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Bump in red wine sales from recent health-related press

Published on April 4, 2007 at 11:15 AM · No Comments

Sales growth of red wine outpaced sales growth of the total category by 40% in the 20 weeks ending March 10, according to figures just released by The Nielsen Company.

The positive numbers, showing red wine dollar sales up 8.5% versus total wine sales up by 6.0%, reflect increased attention to the potential health benefits of red wine after two prominent medical organizations released favorable reports in early November.

"The November studies from the Harvard Medical School and the National Institute on Aging garnered significant positive attention for red wine," said Danny Brager, vice president, client service, Nielsen Beverage Alcohol. "Our latest figures show that the extensive coverage, including the February 2006 cover of Fortune Magazine, which proclaimed 'Drink Wine and Live Longer', may be impacting consumer choice within the wine category. As consumers search for products that promise better health and guard against aging, it would be reasonable to assume that recent favorable press has tipped some decisions towards red wine."

In the 20-week period ending March 10, red wines accounted for 52.9% of table wine dollars, up from 51.5% in the comparable period last year.

In early November, newspapers and media outlets nationwide covered medical studies finding that daily doses of resveratrol, a substance in red wine, may slow the aging process. The most recent Nielsen figures are in sharp contrast to the full-year results ending in October 2006, just before the studies were released. Until then, white wine growth at 9.3% was outpacing red wine increases of 8.4%. Since then, red wine dollar gains of 8.5% are in significant contrast to white wine increases of 4.8%. In even sharper contrast, blush wines sales dollars shrunk by -2.8% in the 20 weeks through mid-March versus the same period a year ago.

The top two red wine varietals -- Cabernet Sauvignon and Merlot -- experienced surges in volume growth for the 20 weeks ending March 10, up 12.9% and 5.3% respectively, while Pinot Noir's +24.0% volume growth leads all others in percentage gains, as the halo effect from the popular 2004 movie "Sideways" continues.

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