Nite-Cap Cab

Nite-Cap Cab

o :B r a n d D N A New exciting Napa Cabernet that everyone will love

o :Ta s t e Spicy taste and aroma, a hint of plums and cherries

o :D r in k Red meats, ideal for a night cap

o :P r iz e s 1st place in Annual Napa Wine Taste Off

Wine industry in the U.S.

o Total wine sales in the U.S. reached $32.5 billion in 2008, exhibiting 40% growth in current prices

o Sales growth was driven in large part by an increase in the frequency of drinking wine

o Domestic wines account for the majority (74%) of total wine volume sales

Sources: Mintel Study- Wine- U.S.- October 2008

Trends

o :C h a n g e in Am e r ic a n s w in e p e r c e p t io n positioning it as a “casual, everyday” drink

o :W in e e d u c a t io n teach consumers wine basics, less intimidating

o :A c c e s s ib il i t y t o n e a r ly e v e r y o n e “value” wines, highly rated and low priced

o ’ :H ig h a w a r e n e s s o f w in e s h e a lt h b e n e f it s Red wine (83%) has a stronger positive health association than white (41%)

o E x p a n d e d a v a ila b i l it y

o A n a f f o r d a b le lu x u r y in t o u g h e c o n o m ic: c lim a t e a bottle of wine will make “eating-in” seem more specialSources: Mintel Study- Wine- U.S.- October 2008

Insights

o Steadily increase in table wine consumption, reaching 35% in 2008

o Consumption is higher among women (38%) than men (32%), who generally prefer beer over wine.

o Men who drink wine do so at a greater frequency than women

o Wine consumption increases with age. Less than 25% of young adults aged 21-24 drink wine, compared to 41% of adults aged 55-64.

o Frequency of wine consumption also increases with age and income.

Sources: Mintel Study- Wine- U.S.- October 2008

The Novice

21 to 24 years of age, also known as the Millennials

Open to trying new types of wine, without the same

preconceptions about wine as their parents hold

Interested in new eco-friendly varieties, with packaging such as Tetra Paks and screwcaps

Will purchase inexpensive wines and fun wines

The Experimenters

25 to 34 years of age, also known as the Generation X

Heavy consumers of super-premium wines ($16) an up

and, according to Mintel, 1/3 of the group regularly spends

more than $20 per bottle

Spend more per bottle of wine than any other age group

More income than the Novice, but many still without children

The Experienced

55 to 64 years of age, also known as the Baby Boomers

Key target for wine makers, with more disposable income

and leisure time

Greater interest in wine’s heart health benefit than any

other age group

Highest incidence of table wine usage, compared with

any other age group

Segmentation

Cabernet Consumer

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The Novice

21 to 24 years of age, also known as the Millennials

Open to trying new types of wine, without the same

preconceptions about wine as their parents hold

Interested in new eco-friendly varieties, with packaging such as Tetra Paks and screwcaps

Will purchase inexpensive wines and fun wines

The Experimenters

25 to 34 years of age, also known as the Generation X

Heavy consumers of super-premium wines ($16) an up

and, according to Mintel, 1/3 of the group regularly spends

more than $20 per bottle

Spend more per bottle of wine than any other age group

More income than the Novice, but many still without children

The Experienced

55 to 64 years of age, also known as the Baby Boomers

Key target for wine makers, with more disposable income

and leisure time

Greater interest in wine’s heart health benefit than any

other age group

Highest incidence of table wine usage, compared with

any other age group

Target Market

Competitive Analysis

Opportunities

A

B

Positioning

Nite-Cap Cab$25-30

Positioning

o“I drink for a wonderful day, and night too!”

o :P r ic in g $25-30

o :C o n s u m p t io n at-home

o :S a le s Supermarkets, supercenters, liquor stores

“the first thing to remember about matching food and wine is to forget the rules” So “just choose a wine that you want to drink by itself.” Wine Spectator

Nite-Cap Cab

Advertising and Promotion

o TV and Print

o Bookstores & Wine discounts

o Art Galleries

o Home delivery

o Wine tastings

o Winery visits/ tour trips

Q&A

Thank you!