Attracting Entry Level Drinkers: Are Wine Coolers a Gateway to Wine Consumption?

Abstract

One of the biggest obstacles facing wine producers today is attracting entry level drinkers. The wine industry has attempted to gain access to this market with a variety of fruit flavoured products appealing to a younger palate. Ostensibly, one of the goals of wine producers is to produce some brand loyalty which they hope will carry over to the main product line. This article tests the hypothesis that appealing to consumers with entry level products will result in consumption of the main product line. The article begins with an overview of wine consumption in the US. They then present a theoretical model of consumer behaviour in which the consumption of entry level products leads to consumption of main product lines. Using data on wine and wine cooler consumption for fifty states and the District of Columbia for the years 1980–2001, the results show that wine coolers did not act as a gateway to wine consumption.