Learn to Leverage Canned Wine’s Million-Dollar Business

Apr. 30, 2019

 

“Cans! Cans! Cans!”

That was our exact prediction for 2019 and we weren’t wrong.

In the last year, canned wine has seen an immense amount of growth and it’s now a $69 million industry.

Cans are portable, environmentally friendly and most importantly, convenient. And today’s top wine brands are leveraging that to expand their reach.

But how can businesses — both on- and off-premise — use canned wine’s growing popularity to their advantage?

We spoke with Breakthru Beverage Colorado Business Managers Lauren Carroll, Bryan Morton, Janet Russo and Crystal Trout to crack open the canned wine code.

Can You Tell Us Why?

Canned wine may be popular, but it isn’t a fad.

“Canned beer has become more widely acceptable and it’s widely known that canned beer is not cheap beer,” Carroll said. “I think that just has just organically moved over to the wine business.”

While canned wine is taking cues from other canned beverages, it has a staying power given to it by millennials.

 “I think the biggest thing driving canned wines is millennials looking for an alternative way to drink wine and another occasion to drink wine,” Morton said.

The “alternative way” Morton mentions is fueled by convenience. 
 
“Canned wine is single-serve, so somebody doesn't have to open up a full bottle and drink the whole thing,” Morton said. “They can just have one can, which is anywhere from 187ml to 350ml or 375ml.”

A can of wine can be carried along during a hike or opened during a day at the beach. For bars and restaurants, there isn’t a commitment to an entire bottle. Sometimes, half is much more doable — and potentially more profitable.

Size Experiment

As previously mentioned, canned wine comes in a variety of sizes: 187ml, 350ml and 375ml.

The size range seem to be experimental, with the industry trying to determine which size is the best size. However, the size served largely depends on whether a business is on- or off-premise, Russo said.

For on-premise, it’s more common to see 187ml to 350ml, which equates to one to one-and-a-half glasses of wine. For off-premise, the larger 375ml cans are for the people who want to take them home or on a trip. A 375ml equates to two glasses of wine.

The Selling Point: On-Premise

Like the size, the appeal of canned wine is unique to each business.

The big draw of canned wine for on-premise accounts is safety.

“There is an opportunity for places with outdoor patios because a big concern that restaurants have with glassware is breakage,” Trout said. “Alternative packaging like canned wine prevents broken glass incidents.”

The sentiment is the same for rooftops, large venues, outdoor spaces and more casual bars and restaurants.

“You won’t necessarily see a lot of activation with canned wine in a white table cloth restaurant,” Carroll said. “It’ll be more so your casual bar and grills with good outdoor seating and rooftops.”

Canned wine’s casualness is also what fuels its growing need. Simply put, it’s quicker.

“On-premise places would benefit from canned wine’s speed of service,” Carroll said. “There’s no finding the wine key, no corking a bottle. You just crack open a can and that’s it.”

The Selling Point: Off-Premise

An individual can of wine markets well to an individual.

Retailers that offer canned wine send the message, “There is something for everyone.” 

“If your wine knowledge isn’t up to par, canned wine will help get you into the wine-drinking area,” Carroll said. “Canned wine is a little less intimidating and more approachable.”

An extensive range of wine, especially in single cans, encourages new consumers to delve into the wine world. And if they like it, they’ll return to the store to buy larger, 750ml bottles.

Strategic placement, like near the cash register or at the end cap of an aisle, can also signal an impulse buy, Russo said. There is an opportunity for consumers to mix-and-match their wines, similar to a customizable six-pack.

“It can be an incremental purchase too,” Morton said. “Someone might just pick up a can because they want to have it for another occasion.”


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