market for premium

Experts recommend restricting both sugary beverages such as soft drinks and 100 percent fruit juices, to avoid excess "empty" calories.

Wang's team analyzed 24-hour dietary recall records from children or their parents, trying to determine how many calories a day came from sugary beverages and 100 percent fruit juices.

They used data from two national surveys, conducted from 1988 to 1994 and from 1999 to 2004. The first survey had almost 10,000 participants, the second, almost 11,000.

Overall, daily calories from sugary beverages or 100 percent fruit juices rose from 242 calories a day to 270 during the two study periods.

"We see the largest increases happening among kids 6 to 11," Wang said. The increase in sugary beverage intake was statistically significant in boys but not in girls. Boys' averages went from 228 to 259 calories; girls' went from 177 to 186.

Wang's team also looked at where the kids drink the beverage. Most consumption -- up to 70 percent -- took place at home, suggesting that schools' efforts to restrict sales of sugary beverages are having limited impact on consumption.

The Juice Products Association took exception to the findings.

"We take very strong issue with statements in this paper which suggest 100 percent fruit juices are without nutritional value and contribute to weight gain," the industry group said in a statement. "In fact, a recently published scientific literature review has concluded that 100 percent juices do not contribute to children being overweight, even when consumed in amounts that exceed American Academy of Pediatrics guidelines. That review paper concludes, 'Overall, the data support the consumption of 100 percent fruit juice in moderate amounts, and this may be an important strategy to help children meet the current recommendations for fruit.' "

In another study published in the same issue of the journal, researchers from the University of Minnesota found that even parents who recognized their child was overweight did not take "healthy" actions at home -- such as providing plentiful supplies of fruits and vegetables -- to help their child.

Dr. Dianne Neumark-Sztainer and her team evaluated the behaviors of parents whose teens participated in Project EAT, analyzing data from 314 parent-teen pairs.

"Basically, we compared parents of overweight children who recognized their children were overweight with parents of overweight children who did not recognize their children were overweight to see if knowing your child is overweight is associated with better behavior," Neumark-Sztainer said.

They asked parents about several behaviors, such as providing more fruits and vegetables and fewer soft drinks, salty snacks and candy; having more meals as a family; watching less television during dinner and encouraging children to make healthy food choices and be active. They also asked the parents if they encouraged their children to diet.

The only difference? Those who recognized their child was overweight were more apt to encourage their child to diet. "And that turns out to be bad," Neumark-Sztainer said. "Those kids actually weighed more five years later."

Both studies are concerning, said Connie Diekman, director of university nutrition at Washington University in St. Louis and immediate past president of the American Dietetic Association.

There was a bit of irony involved when it was announced early in the summer that the giant Safeway grocery chain was slashing wine inventories on the West Coast. Ironic because a few weeks later, Steve Boone opened the first of a planned 25-plus specialty retail stores in California. The chain is called Beverages, & more! and the more! is an important part of Boone's strategy to put more bottles of wine and spirits in the shopping cart. Boone is, of course, the man who put together the Liquor Barn chain for Safeway in 1979.

Not only that, but four days before the first Beverages, & more! opened in Walnut Creek, Calif., across the Bay from San Francisco, a study conducted by Nielsen North America for newly-formed Premium Wine Research Coalition (PWRC) shows that wine buyers are a group that grocery stores should be targeting, not turning away.

The year-long study tracked food store purchases among 40,000 U.S. households beginning in February, 1993. The study revealed that wine buyers made 105 annual trips to the grocery store, compared to 96 for non-wine buyers. Wine buyers spent an average of $2,150 for the year in food stores, compared to $1,895 for non-wine buyers. (Wine buyers were defined as those shoppers buying 1.5 liters or more of wine per year.)

Shopping trips, when wine was in the basket, produced grocery bills 15% higher than the average shopping basket sale ($39 vs. $34) and 35% higher than when beer was purchased ($39 to $29). When super-premium wines ($7 and over) were purchased, the average cash register ring was $44.

Marion Minor, president of Wine-Scan, a Nielsen/PIB service which tracks wine sales in scanner stores, said, "It is the super-premium wine buyer who offers retailers dramatic growth opportunities. Not only does the average grocery expenditure increase when super-premium wine is in the cart, but this wine segment is experiencing the greatest growth in the wine industry."

WineScan reported an 18% growth in super-premium wines for the 52 weeks ending April 23, 1994, while all varietal wines grew 12%. While generic wines fell 6% during that period, buyers of generics still spend 13% more than non-wine buyers on total food store purchases.

(The Premium Wine Research Coalition, which commissioned the study, was formed to pool the resources of several leading wine groups to help retailers market and merchandise premium wine. Current members include Heublein Wines Group, Robert Mondavi Winery, Sebastiani Vineyards and Stimson Lane Vineyards & Estates.)

Boone apparently didn't have to read that report to know that the time is right for a drinks and specialty food retail chain. Boone, who built Liquor Barn into a 105-store $330 million chain and also put Cost Plus into the wine business in a serious way, felt no one was taking advantage of the increasing consumer demand for higher quality wines and spirits and for specialty food items. "We have an opportunity to fill the vacuum."

Boone feels that the trends cited by many chains in making their cutback decisions don't apply to the niche that Beverages, & more! will fill.

"Even though per capita consumption of alcoholic beverages is expected to rise only slightly over the decade, modest growth in the population of drinking age adults and moderate price inflation will result in good overall revenue growth in the alcoholic beverage market over the next several years," he said.

Boone said that the strongest segments of the $50 billion off-premise market in the U.S. are premium wines, imported and specialty beers and premium spirit categories, such as single-malt scotch.

Also, even though the recession is lingering in California, it remains a good state for wine and spirits sales. For example, per capita wine consumption in California exceeds 165% of rite national average, and that is heavily weighted toward premium wines. California has been the top drinks market in the U.S. for the past ten years, accounting for over 10% of total consumption.

Boone has a string of stats ready to convince doubters:

* Varietal wine case volume grew at an annual rate of 15% from 1985 through 1992;

* Five of the country's top ten wine markets, and eight of rite top 20 are in California, comprising nearly 20 percent of U.S. wine consumption;

* Chardonnay sales were up 33% in 1993;

* The specialty food market (the more!) is expected to grow 10% or more annually throughout the '90s according to Rod Wilson, the chain's specialty food buyer.

Wilson said Beverages, & more! will carry over 3,000 food items, more than twice the number found in a typical supermarket.

Boones says that the reason California is an ideal market for premium wine and spirits (and beer) is that 75% of such drinks are bought by customers over 40 years old, with college degrees and annual incomes of over $50,000. Consumption is concentrated in metropolitan areas, where over 40% of the nation's wine is bought. And that is just where the new Beverages, & more! stores are Opening. Boone knows the locations are good, because he opened most of them as Liquor Barn stores and is now returning with Beverages, & more! Many staff positions have been filled with "Barn" alumni as well, Boone said.

Beverages At Work: Now More Than Ever!

New research confirms that a core group of customers are increasing their consumption of coffee and bottled water in the work place. Research also indicates some needs, such as specialty coffee, are not being met.

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