Wine Closures - Research Update 2013 Is Cork Experiencing a Renaissance?
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1 Wine Closures - Research Update 2013 Is Cork Experiencing a Renaissance? Rebecca N. Bleibaum, M.A., Tragon Corporation Created for: Wine Vision, London, November (800) TRAGON CORPORATION All Rights Reserved
2 Wine Closures Research Overview Large consumer base over multiple years Over 3000 consumers around the world Males (~35%) and Females (~65%) Head of household, primary shoppers, ages Red and white wine purchasers/drinkers drink wine at least once a week consumers, USA consumers, USA, France, UK, and Australia consumers, USA consumers, USA, Australia, and Germany Consumers completed two web-based questionnaires. Usage, perceived quality, and purchase interest Conjoint for price, closure, country of origin, and wine type 2013 TRAGON CORPORATION All Rights Reserved 2
3 Percent of Consumers Closures Then and Now - USA Appropriateness by usage occasion In the USA, perception of Natural Cork has changed little over the past 10 years. It is still appropriate for all usage occasions. 10 Natural Cork 2013 Natural Cork A special occasion dinner at a restaurant Relaxing at home An everyday wine Dinner at home with the family To give as a gift A dinner party at home 2013 TRAGON CORPORATION All Rights Reserved 3
4 Percent of Consumers Closures Then and Now - Australia Appropriateness by usage occasion In Australia, perception of Natural Cork has also changed little over the past 10 years. 10 Natural Cork 2013 Natural Cork A special occasion dinner at a restaurant Relaxing at home An everyday wine Dinner at home with the family To give as a gift A dinner party at home 2013 TRAGON CORPORATION All Rights Reserved 4
5 Percent of Consumers Closures Then and Now - USA Appropriateness by usage occasion In the USA, perception of Screw Caps has changed substantially over the past 10 years; however, it is still most appropriate for casual occasions. 10 Screw Cap 2013 Screw Cap A special occasion dinner at a restaurant Relaxing at home An everyday wine Dinner at home with the family To give as a gift A dinner party at home 2013 TRAGON CORPORATION All Rights Reserved 5
6 Percent of Consumers Closures Then and Now - Australia Appropriateness by usage occasion In Australia, perception of Screw Caps has changed. It remains most appropriate for casual occasions and less appropriate for special occasions. 10 Screw Cap 2013 Screw Cap A special occasion dinner at a restaurant Relaxing at home An everyday wine Dinner at home with the family To give as a gift A dinner party at home 2013 TRAGON CORPORATION All Rights Reserved 6
7 PERCENT OF CONSUMERS Closure Research 2011 USA What does this wine closure convey about wine quality? In the USA, Natural Cork coveys high quality whereas Screw Cap conveys low quality. High Quality Moderate Quality Low Quality % % 3 39% 2 1 USA - Natural Cork 11% USA - Screw Cap 2013 TRAGON CORPORATION All Rights Reserved 7
8 PERCENT OF CONSUMERS Closure Research 2013 Australia What does this wine closure convey about wine quality? In Australia, Natural Cork coveys high quality whereas Screw Cap conveys more moderate quality. High Quality Moderate Quality Low Quality % 3% 12% 34% % 3 63% 2 1 Australia - Natural Cork Australia - Screw Cap 2013 TRAGON CORPORATION All Rights Reserved 8
9 PERCENT OF CONSUMERS Packaging Research 2013 Germany What does this wine closure convey about wine quality? In Germany, Natural Cork coveys high quality; Screw Cap conveys moderate to low quality. High Quality Moderate Quality Low Quality % 5% 93% Germany - Natural Cork 29% 43% 28% Germany - Screw Cap 2013 TRAGON CORPORATION All Rights Reserved 9
10 PERCENT OF CONSUMERS Closure Preference on Purchase Interest In the USA, consumers prefer to purchase wines with Natural Cork. In Australia, closure type has less impact on purchase interest % Closure doesn't matter 7 3% 64% Prefer Screw Cap 5 Prefer Natural cork 3 61% 2 26% 1 USA 1 Australia 2013 TRAGON CORPORATION All Rights Reserved 10
11 Conjoint Analysis Results Character Importance USA In the USA, price is most important, followed by closure type. Natural Cork is a positive influence on purchase interest whereas Screw Cap is a negative influence. Character Importance USA Increasing Importance $ $14.99 $ $9.99 $ $19.99 $ $6.99 Natural Cork Synthetic Closure Screw Cap California Italy France Chile/South Africa Australia/New Zealand Red Wine White Wine $ $25.00 or over Price Range (46%) Wine Closure (3) Origin (18%) Wine Type (6%) 2013 TRAGON CORPORATION All Rights Reserved 11
12 Conjoint Analysis Results Character Importance Australia In Australia, price is slightly more important than country of origin. Closure has less influence. Natural Cork and Screw Cap were positive influences whereas Synthetic has a negative influence. Character Importance Australia Australia/New Zealand $ $19.99 $ $14.99 Increasing Importance $ $25.00 or over $ $9.99 France Italy California Screw Cap Natural Cork Synthetic Closure Red Wine White Wine Chile/South Africa $ $6.99 Price Range (42%) Origin (39%) Wine Closure (11%) Wine Type (8%) 2013 TRAGON CORPORATION All Rights Reserved 12
13 Conjoint Analysis Results Character Importance Germany In Germany, price is most important to purchase, followed by closure. Natural Cork is a positive influence on purchase interest whereas Screw Cap and Synthetic closures are negative influences. Character Importance Germany $ $6.99 $ $9.99 Natural Cork Increasing Importance $ $14.99 $ $19.99 Screw Cap Synthetic Closure France Italy Chile/South Africa California Australia/New Zealand Red Wine White Wine $ $25.00 or over Price Range (47%) Wine Closure (27%) Origin (16%) Wine Type (1) 2013 TRAGON CORPORATION All Rights Reserved 13
14 What is your Business Objective? Be educated by your consumer. Closures influence consumer perception of wine quality and purchase interest. USA and Germany are more similar in perceptions of wine closures. However, even Australia rates perceived quality of Natural Cork higher than Screw Cap. There is no one size fits all approach. Business objectives should dictate the type of closure most appropriate for the country, brand, wine style, price point, and target consumer TRAGON CORPORATION All Rights Reserved 14
15 Thank you to our global research partners, without whom this research would not have been possible. Dr. Martin Kern, Chief Executive Officer SAM Sensory and Marketing International GmbH Oetztaler Strasse 1 D München, Germany Patricia Williamson, Senior Sensory Scientist The Australian Wine Research Institute Waite Precinct, Hartley Grove cnr Paratoo Road Urrbrae (Adelaide) SA (800) TRAGON CORPORATION All Rights Reserved
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