Treasury ripe for slim pickings in US wine market
Sourcing grapes from its northern Californian vineyards to produce a wine that contains up to one-third fewer calories than standard wines, Treasury Wine Estate's new Skinny Vine label has reportedly sold 100,000 cases since its launch in January.
It is seeking to break into a multibillion-dollar market segment typically populated by women who enjoy a drink but are watching their weight.
The theme is also being explored by other divisions within the Treasury Wine Estates group - the former global wine arm of brewer Foster's.
Lindeman's Early Harvest range features a growing collection of reds, whites and sparkling wines that use grapes from south-eastern Australia to produce a wine that is 25 per cent lighter in alcohol and calories.
Early Harvest has been a hit in Australia since launching five years ago, appealing to an older demographic, men and women who enjoy wine but want to keep trim - and don't welcome a hangover the next day.
Treasury produced a low-calorie wine, a slim chardonnay called White Lie, in 2004 through its US winemaker Beringer. But the brand was pulled from the market due to disappointing sales.
Skinny Vine builds on the success of other low-calorie brands such as the Skinnygirl ready-to-drink range of cocktails, created in 2009 by TV reality show queen Bethenny Frankel and later sold to spirits company Beam Global for an estimated $US64 million.
These wines and cocktails play on market research showing that up to 80 per cent of women are dissatisfied about their physical appearance, that 20 per cent of Americans are on a diet or are actively counting their calories and that the majority of alcohol purchased in the US is bought by females.
"We call these consumers 'calorie avoiders', aged 21 and up, female, and they are counting calories, probably currently dieting. Being attractive to the opposite sex is important to them and they try a lot of new diets," Treasury marketing vice-president Tom Smallhorn said. He said the new Skinny Vine wines, a chardonnay, white zinfandel and moscato, ranged from 7 to 9 per cent alcohol content and 86 to 95 calories per glass.
They have a retail price of $US7 to $US10 a bottle and the backing of Los Angeles nutritionist and Christine Avanti, author of Skinny chicks eat real food and Skinny chicks don't eat salads.
Frequently Asked Questions about this Article…
Treasury Wine Estates has re-entered the US low-calorie wine market with the Skinny Vine label — three slim wines (chardonnay, white zinfandel and moscato) made from grapes sourced in northern California. The range is marketed as having up to one-third fewer calories than standard wines and is endorsed by Los Angeles nutritionist Christine Avanti.
According to the article, Skinny Vine has reportedly sold about 100,000 cases since its January launch. The wines have a retail price range of about US$7 to US$10 per bottle.
The Skinny Vine wines range from roughly 7% to 9% alcohol by volume and are reported to contain about 86 to 95 calories per glass, reflecting the brand's low-calorie positioning.
Lindeman's Early Harvest, part of Treasury's broader group, uses grapes from south-eastern Australia and produces wines about 25% lighter in alcohol and calories. Early Harvest has been on the market for around five years and appeals to an older demographic of men and women who want lower-alcohol, lower-calorie options.
Yes. In 2004 Treasury produced a slim chardonnay called White Lie through its US winemaker Beringer, but that brand was pulled from the market due to disappointing sales.
The article notes this is a multibillion-dollar market segment driven largely by women who are watching their weight — with research cited that about one in five Americans are on a diet and that most alcohol purchased in the US is bought by females. Brands like Skinny Vine and comparable products aim to meet demand from calorie-conscious consumers.
Yes. The article cites Skinnygirl, a ready-to-drink cocktail range created by TV personality Bethenny Frankel in 2009, which later sold to spirits company Beam Global for an estimated US$64 million — an example of a celebrity-backed, low-calorie alcohol brand finding commercial success.
Investors might monitor early sales momentum (for example the reported 100,000 cases sold), consumer reception of the Skinny Vine positioning and endorsements, pricing strategy (US$7–US$10 per bottle), competition in the low-calorie segment (including Lindeman's Early Harvest and celebrity-led brands), and whether Treasury can sustain demand where past efforts like White Lie did not meet expectations.
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