WTN Services-Wine Market Battleground part 2
In our post from October 25th concerning the wine market battleground the the evolving models I asked the question of what models are beginning to gain traction in the US? The three models I presented were…
- The German model is based upon low cost (one euro per liter) and hard discount sellers like Aldi. Certain retailers in the US have begun to take note of this model due to the recession.
- The American model historically has been all about corporate brands like Gallo and Constellation Brands but that model is in flux as the big boys aren’t moving wines like they were a year ago via the traditional method.
- The British model is built upon upscale supermarkets and the house brands they sell.
Recent trends suggests that the British model is gaining ground, both in the UK and here in America, where it is the model that drives Costco sales (Trader Joe, on the other hand, uses a version of the German system).
Interesting on that subject 7-Eleven announced that they were entering the wine market with a 7-Eleven house blend at a value price. In an article titted “Sauvignon to Slurpees” on Daily Finance.com 7- Eleven responds to the market shifts…. Interesting and timely to our questions..,
Chris Edwards
Vice President and General Manager WTN Services