Case Study | Delicato Family Vineyards

Innovation — the Catalyst for Overall Wine Category Revitalization

Using Market6, Delicato Family Vineyards and a leading national grocer gained new insights which helped them:

  • Innovate and introduce a new premium 1.5L box wine concept
  • Revitalize the stagnant wine category
  • Increase category sales 3.5%

Challenge

In early 2014, a leading national grocer approached Delicato Family Vineyards for help in bringing new innovation into their wine category. Delicato had pioneered the 3L boxed wine format and its Bota Box brand consistently ranked among the grocer’s top-selling box wine items.  

While overall wine category sales were stagnant for this grocer at the time, sales of premium 3L box wine were up by double-digit rates. Delicato proposed that the grocer introduce a set of 1.5L Bota Box items into stores so that shoppers, having already become enthusiastic buyers of 3L box wine products, might also purchase the 1.5L Bota Box item, thus growing sales of 1.5L wine and the wine category overall. 

Solution

Delicato worked with the grocer to define a new 1.5L boxed wine concept, which offered today’s shoppers what they value most — sustainability, freshness and portability.

Delicato used Market6 data and analytics to compare baseline sales of wine and box wine across stores and to select a set of 109 test stores and 24 control stores to participate in a pilot rollout test of the new 1.5L Bota Box items. During the 24-week pilot test, Delicato and the grocer monitored sales closely, using daily item/store-level sales reports across the entire category to track sales for the 1.5L items and overall category sales.

Impact

  • Dollar sales for the total wine category grew 3.5% during the pilot test
  • During the pilot test, stores that did carry the 1.5L boxed wine saw total wine category sales grow 7.5% (vs. control stores that did not carry the 1.5L items, which saw total wine category sales decrease 4.0%)
  • During the pilot test, stores selling 3L box wine grew 10.2% (vs. stores that did not carry the 1.5L items, which grew 3.8%)