Friday, April 20, 2007

TRADING UP PHENOMENON REVEALED

AS REPORTED BY WINE & SPIRITS DAILY - "THE TRADING UP PHENOMENON REVEALED. One trend we're seeing time and time again - can you guess? - is trading up. It affects every avenue of the alcohol beverage industry as premium and super-premium sales shoot through the roof. Why is that, do you think?

What are consumers looking for when they trade up in wine and/or spirits? Will the trading up trend last? Understanding this phenomenon is key. Terms like "quality," "prestige" and "image" popped up the most in our survey, but here's a closer look at what you had to say:

"Trading up is The American Way".

"We all trade up. My first car as a VW bug and now I drive an Audi. My first wine was Blue Nun, now I am one (couldn't resist). The trade up trend will be with us for a long time, particularly since there is an interest by Young wine drinkers. They will get older but they will never want to go back to the bottom"

"Consumers either want approval of peers or the self-satisfaction of drinking a better product (at least the perceived better product)."

"Consumers are trading up in the on premise locations due to societal pressures."

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