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June 2011 Newsletter June 06, 2011

Bottles and Your Brand Global Package LLC is developing a series of white papers to help customers navigate the complexities of bottle selection. Our first installment, “How Your Bottle Choice Impacts Your Brand,” provides guidelines about what factors you need to consider, including the price point at which you envision your wine selling, is your wine to be stored long-term or immediately consumed, and what style, shape, and color bottle will best reinforce your brand concept. We also just published an instructive case study that details how we worked with a spirits producer on the revival and launch of his unique bourbon brand. Both documents can be found on our website: http://www.globalpackage.net Vineyard Property Values Around the World I found this article in the Financial Times both interesting and amusing. Interesting because it compares vineyard properties worldwide. (See the Knight Frank Vineyard Index here: http://bit.ly/kSbwmG). I also loved this amusing anecdote from Viticulture, a group that helps amateur winemakers: “The way to acquire a small fortune is to start with a large fortune and buy an English vineyard.” In short, most wealthy investors in vineyards are “lifestyle” buyers who are more interested in a holiday property than in producing wine. However, according to wine expert, Jancis Robinson, entrepreneurs wishing to pursue the business of winemaking should select a property according to the appellation and the quality and type of grape, not the size or charm of the house that’s on it. Not surprisingly, the Bordeaux region in southern France—currently favored by the Asian wealthy—boasts the most expensive vineyard properties in the world, nearly twice the price of properties in Napa and Sonoma. Whereas the price of many of the established vineyard territories in France and California has fallen, the wine-growing regions in Argentina, Chile, South Africa and other emerging wine-growing countries have shown the most growth in price. Click here for a fascinating read: http://on.ft.com/iq8BEK Standards of Fill for Spirits My thanks to Steve Dalbey, of Distillery Code Consulting, who confirmed for me that 500 ml bottles are no longer permitted by the federal code; they were “authorized for bottling (only) until June 30, 1989.” Steve found the information on the GPO Access website in the Electronic Code of Federal Regulations section, 5.47a. You can find current metric standards of fill and other useful information on this site, including tolerances and design and headspace requirements for distilled spirits. Click here: http://bit.ly/iBUtXd Packaging Trends Not surprisingly, pop culture, such as Lady Gaga and her over-the-top aesthetic, is impacting packaging design. I came across this great article by Cheryl Swanson on brandchannel.com that takes a look at what consumer packaged goods (CPG) designers need to know about “Trends for the New Decade.” Gilded and baroque designs are winning over consumers in China; educational apps appeal to the binary generation (those techno-tykes who were born after 2000); Boomers are “cross-breeding” with Millennials as college students; and women continue to be the most influential consumers. A good example of a sleek brand that appeals to today's sophisticated female consumer is Daviana Winery's Estate Grown Cabernache (pictured at right) that's designed by CF Napa Brand Design and bottled in Global Package's Elegant Light Bella burgundy bottle. Swanson explores other trends as well in this well-written and smart overview. Click here: http://bit.ly/mCfWmi Millennials and Gen-Xers Drive U.S. Wine Growth The Wine Market Council released results of its 2010 Consumer Tracking Study, which found that, despite the recession, total wine consumption in the U.S. has remained steady, with a slight .9 percent uptick in 2010. Most significant, Generation X adults, those in their mid-30s and early 40s, are leading the charge by incorporating wine into their lifestyles. The Millennial Generation, with its 70 million members who have been less impacted by the economic downturn than the older Boomer generation, are dominating the market. Even better news for the industry, “16 million members of the Millennial generation who have yet to reach the age of 21 gives some assurance to wine marketers of continuing market growth in the near term.” You can purchase the full report and read a summary here: http://bit.ly/mOUDGr News 'n Notes On June 9th, Erica will be speaking on Packaging and Brand Development at ADI’s “Hands-on Whiskey” Workshop in Petaluma. If you’d like to attend, click here: http://bit.ly/cfkRpQ …According to Fortune Brands, its Beam Global Spirits & Wine is being repositioned and renamed Beam Inc. as a standalone division with a pure focus on distilled spirits, no wine, and selling off its golf, and home & security holdings (http://bit.ly/mUsS5Z) …Winelovesglass.com says that a glass wine bottle is best because it protects taste; is the classic, preferred choice of wine drinkers; is convenient because it can be found in many sizes, including single-serve bottles, with alternative closures for easy opening/closing; is made from all natural materials; and can be recycled endlessly (http://bit.ly/dPp4hd) …The U.S. is talking with South Korea about eliminating its 20% import duty on bourbon and Tennessee whiskey, which could result in a rise in exports to Korea of about $17.6 million per year (http://bit.ly/jEnNO8).