6 minute read
PROSECCO: BEST IN GLASS
Best in Glass
Prosecco is a shining star of the sparkling category, but still faces challenges that often stem from its success.
As the weather warms and pulls the celebration season ever nearer, our minds naturally turn to the satisfaction of a good glass of bubbles.
Once upon a time, this glass would probably have only held Champagne, but in recent years, another sparkling varietal has rightfully earned its way into the hearts of Australian consumers – Prosecco.
Prosecco performance
For local producers, Prosecco has become an increasingly powerful segment of the sparkling wine category.
“We have seen strong growth for Prosecco over the last 12 months and it has been the fastest growing varietal for the sparkling category,” says David Stevenson, Head of Business Insights and Category at Brown Family Wine Group (BFWG).
Georgia Kollaras, National Senior Marketing Manager at Independent Beverage Partners (IBP), said this momentum has helped Prosecco establish itself as “the ultimate superstar varietal across all sparkling and wine categories”.
Warwick Brook, State Manager for NSW and ACT at De Bortoli, said this shining status has stuck with Prosecco for many years now, even as other sparkling styles struggle. However, such strong demand may lead to some short-term challenges for Aussie Prosecco makers this year.
“The 2023 vintage was significantly down in volume. While many varietals have good stocks in reserve from previous vintages, Prosecco isn’t one of them, which obviously could put pressure on price points moving forward,” Brook said.
It’s not the only challenge that Australian Prosecco faces right now of course, as discussions ramp up about whether local winemakers should even be able to use the name ‘Prosecco’. In this challenging yet highly driven environment, it’s more important than ever for retailers to be well informed about the category and how to sustainably support it.
The Prosecco customer
The key to unlocking the potential of any category in the retail environment is to understand what consumers are looking for.
Christian and Michael Dal Zotto of Dal Zotto Wines say that Prosecco consumers “want a drink that is fresh, vibrant, and fun.”
Stevenson agreed and said: “Prosecco continues to be popular with consumers due to its fresh approachable style, consistent taste profile and affordability.”
But approachability isn’t just noticeable in taste. Stevenson also noted that Prosecco’s versatility allows it to be an easy choice for an increasing number of occasions and preferences. For example, Prosecco rosé continues to be a sought-after style, while small formats are going from strength to strength, offering convenience and portion control for those seeking to moderate their consumption.
Kollaras believes Prosecco provides a bit of easy and everyday luxury in a multitude of ways, and this has made it an entry point to many consumers looking to explore the possibilities of the wine category.
“It’s a ‘gateway wine’ if you will, with its allure leading to a +20 per cent surge in new recruits to the world of wine,” she said.
“As a category, Prosecco offers a huge selection of brands over several regions, price points, and styles – but this also means that the category can often be overwhelming for shoppers.”
That’s why it’s vital for bottle shops to carefully consider everything consumers want out of Prosecco. The segment is diverse and so are consumer tastes –while affordability is a strong point for Prosecco, the segment still does draw consumers in at the other end, especially for Australian producers as the Dal Zottos have seen.
“We are not interested in a race to the bottom… Quality and locally made Prosecco is what the consumer wants. We have noticed there seems to be a trend of the consumer reaching for Australian Prosecco which we love,” they said.
Our local Prosecco buyers are also loyal, according to Brook, who said that Prosecco drinkers tend to “stick to their tried-and-true brands,” and stock up on them when they’re on sale or offer.
Making sales pop
Once you know your Prosecco consumers well, it’s easier to cater to them in-store and better capitalise on the category.
Kollaras, for example, said data shows that a key Prosecco demographic is younger adult women, so targeting them means leaning into the power of aesthetics with a beautiful looking bottle and visually appealing displays and activations. This extends into enticing in-store theatre, bringing a luxurious touch to the shopping experience, perhaps with tastings straight from Prosecco ice buckets at the counter.
Brook added: “There is nothing better for a consumer than seeing in-store theatre, so retailers should be capitalising on this wherever possible.”
For De Bortoli, that theatre has been particularly successful when tied to promotional competitions, which deliver great results for both supplier and retailer.
With peak Prosecco occasions coming in hot, Stevenson had a reminder about the importance of boosting visibility and availability.
He said: “Off-location displays are vital during key selling periods to ensure stock weight but also encourage impulse purchase. Fridge facings are also crucial – with Prosecco in strong growth, allocating some additional facings or range to Prosecco this spring and summer will help cater for shopper demand.”
A final way to round out good in-store experiences in the Prosecco category and keep consumers coming back is by focusing on customer service. This is where you can tie back in the value of Australian Prosecco and contribute to the sustainability of the category locally.
As Kollaras said: “Your voice is important in a retail environment, and shoppers are often looking for guidance… They’re just too shy to ask.”
The fight to save Australian Prosecco
The biggest looming challenge for Australian Prosecco is the fight to keep its name. It’s been ongoing since 2009 (when Italy claimed Prosecco was a protected GI and Glera was the name of the grape varietal), but it has re-entered the spotlight this year with strong pushes from both sides.
Local winemakers warn the potential impact of Australia losing this fight would be severe. Georgia Kollaras said IRI data shows almost 90 per cent of Prosecco sales in the country are for locally made wines, so a name change would not only destroy a $200 million category, but also cause widespread confusion among shoppers.
As Warwick Brook said: “We hope for the sake of the industry that common sense prevails here.”
The wine industry has come together on this battle, working hard to surface the issue and these ramifications. Things like the Brown Family Wine Group-led #SaveAussieProsecco campaign and petition has helped more Australians become aware about what we could all lose.
The Dal Zottos noted that although there has been great support for the industry coming from visibility like this, “we need all Australian trade and public to continue to get behind the local farmer/wine producer and buy local Aussie Prosecco.
“To call it any other name is crazy. Glera is more like the name of a disease, a disease that is aiming to kill an industry, not the name of a grape variety.”
