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North Americans Prefer Cork Stoppers

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North Americans Prefer Cork Stoppers ISSUE 36 • November 2016 4 NDtech wins two major Innovation Awards 5 Helix enters the US wine market with Bronco 7 Master of Malt drops glass closures to concentrate on cork stoppers 8 Spanish winery Bodegas Hispano+Suizas adopts NDtech 9 Amorim presents its Ninth Sustainability Report 3 North Americans prefer cork stoppers Recent market research conducted in the USA and Canada provides further confirmation that cork is the preferred wine stopper for consumers 2 Bark to Bottle The study highlights the fact that for consumers the type of stopper is perceived as a key indicator of quality and eco-friendliness 3 nov’16 # 36 North Americans prefer cork stoppers North American consumers overwhelmingly prefer cork stoppers ecent market research conducted in the USA and Furthermore, the study revealed that eco- RCanada provides further confirmation that cork is conscious consumers pay significantly greater the preferred wine stopper for consumers, who are attention to the use of natural cork stoppers than willing to pay a significant premium for cork-finished any other environmental friendly claims, including wines. the presence of eco-logos on the wine label. The preference for cork delivers a major Further analysis on recent trends in the difference in terms of the sales potential of wines. North American wine industry is provided in an According to recent data on the US market article published in February, 2016 in The Atlantic disclosed by Nielsen Scanning Statistics, for the magazine, entitled “How Millennials (Almost) Killed Top 100 Premium Wine Brands during the 6-year the Wine Cork”. period between June 2010 and June 2016, cork The article suggests that Millenials (i.e. persons finished wines have enjoyed a 42% increase in born after the mid-1980s) were initially keen to try sales compared to a 13% increase for wines using out alternative closures, as part of a wider attraction alternative closures. to try out new trends, but have now shifted strongly Over the last six years brands finished with cork back in favour of cork, in particular due to its quality have enjoyed more robust sales growth than brands and sustainability credentials. finished with alternatives closures and the number of The article clarifies that key factors explaining top brands using cork closures is increasing. the progressive appeal of cork amongst all wine Cork-finished wines retail at a significant price consumers, including Millenials, are the rigorous premium. Amongst the top 100 Premium Brands the quality control measures that have been adopted in median sales price for cork finished wines, was $13.56 the cork industry, delivering a 95 percent reduction – which is $3.80 (+39%) higher than the median price in TCA since 2001 according to tests conducted by of wines sealed with alternative closures. the Cork Quality Council, and growing awareness of A separate study for the Canadian market, cork’s multiple environmental benefits. published in July, 2016 by the American Association These findings for the North American market of Wine Economists, “Importance of eco-logo and confirm recent market research that has consistently closure type on consumer expectations, price shown that over 85% of wine consumers in other perception and willingness to purchase wines in key world markets - such as France, China, Italy Canada” indicated that cork finished wines are and Spain – overwhelmingly prefer cork, which preferred by Canadian consumers, who are willing to is valued as a guarantee of quality, a natural and pay CAN$1.69 and CAN$1.29 more for wines sealed environmentally friendly closure, and an integral part with natural corks compared to those sealed with of the wine and spirits experience. synthetic or screw cap closures, respectively. The study highlights the fact that for consumers the type of stopper is perceived as a key indicator of both a wine’s quality and also influences perception of its eco-friendliness and thus has a major impact on purchase decisions. 4 Bark to Bottle NDtech wins two major Innovation Awards Revolutionary packaging solution wins a Gold Innovation Award at Vinitech Sifel 2016 and an Innovative Tech silver medal at Intervitis Interfructa Hortitechnica 2016 morim’s ground-breaking NDtech individualized Acork stopper screening service, that offers the world’s first natural cork with a non-detectable TCA guarantee* has won two major Innovation Awards. In Vinitech Sifel’s 2016 Innovation Awards (Vine and Wine category), NDtech has won the prestigious Gold Award. The award jury presidents, Jean-Luc Berger and Pierre Gaillard, highlighted the fact that NDtech is the latest and most advanced technology in the combat to eliminate TCA and is playing a key role in improving the quality of wines. The award ceremony will be held on 30 November, during Vinitech Sifel (29 Nov. - 1 Dec.) - the bi-annual international trade show for the wine, fruit and vegetable production sectors, that places a special focus on highlighting new innovations in the sector. The Vinitech-Sifel Innovation Awards profile new products, processes and technologies that are defining the future of viticulture and winemaking and fruit and vegetable production. The awards include a special jury prize, 2 gold awards, 3 silver awards, 4 bronze awards and 11 special mentions. NDtech has also won a Silver Medal in the Filling and packaging technology category of the Innovation Awards of the bi-annual Intervitis Interfructa Hortitechnica, the international technology trade fair for wine, juice and special crops. The Innovation Awards are attributed by the The Vinitech-Sifel German Winegrowers’ Association in cooperation with DLG (German Agricultural Society) for technical Innovation Awards profile processes, systems, products or services. The international jury emphasized the fact that new products, processes NDtech is a considerable improvement on previous methods. The award will be presented to Amorim and technologies that Cork Germany during the trade fair, that runs 27-30 November 2016. are defining the future of NDtech is the fruit of Amorim’s long-term commitment to supporting innovation and research viticulture and winemaking in the wine packaging sector. The solution is already available in 6 countries and is being applied to and fruit and vegetable Amorim’s top-end natural cork stoppers used by some of the world’s most valuable wine brands. production. 5 nov’16 # 36 Helix enters the US wine market with Bronco Bronco launches the first American wine to be sealed with a Helix stopper are proud at Bronco to be the first winery in America to deliver this incredible innovation”. Helix is the fruit of a €5 million R&D investment, combining a glass bottle with an internal thread finish and an ergonomically-designed cork. The Helix solution - hailed as one of the greatest wine packaging innovations of the twenty- first century - has so far garnered seven major international awards, including the “New Technology” prize in the Innovation Challenge Lucio Mastro- Berardino awards, in Milan, Packaging Oscars in Paris and Milan and Best Green Launch, in the 2015 Green Awards of the London magazine, Drinks Business. Helix is available across 4 continents, with more than two dozen brands already using this revolutionary product – in Portugal, Spain, France, Italy, Austria and South Africa. Antonio Amorim, the Chairman of Amorim Cork, reveals that it he is particularly expectant to see Helix launched in the US market – the world’s largest alifornia’s Bronco Wine Company, the fourth larg- wine market: “Fred Franzia’s has been an innovator Cest US wine producer, is the first American winery for decades now and Bronco’s leadership is again to adopt the innovative twist-to-open Helix packaging at display with Red Truck bringing to US consumer solution, developed through a partnership between the most sustainable, technologically-advanced wine the world leaders of the cork and glass packaging packaging innovation this side of the 21th Century. industries - Amorim and O-I. Knowing Fred’s unique understanding of consumers’ Bronco’s range of Red Truck wines will henceforth preferences, we are certain that other wines under be sealed with Helix stoppers, that offer the full Helix will ensue, enlarging Bronco’s offering of advantages of cork, including the hallmark “popping” convenient yet 100% sustainable packaging.” sound, while dispensing with the need for a corkscrew. Andres Lopez, CEO of O-I echoed this sense of Fred Franzia, Bronco’s CEO, says that he is profound satisfaction: “Wine and quality packaging delighted by this new development: “Wine consumers are intrinsically connected and, as world leaders in in America have a growing understanding of the role our respective fields, Amorim and O-I understand quality cork and quality wine play in delivering their their roles in delivering what winemakers, wine wine in a sustainable but yet premium format. At retailers and wine consumers want. Helix and Red Bronco, we have been doing exactly that for many Truck bring to the US a user-friendly, natural and years, but with Helix and Red Truck, the US market sustainable packaging materials solution that enables will now have access to all that plus the convenience wine producers to meet consumer preferences of an easy-opening and easy-to-reclose bottle. We across a broader range of price points.” 6 Bark to Bottle Premium whiskies are consistently sealed with cork stoppers ver recent years one of the strongest growth Otrends in the whisky market has been expansion of demand for premium, high-end and super-premi- um whiskies around the world, especially in mature markets such as the UK and US and in high-growth markets such as China. Demand from Asia has revolutionized the whisky business, with 54% of total whisky sales now generated by the Asia and Pacific zone, according to data from Technavio. Premium brands are gaining market share across all markets, driven in particular by Irish whiskey and single malt Scotch whisky brands.
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