In a market where tradition is losing ground to new practices, sustainability is top of mind, and convenience is paramount, it’s not surprising that the evolution in wine packaging continues. The classic 750-ml. bottle with a cork and foil closure is still the backbone of the wine industry in the United States, but demand for alternative packages continues to ratchet up. Bag-in-box, cans, kegs, and tweaks to bottle formats have all made headway in the U.S. wine industry over the past decade as marketers seek to appeal to a broader range of consumers. Some of those wine drinkers—generally but not exclusively the younger set—are accustomed to consuming on their own terms, whether it be a box of wine at a party, a can at the beach, or a keg behind the bar. Marketers continue to step up and deliver.
E. & J. Gallo Winery, for example, boasts a diverse portfolio of wines that meets the needs of a broad range of consumers, so it’s only fitting that its wine packaging follows suit. “Gallo is very diverse when it comes to our packaging types,” says Gallo’s packaging innovation principal Nicole Milsap. “We’ve got everything from glass bottles, to bag-in-box, to kegs. We have some PET bottles, we have aluminum [cans] and aluminum bottles—we try to touch them all. We always try to meet the consumer where they are, and consumer needs vary. We know our products can fit in many different occasions, and the packaging allows them to go where the consumer wants to take them.”
Matt McHargue, senior vice president of brand management for Constellation’s Wine & Spirits Division, says alternative packaging allows the company to align two overarching goals. In addition to alterations to traditional glass bottles, “We’ve also launched packaging alternatives outside of glass where they meet both consumer needs and our sustainability goals, including aluminum cans, bag-in-box, and TetraPaks,” he says. “These formats are currently a small portion of our overall SKU base in wine and spirits but are seeing fast growth.”
Portion Control
For many consumers, consumption is often about convenience. A 750-ml. bottle of wine, while perfect for sharing with a partner at an evening meal, can be cumbersome at a pool party or on the beach, where canned wine comes into play. Boxed wine can be great for a party but it also appeals to individual wine drinkers who like the preservation features that the package provides.
Delicato Family Wines launched its first boxed wine, Bota Box, 20 years ago, and considers itself a leader in alternative packaging. Vice president of marketing Gabriela Becker says the 3-liter box segment continues to grow, and other packaging options are gaining as well. “Within the premium box wine category, the most exciting story over the past year has been the explosion of consumer interest in the 500-ml. format,” Becker says. “This category grew 10% in 2023, which is huge in an industry that was down 1% for the year. Bota Box Mini, which is packaged in 500-ml. TetraPaks, grew 26% within the same timeframe.”
Delicato doubled down on the packaging late last year with the introduction of two new 500-ml. TetraPak wines to the Bota Breeze light wine lineup, a Pinot Grigio and a Sauvignon Blanc. The winery also offers canned wine with the Sofia brand within the Coppola Winery portfolio. Sofia Wines have been packaged in cans for 20 years and a packaging refresh will be rolled out this year. Smaller bottled formats are also getting attention at Delicato. The winery recently introduced a 375-ml. format of Coppola Diamond Collection Claret, which is the flagship wine in the Diamond Collection portfolio, as well as a 187-ml. version of Coppola Prosecco.
“With smaller formats in alternative packaging, the drivers are different,” Becker says. “First, consumers like the ‘grab-and-go’ convenience and portability of small formats. Second, small formats align with the macrotrend of moderation that’s been embraced by consumers in recent years. Opening up a small format wine makes it simple to drink less alcohol, and also puts the focus on quality over quantity, which is something we’re also seeing with wine consumers.” Affordability and the consumer penchant for everyday luxuries are also factors. “Popping the cork on a 375-ml. of Prosecco on a Tuesday night is an easy way to treat oneself without the commitment of opening a full-size bottle,” Becker adds.
Precept Wines was also an early adopter of alternative wine package, launching House Wine in the box format in 2013 and the same brand in cans in 2017, which followed a canned wine stint with a brand called Westside in an exclusive deal with Whole Foods. House Wine has partnered with the Human Rights Campaign, showing its support through rainbow cans and other rainbow-themed packaging. Precept chief marketing officer Alex Evans says he believes the traditional 750-ml. glass bottles will continue to be the primary driver of the category, but other packaging is increasingly accepted. “I think younger consumers are more open,” she says. “They just aren’t as mired in traditional ideas of products kind of across the board.”
Ste. Michelle Wine Estates launched its popular wine brand 14 Hands in cans in 2019 in the company’s first foray into alternative packaging. The format has been a big success, according to brand director Tim Cannon, who notes that “that the people purchasing 14 Hands cans were new to the brand.” In 2020, Ste. Michelle launched Top Box, its first box format wine.
“We’ve seen that many wine consumers are very open to alternative packaging and generally have positive impressions, especially younger generations,” Cannon says. “They see these formats as more portable, and great for casual occasions, whether relaxing at home with friends, or for outdoors activities at the pool, beach, or a concert. Consumers continue to want alternative packaging that looks modern and stylish. And they don’t want to compromise quality. The formats must deliver flavor and quality and keep the wine fresh, and cold for white wine varietals.”
Focus On Sustainability
E. & J. Gallo Winery’ s packaging has expanded to meet the shifting consumer demand, and Milsap stresses that the drive to packaging diversity is all about the consumer. “Our consumers want these different things, and so we want to support them in that. Fortunately for us, a lot of these different packaging types are also sustainable,” Milsap says. “What you’ll find is that these packages aren’t binary—they’re often multiple things. It meets a consumer need but also helps us from a sustainability standpoint. And in some cases, like lightweight glass, there might even be a cost savings with it. These packages do multiple things for us as a company, but first and foremost, they help us to serve the consumer.”
Sustainability is a key driver of packaging diversity for many wineries. At Delicato Family Wines, Becker says the company has its own goals for sustainability and, in addition, today’s consumers have an expectation of it. “A growing desire to buy sustainably made and packaged products, and a growing understanding of the ecological advantages of the box format is also coming into play with the category, particularly with Millennial and Gen Z consumers,” she says.
Constellation’s McHargue agrees, noting that consumers make decisions based on environmental factors. “Based on a study conducted by PwC in 2021, 83% of consumers are more likely to engage with brands that demonstrate a sincere commitment toward environmental and sustainability issues,” he says. “Data has shown that sustainable packaging and purity of ingredients are the two drivers they care about most, and Gen Z and Millennial consumers are willing to walk away from brands that are not thoughtfully investing in these areas.
“Sustainability initiatives are an important way to further align ourselves with what consumers want while delivering on our commitment to operate in a manner that safeguards our environment and natural resources,” he adds. In addition to alternative packages, that involves “lightweighting” the standard 750-ml. bottles, label and cork optimization, and capsule removal for select brands.
Bottle Tweaks
Like Constellation Brands, many wineries are looking to tweak wine’s traditional packaging to make it both more consumer- and environment-friendly. Much of the focus is on the bottle itself. Dollard, for example, says despite some experimentation with cans, the vast majority of the Treasury Wine Estates portfolio is packaged in bottles. “That’s why (pursuing) alternatives in bottle weight is a really big priority for us,” he says, noting the company has set goals for reducing glass weight as part of its sustainability efforts.
Since 2022, leading brands from Ste. Michelle Wine Estates have featured lighter-weight glass in an effort to reduce emissions. “In 2023, we also focused on reducing the miles our packaging travels to get to our facilities and have brought on two new suppliers for glass and cardboard that are within 30 miles of our wineries,” Cannon says.
Precept Wines has also moved to lighter-weight glass. Evans says the company’s focal sustainability project—the Browne Forest Project, a forest planting effort—spurred the shift. “We realized we can’t build out a brand that is supporting the environment and then not put it in environmentally sound packaging,” she says. “So [we transitioned to] lightweight glass. It’s actually 31% lighter than the typical wine glass, which is just a great impact on carbon footprint. Also, our shippers are sourced from responsibly managed forests, and the labels are all made of recycled paper. We really felt that it was important that as we launched the project, coming from a very authentic passion of ours, that we make sure that we carry that through the entire process.”
Evans adds that the company hasn’t received much consumer feedback on the lighter glass. “To me, that suggests that it’s just kind of a non-issue,” she says. “I think that all of us in the industry associate heavy glass with high quality, in the U.S. especially. But when you’re in Europe, it’s very common to have much lighter weight glass with really high-quality wine. Taking a cue from the Old World, hopefully that will become a norm.”
Another bottle shift is the increasing use of the screw cap replacing the traditional cork and seal closure. Screw caps have been slowly making inroads for the past two decades and have become commonplace on Washington and Oregon wines, but less so on California entrants, especially at super-premium and above price points.
Danielle Cyrot, winemaker at Cade Estate Winery in the Napa Valley, has been conducting experiments on screw cap liners with varying levels of permeability. Cyrot says she bottled the 2011 Howell Mountain Cabernet Sauvignon using ten different liners, as well as a cork option. “I’ve been tasting them now for almost ten years to see how the wine has evolved,” she says. “Believe it or not, there’s a difference in how the wines taste and age under these different liners.” And while she adds there’s no perfect liner or closure, as it depends on when the wine will ultimately be consumed, the screw caps can mimic the cork closure without the issues associated with cork.
“I’m really happy that screw cap manufacturers have provided different options in liners because it’s something that we didn’t have even 20 years ago,” Cyrot says. “Back then, tin was the only option. Now with more options, it’s just another piece that the winemaker can use to make sure that wine is exactly the way we want it to be when the consumer is drinking it.”
After that, the consumer has to buy in. Cyrot says all of Cade’s whites are bottled with screw caps, but for reds, cork is used for half or more of each bottling due to consumer expectations. Despite being presented with evidence and assurances, reticence remains. “I can go through all the reasons why screw caps are a really good closure, and then people say, ‘I want the cork.’” Cyrot says. “But there’s also a set of consumers who don’t care—particularly with the younger generation. Consumers are getting more used to it and attitudes are changing.”
On The Label
Attitudes are also changing about health and nutrition. Evans says the wine industry is a bit behind the curve on conveying information to the consumer. “Over the last decade or so with health and wellness trends, people are so thoughtful about everything that they consume,” she says, pointing out that wines are one of few consumable products not to list ingredients on the label. She believes there is opportunity in that vein.
“We launched a transparency program a couple of years ago with Sprouts,” she says. “And with our partner Whole Foods, we do some exclusive labels that we’re moving into lighter glass, and also putting FDA labels on the back with the content information.
Oregon’s Sokol Blosser Winery this year added nutrition and ingredient information on its label for the 2023 Estate Rosé of Pinot Noir. The winery plans to add that same information to labels for its entire portfolio of wines over time, with the next new release scheduled for the spring. “More and more, consumers—especially younger consumers—want to know not only where their wine comes from, but what’s in it,” says Sokol Blosser president Alex Sokol Blosser. Given that that EU regulators already enacted mandatory nutrition and ingredient labeling in December, and Sokol Blosser expects the U.S. government’s Alcohol and Tobacco Tax and Trade Bureau to do the same, it was an easy decision to add the information, he says. “Why not give the people what they want?”