Frugalpac, makers of the world’s first paper bottle for wines, say the global wine industry faces an ‘existential crisis’ unless it appeals to new drinkers, following a BBC report on the challenges facing the global wine industry.
The PM programme on Radio 4 revealed global wine consumption has decreased by 12% since its peak in 2007.
Radio 4 presenter Evan Davies told the show: “All is not well in the world of wine right now. Global consumption’s been in decline.
“And according to the land and property experts at Knight Frank the values of vineyards have been plummeting in New Zealand by a third in the last year and California’s Napa Valley they’re down 15 percent. The Cote d’Or in France down 10 percent.
“Someone is clearly not drinking enough wine with Gen Z and China partly held responsible.”
Wine critic Jane Rakison told the PM show: “It all stems from the fact that wine consumption is in decline. In fact, wine consumption has been in decline in Europe for decades. It’s just that it was offset by other countries growing. But now they’ve levelled off, it’s starting to have an impact.
In France alone, the younger consumer drinks about half as much wine per capita compared to older generations
Frugalpac CEO Malcolm Waugh said: “The global wine industry faces an existential crisis unless it adapts to the needs of the younger generations.
“It’s wrong to believe they’re not interested in wine. They just want wine on their terms that speak to their values.
“Old-fashioned, energy-intensive heavy glass bottles, labels of Chateaus and outdated traditions just don’t cut it for a generation that values fun, convenience, and sustainability.
“Its clear wine brands can really reach them with alternative paper based low carbon packaging that’s not only five times lighter than a glass bottle but with a carbon footprint up to 84% lower too.
“That’s what Frugalpac and its partner drinks brands have been doing for the last 5 years..
“Our Frugal Bottle is a lightweight, recyclable paper bottle with a six-times lower carbon footprint than glass.
“It’s different, it’s better and it’s helping producers to stay relevant and attract a new generation of wine lovers.
The 360-degree print offering allows brands to really differentiate from the traditional wine bottle image and create brand values associated with what a younger consumer wants to enjoy and be seen with.
“For example, Coldplay chose Frugalpac’s paper Frugal Bottles with When in Rome to lower the carbon footprint for their gigs at Manchester and all 8,000 bottles sold out demonstrating the younger consumer would chose wine over craft beer and spirits if presented in the right way. The litreage of wine sold at the gig far exceeded sales in other formats.
“We also had a great reaction amongst Glastonbury festival goers when we took Frugal Bottles of wine and spirits there from Aldi, When in Rome and Wildjac for sampling last year.”
You can see what festivalgoers thought here.
Frugalpac’s experience has been backed up by a piece by consultancy Grappos that found potential Gen Z and Millennial wine drinkers can be encouraged to buy brands if they meet their sustainability values.
Grappos CEO Eric Kunisawa said “Whether it’s a playful brand identity, sustainability, or an easy-drinking wine that fits their lifestyle, Millennials and Gen Z are reshaping what it means to enjoy a glass of wine.”
On sustainability, Eric writes:
“Millennials and Gen Z not only want brands that openly share their sustainability efforts and ethical commitments–they’ve come to expect this from the brands they support.
“They’re looking for wine brands that support fair trade initiatives, ensuring fair compensation and humane conditions for workers, and sustainable vineyard and winemaking practices.
“They’re also reaching for wine in eco-friendly packaging, , over the traditional glass bottles that typically line shelves.”
Please contact Frugalpac if you want to reenergise your brand and arrest the decline in wine consumption.
Email our Commercial Manager for Frugal Bottles Paula Kendall at paula@frugalpac.com