LOW- CALORIE WINE & SPIRITS
Has fashion & entertainment effected the wine & spirit industry? Checking the sales report on low-alcohol and low-calorie beverages has increased and women are responsible for this.
The reasons for the current change in tastes – a phenomenon that stretches “from Asia to Latin America across both the wine and spirits categories is not only because of health concerns but also the fact that producers in US, Asia & Europe switch to low-alcohol wines mainly due to increased taxes . Producers are reducing the alcohol content to keep prices low in a climate of “price sensitivity.”
According to Wine and Spirit Trade Association, excise duty and VAT (sales tax) account for one-half of the cost of a bottle of wine in Europe. However, the rates are significantly reduced on wines with lower levels of alcohol! For instance, excise duty on wines with 5.5 to under 8.5 percent alcohol is $383 per hectoliter, compared with $507 for wines up to 15.5 percent.
We have noticed this flow in low-alcohol wines which are filling up some of our store shelves vacated by full-strength wines unable to compete at the lower price points. And this is not isolated to just wine- elsewhere, producers are trying to target what are perceived to be healthier alternatives to full-strength drinks.
In Japan, alcohol-free beer and liqueur ranges, as well as low-alcohol mixed drinks, are fashionable, while in the Philippines light versions of local brandy and rum are seeing substantial success. In Asia, Chinese women are increasingly switching from Baijiu or white liquor to wine as it is thought to be the healthier option.
This health awareness has also affected Latin America. From Brazil, now producers are offering low-calorie alternatives to traditional cocktails and are even using artificial sweeteners instead of sugar in the classic Caipirinha, made from Cachaca or sugarcane rum! And with Tequila from Mexico, buyers have begun to mix Tequila with with sparkling water instead of the typical grapefruit soda.
Not surprisingly, in LA and having our store close to the posh botiques ,entertainment industry, and women’s weight consciousness and health. Skinnygirl cocktails has become a low-calorie drinks and natural flavouring alternative.