"brands" news and stories

I'm a bit of a statistics wonk (hey, I'm a journalist! We make our living off of stats) and have compiled some of the more interesting wine stats of 2008 that I've gotten in industry emails and studies lately.

• People still see wine as an affordable indulgence, but in honor of the recession they're drinking more at home and cutting back in restaurants, according to a Nielsen survey.
• In supermarkets, Pinot Noir reigns king, followed by Sauvignon Blanc, Cabernet Sauvignon, and Meritage. The losers were Shiraz and White Zinfandel.
• Top supermarket brands gainers: Barefoot Wine, Folie A Deux, Chateau Ste. Michelle, Estancia, Gnarly Head, Mirassou, La Crema, Red Diamond, Toasted Head, and St. Jean. Losers: Black Swan, Beringer, and Almaden.
• Red wine will beat white in popularity again in 2008, with 121 million cases over white's 118 million cases. Prior to 2006, red wine had not outsold white since 1976.
• In spite of the economy, wine sales are still healthy, growing at around 5 percent. Value wines are gaining, of course. Constellation Brands has seen a pickup in wine below $5 and in "tried and true" brands as customers are less willing to experiment.
• California sales are growing faster than imports, but New Zealand, Spain, and Argentina are the hot new foreign wine markets.

Pepsi is reworking their image and giving the look of their brand a total overhaul. The plan features a "360-degree marketing campaign", but the first thing that most consumers will notice is that their cans will look very different than before. Starting next month, the company will begin using more dramatic designs on their cans, bottles and branded cups and will be rotating the designs every few weeks to "reflect themes close to the hearts of teens and young adults." The theory is that younger consumers will be more interested in something more visually stimulating than their current design and that if there is a sports or music-themed can, a music fan might be more likely to purchase it. The logo itself will not change, but since Pepsi has only changed their can design 10 times in the 109 year history of the company, this new plan is quite a departure from tradition.

Also in pursuit of the drinking loyalties of the "millennial generation," the company will be running more contests, games and sweepstakes and will be sinking more money into merchandising (did you know that you can buy a Pepsi dress?) and advertising. Different contests and prize-winning opportunities will be associated with the different Pepsi products, giving consumers "different experience each time they buy a Pepsi" and "a passport to the things they enjoy most." Oh, and they'll be getting Pepsi, too.

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Don't get too excited from the headline.

Bars and restaurants in California aren't going to be giving away all their beer, but this year, for the first time, they will be permitted to give out free samples of beer, much in the same way that free samples of wine and spirits are sometimes given out to promote new brands or new products from those industries.

Previously, beer companies could only offer tastings at their own plants or breweries, but the new law allows for up to 8-ounces per person per day, to be given away promotionally, provided that it is served in a glass at an establishment that already serves beer or spirits. The tastings can last no more than one hour and can only feature one type of beer, which effectively prevents consumers from having more than those 8-oz (without paying for more, anyway). St. Louis-based Anheuser-Busch was the driving force behind the new law, pushing the issue on the grounds that existing law excluded a major portion of the beverage industry. They plan to offer tastings of some of their seasonal products in the future.

The primary objectors to the legislation were the religious groups behind the California Council on Alcohol Problems, which basically tried to say that all beer tasted the same (unlike wine, in their opinions) and that this would cause drinking problems. Clearly, legislators did not agree with their thinking and neither would any of the many beer lovers out there, all of whom can attest to the fact that beer does vary from brand to brand and even batch to batch.

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One might expect price or taste to be the primary considerations when purchasing any food items, including beer and wine, but consumer research in the UK has shown that neither characteristic is more important to shoppers than brand is. 62% of men rate the brand of their beer as the most important consideration when purchasing it. Only 20% of men feel that price is the most important factor (30% of women rate price as a primary concern). It seems that label recognition is just as important when it comes to beer as when it comes to buying designer clothes.

To counteract this, more stores and bottle shops have been using special pricing to try to get consumers to buy certain brands. 33% of shoppers say that "they would be encouraged to go for a good 'offer' on a brand of beer that was not their first choice," almost double the percentage from last year. As a result, beer is sold in increasingly larger packaging, and although the bottles are smaller, to give the impression of value. The same applies to wine, where consumers look for promotions and money-off deals when making their purchases.

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The most popular cornbread mix on the market is Jiffy, and even though homemade is still the top choice of cornbread loves, it is a close second. It isn't the only cornbread mix on the market and in the last year, after very stagnant sales of muffin mixes - including cornbread - Betty Crocker decided that it was time to try and revamp their product to compete with Jiffy. The problem for them was that, even though they had a good product and Jiffy only advertised through word of mouth, they had a hard time driving up sales.

A General Mills executive decided to do a little in-house research with the help of some of the company's African American employees, based on the fact that African Americans account for more than one third of all cornbread sales in the US. What he found was that they didn't buy Betty Crocker either. One employee even said "I'd never eat Betty Crocker cornbread because it's not for black people."

With the feedback from the employees and not much else, the company tweaked the packaging to feature skillet cornbread, rather than corn muffins, and approached B. Smith for endorsement and to be a spokesperson for their healthy-eating "Serving Up Soul" campaign. The endorsement of a respected, award-winning chef and restaurateur gave the rebranded cornbread a little more credibility, and sales got a boost - rising almost 25% in the last year.

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