The Wine Intelligence Japan Wine Market Landscape Report 2008
© Wine Intelligence 2008 1
Contents § Executive summary § Market overview § § §
§ § § §
§ § § § § §
Frequency of consumption Repertoire by colour Repertoire by source country Repertoire by varietal Typical spend Drinks portfolio ﴾other drinks﴿
§ § §
pg.32
§ § §
pg.35
pg.61
pg.79
pg.84
Usage by channel Usage by retailer
§ Consumer profiling § §
pg.77
Major brands: Consumer awareness Major brands: Penetration Major regions: Awareness and conversion
§ Wine drinker shopping patterns § §
pg.68
Purchase motivators in a nutshell Closure types ABV
§ Brand awareness
Channel structure Offtrade sales by channel Wholesaler profiles Retailer profiles
§ Japanese wine consumers § §
pg.19
Country of origin Leading brands market share
§ Distribution & Retail
§ Regular wine drinkers
§ Choice cues
Wine volume & value trends Market size by ontrade vs offtrade Still light wine by colour Summary: category drivers
§ Competitive landscape § §
pg.15
Volume and value trends Per capita consumption
§ Japan wine market § § § §
pg.7
Regulatory framework Labelling requirements Taxation and duties
§ Global wine market § §
pg.4
pg.88
Who are the most valuable consumers in Japan? Who drinks sparkling wine in Japan?
§ Appendix
pg.135
Overview: Who are they? Demographics: Age, gender, income
2
Copyright § © Wine Intelligence 2008 § All rights reserved. No part of this publication may be reproduced in any form ﴾including photocopying or storing it in any medium by electronic means﴿ without the permission of the copyright owners. Application for permission should be addressed to Wine Intelligence. § The source of all information in this publication is Wine Intelligence unless otherwise stated. § Information from Adams Wine Handbook is reproduced by kind permission of Adams Beverage Group; copyright Adams Wine Handbook 2007 ©. Information from Euromonitor International is reproduced by kind permission of Euromonitor International; copyright © Euromonitor International 2008. § Wine Intelligence shall not be liable for any damages ﴾including without limitation, damages for loss of business or loss of profits﴿ arising in contract, tort or otherwise from this publication or any information contained in it, or from any action or decision taken as a result of reading this publication. § Wine Intelligence International Wine & Spirit Centre, 3945 Bermondsey Street, London SE1 3XF Tel: 020 7089 3890. Email:
[email protected]. Registered number: 4375306 England.
3
§ Executive Summary
4
Executive summary Japan wine market Key trends in a nutshell: § Japan is a mature and stable market for wine, punctuated by occasional “crazes” or shortlived trends. Consumption is dominated by Sake, the domestically produced rice wine, and indigenous winebased beverages. § Among imported wines, luxury brands ﴾particularly Champagne﴿ and midquality everyday drinking wines drive most of the consumption. § Wine imports skyrocketed during the red wine boom of 1998 ﴾36 million wine cases﴿, This boom was the result of numerous TV shows and magazine articles at the time which touted the health benefits of red wine. § Once the craze had run its course – about 12 months – wine sales quickly fell back to preexisting levels and it took until 2001 to rebalance inventories. § Since 2002 the still light wine market has been static in volume and value terms. § Sparkling wine is the only wine category that has grown since 2002 with an annual increase of 17% in volume and 18% in value. § Sparkling wines have a price per bottle much higher than any other category due to the propensity of Japanese consumers to buy luxury Champagne brands 5
Executive summary ﴾2﴿: Competitive landscape & consumers in the spotlight § Competitive landscape in a nutshell § Domestic wine represents 43% of the Japanese market § Suntory, Sapporo and Mercian Corporation the major domestic wine producers and also the main importers and distributors of nondomestic light wines § France and Italy lead the market for imported wine by volume and value and their price per bottle has increased over the last years § Australia, Italy and USA are increasing markedly their value as well as their share of market § The top domestic wine brand in Japan are: Manns wine, Bistro and Polaire
§ Japanese wine consumers in the spotlight § Wine consumers in Japan are likely to be the younger segments ﴾2544﴿ § The most frequent drunk wine is red wine ﴾50%﴿ although white wine has an important share ﴾38%﴿ § Country of origin and recommendation by a friend/family or shop staff are the most valuable choice cues they bear in mind when purchasing wine 6
§ Market overview § Regulatory framework § Labelling requirements § Taxation & duties
7
Macroeconomic market overview 2007 § Population: 127.433,494 ﴾July 2007 est.﴿
§ GDP per capita: $33,100 ﴾2006 est.﴿
§ GDP growth: 2.2% ﴾2006 est.﴿
§ Comparative in geographical size to California, Japan occupies a strategic location in North East Asia § Third largest economy in the world after the US and Germany, mainly based on technology § Industry is based largely on manufacture of motor vehicles, electronic equipment, machinery and steel, ships, chemicals, textiles, processed foods § Due to low birth rates and almost nonexistent immigration, Japan’s population is declining § Cuisine based on seafood, some meat and vegetables, traditional beverages beer and sake ﴾rice wine﴿
Source: Wine Intelligence; CIA World Fact Book
8
Japanese market overview: Nearly 60% of wines are imported
Domestic and Imported still light wines in Japan 2005
Japanese major producers: Mercian Suntory Sapporo
Domestic 43%
Major importers: Imported France Italy 57% US
NB domestic producers are also the leading importers and distributors of wine from France, Italy, USA and Australia 9
Labelling requirements Product name
Wine, Fruit wine or Sweetened fruit wine
Food additives
Name of substance of antioxidants or synthetic preservatives
Alcohol content
Ethyl alcohol content
Content volume
Expressed in millilitres or litres
Type
Whether or not sparkling
Name and Address of Importer Name and address of Importer Distributor address Geographic
Distributor or rebottling plant address Country of origin
VOLUNTARY LABELLING To prevent consumption by minors
“consumption of liquors by minors is prohibited” or “liquors may only be consumed by those age 20 and over”
Warning of risks of drinking during pregnancy
Drinking alcohol during pregnancy or nursing may adversely impact the growth and development of the fetus or infant
Blend of imported and domestic wine
Wines made from mixtures must list the wines in order of quantity. E.g. “Made from domestic and imported wine”
Promotion of recycling of liquor Products packed in steel or aluminium cans and PET bottles must have a containers mark on the container identifying the packaging material type Source: Jetro Marketing Book for Major Imported Products
10
Taxation: How is wine taxed in Japan? Tariffs A tariff is a tax imposed on imported products. The taxable basis is either the customs value ﴾the price of the food itself + insurance + freight charges﴿ or the volume. For more complete information, consult the Customs Tariff Schedules of Japan. * The Customs Tariff Schedules of Japan is published by the Japan Tariff Association ﴾TEL: 033263 7221﴿
Liquor Tax Products treated as alcoholic beverages under provisions of the Liquor Tax Law are subject to liquor tax on a volume basis when imported.
Consumption Tax Consumption tax ﴾5%﴿ is imposed on the sum of the customs value and any applicable tariff ﴾or liquor taxes, in some cases﴿. In principle, neither tariffs nor consumption tax are due when the customs value is under 10,000 yen, whether the item is being imported for business or personal purposes. * Alcoholic beverages are also exempt from tariffs and consumption tax if the value is under 10,000 yen, but they still are subject to liquor taxes. 11
Wine taxation § Customs duty: § Still wine ¥125 per litre or CIF 15 per cent, whichever is less § Sparkling wine ¥182 per litre § Fortified wine ¥112 per litre
§ Liquor tax: § Fruit wine* ¥80,000 per kilolitre § Sweet fruit wine** ﴾alcohol strength less than 13 per cent﴿ ¥120,000 per kilolitre § Sweet fruit wine** ﴾alcohol strength 13 per cent or above﴿ ¥120,000 plus ¥8,644 for each per cent alcoholic content above 13 per kilolitre
§ Consumption Tax: ﴾CIF + Custom duty + Liquor tax﴿ x 5% * Fruit wine: wines produced by fermenting fruit or fruits plus water, with sugar, brandy and other substances added up to specified limits ** Sweet fruit wine: wines produced by adding brandy or other alcoholic beverages or sugar to fruit wines above a specified quantity Source: Jetro Marketing Book for Major Imported Products
12
Packaging recycling law § The Japanese government began full implementation of the Packaging Recycling law in April 2000. It requires the industry to recycle all paper and plastic packaging, glass bottles, steel and aluminium cans and PET bottles § In the case of wines, according to industry sources, some importers have requested that exporters use colourless glass bottles if possible, and a number of wines in clear bottles have appeared on the market. However, this is only appropriate for lessexpensive or early drinking wines; for premium wines, the industry generally continues using coloured bottles despite the added recycling costs. § The recycling charges determined by the Japan Containers and Packaging Recycling are: Glass bottle No colour
Brown
Green/other
¥3.8/kg
¥5.2/kg
¥5.8/kg
PET bottle
Paper packaging
Plastic packaging
¥1.8/kg
¥12.5/kg
¥85.8/kg
Sources: Japan Recycling Association www.jcpra.or.jp;
USDA GAIN Wine Report 2006
13
Distribution channels for imported wine Overseas wine makers ﴾of bulk wine﴿
Overseas wine makers ﴾of bottled wine﴿
Import trading company
Primary wholesalers
Secondary wholesalers
Commercial liquor vendors
Liquor retailers General liquor stores
Discount liquor stores
Food service establishments
Supermarkets, department stores
Convenience stores
Source: Jetro Marketing Book for Major Imported Products
Japanese wine makers
CONSUMERS 14
§ Global wine market § Volume & value trend § Per capita consumption
15
Global wine market: Volume trends in leading markets Total wine market volume in thousand 9 litre cases 297,735 (1% )
Italy (1)
286,073 (3% )
USA (2)
268,132 (2% )
France (3)
260,119 (7% )
China (4) Germany (5)
241,358 (0% ) 149,645 (3% )
United Kingdom (6)
134,399 (1% )
Spain (7) Russia (8)
128,769 (6% ) 112,621 (3% )
Japan (9) Portugal (10)
58,582 (2% ) 49,169 (2% )
Australia (11)
43,409 (4% )
Canada (12) Netherlands (13)
40,577 (4% )
Brazil (14)
39,599 (1% )
Still light wine
Other wines (fortified, sparkling, rice/fruit wine…)
31,727 (2% )
Belgium (15)
31,415 (1% )
Switzerland (16) Sweden (17)
19,961 (3% )
Denmark (18)
The number in black are the Wine market value in thousand 9l cases in 2007 The number into brakets is the Compound Annual Growth Rate (20022007) CAGR: The yearoveryear growth rate over a specified period of time
18,158 (0% )
Ireland (19)
8,563 (7% )
Norway (20)
7,441 (5% )
Finland (21)
6,922 (4% ) 0
50,000
Source: © Euromonitor International 2008
100,000
150,000
200,000
250,000
300,000
350,000
16
Global wine market: Value trends in leading markets Total wine market value in million $ RSP (Retail Sales price) 31,656 (7% )
USA (1) France (2)
28,562 (1% ) 22,033 (1% )
Japan (3) United Kingdom (4)
21,567 (4% )
Italy (5)
16,131 (1% )
Germany (6)
11,750 (1% )
China (7)
10,524 (8% ) 8,777 (16% )
Russia (8) Canada (9)
6,474 (7% )
Spain (10)
5,759 (3% )
Switzerland (11)
5,638 (0% )
Australia (12)
5,341 (3% )
Portugal (13)
3,389 (2% )
Brazil (14)
Still light wine
Other wines (fortified, sparkling, rice/fruit wine…)
3,129 (10% )
Belgium (15)
2,775 (4% )
Netherlands (16)
2,550 (4% ) 2,311 (3% )
Sweden (17) Ireland (18)
1,739 (7% )
Norway (19)
1,674 (6% )
Denmark (20)
1,533 (0% )
The number in black are the Wine market value in million US$ in 2007 The number into brakets is the Compound Annual Growth Rate (20022007) CAGR: The yearoveryear growth rate over a spe cified period of time
Source: © Euromonitor International 2008
820 (4% )
Finland (21) 0
10,000,000
20,000,000
30,000,000
40,000,000
17
Global wine market: International per capita consumption Per Capita Consumption, Wine, 2006, Litres, Adult population
Market
Top5
Croatia France Italy Georgia Slovenia
Switzerland Denmark Germany Belgium Australia UK Additional Ireland Vinitrac markets Sweden Netherlands Norway Canada Finland US Japan
2002
2006
% Change, 2002/2006
72 65 54 58 50
74 59 57 56 48
3.2% 9.6% 6.1% 4.6% 3.2%
50 37 31 29 24 22 18 21 25 14 10 10 10 2
44 38 32 32 26 25 23 23 22 17 13 12 11 2
12.1% 2.2% 2.6% 10.5% 9.2% 10.8% 23.0% 5.1% 11.5% 16.0% 20.2% 18.6% 10.8% 4%
Source: Adams Wine Handbook 2007 ©; International Wine and Spirits Record
18
§ Japan wine market § Wine volume and value trends § Market size by ontrade vs. offtrade § Still light wine by colour § Summary: Category drivers
19
§ Japan wine market § Wine volume and value trends
20
Wine volume trends Volume of wine in the Japan trend data 20022007 Thousand cases (On + Off trade) 160,000 140,000
127
123 115
120,000 100,000 105,289
103,087
91,812
80,000
134
86,520
133
136
85,215 83,018
Nongrape wine Sparkling wine
60,000 40,000
Fortified wine and vermouth
Still light grape wine
1,309 20,000 27,769 27,782 1,156
1,437 27,104
1,719 25,985
2004
2005
2,169 2,533 26,459 26,934
0 2002
2003
2006
Source: © Euromonitor International 2008
2007
Japan: 2002 2007 Volume data Compound Annual Growth Rate Still light wine 0.6% Sparkling wine 17.0% Fortified and Vermouth 1.4% Non grape wine 4.6% 21
Wine value trends Value of wine in Japan trend data 20022007 Million ¥ Yen (On + Off trade) 3,000,000 5,198
4,828 4,401
5,230
5,222
5,361
2,500,000 1,792,436 1,765,683 2,000,000 1,556,141 1,465,905 1,443,366 1,406,681
Fortified wine and vermouth
1,500,000
Sparkling wine
1,000,000
Nongrape wine
Still light grape wine 171,471 202,064
235,882
500,000 768,401 778,058 759,588
395,537 267,862 335,632 731,318
746,366 763,211
0 2002
2003
2004
2005
Source: © Euromonitor International 2008
2006
Japan: 2002 2007 Value data 2007 Compound Annual Growth Rate Still light wine 0.1% Sparkling wine 18.2% Fortified and Vermouth 0.6% Non grape wine 4.7% 22
Wine price per bottle Price per bottle of wine in Japan trend data 20022007 ¥ Yen (On + Off trade) 16000 14000
12,357
12,865
13,679
12,987
12,896
13,011 Sparkling wine
12000 10000
Fortified wine and vermouth
8000 Still light grape wine
6000 4000 3,419 2,306 2000 1,419 0 2002
3,265 2,334 1,427 2003
3,189 2,335 1,412 2004
3,240 2,345 1,412 2005
3,275 2,351 1,411 2006
3,282 2,361 1,412 2007
NB prices shown in the chart are weighted average of on and offpremise consumption. Key offpremise price points for still light wine are ¥8001,500; for the onpremise, the key price points are ¥2,0003,000 Source: © Euromonitor International 2008
Nongrape wine
Japan: 2002 2007 Price per bottle Compound Annual Growth Rate Still light wine 0.5% Sparkling wine 1.0% Fortified and Vermouth 0.8% Non grape wine 0.1% 23
§ Japan wine market § Market size by ontrade vs. offtrade
24
Imported wines: On vs. Off trade Imported wines volume 2006 Still light wine 100%
80%
38%
41% On trade
60%
40%
Off trade 62%
59%
Volume
Value
20%
0%
Source: © WANDS Business Report April 2007
25
§ Japan wine market § Still light wine by color
26
Still light wine volume trend: By colour Volume of still light wine in Japan by colour 20022007 Thousand cases (On + Off trade)
30,000
1,741
1,529
1,452
1,509
1,571
8,007
8,090
1,602
25,000 20,000
8,485
8,499
8,341
8,187
White Wine
15,000 10,000
Rose wine
17,543 17,754
17,311
16,470
2004
2005
16,798
17,145
Red wine
5,000 0 2002
2003
2006
Japan: 2002 2007 Volume data
2007
Total volume 2007 White wine 30%
Compound Annual Growth Rate Source: © Euromonitor International 2008
Red wine White wine Rosé wine
0.5% 0.7% 1.6%
Rose wine 6%
Red wine 64%
27
Still light wine value trend: By colour Value of still light wine in Japan by colour 20022007 Million ¥ Yen (On + Off trade)
900,000 800,000
43,617
38,327
35,736
37,469
39,229
40,092
700,000 600,000 225,834
226,615
222,123
Rose wine 213,460
216,669
220,030
500,000
White Wine
400,000 300,000
498,951
513,116
501,729
480,389
490,468
503,090
200,000
Red wine
100,000 0 2002
2003
2004
2005
2006
2007 Total value 2007
Source: © Euromonitor International 2008
Japan: 2002 2007 Value data Compound Annual Growth Rate Red wine 0.2% White wine 0.5% Rosé wine 1.7%
White wine 29%
Rose wine 5%
Red wine 66%
28
Still light wine price per bottle: By colour Price per bottle of wine in Japan trend data 20022007 ¥ Yen (On + Off trade) 2500.00 2400.00 2,370 2300.00 2,218
2,408
2,222
2,415
2,219
2200.00 2100.00 2,088
2,089
2,051
2,431
2,433
2,445
2,222
2,232
2,240
2,070
2,081
2,085
2000.00
Red wine
White wine
Rosé wine
1900.00 1800.00 2002
2003
2004
2005
Source: © Euromonitor International 2008
2006
2007
Japan: 2002 2007 Price per bottle Compound Annual Growth Rate Red wine 0.6% White wine 0.2% Rosé wine 0.0%
29
§ Japan wine market § Summary: Category drivers
30
Category drivers: On trade and especially Sparkling are driving the wine category Volume and Value growth in Japan 20022007 Category drivers analysis Volume growth (CAGR)
20% 17%
Value growth (CAGR)
18%
15%
10% 7% 5% 1%
1%
1%
0%
0% 1% 0% 5%
0%
1% 1%
2% 2%
5% 5%
10% Wine
(Including: Still light wine, Sparkling wine, Fortified and non grape wine in On+Off trade)
Sparkling wine
Fortified and Non grape Still light wine Red wine Vermouth wine
(Including: On+Off trade)
White wine
Rosé wine
(Including: On+Off trade)
Source: © Euromonitor International 2008
31
§ Competitive landscape § Country of origin § Leading brands market share
32
France leads source of Still light wine followed by Italy and US Volume: Still light wine imports in Japan by country of origin Japan: Thousand cases France Italy USA Chile Spain Australia Argentina Germany South Africa New Zealand Hungary Portugal Other countries
2002
2006
7,056 3,322 1,733 1,211 856 544 611 967 256 22 89 89 656
6,344 2,722 2,289 1,289 900 767 733 567 144 56 44 33 289
Value: Still light wine imports in Sweden by country of origin
CAGR Market Japan: 20022006 share 2006 Million ¥ Yen France 3% 39% 5% 17% Italy USA 7% 14% Chile 2% 8% Australia 1% 6% Germany 9% 5% Spain 5% 5% Argentina 12% 4% New Zealand 13% 1% South Africa 26% 0% Hungary 16% 0% Portugal 22% 0% Other countries 19% 2%
2002
2006
43,282 11,788 6,224 3,303 1,914 3,224 2,245 638 258 571 179 465 1,140
57,534 12,877 7,587 3,677 3,461 3,086 3,009 1,019 548 478 200 147 1,096
CAGR Market 20022006 share 2006 7% 61% 2% 14% 5% 8% 3% 4% 16% 4% 1% 3% 8% 3% 12% 1% 21% 1% 4% 1% 3% 0% 25% 0% 1% 1%
Still light wines price per imported bottle by Country of Origin ¥ Yen ¥ 966 New Zealand ¥ 823
France
¥ 756 Germany Italy ¥ 511
¥ 454 ¥ 394 ¥ 376 ¥ 279 ¥276
¥ 296 ¥ 278 ¥ 219 ¥ 168 2002
Australia Hungary Spain USA
2003
2004
2005
2006
Source: Euromonitor International 2008
33
Top10 brands: Manns Wine, a domestic product, is the leading brand
Top 10 Still light wine brands in Japan + KWV (by volume) Total volume '000 9 Litres Cases Top 10 brands Manns Wine Bistro Polaire Bon Rouge Franzia Oishii Sanka Boushizai Mutenka Wine Mutenka Yuuki Wine Georges Duboeuf Delica Maison Sunrise KWV (Ranked 26)
Global Name
2002
2006
Kikkoman Corp Mercian Corp Sapporo Holdings Ltd Mercian Corp Wine Group Inc, The Mercian Corp Asahi Breweries Ltd Les Vins Georges Duboeuf Suntory Ltd Viña Concha y Toro SA
1293 807 681 20 192 374 797 126
1222 770 756 580 490 410 360 359 300 244
KWV Group
85.6
88.9
CAGR Share of 20032006 market 2006 1% 4.6% 1% 2.9% 8% 2.9% 4% 2.2% 122% 1.9% 36% 1.5% 17% 1.4% 1% 1.4% 22% 1.1% 18% 0.9% 1%
0.3%
Note: No data registered for 2002, % from 2003
Source: © Euromonitor International 2008
34
§ Distribution & Retail § Channel structure § Offtrade sales by channel § Wholesaler profiles § Retailer profiles
35
Selling wine in Japan: Overview Importers & wholesalers § The market is dominated by Suntory, Mercian and Kokubu and the breweries Asahi and Sapporo § These firms have traditionally competed strongly for volume leadership as opposed to maximising value Retailers § While Aeon, Seven Eleven, Seiyo and Rakunten Ichiba are considered to be the top retailers among Japanese consumers § Wine distribution in Japan has traditionally been dominated by specialist stores, with a 40% of share § In recent years Supermarkets, discounters and convenience stores have been gaining ground in the wine distribution mostly because of the liquor deregulation law Source: Wine Intelligence; Wine Business International
36
Distribution channels § Specialist stores are the Distribution channels in Japan 2007 leading distribution channel with a 40% share § Supermarkets, Discounters Others, 10% Supermarkets/ and Convenience stores Direct sales, 4% hypermarkets, together account for 41% 30%
Specialists, 40%
Independent food stores, 6% Convenience stores, 8% Discounters, 3%
Source: Euromonitor International 2008
37
Wine Manga comic: Sommelier
§ Created by Kenichi Hori from the California Wine Institute, “Sommelier “ spreads interest in wine using the popular Japanese Manga comics. It sells up to a million copies
Source: Wine Business International
38
§ Distribution & Retail § Importers and wholesaler profiles
39
Wholesaler profile: Suntory
Description Japanese brewing and distilling company established in 1899, it is one of the oldest and leading companies in the distribution of alcoholic beverages in Japan. Its business has expanded to other fields, and the company now offers everything from soft drinks to vintage wines. The group has three operating units: the beverage and food unit; the spirits, wine and beer unit; and the foodservice and business development unit. Suntory beverages are produced through its Suntory Limited division. Suntory wine business surpassed market achievements by turning 4% higher sales than in 2006. In sparkling wine, worldclass brands LaurentPerrier and Henriot contributed to a 20% increase in sales for champagne and sparkling wine combined. Suntory has tiedup businesses with distinguished wineries such as Georges Duboef, Torres, Gallo, Freixenet, PerrierJouët and Mumm
Contact information Suntory Limited Division Headquarter Dojimahama 2140 Kitaku Osaka, Osaka 5308203, Japan Phone: ﴾0081﴿ 6 6346 1131 www.suntory.com Source: Company Website and www.hoovers.com
40
Retailer profile: Suntory
Sales 2007
YY Sales Growth
Select Key Wine Brands in Portfolio
Regions covered
£ 792 m
+4%
Georges Duboef , Torres , E & J Gallo, Freixenet , PerrierJouët and Mumm
Across Japan
Domestic wines @ Suntory Source: Company Website and www.hoovers.com
41
Wholesaler profile: Mercian
Description Established in 1934 as a liquor manufacturer, Mercian Corporation has become one of Japan's leading producers of wine, oriental liquors and lowalcohol beverages. The Company has also established a strong record of selling a wide range of imported alcoholic beverages. Mercian's network consists of five branch offices, eight factories and two research facilities in Japan, as well as one representative office and five production facilities overseas. Today, their partners include leading Spanish Cava producer Codorniu S.A.; Champagne Pommery from France; and Viña Concha y Toro S.A. In recent years, Mercian has also expanded their wine selection by establishing ties with other leading wineries worldwide, including the Robert Mondavi Winery, and Italy's famed Marchesi de' Frescobaldi.
Contact information Mercian Corporation 158 Kyobashi Chuoku Tokyo 1048305 Japan Phone: ﴾0081﴿3 3231 3910 Fax: ﴾0081﴿3 3231 8539 www.mercian.co.jp/e/index.html?main.html
Source: Company Website and www.hoovers.com
42
Wholesaler profile: Mercian
Sales 2006
Select Key Wine Brands in Portfolio
Regions covered
£483m
Production of domestic wines: Château Mercian and Imported wines such as Codorniu S.A, Champagne Pommery, Concha y Toro, Robert Mondavi and Marchesi de’ Frescobaldi
Across Japan
Some of Château Mercian Domestic wines Source: Company Website and www.hoovers.com
43
Wholesaler profile: Kokubu
Description Kokubu & Co. is the shogun of the Japanese wholesale food industry. As the largest distributor in the country, it supplies customers with more than 260,000 foods, beverages, and other products, including frozen foods, processed food, and wine. Kokubu is aggressively innovating food distribution practices and recognize themselves as one of the leading distribution companies of Japan. Kokubu's own private label, K&K, offers a feast of items, including boxed lunches, canned food and beverages, and snacks. Both an importer and exporter of foods and alcoholic beverages, Kokubu serves some 30,000 retailers in more than 37 nations; it has 160 warehouses in Japan alone. The company also owns Kokubu Grocer's chain, which franchises about 700 Community Store convenience stores. Founded in 1712, the company is owned by the Kokubu family. The Kokobu group employees about 1,527 people and has an annual turnover of about £6,729.2m, it grew 3.8% compared to the last year. The wholesale part of their business is about 30%.
Contact information Kokubu & Co., Ltd 111 Nihonbashi Chuoku Tokyo 1038241 Japan Phone: ﴾0081﴿332764000 Fax: ﴾0081﴿332716523 www.kokubu.co.jp Source: Company Website and www.hoovers.com
44
Wholesaler profile: Kokubu
Sales 2006
£6,729.2m
Staff
1,527
Select Key Wine Brands in Portfolio K&K ﴾company label﴿, Imported wines such as KWV wine from South Africa
Regions covered
Across Japan
From which £1,439m ﴾aprox. 21.4%﴿ is only in wine Source: Company Website and www.hoovers.com
45
Wholesaler profile: Sapporo
Description Sapporo is one of Japan's oldest brewers and sits at #3 in that country's beer market ﴾behind Asahi Breweries and Kirin Brewery﴿ with brews ranging from its flagship Black Label to the pricier Yebisu. The company sells Guinness beer in Japan through its Sapporo Guinness Company and owns a beverage company that makes canned coffee, bottled water, and soft drinks. They own not only a production facility to produce domestic wine, but import also wines from different countries. Some of their prestige labels of the Company's imported wines are Beringer, La Cuvee Mythique and [yellow tail]
Contact information Sapporo Holdings Limited 201 Ebisu 4chome Shibuyaku Tokyo 1508686 Japan Phone: ﴾0081﴿354237227 Fax: ﴾0081﴿3 5423 2061 www.sapporobeer.jp
Source: Company Website and www.hoovers.com
46
Wholesaler profile: Sapporo
Sales 2006
£1,838m
Select Key Wine Brands in Portfolio
Staff
4,112
Production of domestic wines, Imported wines such as Beringer, La Cuvee Mythique and [yellow tail]
Regions covered
Across Japan
From which £65.4m ﴾approx. 3.6%﴿ is wine Domestic wines @ Sapporo Source: Company Website and www.hoovers.com
Imported wines @ Sapporo 47
Wholesaler profile: Asahi
Description Asahi Breweries is a leading beer company in Japan, commanding some 40% of the country's beer market. The Asahi group employees about 15,280 people and has an annual turnover of about £5,000m. In addition to its alcoholic beverage business, Asahi makes WONDA coffee drinks, a variety of soft drinks, and bottled tea and water, along with food products, baby food and nutritional supplements. In terms of wine, Asahi Breweries delivers imported wines from various European countries, such as France and Italy, in addition to California, Chile and other areas of the new world, as well as domestic wines to the dietary life of their customers. From their total turnover of about £5,000m the share of alcoholic beverages is 80%. However, due to the low penetration of wine in Japan, wine represents a 1.5% of their turnover at least £74.1m. The wholesale part of their wine business is about 60%.
Contact information Asahi Breweries, Ltd 231, Azumabashi 1chome Sumidaku Tokyo 1308602 Japan Phone: ﴾0081﴿356085111 Fax: ﴾0081﴿356085152 www.asahibeer.co.jp
Source: Company Website and www.hoovers.com
48
Wholesaler profile: Asahi
Sales 2006
£4,995.2m
Staff
15,280
From which £74.1m ﴾approx. 1.5%﴿ is wine
Select Key Wine Brands in Portfolio Caliuterra, Zonin, Baron Philippe de Rothschild, Louis Latour, Saint Neige, Nikka Cidre, SteNeige Ume Wine
Regions covered
Across Japan
Source: Company Website and www.hoovers.com
49
Wholesaler profile: Shosan Shoji
Description Shosan Shoji, established in 1928, imports and conducts wholesale business for specialist stores, high end supermarket chains, hotels, restaurants and liqueur shops. They provide a range of deli products such as olive oil, spaghetti, fruit juice, foie gras and smoked salmon etc. In their imported wine portfolio you can choose among wines from France, Italy, Spain and other. In 2007, Shosan Shoji had 256 employees and its turnover was £281.1m.
Contact information Shosan Shoji Co 193 Itabashi 1730004 ItabashiKu Tokyo Japan www.shosan.co.jp Source: Company Website and www.hoovers.com
50
Wholesaler profile: Shosan Shoji
Sales 2007
Staff
Regions covered
£281.1m
256
Across Japan
Source: Company Website and www.hoovers.com
51
§ Distribution & Retail § Retailer profiles
52
Retailer profile: AEON
Description The core business of Japan's AEON Group, AEON CO. owns or franchises more than 4,400 stores worldwide. It is Japan's largest supermarket chain, with about 750 stores under JUSCO and MaxValu banners, as well as about 2,975 MINISTOP convenience stores. AEON also runs a number of specialty chains, including The Body Shop and Laura Ashley stores in Japan. It has a joint venture in Japan with Sports Authority and owns the women's clothing chain The Talbots. Also, the firm operates AEON Welcia, a leading drugstore chain in Japan with 1,800plus outlets. Other operations include shopping center development and financial and credit card services. Aeon employees about 200,000 people and has an annual turnover of £23,541.1m.
Contact information AEON CO., LTD. Headquarters 151 Nakase Mihamaku Chiba 2618515 Japan Phone: ﴾0081﴿432126042 Fax: ﴾0081﴿432126849
Source: Company Website and www.hoovers.com
53
Retailer profile: AEON
Sales 2007
YY Sales Growth
Regions covered
£23,541.1m
+8.9%
Across Japan
Source: Company Website and www.hoovers.com
54
Retailer profile: 7eleven – the worlds largest chain store
Description 7eleven is a subsidiary of Seven & I Holdings Co. of Japan. There are 33,220 companyowned and franchised 7eleven convenience stores in 18 countries, but Japan has with 11,735 more stores then anywhere else in the world. Today, it is the worlds largest retailer chain store. They offer not only food, drinks and magazines but also video games and consoles, CDs, DVDs and seasonal items. Due to cheap prices they provide also a wide range of private label products. In Japan alone 7eleven employees about 5,000 people and has an annual turnover of £12,340.8m. The Japanese shops often bear the title of its holding company “Seven & I Holdings”.
Contact information SevenEleven Japan Co.,Ltd. Head Office 88, Nibancho, Chiyodaku Tokyo 1028455,Japan Phone: 0362383711 www.sej.co.jp
Source: Company Website and www.hoovers.com
55
Retailer profile: 7eleven Sales 2006
YY Sales Growth
Regions covered
£12,340.8m
1.4%
High density across Japan
more stores than anywhere else in the world
56
Retailer profile: Seiyu
Description Seiyu is Japan’s fifth largest supermarket chain operator. The company was established on April 19, 1963. On December 5, 2007, WalMart announced its tender offer to acquire all of the issued and outstanding shares Seiyu was successful, raising WalMart’s ownership of Seiyu from 50.9 percent to 95.1 percent. SEIYU runs about 400 stores, including supermarkets and department stores. Merchandise includes food, apparel, and household goods ﴾under international brands or SEIYU's own brands﴿. Company flags include SEIYU, Sunny, and SSV. ﴾supermarkets﴿ and Livin ﴾department stores﴿. The annual turnover is about £3,337.9m, which is about 70% from the total groups turnover. While the group employees about 35,426 people, at the Seiyu stores alone are 18,774 peoples employed.
Contact information The Seiyu, Ltd. 211 Akabane, Kitaku Tokyo, 1150045, Japan Phone: ﴾0081﴿335987000 Fax: ﴾0081﴿335987745 Website: www.seiyu.com.hk
Source: Company Website and www.hoovers.com
57
Retailer profile: Seiyu
Sales 2006
YY Sales Growth
Regions covered
£3,337.9m
Recently loosing
Across Japan
Only Seiyu stores
Source: Company Website and www.hoovers.com
58
Retailer profile: Rakuten Ichiba
Description Rakuten, Inc. ﴾楽天株式会社, Rakuten Kabushikigaisha﴿ was founded in 1997 and is Japan's largest online retailer and a leading provider of Internetbased services. Today, Rakuten is one of the biggest online shopping mall operators and the second ranking site in Japan with an annual turnover of about £859m and 3,430 employees. The company's business segments and subsidiaries include Rakuten Ichiba ﴾an online shopping mall﴿, Rakuten Auction ﴾online auctions﴿, Rakuten Books ﴾online bookstore﴿, Infoseek ﴾Internet search, Web logs, and job boards﴿, Rakuten Enterprise ﴾entertainment ticket sales﴿, ShowTime ﴾broadband entertainment programming﴿, and Target ﴾online marketing and promotions﴿. The firm's entertainment activities include television broadcasting in Japan and ownership of a professional baseball team. Its financial services unit offers credit cards and consumer loans. The chief executive officer from Rakuten is Hiroshi Mikitani. Rakuten is among the Top 10 largest Internet companies in the world ﴾along with Amazon.com, InterActive Corporation ﴾IAC﴿, Expedia, etc.﴿
http://www.rakuten.co.jp/
Contact information Rakuten Inc. Roppongi Hills Mori Tower 6101 Roppongi Minatoku Tokyo 1066118 Japan Phone: ﴾0081﴿345231111 www.rakuten.co.jp Source: Company Website and www.hoovers.com
59
Retailer profile: Rakuten Ichiba
Sales 2006
YY Sales Growth
Regions covered
£859m
Recently growing
Across Japan ﴾online﴿
Rakuten, Inc. is expanding its business to other Asian countries and also to Europe
Source: Company Website and www.hoovers.com
60
§ Japanese wine consumers § Overview: Who are they? § Demographics: Age, gender, income
61
Notes on data and definitions DEFINITIONS/EXPLANATORY NOTES FOR THIS SECTION § Regular wine drinkers in Japan = adults of legal drinking age who drink wine at least once a month § Vinitrac® = global proprietary survey of wine consumer behaviour and attitude owned and operated by Wine Intelligence § Vinitrac® methodology: § n = minimum of 1,000 interviews per wave per country § Online interviews § 15 minute survey
62
Japanese wine drinkers: Who are they? Japanese wine consumers in the spotlight: § § § §
Regular wine drinkers in the Japan are concentrated in the 2544 group 32% of them drink wine at least twice a week France, Chile and Italy lead their country repertoire Country of origin and recommendation ﴾friends/family or shops﴿ are the most important cues when buying wine § More than a third of consumers don’t recognise drinking any of the top grape varieties § 70% of consumers agree with the statement “I don’t mind what I buy so long as the price is right” § Carlo Rossi and [yellow tail] top international brands in awareness
63
Wine consumers in Japan: Age & gender Gender profile Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013
Female 55%
Male 45%
Age profile Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013
45 54 14% 35 44 35%
55 and over 6% LDA 24 5%
25 34 40%
Source: Wine Intelligence 2008, Vinitrac®
64
Wine consumers in Japan: Income distribution Estimated annual household income before taxes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 100,000,000+
15% 7%
9,000,0009,999,999 yen 8,000,0008,999,999 yen
9%
7,000,0007,999,999 yen
9%
6,000,0006,999,999 yen
9% 13%
5,000,0005,999,999 yen 4,000,0004,999,999 yen
12% 10%
3,000,0003,999,999 yen 2,000,0002,999,999 yen
6%
1,000,0001,999,999 yen
2%
Under 1,000,000 yen
1% 7%
Prefer not to answer 0%
2%
4%
6%
8% 10% 12% 14% 16% Source: Wine Intelligence 2008, Vinitrac®
65
§ Regular wine drinkers § Frequency of consumption § Repertoire by colour ﴾red, white, rosé﴿ § Repertoire by source country § Repertoire by varietals § Typical spend § Drinks portfolio ﴾other drinks﴿
66
Frequency of consumption 32% of all regular wine drinkers consumes at least twice a week Frequency of consumption Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 50% 41%
40% 30%
28%
25%
20% 7%
10% 0% 13 times a month About once a week
25 times a week
Most days/every day
Source: Wine Intelligence 2008, Vinitrac®
67
Red wine remains the favourite choice of the regular wine drinkers in Japan
Proportion by type of wine Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013
White wine 38%
Red wine 50%
Rosé wine 12%
Source: Wine Intelligence 2008, Vinitrac®
68
Country of origin repertoire 61% has French wine in their repertoire Country of origin repertoire Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 France
61%
Italy
42%
Chile
34%
Germany
31%
Australia
26%
Spain
22%
USA
22%
Argentina South Africa
15% 7%
New Zealand
5%
Portugal
5%
Don't know Other 0%
14% 12% 20%
40%
60%
80% Source: Wine Intelligence 2008, Vinitrac®
69
Cabernet Sauvignon, Merlot and Pinot Noir are the Japan’s favourite red varietals Red grape repertoire Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Cabernet Sauvignon
36% 25%
Merlot Pinot Noir
22% 12%
Shiraz/Syrah Sangiovese
9% 8%
Gamay Malbec
6%
Grenache
6%
Carmenère
5%
Pinotage
5%
Tempranillo
4%
Zinfandel
4%
Dornfelder
4%
Don't know which grape I drink Other red grape Source: Wine Intelligence 2008, Vinitrac®
41% 7%
0% 10% 20% 30% 40% 50%
70
Chardonnay is the most popular choice among white varietals White grape repertoire Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Chardonnay
45%
Sauvignon Blanc
23%
Riesling
15%
Semillon
8%
Pinot Grigio/Pinot Gris
7%
MüllerThurgau
6%
Chenin Blanc
6%
Colombard
4%
Grüner Veltliner
4%
Gewürztraminer
3%
Viognier
3%
Chardonnay
Don't know which grape I drink Other white grape
36% 6%
0%
20%
40%
60%
Source: Wine Intelligence 2008, Vinitrac®
71
Typical spend – Offtrade Over 50% claim to spend within ¥ 1,000 ¥ 1,999 Typical Off trade spend Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Over ¥ 3000
5%
¥ 2000 ¥ 2999
13%
¥ 1500 ¥ 1999
20%
¥ 1000 ¥ 1499
35%
¥ 800 ¥ 999 ¥ 600 ¥ 799 Under ¥ 600 0%
12% 9% 7% 10%
20%
30%
40%
Source: Wine Intelligence 2008, Vinitrac®
72
Typical spend – On trade spend § Over 3/4 claim to spend between ¥ 1,000 ¥ 3,999 Typical On trade spend Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Over ¥ 10000
1%
¥ 8000 ¥ 9999
1%
¥ 6000 ¥ 7999
4%
¥ 4000 ¥ 5999
9%
¥ 3000 ¥ 3999
16%
¥ 2000 ¥ 2999
31%
¥ 1000 ¥ 1999 Under ¥ 1000 Do not buy wine in the ontrade
28% 7% 4%
0%
5% 10% 15% 20% 25% 30% 35% Source: Wine Intelligence 2008, Vinitrac®
73
What else is in the shopping basket of regular wine drinkers in Japan? Alcoholic drinks repertoire Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Red wine
83%
White wine
75%
Beer
73%
Premixed/ready to drink
48%
French Champagne
28%
Rosé wine
28%
Other sparkling wine
18%
Sweet/dessert wine
15%
Cava
6%
Port
6%
Sherry
4%
Prosecco
3%
0%
30%
60%
90%
Source: Wine Intelligence 2008, Vinitrac®
74
§ Choice cues § Purchase motivators § Closure types § ABV
75
Purchase choice cues Country of origin and recommendation by a friend/family or shop staff are dominant purchase cues Purchase choice cues % that quoted the following statements as "Important" or "Very important" when purchasing wine Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Country of origin
54%
Recommendation by friend or family
53%
Recommendation by shop staff
50% 44%
Region of origin
42%
Grape variety A brand I am aware of
38%
Appeal of the bottle or label design
35%
Promotional offer
33% 28%
Alcohol content
23%
Medal or award 0%
®
15%
30%
45%
60% Source: Wine Intelligence 2008, Vinitrac®
76
Closures: Screwcap and Synthetic cork is accepted by more than ¾ wine regular drinkers Attitudes towards closures Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 100% 12% 26%
I like buying wine with this closure
80% 59% 60% 50%
68%
Neutral
40% I don't like buying wine with this closure
37%
20% 23%
19%
Screwcap
Synthetic cork
0%
4% Natural cork Source: Wine Intelligence 2008, Vinitrac®
77
Alcohol level 1/3 of Japan regular wine drinkers would buy wine with alcohol level of 13% and above Alcohol level perception % answering "Would buy or Defenetily would buy" wine at the following alcohol levels Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013
Alcohol level wine of 13% and above
29%
Alcohol level wine between 11 and 12%
Alcohol level wine between 9 and 10%
Alcohol level wine below 9%
0%
25%
14%
12%
20%
40% Source: Wine Intelligence 2008, Vinitrac®
78
§ Brand awareness § Major brands: Prompted awareness § Major brands: Penetration § Major regions: Awareness and conversion
79
Prompted brand awareness Brand awareness Top 10 Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013
30% 25% 20%
28% 23% 18%
15%
13%
10%
9%
9%
7%
7%
7%
7%
5% 0% a il si a n s T Ro nt a w o o o l l M rl Ye Ca
ge d i r C db s ' o b co Wo a J
llo Ga
k ree
res r To
V vi a W d K on M e rt b Ro
ys
ar d
H
Source: Wine Intelligence 2008, Vinitrac®
80
Brand penetration
10% 8% 6% 4%
9%
Brand penetration Top 10 (purchase/all sample) Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 7% 5% 3%
3%
2%
2%
2%
2%
2%
2% 0% i t a il s n se ss i e Ta a r o r t rc un on ow o R l S l l ve M r i e a R Y C
k e llo e a r G C s ’ b co a J
V W K
vi a d B on u M s D e rt e b g or Ro Ge uf oe
Source: Wine Intelligence 2008, Vinitrac®
81
Wine region awareness and conversion § French regions lead awareness and conversion Wine region Awareness and Purchase Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 Awarereness
Conversion (purchase/awareness)
60% 48%
45%
41%
37%
40%
36% 26%
24% 20%
34%
33%
32% 25%
25%
25% 21%
17% 11%
20% 14%
24% 19%
0% Champagne Provence
Oregon
Bordeaux
Chianti
Beaujolais
Chablis
Napa Valley
Sicily
Loire
Source: Wine Intelligence 2008, Vinitrac®
82
Wine region penetration
Wine region Penetration (purchase/all sample) Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 20%
17%
15%
11% 8%
10%
8%
8%
7% 5%
5%
5%
4%
4%
Loire
Oregon
0% Bordeaux Champagne
Chianti
Beaujolais
Chablis
Provence
Côtes du Napa Valley Rhone
Source: Wine Intelligence 2008, Vinitrac®
83
§ Regular wine drinker shopping patterns § Usage by channel § Usage by retailer
84
Wine consumption in the On trade
Wine consumption in the On trade Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 100% 80% 60%
Yes 86%
92%
40% No 20% 14%
8%
Bar or pub
Restaurant
0%
Source: Wine Intelligence 2008, Vinitrac®
85
Supermarkets dominate shopping location, but other channels enjoy significant share Channels usage when buying wine Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 In a supermarket
58%
In a liquor store
48%
In a hypermarket/mass merchant
42%
In a department store
28%
In a discount store
20%
In a wine shop
19%
On the internet
18%
In a convenience store
18%
Through mail order
5%
In a membership store
4%
From the winery direct
4%
0%
20%
40%
60%
80% Source: Wine Intelligence 2008, Vinitrac®
86
Shop usage Rakuten fills the top position Shop usage when buying wine Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 Rakuten
16% 12%
Seiyu 7Eleve
10%
Saty
7%
Tokyo Store
7%
York Benimaru
3%
Netwine
2%
YorkMart
1%
Posful
1%
WinePro
1%
0%
10%
20%
Source: Wine Intelligence 2008, Vinitrac®
87
§ Consumer profiling § Who are the most valuable consumers in Japan? § Who drinks rosé wine in Japan?
88
§ Consumer profiling § Who are the most valuable consumers in Japan?
89
Value by frequency of consumption
Value segments profile by frequency of consumption Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100%
1% 5%
3% 19%
80%
24%
60% 40%
18%
7% Most days/every day 25%
38%
50%
28%
70%
About once a week 41%
20%
22%
41% 13 times a month
11%
0% Low value
25 times a week
Mid value
Significantly higher than two groups
High value
All Japanese regular wine drinkers
Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
90
Value segments by gender § Slightly skewed to the female group Value segments profile by Gender Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 56%
52%
44%
Low value
56%
55%
49%
44%
45%
Mid value
High value
All Japanese regular wine drinkers
Female
60% 40% 20%
Male
0%
Source: Wine Intelligence 2008, Vinitrac®
91
Value segments by age group § 2534 group stands out in high value while 3544 in low value Value segments profile by age groups Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100%
5%
6%
5%
6%
12%
15%
16%
14%
55 and over
39%
35%
35%
45 54
80%
60%
30%
35 44 40%
20%
37%
40%
45%
40%
25 34
LDA 24 0%
7%
4%
5%
Low value
Mid value
High value
Significantly higher than two groups
5% All Japanese regular wine drinkers
Significantly higher than one group only Source: Wine Intelligence 2008, Vinitrac®
92
Value segments by income Value segments by Income Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 21% 34%
80%
60%
38%
31%
Mainstream income
33% 32%
31% 29%
40%
20%
0%
Above mainstream income
31%
39% 27%
26%
7%
7%
7%
7%
Low value
Mid value
High value
All Japanese regular wine drinkers
Significantly higher than two groups Significantly higher than one group only
Below mainstream income Prefer not to answer
Source: Wine Intelligence 2008, Vinitrac®
93
Value segments by wine attitudes Value segments profile by wine attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 Significantly higher than two groups Significantly higher than one group only 100%
7% 12%
80%
13%
15%
25%
15%
15% 18%
60% 40%
81%
72%
70% 57%
20% 0% Low value
Mid value
High value
All Japanese regular wine drinkers
I enjoy trying new and different styles of wine on a regular I know what I like and I tend to stick to what I know I don't mind what I buy so long as the price is right Source: Wine Intelligence 2008, Vinitrac®
94
Value segments by Screw cap closure § Remarkable % of acceptance in the lowest value Value segments profile by Screwcap closure attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 22% 80%
22%
34%
26%
60% 55% 40%
50%
I like buying wine with this closure Neutral
50%
47% I don't like buying wine with this closure
20% 19%
23%
28%
23%
Low value
Mid value
High value
All Japanese regular wine drinkers
0%
Significantly higher than two groups Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
95
Value segments by Synthetic cork closure Value segments profile by Synthetic cork closure attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 13%
11%
14%
12% I like buying wine with this closure
80%
60% 71%
70%
64%
Neutral
68%
40% I don't like buying wine with this closure
20% 16%
20%
22%
19%
Low value
Mid value
High value
All Japanese regular wine drinkers
0%
Significantly higher than two groups Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
96
Value segments by Natural cork closure § More than 60% of the sample prefers Natural cork closure in the highest segments Value segments profile by Natural cork closure attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100%
80%
I like buying wine with this closure
48% 63%
65%
59%
60%
Neutral
40% I don't like buying wine with this closure
46% 20%
0%
37%
34%
32%
6%
3%
4%
4%
Low value
Mid value
High value
All Japanese regular wine drinkers
Significantly higher than two groups Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
97
Value segments by wine consumption in bars Value segments profile by consumption in bar or pub % of regular wine drinkers that buy wine in bar or pub Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% Yes 60%
78% 88%
86% 94%
40% No 20% 22%
12%
0% Low value
Mid value
Significantly higher than two groups
7% High value
14% All Japanese regular wine drinkers
Significantly higher than one group only Source: Wine Intelligence 2008, Vinitrac®
98
Value segments by wine consumption in restaurants Value segments profile by consumption in restaurants % of regular wine drinkers that buy wine in restaurants Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% Yes 60%
83%
92% 96%
98%
40% No 20% 17% 5%
0% Low value
Mid value
Significantly higher than two groups
8% 2% High value
All Japanese regular wine drinkers
Significantly higher than one group only Source: Wine Intelligence 2008, Vinitrac®
99
Value by wine involvement Value segments by wine involvement Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 11%
18%
80%
21% 33%
High involvement
40% 60%
44%
51%
Medium involvement
40% 40%
20%
Low involvement
49% 31%
27%
36%
Mid value
High value
All Japanese regular wine drinkers
0% Low value
Significantly higher than two groups Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
100
Value segments by drinks repertoire Value segments by Alcoholic drinks repertoire Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
Red wine Soft drinks White wine Beer Premixed/ready to drink French Champagne Rosé wine Other sparkling wine Sweet/dessert wine Cava Port Sherry Prosecco
Low value
Mid value
High value
All Japanese regular wine drinkers
77% 78% 69% 71% 43% 14% 21% 16% 9% 2% 2% 1% 1%
83% 81% 74% 72% 49% 25% 26% 15% 12% 3% 3% 2% 0%
89% 78% 82% 77% 52% 45% 37% 25% 24% 12% 12% 11% 7%
83% 79% 75% 73% 48% 28% 28% 18% 15% 6% 6% 4% 3%
Red: statistically higher than two groups & Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
101
Value segments by channels usage Value segments by channels usage % of regular wine drinkers that have bought in the following buying channels in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
In a supermarket In a liquor store In a hypermarket In a department store In a discount store In a wine shop On the internet In a convenience store Through mail order In a membership store From the winery direct Other
Low value
Mid value
High value
All Japanese regular wine drinkers
57% 42% 39% 11% 20% 5% 10% 14% 2% 2% 2% 2%
55% 46% 41% 26% 17% 16% 14% 18% 3% 2% 3% 4%
62% 56% 46% 48% 23% 37% 31% 24% 10% 9% 7% 2%
58% 48% 42% 28% 20% 19% 18% 18% 5% 4% 4% 2%
Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac®
102
Value segments by shops usage Value segments by shop usage % of regular wine drinkers that have bought in the following stores in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
Rakuten Seiyu 7Eleve Saty Tokyo Store York Benimaru Netwine YorkMart Posful WinePro
Low value
Mid value
High value
All Japanese regular wine drinkers
11% 9% 7% 4% 2% 3% 1% 1% 1% 0%
14% 11% 11% 9% 7% 4% 0% 1% 2% 0%
22% 15% 11% 10% 12% 2% 4% 2% 0% 2%
16% 12% 10% 7% 7% 3% 2% 1% 1% 1%
Red: statistically higher than two groups & Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
103
Value segments by country of origin Value segments by Country of origin repertoire % of regular wine drinkers that have drunk from following wineproducing places in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
France Italy Chile Germany Australia Spain USA Argentina South Africa New Zealand Portugal Don't know Other
Low value
Mid value
High value
All Japanese regular wine drinkers
47% 28% 28% 21% 18% 14% 17% 9% 4% 2% 2% 22% 16%
65% 41% 34% 33% 28% 22% 22% 13% 6% 5% 4% 14% 13%
73% 56% 40% 38% 32% 30% 26% 22% 12% 9% 9% 7% 8%
61% 42% 34% 31% 26% 22% 22% 15% 7% 5% 5% 14% 12%
Red: statistically higher than two groups & Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac®
104
Value segments by region awareness Value segments by Region awareness % of regular wine drinkers aware of the following wineproducing regions Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
Champagne Provence Oregon Bordeaux Chianti Beaujolais Chablis Napa Valley Sicily Loire
Low value
Mid value
High value
All Japanese regular wine drinkers
41% 40% 35% 32% 19% 18% 20% 15% 15% 10%
49% 41% 33% 37% 24% 26% 25% 23% 20% 20%
45% 42% 44% 39% 36% 32% 29% 24% 25% 26%
45% 41% 37% 36% 26% 25% 25% 21% 20% 19%
Red: statistically higher than two groups & Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
105
Value segments by region penetration Value segments by Region penetration % of regular wine drinkers that have bought wine from the following wine growing regions in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
Bordeaux Champagne Chianti Beaujolais Chablis Provence Côtes du Rhone Napa Valley Loire Oregon
Low value
Mid value
High value
All Japanese regular wine drinkers
8% 4% 3% 4% 4% 4% 2% 1% 1% 1%
17% 11% 6% 8% 7% 4% 4% 4% 3% 1%
26% 17% 17% 13% 14% 13% 10% 11% 9% 10%
17% 11% 8% 8% 8% 7% 5% 5% 4% 4%
Red: statistically higher than two groups & Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
106
Value segments by brand awareness Value segments by Brand awareness % of regular wine drinkers aware of the following brands Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
Carlo Rossi Yellow Tail Montana Gallo Jacob's Creek Woodbridge Torres KWV Robert Mondavi Hardys
Low value
Mid value
High value
All Japanese regular wine drinkers
27% 18% 11% 9% 6% 5% 3% 5% 4% 2%
27% 23% 15% 11% 8% 8% 6% 4% 4% 5%
29% 28% 27% 20% 15% 14% 13% 13% 13% 14%
28% 23% 18% 13% 9% 9% 7% 7% 7% 7%
Red: statistically higher than two groups & Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
107
Value segments by brand penetration Value segments by Brand penetration (purchase / all sample) Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
Yellow Tail Carlo Rossi Sunrise Montana Rivercrest Gallo Jacob’s Creek KWV Georges DuBoeuf Robert Mondavi
Low value
Mid value
High value
All Japanese regular wine drinkers
5% 6% 3% 0% 1% 1% 1% 1% 1% 0%
9% 7% 4% 2% 2% 0% 1% 1% 2% 0%
12% 9% 8% 7% 5% 6% 5% 4% 4% 5%
9% 7% 5% 3% 3% 2% 2% 2% 2% 2%
Red: statistically higher than two groups & Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
108
Value segments by purchase choice cues Value segments by Purchase choice cues % of respondents that quoted the following quotes as being "Important" or "Very important" when purchasing wine Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
Country of origin Recommendation by friend or family Recommendation by shop staff Region of origin Grape variety A brand I am aware of Appeal of the bottle or label design Promotional offer Alcohol content Medal or award
Low value
Mid value
High value
All Japanese regular wine drinkers
48% 49% 47% 33% 31% 31% 29% 37% 29% 13%
56% 55% 52% 44% 41% 36% 35% 32% 24% 22%
59% 54% 52% 56% 56% 47% 40% 31% 32% 33%
54% 53% 50% 44% 42% 38% 35% 33% 28% 23%
Red: statistically higher than two groups & Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
109
Value segments by alcohol level
Value segments by Alcohol level perception % of respondents that "Would buy or Defenetily would buy" wine at the following alcohol levels Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013
Alcohol level wine below 9% Alcohol level wine between 9 and 10% Alcohol level wine between 11 and 12% Alcohol level wine of 13% and above
Low value
Mid value
High value
All Japanese regular wine drinkers
8% 7% 16% 21%
11% 13% 25% 30%
18% 22% 34% 36%
12% 14% 25% 29%
Red: statistically higher than two groups & Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
110
Profile of the most valuable consumers: Summary § The most valuable consumers are: § Above mainstream income level § Younger ﴾2544﴿ § Drinking wine at least twice a week § Adventurous and enjoy trying new styles of wine § Prefer buying wines with natural cork § More likely to consider important when purchasing wine “region of origin”, “grape varietal”, “brand I am aware of” and “medals or awards”
111
§ Consumer profiling § Who drinks Sparkling wine in Japan?
112
21% of all regular drinkers have drunk sparkling wine in the past 6 months Sparkling wine consumers Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013
Non sparkling wine drinker 79%
Sparkling wine drinker 21%
Source: Wine Intelligence 2008, Vinitrac®
113
Sparkling wine drinkers profile by frequency Sparkling wine drinkers profile by frequency of consumption Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 60%
6%
10%
20% 32%
Most days/every day
25% 25 times a week
29%
28% 26%
40% 20%
7%
45% 32%
About once a week 41% 13 times a month
0% Non sparkling wine drinker
Sparkling wine drinker
Significantly higher than one group only
All Japanese regular wine drinkers Source: Wine Intelligence 2008, Vinitrac®
114
Sparkling wine drinkers profile by gender § Sparkling wine drinkers profile skewed towards female Sparkling wine drinkers profile by Gender Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 53%
58%
55%
Female
60% 40% Male 20%
47%
42%
45%
Non sparkling wine drinker
Sparkling wine drinker
All Japanese regular wine drinkers
0%
Source: Wine Intelligence 2008, Vinitrac®
115
Sparkling wine drinkers profile by age Sparkling wine drinkers profile by age groups Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 60%
3% 10%
7% 17%
55 and over
6% 14%
33%
45 54 35%
36%
35 44 40% 50%
25 34
40%
20%
35%
0%
5%
5%
5%
Non sparkling wine drinker
Sparkling wine drinker
All Japanese regular wine drinkers
LDA 24
Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
116
Sparkling wine drinkers profile by income Sparkling wine drinkers profile by Income Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80%
30%
33%
31%
Mainstream income
60% 32%
31%
31%
40% 20%
Above mainstream income
Below mainstream income 32%
29%
31%
7%
7%
7%
Non sparkling wine drinker
Sparkling wine drinker
All Japanese regular wine drinkers
Prefer not to answer 0%
Source: Wine Intelligence 2008, Vinitrac®
117
Sparkling wine attitudes Sparkling wine drinkers profile by wine attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 Significantly higher than one group only 100%
11% 80%
21%
16%
15% 15%
14% 60%
40%
73%
65%
70%
Sparkling wine drinker
All Japanese regular wine drinkers
20%
0% Non sparkling wine drinker
I enjoy trying new and different styles of wine on a regular I know what I like and I tend to stick to what I know I don't mind what I buy so long as the price is right
Source: Wine Intelligence 2008, Vinitrac®
118
Sparkling wine drinkers profile by Natural cork closure attitudes Sparkling wine drinkers profile by Natural cork closure attitudes Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% 56%
64%
59%
I like buying wine with this closure
60% Neutral 40% 20% 0%
40%
33%
37%
5%
4%
4%
Non sparkling wine drinker
Sparkling wine drinker
All Japanese regular wine drinkers
Significantly higher than one group only
I don't like buying wine with this closure
Source: Wine Intelligence 2008, Vinitrac®
119
Sparkling wine drinkers profile by consumption in bars or pubs § Sparkling wine drinkers are more likely to drink wine in bar or pubs Sparkling wine drinkers profile by consumption in bar or pub % of regular wine drinkers that buy wine in bar or pub Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% Yes 60%
85%
90%
86%
40% No 20% 16%
11%
14%
Non sparkling wine drinker
Sparkling wine drinker
All Japanese regular wine drinkers
0%
Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
120
Sparkling wine drinkers profile by consumption in restaurants § Sparkling wine drinkers are more likely to drink wine in restaurants Sparkling wine drinkers profile by consumption in restaurants % of regular wine drinkers that buy wine in restaurants Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 80% Yes 60%
90%
96%
92%
40% No 20% 0%
10% Non sparkling wine drinker
8% 4% Sparkling wine drinker
All Japanese regular wine drinkers
Significantly higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
121
Sparkling wine drinkers profile by buying frequency consumption in the Off trade ﴾Index﴿ Sparkling wine drinkers profile by Frequency Off trade Index Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013
Non sparkling wine drinker
Sparkling wine drinker
133
With a more formal dinner party at home 82
136
At a party/celebration at home 80
A relaxing drink at the end of the day at home
122 88 123
With an informal meal at home The frequency of Sparkling wine drinkers in all occasion is significantly higher than non sparkling wine drinkers
87 60
80 100 120 140
Index: 100 is the average frequency of consumption of all sample
Source: Wine Intelligence 2008, Vinitrac®
122
Sparkling wine drinkers profile by average spend per bottle Off trade
Prices in ¥ 2,500
Sparkling wine drinkers profile by spend in the Off trade (Average spend in YEN ¥ per bottle) Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013 2,254
2,250
The spend of sparkling wine drinkers is significantly higher than non sparkling wine drinkers
2,086
2,000 1,910
1,750 1,500
1,819 1,392
1,423
Non sparkling wine drinker
1,250
1,257
1,300
Sparkling wine drinker
1,000 With an informal meal at A relaxing drink at the At a party/celebration at With a more formal home end of the day at home home dinner party at home
Source: Wine Intelligence 2008, Vinitrac®
123
Sparkling wine drinkers profile by buying frequency consumption in the On trade ﴾Index﴿ Sparkling wine drinkers profile by Frequency On trade Index Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013
Non sparkling wine drinker
Sparkling wine drinker
144
At a party/celebration big night out
77 141
With a more formal dinner in a restaurant
78 145
With an informal meal in a bar/restaurant
74 155
A relaxing drink out at the end of the day The frequency of Sparkling wine drinkers in all occasion is significantly higher than non sparkling wine drinkers
69
40
70 100 130 160
Index: 100 is the average frequency of consumption of all sample Source: Wine Intelligence 2008, Vinitrac®
124
Sparkling wine drinkers profile by average spend per bottle On trade
Prices in ¥
Sparkling wine drinkers profile by spend in the On trade (Average spend in YEN ¥ per bottle) Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n=1,013
4,479
4,500 4,003 4,000
The spend of sparkling wine drinkers is significantly higher than non sparkling wine drinkers
3,500 3,394
3,000 2,500
2,270
2,392
Non sparkling wine drinker
2,000 1,500
3,036
Sparkling wine drinker 1,791
1,914
A relaxing drink out at With an informal meal in With a more formal the end of the day a bar/restaurant dinner in a restaurant
At a party/celebration/big night out
Source: Wine Intelligence 2008, Vinitrac®
125
Sparkling wine drinkers profile by involvement § Higher involvement within sparkling wine drinkers Sparkling wine drinkers profile by wine involvement Vinitrac® Japan, March 2007 All Japanese regular wine drinkers n= 1,013 100% 15% 80%
30%
21% High involvement
60%
44%
44% 43%
Medium involvement
40%
20%
41%
36%
Low involvement
27% 0% Non sparkling wine drinker
Sparkling wine drinker
All Japanese regular wine drinkers
Significantly higher than one group only Source: Wine Intelligence 2008, Vinitrac®
126
Sparkling wine drinkers by drinks repertoire Sparkling wine drinkers profile by Alcoholic drinks repertoire Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers Red wine Soft drinks (sodas, water, juice) White wine Beer Premixed/ready to drink French Champagne Rosé wine Other sparkling wine Sweet/dessert wine Cava Port Sherry Prosecco
81% 73% 67% 70% 39% 0% 18% 0% 6% 0% 2% 1% 0%
86% 88% 90% 79% 64% 79% 46% 51% 30% 16% 12% 11% 8%
83% 79% 75% 73% 48% 28% 28% 18% 15% 6% 6% 4% 3%
Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
127
Sparkling wine drinkers by channels usage Sparkling wine drinkers profile by channels usage % of sparkling wine drinkers that have bought in the following buying channels in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers In a supermarket In a liquor store In a hypermarket In a department store In a discount store In a wine shop On the internet In a convenience store Through mail order In a membership store From the winery direct Other
56% 44% 38% 20% 18% 13% 12% 16% 4% 3% 2% 3%
62% 56% 49% 42% 24% 30% 29% 23% 7% 7% 8% 2%
58% 48% 42% 28% 20% 19% 18% 18% 5% 4% 4% 2%
Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac®
128
Sparkling wine drinkers by shops usage Sparkling wine drinkers profile by shop usage % of sparkling wine drinkers that have bought in the following stores in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine drinker wine drinker drinkers Rakuten Seiyu 7Eleve Saty Tokyo Store York Benimaru Netwine YorkMart Posful WinePro
12% 11% 9% 7% 6% 3% 1% 1% 1% 1%
22% 12% 12% 9% 10% 3% 2% 1% 1% 1%
16% 12% 10% 7% 7% 3% 2% 1% 1% 1%
Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac®
129
Sparkling wine drinkers by country of origin Sparkling wine drinkers profile by Country of origin repertoire % of sparkling wine drinkers that have bought in the following stores in the past 6 months Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers France Italy Chile Germany Australia Spain USA Argentina South Africa New Zealand Portugal Don't know Other
56% 36% 30% 28% 23% 17% 19% 12% 5% 3% 3% 17% 13%
71% 51% 42% 35% 32% 31% 26% 19% 11% 9% 9% 10% 11%
61% 42% 34% 31% 26% 22% 22% 15% 7% 5% 5% 14% 12%
Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac®
130
Sparkling wine drinkers by brand awareness Sparkling wine drinkers profile by Brand awareness % of sparkling wine drinkers aware of the following brands Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers Carlo Rossi Yellow Tail Montana Gallo Jacob's Creek Woodbridge Torres KWV Robert Mondavi Hardys
24% 19% 14% 9% 7% 6% 5% 5% 4% 4%
35% 30% 24% 21% 14% 14% 13% 12% 14% 12%
28% 23% 18% 13% 9% 9% 7% 7% 7% 7%
Blue: statistically higher than one group only Source: Wine Intelligence 2008, Vinitrac®
131
Sparkling wine drinkers by brand penetration Sparkling wine drinkers profile by Brand penetration (purchase / all sample) Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers Yellow Tail Carlo Rossi Sunrise Montana Rivercrest Gallo Jacob’s Creek KWV Georges DuBoeuf Robert Mondavi
7% 7% 4% 2% 2% 1% 1% 1% 1% 0%
12% 9% 7% 6% 4% 5% 4% 4% 4% 5%
9% 7% 5% 3% 3% 2% 2% 2% 2% 2%
Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
132
Sparkling wine drinkers by purchase choice cues Sparkling wine drinkers profile by Purchase choice cues % of respondents that quoted the following quotes as being "Important" or "Very important" when purchasing wine Vinitrac® Japan, March 2007 All regular Japanese wine drinkers n=1,013 All Japanese Non sparkling Sparkling wine regular wine wine drinker drinker drinkers Country of origin Recommendation by friend or family Recommendation by shop staff Region of origin Grape variety A brand I am aware of Appeal of the bottle or label design Promotional offer Alcohol content Medal or award
52% 52% 50% 40% 37% 35% 30% 33% 28% 20%
58% 54% 51% 53% 53% 45% 43% 33% 29% 27%
54% 53% 50% 44% 42% 38% 35% 33% 28% 23%
Blue: statistically higher than one group only
Source: Wine Intelligence 2008, Vinitrac®
133
Profile of Sparkling wine drinkers: Summary § Sparkling wine drinkers: § Around 21% of Japanese regular wine drinkers § Young consumers ﴾2534﴿ § Drink at least twice a week § More likely to buy wine in restaurants and bars or pubs § More adventurous consumers that like trying new styles of wine § Wine/sparkling wine is the preferred drink at any occasion § When purchasing wine they consider “region of origin”, “grape varietal”, “brand I am aware of”, “appeal of the bottle or label design” and “medals or awards” to be more important than non sparkling wine drinkers
134
§ Appendices § Wine Intelligence Vinitrac® methodology
135
Value segments methodology Questions we have asked – Step 1 § Using Vinitrac we have asked to respondents § Frequency of consumption in off trade = 4 different occasions — A relaxing drink at the end of the day at home = “INFORMAL NON FOOD” — An informal meal at home = “INFORMAL FOOD” — With a more formal dinner party at home “FORMAL FOOD” — At a party/celebration at home “FORMAL NON FOOD”
§ Frequency of consumption in on trade = 4 different occasions — A relaxing drink out at the end of the day = “INFORMAL NON FOOD” — With an informal meal in a pub/bar or restaurant = “INFORMAL FOOD” — With a more formal dinner in a restaurant = “FORMAL FOOD” — A party/celebration/big night out = “FORMAL NON FOOD”
§ We have estimated the average number of times respondents drink wine per month for each occasion: — If “Less than once a month”, then value = 0.5 — If “13 times per month”, then value = 2 — If “About once a week”, then value = 4 — If “25 times per week”, then value = 14 — If “Everyday / most days”, then value = 25
136
Value segments methodology Step 2 § We have calculated a mean spend per bottle for each occasion in the off trade: § § § § § § § §
If “Less than 600¥”, then value = 550 If “Between 600 ¥ and 799 ¥”, then value = 700 If “Between 800 ¥ and 999 ¥”, then value = 850 If “Between 1000 ¥ and 1499 ¥”, then value = 1,250 If “Between 1500 ¥ and 1999 ¥”, then value = 1,750 If “Between 2000 ¥ and 2999 ¥”, then value = 2,500 If “More than 3000 ¥”, then value = 3,250 If “I don’t drink wine on this type of occasion”, then value = 0
§ …and a mean spend per bottle for each occasion in the on trade: § § § § § § § § §
If “Less than 1,000 ¥ ”, then value = 850 If “Between 1,000 ¥ and 1,999 ¥ ”, then value = 1,500 If “Between 2,000 ¥ and 2,999 ¥ ”, then value = 2,500 If “Between 3,000 ¥ and 3,999 ¥ ”, then value = 3,500 If “Between 4,000 ¥ and 5,999 ¥ ”, then value = 5,000 If “Between 6,000 ¥ and 7,999 ¥ ”, then value = 7,000 If “Between 8,000 ¥ and 9,999 ¥ ”, then value = 9,000 If “More than 10,000 ¥ ”, then value = 10,500 If “I don’t drink wine on this type of occasion”, then value = 0
137
Value segments methodology Step 3 § Multiplying the number of times each consumer drink wine and their average spend we have their individual spend per month ﴾including all occasions on and off trade﴿ § We have then allocated each consumer to one of the value segments: — Low value: respondents with the lowest spend 1/3 — Mid value: respondents with middle spend 1/3 — High value: consumers with the highest spend 1/3
138
Vinitrac ® – How can it help you understand the wine consumers and their needs? Vinitrac ® is the only global survey that monitors and tracks wine consumers’ attitudes, behaviour & relationship with wine… Vinitrac ® monitors every aspect of wine drinkers wine lives – from what they drink, where they purchase to their attitude to wine brands & countries of origin. …It even monitors what varietals they favour and what they think of different closures… 139
Vinitrac ® methodology: Japan
Vinitrac ® sample size & methodology: •Adult drinking age •Permanent resident of the country •Drinks wine at least once per month • Drink at least red or white wine • Buy wine in the offtrade and/or in the ontrade Each sample is weighted to be reflective of the ‘regular’ wine drinking population
140
Vinitrac methodology: Online surveys
Sample sizes: At least 500 per survey; 1000 in most countries, 2000 in US Regular adult wine drinkers (where ‘regular’ = Drink wine at least once/month) Each Vinitrac survey starts with questions to screen respondents….. • Adult drinking age within each country • Permanent resident of the country being surveyed • Drinks wine at least once per month • Drink at least red or white wine • Buy wine in the offtrade and/or in the ontrade ..... and rejects all respondents who do not fulfil these Vinitrac criteria
w
Each sample is weighted to be reflective of the ‘regular’ wine drinking population in that market and is therefore both valid and reliable…it’s like a ‘smaller’ version of the wine drinking population at large
141
Frequently asked question: Is Vinitrac a panel?
No • Invitations to participate in Vinitrac are distributed to tens of thousands of adult consumers in each market • Consumers interested in a wine survey are directed to a URL address, which welcomes them to the online survey Wine Intelligence monitors incoming completed responses to build a sample representative the wine drinking population of the target market • When a representative sample of at least 1000 (US: 2000) is logged, the survey is closed
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Why not a panel? • Panels are good for monitoring detailed purchase activity but require regular input from the exactly the same complete group of respondents • This requires more time from respondents for which they are paid and are therefore more heavily skewed towards homebased consumers e.g. students and homemakers • This group of a country’s wine drinking population does not fully represent the accurate weighted sample of adult regular wine drinkers on which Vinitrac insights are based
142
