The US market represents a great opportunity for wine producers around the world. In fact, the United States is the largest consumer of wine in the world, with ever-increasing demand and an ever-evolving variety of tastes and preferences. If a producer wants to stand out in this market, it is crucial to take into account the relevant factors when presenting their products on the shelves.
- They must attract their target audience.
- They must promise to provide value to their target audience.
From the design and quality of the packaging, to the price and quality of the product itself, everything must be carefully considered to ensure that the product stands out and is attractive to consumers. Furthermore, knowing your target audience and understanding their needs and desires is essential to creating products that are attractive and competitive in this increasingly demanding market.
What price should producers focus on to be attractive on US shelves today?
One of the most important factors that you should take into account is the retail price of your bottles. In 2022, wines between $15 and $24.99 had a positive increase in sales of 2.2% compared to the previous year, which translated into $60.9 million dollars in sales. By contrast, wines that cost less than $14.99 or more than $25 experienced an average 4% drop in sales.This shows that this intermediate price range is the most attractive for wine consumers in the United States today.
Also, if we focus on sparkling wines, the products that are gaining the most popularity and market share are Prosecco and Champagne, also in a price range of $15 to $24.99. A success story in this price range is the 19 Crimes Cali Gold, which was the first 19 Crimes sparkling wine and a collaboration between Treasury Wine Estates and Snoop Dogg. This product has become a popular choice for the American consumer.
Do not leave other relevant factors to chance when a customer faces your product in a shelve
Although an attractive price is one of the most relevant factors, it is not enough to stand out in a market as competitive as the United States. It is essential to work on a strategy that allows you to highlight your products in the shelves in order to attract the attention of consumers. For this, it is crucial to know your target audience and their preferences. An effective way to do this is to have updated market information, provided by specialized companies such as Nielsen or IRI.
A producer, importer or marketing company can spend entire generations looking to improve the quality or style of a wine, and although that is important, for me it is equally or more important to know precisely what are the trends, brands and styles of wine that they are succeeding in the market.
The information exists and is available; you just have to buy it to avoid having to guess in a market that is increasingly difficult to access due to limited space on the supermarket shelves. Buyers already have detailed knowledge of the price points that are successful. The questions that follow are much easier to answer by doing the above exercise of studying the information that already exists. What types of wines do you prefer? Looking for organic products? Are you interested in new varieties? What are the growing niches?
In addition, it is important to work on the presentation of your product, from the design of the labels to its location on the shelves. An attractive design and a strategic location can make the difference in the consumer’s buying decision. Also, we must consider the inclusion of relevant information on the labels, such as the region of origin, the type of grape used and, lately, even saving time for the end consumer by summarizing the tasting note in 2 words on the front label to offer a more educational and interesting shopping experience.
The important thing is not to go against the current
For this, it is essential to follow a series of recommendations that allow you to find the perfect balance in terms of prices and quality. Analyzing the market, knowing customers and their buying behavior, as well as having a well-defined marketing strategy are some of the keys to achieving success in the competitive wine market. With a careful approach and a well-thought-out strategy, it is possible to offer high-quality products at prices that are attractive to consumers.
Have local representation
In order to effectively understand and market the products that the producer needs to create, and thus successfully reach the end consumer in the United States, local representation is key and absolutely necessary, in my opinion. We know that being a producer is a daunting, complex and often unrecognized task, so it is essential that whoever represents the producer has the ability to put themselves in their shoes and, on occasions, force certain decisions to guarantee the production of a winning product.
It is very common for the presentation and negotiation of a new product with an importer to take a long time. Given this, many times, when the order is received and the time for labeling arrives, the importer wants the product as soon as possible and it is at that precise moment when it is crucial to take into consideration the details that can make your product standout. Clear examples are having an attractive box that includes the wine ratings, if the product already has them, or taking the time to find a catchy name for the product. For example, “19 Crimes Cali Gold”, which clearly seeks to reach a young consumer, who is willing to pay more than $15 dollars and who will be proud to take the bottle to a party with friends.
In a marketplace with more than 120,000 wine labels, standing out requires that the producer receive constant commercial feedback to be closer to the market and take advantage of the spaces that open up when you are prepared and understand the dynamics of important seasonal consumption periods. In this way, you can capitalize on the few opportunities to reach shelves and then grow little by little in an organic way in that well-earned space.
Here is a very useful retail marketing calendar tool: Bar, Restaurant and Retail Marketing Calendar 2023.