalis is expanding its hold in the Indian market through the launch of its UHT toned Lactel milk brand. These one-liter packs are fortified with vitamins A and D will retail for Rs70 ($0.94).Read more
Terra Kaffe closes funding for single-serve, podless espresso machine
1 Dec 2020
Superautomatic espresso maker Terra Kaffee closed a $4 million funding round with the New York-based venture capital fund The Seed Lab, bringing its total funding to just shy of $5 million since its debut in 2019.Read more
Heineken is now brewing its Sol beer with solar
25 Nov 2020
Heineken is one step closer to its goal of increasing the share of renewable energy in its beverage production to 70% by 2030 with the installation of 9,212 solar panels at its brewery in the Netherlands where it produces Sol beer.Read more
Plant-based energy shots experience buzz in the market
16 Nov 2020
Plant-based options are making inroads into a variety of categories within the food and beverage market. Go Big and Proper Wild are two new entrants into the space that are taking aim at a small category that has yet to experience significant innovatio...Read more
Coca-Cola reveals its new paper bottle prototype
11 Nov 2020
Atlanta-based beverage company Coca-Cola announced that it is testing a paper bottle prototype this month for both still and carbonated beverages. While this prototype will be tested in limited markets, Coca-Cola said that it is “too early” to specific...Read more
Are you a supplier?
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation