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Boxed Wine Aims For The Next Level
May 18, 2016
(Marketwatchmag) - The boxed wine segment has made progress moving upscale, but how far can it go?
Higher-end boxed wines continue to thrive, led by Black Box and Bota Box, which dominate the premium side of the business. Black Box, owned by Constellation Brands, grew by 11 percent last year to nearly 4.5 million cases, earning its 11thconsecutive Impact “Hot Brand” award. Delicato Family Vineyards’ Bota Box surged 27.7 percent to nearly 4 million cases, winning its eighth straight Hot Brand award.
The Black Box line includes nine varietals and a red blend, while Bota Box offers 16 varietals. Both compete in the 3-liter boxed segment, which is the focal point for premium players. E. & J. Gallo Winery recently entered the segment, launching The Naked Grape in 2014 and then following with Vin Vault last year. The Naked Grape portfolio includes six varietals and a red blend, while Vin Vault is available in five varietals and a red blend.
Gallo initially launched The Naked Grape in 750-ml. bottles in 2010, and it quickly became one of the hottest wine brands on the market, winning consecutive “Hot Brand” awards in 2011, 2012 and 2013, and then crossing the million-case threshold in 2014. That same year, Gallo launched the brand in a 3-liter boxed format, while keeping the 750-ml. bottled version. In 2015, The Naked Grape reached 1.17 million cases, according to Impact Databank. In Nielsen channels, the 3-liter Naked Grape rose by 61.6 percent last year, while the 750-ml. bottled version fell by 11.1 percent. And while the 3-liter package comprised 40 percent of The Naked Grape’s volume in 2014, that share rose to 55 percent last year. If Gallo’s aim was to tap into the torrid growth of Black Box and Bota Box, they’ve been succeeding. And Black Box, Bota Box, The Naked Grape and Vin Vault all offer stylish, contemporary packaging—vividly illustrating how much the category’s once-stodgy image has been transformed.
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