Type “alternative wine formats” into Google and the results are instantaneous. A growing number of innovators are challenging the hegemony of glass bottles, distributing a range of substitutes that include cans, bag-in-box, ‘test tubes’ and paper bottles. The marketing pitch, both from a consumer and environmental perspective, is seemingly very persuasive in light of the climate emergency; the production and transport of 75cl bottles contributes over 65% of the total carbon footprint of wine. This is far higher than the CO2 involved in manufacturing canned beverages and BIB. These formats are also convenient and travel-friendly to boot. This is clearly a category in the ascendant in 2022.

Meanwhile, companies are increasingly struggling to obtain glass (partially due to the war in Ukraine), while energy costs have surged. According to Philip Cox, owner of Cramele Recas in Romania, his winery has been forced to slow production due to a chronic glass shortage. But can this perfect storm of supply chain issues, sustainability awareness and the potent allure of convenience really push alternative formats into the mainstream? Or are we witnessing another false dawn?

Building momentum

“It’s been a great year for BIB. Lots of people switched to boxed wine during the height of the pandemic. This may not reflect the whole industry, but for BIB Wine those same customers have stayed with us,” says Oliver Lea, co-founder of The BIB Wine Company. Lea is also a founding member of Wine Traders for Alternative Formats, a promotional organisation that ran its inaugural ‘no glass allowed’ tasting in London last year. He believes that, despite the cost of living crisis, alternative formats will continue to gain traction with a broader swathe of consumers in 2023. “One might have assumed that when belts tighten, environmental concerns go to the back of our mind, but this year has been quite the opposite,” he says.

“Recently, the potential emissions reduction of switching to alternative formats from traditional bottles have been in the headlines. I think quite soon it might seem a bit dubious to be buying or serving wine from a normal glass bottle. Certainly, if I can find a wine I want to drink in an alternative format, it seems like completely needless environmental harm to buy it by the bottle.” Lea also underlines that the range and quality of wines available has soared in recent years. “There’s no hope of these formats becoming mainstream without a critical mass of premium and super-premium options, but both have improved a huge amount over the past few years and the pace of change is accelerating rapidly.”

Beneficial factors

Rob Malin is a co-founder of sustainable wine brand When in Rome, set up in 2015. Distributing a range of formats, Malin believes that a convergence of social and economic factors will only be to his firm’s benefit next year. “By far the most growth has come from our paper bottle range, but cans have also really performed well, especially at Waitrose as they phase out all 187ml glass bottles,” says Malin. “Of course, volume stats indicate that alternative formats are still peripheral, however, I’d say Waitrose delisting small glass bottles in favour of cans is a tipping point. But yes: still a huge way to go"

In addition, the level of engagement from retailers continues to vary dramatically, seemingly dependent on their personal priorities and target demographic. For businesses like the Oxford Wine Company and Jeroboams, alternative formats remain on the periphery.

Jo Taylorson, head of marketing & product management at Kingsland Drinks Group, says: “It’s difficult to predict where the category is headed given the uncertainty, but we expect to see cans and BIBs continue their growth within the wine sector. However, alternative formats are not mainstream yet – the tipping point would be when these options are as accepted by consumers as glass. But there is a long way to go before this happens.”

Nevertheless, major stakeholders are confident that momentum will increase next year, despite inflationary pressures. “What we saw during 2020, when household budgets were strapped as people were furloughed, is a pivot towards recognised brands; people simply wanted reassurance that they are getting reliable quality for the money they are spending,” says Sam Thackeray, MD of Enotria & Coe.

He continues: “In that sense, cans are the underdog because the average consumer still isn’t convinced that they deliver a quality product. However, cans successfully do two very distinct things in comparison to bottles: they encourage stricter portion control; and reduce the risk or worry about waste in case you don’t manage to finish a whole bottle. Another variable that will increasingly come into play is that the cost of glass has fallen foul of the fuel surcharge since very early on in the invasion of Ukraine. By comparison, cans will increasingly benefit in terms of cost of serve.”

Of course, economic pressures are not the only catalyst for behavioural change. Even in the context of a buoyant hospitality sector, at-home consumption in 2019 grew in markets such as the UK, Germany and US. According to the IWSR, this was partly driven by a significant cultural shift, as consumers – particularly Millennials – became more willing to explore different vessels. That fact, allied to the sustainability credentials of non-glass alternatives, will undoubtedly continue to drive investment in the years to come.

Consumer priorities

Yet analysts have also warned against ‘sustainability myopia’ when engaging with drinkers. “Consumers are willing to swap to alternative wine packaging types because of value and convenience,” says Richard Halstead, COO consumer insights at IWSR Drinks Market Analysis. “Our data also shows a strong link between specific occasions and packaging types, suggesting consumers to be strongly occasion-driven when deciding which wine packaging to purchase – glass bottles for more formal and gift occasions and cans for more niche occasions of travelling and outdoor events.

“Bag-in-box delivers good value for money, which is a main driver in demand. However, there remains a key barrier to purchasing bag-in-box, as well as pouches and cans: the belief that these packaging types typically contain low quality wine.” This, Halstead argues, cannot be overcome by simply promoting sustainability to consumers, even in the current zeitgeist. Key stakeholders such as BIB’s Lea, meanwhile, recognise that “purchasing behaviour is complex and it’s really the sum of different motivations.”

He adds: “The sustainability of our boxes is a factor, but it wouldn’t work nearly as well if the format wasn’t so convenient for our customers or if it wasn’t better value than the same wines by the bottle. None of that matters if we’re not providing high quality and interesting wines. It really comes down to having really good wines in boxes.”

Future prospects

Although behind Scandinavia, the UK is ahead of most in embracing new innovations and trends in the beverage sector. All things being equal, this should continue to drive growth in sales of alternative formats, while accepting that mainstream distribution is a longer-term goal. Unfortunately, all things are not equal: economic turbulence makes it hard to predict the category’s prospects over the next few years. For analysts and leading brands, the main point of disagreement concerns how rampant inflation will impact consumer behaviour, in addition to the importance – or overstatement – of sustainability in the marketing mix.

Halstead says “consumers will likely avoid impulse purchases, which may impact cans more than other types of formats”. He adds that “the main barrier to purchasing alternative packaging formats is the long-standing and habitual preference for standard glass bottles”. This generally nullifies any emotive arguments about carbon footprint, he says. Rob Malin, however, believes: “When money is scarce, purchase decisions are more considered, which surely will help brands that have an additional appeal such as being eco-friendly.”

Yet one point of consensus does emerge in this debate: while 75cl bottles are in no danger of disappearing from our shelves, we are (slowly) heading toward an equilibrium where alternative formats are not regarded an automatic trade-down. This will provide further opportunities for innovation and evolution across the wine industry. But winning over younger drinkers may rely less on the sustainability pitch than we’d like to believe. Traditional motivators, such as value and convenience, come first.