Dive Brief:
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Aldi launched sales of its popular wine and cheese Advent calendars, which contain either 24 mini bottles of wine or 24 cheese varieties, according to the Indianapolis Star. The calendars went on sale in 1600 U.S. stores on November 7 but sold out immediately. The product will not be restocked for the holidays.
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The boxes, which had a lot of pre-sale social media buzz, retail for $70 and were very popular in the U.K. last season. The wine calendar has two bottles each of an array of red, white and sparkling wines like Pinot Grigio, Sauvignon Blanc, Merlot, Shiraz and Malbec. Aldi's cheese calendar has 24 imported cheese options such as cheddar and Gouda.
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Consumers who missed Aldi’s box but love the idea can now pre-order Vinebox’s $129 “Twelve Nights of Wine Box,” which is expected to sell out before Thanksgiving. The $169 Whiskey Advent Calendar is another option for those who prefer liquor. Aldi, which has had success with online wine promotions in the past, is among the grocers capitalizing on increased in-store sales of the beverage and the profits generated from private label wines.
Dive Insight:
This isn’t Aldi’s first success with a viral wine promotion. Last year, its private label rosé was the winner at the 2017 International Wine Challenge, the “Oscars” of wine. The $10 bottle (£8) of The Exquisite Collection Côtes de Provence Rosé 2016 sold out almost immediately after its victory made the social media rounds. Many of its latest wines are getting attention for their value — and taste.
Grocers aren’t new to private label wine success. Trader Joe’s has been selling Charles Shaw — famous known as “Two Buck Chuck” — for years. Lidl’s premium wine won more than 100 medals at the International Wine Competition in Los Angeles this year. Retail giant Walmart released Winemakers Selection in about 1,100 stores across the country, and Target rolled out its $5 California Roots brand in 2017 before adding a rosé line this year. They also sell the $12.99 Yes Way Rosé, which like Aldi’s calendar, had social media abuzz before its launch. Target’s wine sales have been so successful that the company is hoping to offer alcohol in 80% of its stores by the end of this year.
Millennials are driving the trend toward private label wines. According to Wine Spectator, millennials now account for 42% of all wine purchased. They are more experimental and more willing to spend money on different types of wine. The added influence of social media helps build excitement for products, like the Advent calendar, and drives an uptick in sales.
Private labels have gotten a makeover, at least in the mind of consumers. No longer viewed as a lesser quality, cheaper product, they now represent 17% market share in the U.S. In addition, Kantar Retail's grocery analysts predict private label growth between now and 2022 will outpace the previous five years. Cleary, this is something Aldi and Lidl, in particular, are taking advantage of.
As grocers look to draw consumers to their stores and distance themselves from their online and brick-and-mortar competitors, it's apparent that alcohol and cheese are two ways to do it. In the case of Aldi's popular wine and cheese Advent calendars, the company succeeded in taking two popular items, wine and cheese, introducing them in limited supply and reaping the social media fanfare that soon followed.
Aldi and other retailers could find ways to introduce similar calendars during other times of the year like Easter or the Fourth of July, maybe even coming up with clever ideas during slower times, to attract customers. They need to be careful not to introduce these popular items too often in order to maintain the uniqueness and buzz that is generated. Still, with retailers expanding their online presence, these gimmicks could be a unique way to get people to visit their sites.
