With nearly 9,000 wineries in the U.S., the market saturation of affordable entry level wines is higher than ever. Established wineries have found more fertile ground in the mid-to-high end price range where competition is more profitable. Studies show wineries must have high quality labels to be competitive in the segment.
High-End Wine Sales are Growing
A January 18th Press Democrat article titled "Silicon Valley Bank’s annual wine survey predicts growth sales of mid-priced wines" touches on this. And it's a global trend: a January 27th Reuters piece titled "Australian wine exports to China soar as premium labels sparkle" tracks a similar trend, noting the demand for $22-$28 bottles has risen amongst millennials in China.
The move from discount wines is similar to what we witnessed in the distillery market in 2013-2014. Following deregulation of distilled spirits in Washington state, the industry saw a rapid influx of new distilleries. Consequently the volume of entry level products increased, driving down the profits of those products. Forward thinking brand owners within the liquor industry responded by increasing production of premium products.
Wine Label Packaging is Absolutely Critical
In the increasingly competitive wine market, the best wines require the best labels. Higher priced wines stand a better chance of finding their way into the hands of discerning shoppers with labels designed, engineered, and printed with the highest possible quality standards.
As winemakers deliberately market wine to millennials, they must keep in mind this is a demographic which overwhelmingly decide to buy based on how pretty the packaging is. In fact, 71% of millennial wine drinkers are influenced by the label (vs. 41% of all wine consumers)– and they are looking for "eye-catching, unique, stylish, creative, clever, and colorful" labels. According to Wine Spectator, millennials consumed 42% of all wine in 2015. Few thriving wineries can afford to ignore this reality.
As Nielsen notes in their 2015 Design Audit Report: Wine, wineries spend very little on advertising, relying on attractive labels and packaging to catch a shopper's eye. They found that "In 2014, media spend for wine brands was only 7% of that for beer—which means that wine relies heavily on the “advertising” that happens at shelf."
2014 Alcohol Media Spending Trends
Producing Quality Wine Labels Requires Experience & Expertise
Cheap stickers are easy to come by, but finding an experienced, high-end wine label printer is another story. With decades of award-winning quality label design and printing experience tailored heavily to the premium wine industry, Advanced Labels NW is uniquely equipped to help wineries bring eye-popping labels to retail shelves everywhere.
Competing with high-end and premium brands requires attractive packaging, period. Producing quality label packaging requires expertise, which is not something every online sticker printer can suddenly decide to do– and most brand owners are justifiably reluctant to allow their project to be a part of a printer's learning curve. With Advanced Labels NW wine label experience, supported by the latest label printing technology and a full-service on-site art department, brand owners truly have the best wine label printing available today.
Special finishing options are often an excellent solution. Foil stamping and embossing, high-end estate papers including Ice Breaker, color consistency across label orders, and tight registration all serve to enhance custom wine labels.
Get started today with custom self adhesive wine labels from Advanced Labels NW and elevate your wine label packaging for 2017.
For additional insights into the mindset of today's busy and distracted shopper, including the steps you can take to increase your sales through better label packaging, download our free ebook: