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The past decade has seen a surge in U.S. sparkling wine production, with 614 domestic producers today versus just 477 in 2010. While the number has pulled back from a peak of 625 in 2018, sparkling wine sales have continued to increase.
Scan data from Nielsen off-premise outlets show domestic sparkling wine sales in the 52 weeks ended Sept. 5 exceeding $789 million, up nearly 12% from a year ago. Growth accelerated during the COVID-19 pandemic, notwithstanding concerns that no one was feeling particularly bubbly during the initial lockdown period.
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While sparkling wines have enjoyed stronger growth than table wines in recent years, albeit off a smaller base, the recent uptick in growth reflects a mix of phenomena. One is common to all wines: on-premise closures in response to COVID-19, which has shifted consumer spending to off-premise outlets. Nielsen CGA data indicate a drop of nearly 27% in on-premise sales of sparkling wines in the 52 weeks ended Aug. 8, a period that saw a corresponding increase of 11% in off-premise sales. Despite many sparkling wines being available in smaller formats suitable for takeaway service, including cans, the breadth of on-premise closures has been a significant negative impact.
Meanwhile, the increase in the number of domestic producers parallels the rise of alternative sparkling beverages, notably hard seltzers and wine-based cocktails. The latter, with sales worth $216 million — just over a tenth of the $2 billion in sparkling wine (domestic and imported) sold in the period — saw 93% growth in the period and has consistently posted growth in excess of 100% throughout the pandemic.
People may not be feeling bubbly, but they want some bubbles in their lives.
“Amid established routine, consumers are looking for ways to make each day stand out,” said Margie Healy, vice president, communications with Korbel Champagne Cellars in Guerneville, Calif., which produces around 1.5 million cases and is one of the state’s oldest and best-known sparkling producers. “Consumers do want to celebrate, albeit in a different way.”
Read more at source: winebusiness
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