The canned wine revolution enters a new phase

The wine in can conversation has evolved dramatically over the past couple of years, with many companies no longer asking if they should put wine in cans, but when and how. Although misconceptions linger over the quality of the contents, the focus is now shifting away from the vehicle and onto the driver.

This shift is fuelling a number of convergent trends, including premiumisation, segmentation and corporate reshuffles. The numbers speak volumes about the changes afoot. Research by university lecturer and marketing expert Dr Robert Williams has shown that the number of canned product lines for wine has soared from just 110 in 2017 to 2,200 in 2022. Thirty-four countries are now involved in producing canned wines, versus just seven five years ago, with nearly 900 producers now canning wines around the world. The surge in production and product lines has led to greater consumer awareness, knowledge and segmentation. “Premiumisation is a key trend. Now it’s about the wine, it’s no longer a novelty”, stressed Williams at the 2022 WBWE’s conference ‘The Canned Wine Revolution’. Speaking to a rapt audience, he showed how the trend was reflected in more single AVAs featured in the US product range, more interesting varietals, more organic, low intervention and climate positive (and not just neutral) offerings in cans.

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Blurring the category lines

Alongside premiumisation, the market for cans is segmenting, with niche markets burgeoning. Airline companies like Virgin, Jet Blue and Delta are swapping small bottle formats for cans to offload weight. There is a greater price range in-store, no-lo alternatives are beginning to emerge and sports personalities and celebrities – the likes of Cameron Diaz and Halle Berry – are latching on to the trend. There’s also a bigger advertising spend and link-ups with new distribution channels, such as fast food outlets and delivery services. It’s a virtuous circle – the more consumers engage with the category, the more innovation and choice they seek. And the more the market is attracting the attention of non-wine companies. “Beer, spirits and soda players are under pressure, so they’re entering the market”, commented Williams, also pointing to a new phase of mergers and acquisitions, crowdfunding and investments in the category. The prominent Babe brand was bought by beer behemoth Anheuser Busch and Constellation recently took a stake in Archer Roose, the 2015-founded company with a focus on offering carefully crafted wines in accessible formats, mainly cans. “There’s a market shift, distribution requires money”, pointed out Williams.

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The right place at the right time

Aside from creating sourcing problems – industry giants like Ball are ramping up production but it takes time – the more widespread development of cans has led to a more crowded marketplace for those choosing to enter now. Creating a point of difference has become more vital than ever, but there are myriad options available. “Younger consumers will buy cans because aluminium is recyclable indefinitely and some brands are using that sensitivity”, continued Williams. Pontus Lindqvist, co-founder of canned wine specialist Djuce Wines, believes collaboration is the way forward. “We’re doing collaborations with artists we like who then go out and speak about the project, creating a snowball effect. Also, young people tend to frequent environments where there is no good wine – clubs, festivals etc – and cans are a good opportunity to reach them there. Collaboration is a good way to touch these audiences”. Archer Roose teamed up with American actress Elizabeth Banks. “She has helped get the idea of quality wine in a can across”, said Alicia Towns Franken, the company’s vice-president of the wine portfolio. “Our aim is that this will energise the canned wine revolution and add levity to the conversation”. Archer Roose also targets stadiums and universities: “In Texas, for example, there are 100,000 people per game in a stadium”. Two US universities have even issued their own brand of canned wine to generate revenue.

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No-lo the way to go for cans?

The no-lo segment is increasingly being seen as an avenue for cans to explore. “There’s interest in lower alcohol”, confirmed Marc Tarrida, co-founder of Hands Off Wines. “Supermarkets are interested, even in Spain, and we’re launching two spritzes”. While alcohol-free is a harder sell, Tarida feels that although there is a long way to go, there is also interest here too. The boundaries between no-lo and full-strength drinks are being increasingly blurred and the can format is most certainly at the point where they intersect, pointing to multiple opportunities for development. “We’re likely to see Coke and Pepsi in the market, perhaps with no-lo offerings?” said Robert Williams, adding that one of France’s most established soft drinks companies, Cacolac, also puts wine in cans, in their millions. There is undeniably a cross-over between markets where cans are a staple of the drinks industry and potential openings for wine. “Japan loves everything in a can”, stressed Williams, citing vending machines with wine in a can using an age-validation system. Across Asia, cans are popular and are attracting younger consumers.

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Quality is the top priority

From a supplier perspective, the shift from novelty to more mainstream has upped the stakes for quality. “There are still lots of quality misperceptions so quality for us is absolutely top of the list”, stressed Towns Franken. “We take a top-down approach, through validation by high-end sommeliers”, explained Lindqvist. “Some wineries are still afraid to enter the category because of the low quality perception of cans. We need to get the gatekeepers interested first. We buy in bulk, get high-profile winemakers on board and that starts the conversation”. More sampling is key, added Williams, whose 2021 blind tasting of seven wines in cans and their bottled counterparts revealed that there were no significant taste differences perceived by consumers or industry members. “If consumers try it, they will buy it!”

?Sharon Nagel