HOW IS CANNED WINE INNOVATION EVOLVING?

Portable, convenient and environmentally friendly, but are consumers embracing canned wine? The Shout NZ Editor Charlotte Cowan finds out.

In the last handful of years, wine-in-a-can has slowly been overcoming the stigma surrounding alternative wine formats thanks to its environmental credentials, convenience and growing appeal amongst young consumers, but it is still facing a number of challenges in the traditional wine market.

While consumers finally embraced the screw cap – an innovation which took a number of years to be widely accepted in the wine community – will on-the-go wine nudge its way towards having broad consumer acceptance as well?

THE TARGET MARKET

According to global data analysts IWSR, winein-a-can has a number of positive attributes. It’s easy to store and transport in the supply chain, its small and portable for consumers and it’s sustainable and recyclable. In many countries, older, more conservative consumers have become a significant barrier to the acceptance of canned wine but it has a growing appeal among younger consumers who are more willing to try something new.

IWSR says a new wave of quality-focused canned wine products targeted towards the newer, younger consumers are starting to cut through the traditionally negative perceptions.

Late last year, Leftfield Wines – owned by Villa Maria – launched LF Wine Seltzers into the market. Not your traditional ‘canned wine’ (and not able to be sold in supermarkets), they were the first wine seltzers to be produced here to offer new innovation in the canned on-the-go category. Each of the three LF Wine Seltzer flavours has a Leftfield wine base (Pinot Gris, Sauvignon Blanc and Rosé), combined with sparkling water and natural fruit flavours.

“Rather than creating another ‘me too’ product, it was hugely important for us to craft something beyond the status quo,” said Villa Maria’s Head of Marketing, Sarah Szegota, when the produced launched in October 2020. “Demand for our wines remains strong, but as the market evolves it’s important that we evolve with it. The team are always striving for innovation and are known for making bold, industry-changing moves,” she said.

In the traditional canned wine category, there are around a dozen brands available in New Zealand at any one time. Many are limited runs for winemakers to ‘give it a go’ and see how well they are received amongst Kiwi wine consumers.

Ben Leen, owner and winemaker at Alpine Wine Co. in Central Otago, trialled a small batch of canned wine last year. Named 2020 Head Over Heels and encased in beer-style cans, the wine is a co-ferment of white (80%) and red (20%) grapes, wild fermented and aged for six months in old oak barrels.

“Our 2020 Head Over Heels was only a micro-batch (100 litres) that was canned,” Leen told The Shout NZ. “[It was] a bit of an experiment of sorts [but] we have been stoked with the response and plan to offer all three wines in the 2021 range in the canned format as well as a Piquette (a low ABV grape spritz).”

Leen says after working in Portland, Oregon, in 2015 for wine producer Union Wine Co. - one of the first in America to release wine in a can – he became super-interested in alternative packaging formats for wine.

Alpine Wine Co.’s 2020 Head Over Heels

“I love the challenge of disrupting a typically conservative wine market,” he says. “Our philosophy at Alpine Wine Co is to make fun and interesting wines, being able to offer our wines in a can adds to that experience.”

Leen says Alpine Wine Co.’s cans are for “curious people, outdoorsy people, creative people, fun people, progressive people” but not necessarily just ‘young’ people.

“Younger consumers are likely to be more open to and aware of the benefits of wine being in a can [but] I really I think those that will be open to wine in a can are those people that are just more typically open-minded in nature and less likely to be bogged done by the conservatism or perceived rules of the wine world,” he says.

So while traditional, conservative wine consumers may not quite be on board with drinking their wine from a can, industry experts say it is still a positive way for other consumers to explore the wine category.

“They enable safe exploration (a lower cost commitment compared to buying a bottle to trying new and different wines), moderation, convenience, on-the-go [and] more casual consumption,” Accolade’s Sandy Mayo told IWSR.

THE PACKAGING

Playing into consumer concerns surrounding wellness and wastage, IWSR says canned wine has multiple environmental benefits compared to its glass counterparts including “being more easily recyclable, and being lighter and more efficient to transport”.

Cans also take up less space in on-premise venues and as they are the equivalent of half a bottle of wine or less and they allow for greater portion control and more conscious consumption.

“One of the things that puts less experienced wine drinkers off exploring different wines is that you have to buy a whole bottle – and you might end up throwing half of it away,” says IWSR Research Director and Head of Wine, Daniel Mettyear.

But perhaps the most appealing part of canned wine packaging – especially for younger, social media savvy consumers – is the increasingly imaginative labels and designs.

“[Taking] packaging cues from the craft beer segment enables canned wine to target millennial consumers – and also takes the category into the fast-growing territory inhabited by RTDs and hard seltzers,” says IWSR’s report on canned wine.

US packaging company G3 Enterprises says label design is a key purchase driver in an increasingly crowded market.

In an online blog, G3 says with so many options for consumers to select, wine manufacturers – as well as retailers – need to understand the factors that influence purchase decisions. For the wine category, the ‘advertising’ that happens at the shelf is particularly important.

“As canned beverages become more popular, and wineries look for different ways to deliver products to consumers, we’re definitely seeing increased interest in creative, alternative packaging,” says Mark Peters, Director of Label Operations for G3 Enterprises.

PRICE POINT

When launching or promoting wine in a can, Accolade’s Sandy Mayo says – for now - price point is vital.

“Yes, there is room for some exciting offers that provide something different for consumers that may sit slightly above mainstream,” she says. “However, we are not yet seeing a role for really premium wine in cans. This may come in the future as more consumers and brands embrace the format.”

IWSR’s Daniel Mettyear says if some pricepoints remain out of reach for canned wine for now, the same can be said of certain markets – echoing the development of screwcap wines in the early 2000s.

“In markets like Spain, screwcap wines are still not accepted by the public or by the trade, whereas markets like the US went through that process a long time ago,” he says. “Spain is a perfect example of where screwcap wines still have that stigma attached.”

Mattyear says the US definitely leading the charge in terms of canned wine, with the UK and Australasia also showing positive signs, and the market starting to pick up in South Africa.

“But I think it’s going to be a long time before this reaches markets like Spain – or is successful there,” he says. ■

Tasting note by Cameron Douglas MS

HEAD OVER HEELS CENTRAL OTAGO PINOT BLANC & PINOT NOIR 2020

One of the challenges in putting wine in a can is avoiding any taint from the inside of the packaging. The team at Alpine Wine in Otago has nailed it. The colour is very pretty with hues of pink and red, rose and apricot. On the nose are aromas of a clean, fresh and vibrant wine showcasing baked red peach, persimmon, cherry, and a touch of poached rhubarb juice. On the palate - dry with some very fine fruit tannins, a core of fruit that reflects the bouquet and a plush refreshing finish. Best drinking upon purchase and through end of summer 2023.

Points 91

RRP $12.00

Distributor: Alpine Wine Co.

Phone: (022) 023 5962

www.alpinewine.co.nz

CANNED STATS

➜ The global canned wine market size was estimated at USD $211.4 million in 2020 and is expected to reach USD $235.7 million in 2021.

➜ Asia Pacific is estimated to be the fastest-growing regional market from 2021 to 2028.

➜ North America made the largest contribution to the global canned wine market by accounting for a revenue share of over 53% in 2020.

➜ The sparkling canned wine product segment accounted for the largest revenue share of more than 66% in 2020.

➜ The supermarket & hypermarket (a retail store that combines a department store and a grocery supermarket) distribution channel segment accounted for the largest revenue share of more than 64% in 2020.

*Grand View Research. Canned Wines Market Size, Share & Trends Analysis Report By Product (Sparkling, Fortified), By Distribution Channel (Supermarket & Hypermarket, Online), By Region (APAC, North America), And Segment Forecasts, 2021 – 2028.