Sparking Lighter Category Awareness

With pioneers of the lighter in alcohol category, such as Lindeman’s Early Harvest launched in 2007, and more and more producers entering the category each year, the lighter in alcohol and calorie wine category is no longer a ‘new’ category. Nor is the lighter in alcohol category a small market. The lighter in alcohol market is 1.5 times larger than the entire Riesling market, twice the entire sparkling Moscato market and two times larger than the entire Rosé market.*”

Yet the lighter in alcohol category remains an interesting category to watch. While no longer new or small, it is nevertheless an emerging market with a loyal consumer base, relatively low awareness and hence, untapped opportunity.

Light beer has been a staple on restaurant beverage lists and widely available at bars and clubs for years, yet lighter in alcohol wine does not yet enjoy this ubiquity on-premise. Likewise in retail outlets, lighter in alcohol wine bays have been trialled by leading liquor retailers, but these category-focused bays are yet to establish a permanent position in-store.

While general awareness of the lighter in alcohol wine category is not as strong as other lighter beverage categories, the category is in a promising position:

• Conversion rates from purchase to recommendation for those familiar with the lighter wine category are high. For example, conversion for Lindeman’s Early Harvest wines is at 278 per cent, which is strong compared to other full-strength wine brands.**

• The lighter in alcohol shopper is willing to pay more for the functional benefit - in the semillon sauvignon blanc category for instance, lighter in alcohol shoppers pay $3.71 more than the full-strength examples of this varietal blend.*

• The trend towards positive lifestyle across many food and beverage categories is relevant to wine - 78 per cent of wine consumers watch what they drink*** and 44 per cent of Australians have reduced their alcohol consumption in some way.^

• Consumers are looking for a combination of quality and functional benefits - in the Nielsen Global Heath Study 2011, 75 per cent of women reported that they like to eat healthily, but don’t want to compromise on taste.^

Fortunately, the lighter in alcohol and calorie wine category has been able to innovate, while maintaining quality through utilising the latest in technology and drawing on the winemaking expertise of established producers.

Lindeman’s Early Harvest remains the category leader with 42 per cent market share.* Lindeman’s Chief Winemaker, Wayne Falkenberg, has been with the brand for the past 38 years and is charged with the task of creating the Early Harvest range of wines, and hence the challenge of making great tasting wines that are 25 per cent lighter in alcohol and calories.^^^

On the process, Falkenberg says: “We are determined to make these wines with full-flavour and varietal integrity, and there’s no doubt that this takes great skill, care and attention. Along with the usual considerations of vintage, our viticultural and winemaking insights are really tested along the entire process - from harvesting the fruit early; making full-flavoured wines at lower alcohol levels; further finessing alcohol levels with membrane filtration; and finally, blending across regions and parcels to achieve the right balance of flavour.”

The lighter in alcohol and calorie wine category remains an emerging market with a relatively niche audience to date; yet wine drinkers who have embraced the category so far are proving to be loyal.

With the potential for greater exposure in retail and on-premise avenues demonstrated by other categories, and the potential for growing awareness and continued engagement with consumers, the future of this category looks bright as it establishes itself in the coming years.

Sources:

*Aztec Scan Data | MAT to 16/11/14

** Wine Intelligence Brand Tracking 2014

*** 500ml Research2013

^ Nielsen Global Healthy Study 2011

^^ Aztec Scan Data 2/11/14

^^^The Lindeman’s Early Harvest range is at least 25% lighter in alcohol and calories when compared to comparable wines.

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