Recent survey data showed that Australian consumers were hardly recalling wine brands over the past year.
“The decrease started towards the end of 2020 and continued through the first quarter of 2021,” Richard Halstead, chief operating officer at Wine Intelligence, said in a blog post, citing data from Wine Intelligence Vinitrac Australia.
It seems that the shift in consumer sentiments during the pandemic was behind the fall in wine brand awareness among those surveyed from March, Halstead said.
But this was not the case in other markets. In China, the US, and Canada, awareness levels have been “more volatile” last year compared in the previous year, but there is “no consistent pattern,” he said.
Moreover, the wine purchase incidence, or the share of regular wine drinkers buying a given brand, has declined in Australia but not for all brands.
However, the fall in brand awareness appeared to be coming from people who were not strongly connected to the brands in the first place.
To compare, data shows that regular drinkers of leading brands have persisted in their buying habits. These core buyers maintained their awareness of leading brands as they seem to be closely connected with the brand values.
According to Halstead, there are four ways in which the present market condition has swayed consumer awareness in Australia:
- New purchasing journeys change consumers’ interactions with wine brands During the pandemic, more Australian consumers have moved their shopping either online or at discount stores. Buying wine online is “very different” from purchasing wine in brick-and-mortar shops.
- The pull of buying local
Australian wine drinkers became more motivated by craft and locality last year, developing a connection with more local, niche wines beyond mainstream brands. - A comfort with the tried and trusted
Australian wine drinkers may have retreated to a smaller, familiar group of wines, which already satisfies them. - Changing priorities during a crisis
Concerns about family health or employment security may have taken priority over other types of knowledge, such as wine brand knowledge.
“The return to a more normal pattern of consumer behavior may foster a return to normality for brands and their presence in consumer minds,” Halstead said.
“However, as with any sudden change in consumer sentiment, it offers opportunities for fleet-footed brand owners to build a wider, or deeper, relationship with their consumers,” he concluded.
