Celebrity-Branded Wines Thrive in US Market

Celebrity-Branded Wines Thrive in US Market

Celebrity-branded alcohol beverage products – those directly associated with a famous person – are gaining popularity in the US, and wine is leading the category, having grown steadily in sales and category share since 2000, according to The Nielsen Company:

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Film director Francis Ford Coppola, former NFL coach Mike Ditka, professional golfer Greg Norman and, most recently, Martha Stewart and Paul Newman, have released wine and spirits brands.

Below, some of the findings issued by Nielsen.

Celebrity Brand Growth

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In 2007, celebrity wine sales…

  • Were up nearly 19% from 2006 in grocery stores
  • Increased 8% in liquor stores
  • Accounted for 0.9% ($41.8 million) of total wine sales

Celebrity spirits sales…

  • Were also up 19% from 2006 in grocery stores
  • Increased 21% in liquor store
  • Accounted for 0.3% ($7.5 million) of total spirits sales

Paying More

Though promotions, such as in-store advertising, are driving incremental sales, celebrity wines do not necessarily receive more attention:

  • 50% of celebrity wine volume is sold on promotion – about the same as the table wine category as a whole.
  • Compared with other table wine, however, celebrity wine pricing is on average higher – $8.50 per 750ml bottle vs. $5.75. Most celebrity wines are priced between $12 and $15.

Regional Markets

West Coast consumers are more receptive to celebrity brands:

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Phoenix consumers in particular, as well as those in Los Angeles, San Francisco, Dallas and San Diego, are more likely to purchase celebrity wine than those in other metro areas.