Little wonders
What’s the opportunity for smaller wine formats?
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Does size really matter when it comes to bottles of wine? Go to order a glass in a restaurant, and all too often, your only option is a full bottle, especially at the premium end. So, as the government announces new smaller pack options for producers, we ask, is there an opportunity to target measured drinking with a new approach?
Anyone for a pint? Of wine I mean. Just after Christmas we received the interesting news that we could now specifically identify at least one thing we’ve gained from Brexit. Which is useful to know, in case anyone asks.
Free from EU rules, the Department for Business and Trade announced new legislation that allowed for still and sparkling wine to be sold in 200ml, 500ml and 568ml (pint) bottles from 2024. EU rules permit sparkling wine for example, to be sold only in 375ml, or 750ml packs, for example. Hooray. Rule Britannia, etc, etc.
What’s the benefit?
Churchill famously was a fan of the measure for champagne, because it afforded “enough for two at lunch and one at dinner”. How civilised. And also, how modern. With consumption trends still following the ‘drink less, but drink better’ trajectory, that approach would seem to work well for a modern drinker, especially at the premium end.
However, some wine producers have been less enthused by the announcement. Changing bottling equipment and commissioning new formats requires a significant investment. Other makers have said that for sparkling at least, it makes less sense from a quality point of view; those using traditional aging methods say wines age better in larger bottles.
And for British fizz too, taking the pint or any of those smaller measures would mean such packs could only be sold in the UK. Not a massive problem if you’re a huge brand with a large budget behind you. But for smaller brands, trying to extend their market beyond the domestic catchment area, investing in the resources needed to produce a unique pack for one just market might be an ask. And again for sparkling, with a significant lead time required to produce and age their liquids, we won’t see pint-sized champagnes for example, any time soon.
Interesting possibilities
Yet it raises an interesting point. In these times of moderation and falling disposable incomes, do smaller wine formats match consumer lifestyles better? Are the potential sales there to make it worth it?
Miniatures (187-200ml bottles that provide 1-2 glasses) are growing in popularity with consumers. Nielsen data for the year to July 2022, shows 200ml sparkling wine sales up 8% year-on-year, vs a -8.4% decline for off-trade wine as a whole. Don’t forget that data includes a post-lockdown rush back to bars, but still. Suited to on-the-go drinking, moderate gifting, and an easy way to both limit consumption, and consume wine at its best (no need for that lingering half bottle you end up plonking in a bolognaise) it’s easy to see why. For producers, they also make more money per ml than other formats, according to Beverage Daily. Which is a win.
Premium, but make it good value
Speaking to the Guardian, the IWSR’s Richard Halstead adds: “We are certainly seeing smaller pack formats launched across categories to cater to moderation trends and also financial factors. These smaller sizes lower the cost barriers to entry and encourage the trial of new products or categories.”
Yet for wine he notes that though “consumers see smaller servings (eg cans) of wine generally as convenient, and promote the idea of portion control… [they] are reluctant to buy them as they often don’t represent good value compared with a standard bottle,” concluding that “wine is a category that due to packaging norms caters less to moderation.”
So, there is consumer demand out there, especially as costs rise. And smaller packs both tap into a growing swell of moderation, as well as an obvious and increasing desire for affordable premium options. Neither of which, are going to die down soon. So, smaller packs… surely it’s worth considering.