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Napa Technology Releases 2nd Annual Wines by the Glass Survey Results

Results include: Wine by the glass volume has increased over 2011 with nearly 30 percent selling glasses of wine above $26. 68.7 percent report the average price for a glass of wine is under $12.
  • <strong>Wines By The Glass Sales Increased In 2012. The average price for a glass of wine in a retail environment is under $12 in the United States.</strong>
    SAUSALITO, CA, September 21, 2012 /24-7PressRelease/ -- Napa Technology, developer of the WineStation Intelligent Preservation and Dispensing System, today released the results of its Second Annual Wines By The Glass Survey.

The questionnaire asked wine merchants, restaurateurs, and hospitality professionals to shed light on the pace in which wines by the glass sales and programs are evolving and the impact that consumers and the economy are having on this valuable piece of their business.

The survey reveals that wines by the glass programs are being pressured by consumer demand for wider assortments of varietals and their expanding knowledge of how wine should be served. All equaling staggering profit increases as well as new challenges in the on-premise environment.

More than 86 percent of respondents state that consumers have become more selective, opting to buy an expensive wine by the glass that would otherwise be cost-prohibitive to order by the whole bottle. Furthermore, 52 percent believe their guests are able to identify oxidized or otherwise spoiled wines, raising the stakes for operators.

The survey also showcased the fact that not all operators have capitalized on the trend, mostly owing to the lack of a reliable wine preservation system or techniques.

Putting the glass where the profits are, operators saw continued overall sales climb with most survey respondents saying that consumers were looking for more variety when ordering wines by the glass. Seven out of 10 respondents saw an increase in consumption of wines by the glass in their establishments. For 23.9 percent of respondents the percentage of increase was 11-15 percent and for 19.6 percent of respondents, the increase was in the 20 - 25 percent range. A further 8.7 percent saw an increase of more than 25 percent.

Consumers have long expected white tablecloth restaurants to serve fine wines by the glass, yet the rise in total number of offerings has reached into causal and polished casual dining, topping the scales at an average of 25 selections. Further still, this trend is extending itself into non-traditional venues such as sporting arenas and airports, showcasing that when consumers want finer wine options, they expect to have it at their fingertips.

"This is a promising time for the consumer," said Nick Moezidis Co-founder and VP of Sales at Napa Technology. "Guests today are more sophisticated and less encumbered by the economy, thus forcing on-premise operators ranging from airports, arenas and casual dining to serve better product and more of it. The challenge is how to be both competitive and profitable.

Wine preservation systems, such as the WineStation, can allow operators the ability to handle product pristinely for a period of 60 days in a temperature controlled environment. Furthermore, such dispensing systems allow for to-the-ounce pouring accuracy. An increasing number of establishments identified significant growth in offering fine wines by the half glass. Some 35.6 percent of survey respondents report offering half glass options. Fifty percent reported offering a half glass option for the past 1-3 years and 35 percent have been doing it for more than three years, fueling consumer demands for more choices in their dining experience.

Part of what's driving the trend is a more sophisticated consumer who is very knowledgeable about wine. More than 8 out of 10 respondents said that consumers are becoming more wine savvy. Fifty-two percent of respondents said that consumers are now able to identify a corked, oxidized, or otherwise spoiled wine. Oxidation has long been an issue for winemakers whose products are often stored and served improperly, leading to consumer dissatisfaction with their wines.

How common are wine preservation systems? Some 59.6 percent of respondents reported having a system in place for preserving wine, leaving room for many to improve their business practices. However, 40.4 percent of survey respondents had no wine preservation system in their establishments. But even operators without wine preservation systems have seen consumer expectations change, with 66.7 percent reporting an increase in sales of wines by the glass during the past year.

"There is no question that the advent of preservation techniques in the late 80's had an impact on both consumer demand and what was being produced and served. The shift away from house wines to varietals was absolutely a result of operator ability to handle this product. It'll be exciting to see what the next few years bring as Millennials are adventurous drinkers with deep pockets," says Jayne Portnoy, VP of Marketing & Brand Development for Napa Technology.

When asked to describe how their wines by the glass program compares to the way it looked a year ago, 40.8 percent of respondents overall cited a larger number of options available to their customers. Other changes noted by survey respondents during the past year include an emphasis on additional varietals (57.1 percent), regional or boutique wines (34.7 percent), and a wider price range (26.5 percent).

The average amount consumers are willing to pay for a wine by the glass varies, according to the survey, with 35.4 percent of respondents saying consumers wouldn't pay more than $10 for a glass of wine. But 33.3 percent saw prices in the $10-$12 range. A further 25 percent saw patrons willing to pay $13-$15 per glass, and 6.3 percent of respondents said that consumers were willing to pay $16-20 a glass on average. Actual prices for wines by the glass varied, too. A plurality of respondents (36.7 percent) sold their highest priced wines at $10-$12 per glass but 26.5 percent of respondents offered wines by the glass for $21-$25 at the high end. Some 14.3 percent said their highest priced wine by the glass was $26-$30 and a further 14.3 percent offered wine for more than $30 per glass.

About Napa Technology
Napa Technology, LLC is a designer and manufacturer of Intelligent Dispensing Solutions for wine that ensures optimum freshness with each pour. The company's breakthrough product, WineStation , is designed to drive revenues and maximize the profitability of each bottle. WineStation has been adopted by hospitality, entertainment and foodservice industries as a new way to serve, preserve and capitalize on the value of available customer preference data.

For additional information on WineStation and Napa Technology visit www.napatechnology.com.


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