Bottling Wine and Spirits in a Changing Climate

17 May 2011

Welcome from the ChairGavin Partington, WSTA

Agenda

• Going Green researchAlastair MacGregor, Oakdene Hollins

• Q&A session• Lightweighting for wine and spirits

Dave Dalton, British Glass• GlassRite Wine update

Tammy Marrett, WRAP• Close

Gavin Partington, WSTA

Steering group members

Julie Larner - Packaging Technologist, Sainsbury’s

Barry Dick - National Account Manager, Australian Vintage

Dave Dalton - CEO, British Glass

Claire Shrewsbury - Programme Manager, WRAP

John Corbet-Milward – Wine Policy Director, WSTA

Going Green

Alastair MacGregorSenior ConsultantOakdene Hollins

OverviewBackgroundProject methodologyConsumer trial objectiveTrial methodologyTrial resultsRecommendations

BackgroundGreen glass has a higher recycled content72% versus 33% for clear in 2010;CO2 emissions reduced by approx. 20%;Cost neutral;Courtauld Commitment 2 10% reduction in

packaging CO2; andPossible to meet targets from this action aloneWhat is the consumer impact of this shift?

Retail product volumes

44%

41%

13% 1%

Food Wines & Spirits

Beers , Ciders & FAB's Soft drinks

Suitability for the trial

BeerInstant coffee Cook-in saucesJamSaucesGin

Miscellaneous SpiritsWhite winePickles WhiskyRosé Other food

Samples

Sample specificationStandard emerald greenCost efficient adoption; andMaximises environmental benefit.Sample productionLabels and foils remained the same.Sample logistics

Consumer trial

ObjectiveAssess customer acceptance; andProvide recommendations on suitable

messaging.

Consumer trial

Methodology overview2 stores;Quantitative and qualitative;1124 responses across 4 products; and12 discussion groups of 2 hours each for 6

products.A robust trial

Consumer trial

Quantitative methodologyScreening questions;Profiling questions;Taste, quality, appeal and ‘look of the

product’;Purchasing decision;Environmental benefit; andCommunication.

Consumer trial

Quantitative methodology

Vodka 269Whisky 293Brandy 243

White wine 319Total Responses 1124

Consumer trial

Qualitative methodology Included gin and rosé;Consumption habits;Attitudes to the products;Drivers and barriers to purchasing;Attitude towards relevant issues such as the

environment; andSuitable messaging.

Consumer trial

Quantitative results overview95% did not notice a change; Only 1 individual correctly identified that it

was a change in bottle colour;8 out of 10 claimed no impact on purchasing;

and Increased to 9 when informed of initiative.

Trial results after respondents were made aware of initiative

84%

6%

95%

1%

88%

8%

89%

4%

"It would have no impact onme - I would continue to

buy the same amount as Ialways do"

"I would be less likely tobuy" or "I would not buy"minus "I would be more

likely to buy"

White wine (319)

Whisky (293)

Brandy (243)

Vodka (269)

Results by productGIN WHITE

WINEWHISKY VODKA ROSĖ

IMPACT ON CUSTOMER PERCEPTIONS AND TRADE

BRANDY

Brandy

Association with premium;Messaging and label design important;Foil hides airspace in the neck of the

bottle; andDarker colour helps the label stand out.No negative impact on perception of

taste or quality

White wine

Wine purchasers familiar with green bottles; aPurchasing driven by other factors; andNo negative impact on perceptions of

taste and quality

Whisky

Some concerns over appearance;Made the product look murky or dull;Green creates three colours which is off-

putting to some;Association with Irish whiskey; andSmall negative impact on taste and

quality perceptions.

VodkaLooks very unusual;Perhaps overlooked during the quantitative

survey;Negative impact on perceptions of taste

and quality; andOpportunities to switch from OL to cheaper

brands.

Consumer trial

Environmental initiativeUp to half of negative respondents turned

positive; Impression of Sainsbury’s improved;More likely to buy products with high recycled

content in their packaging; andRetailers and brand owners need to inform

consumers.

Consumer trial

MessagingMixed views on environmental claims;Consumers feel they are ‘doing their bit’;Emphasis on working together;Should be motivating rather than pressuring;

andCommunicated via a dedicated POS or shelf

strip.

Consumer trial

ConclusionsOverall positive;Gin, brandy, white wine and whisky

promising;Tailored labels and foils would have improved

results; Intangible brand benefits; andCommunication is key.

Research recommendations

Green glass cuts CO2 by 20%Gin, white wine and coloured spirits should be

considered;Labels and foils can improve aesthetics of

green bottles;Vodka and rosé require further research; andCommunication should be inclusive and

motivating.

Thank you for listening

Alastair MacGregoralastair.macgregor@oakdenehollins.co.uk

Lightweighting Developmentsfor Wine and Spirits

Dave DaltonChief ExecutiveBritish Glass

Great progress has been made in recent years in glass container optimisation

The Spirits & Wine sectors have seen some of the biggest improvements

Together we are focussed on sustainability and these activities lead glass containers to the forefront of that aim

Stage 1

Standard spirit weight

385g

Stage 3

Standard spirit weight

330g

Current since 2008

Standard spirit weight

295g

Stage 2

Investigations and

proposed lightweight spirits

300g

Best in class weight development across all regionsContainer Weight (g)

# Dependant on filling line suitability

Weight Trends

Visit the WRAP website to use the light-weighting directory

Working with WRAP

The Glass Industry has supported WRAP in their quest to optimise containers

• Funding perception studies and helping persuade brand and retail of the benefits has driven the tremendous achievements seen to date.

• Further work like the ‘Going Green’ project are the latest steps in this program towards sustainability, where glass containers will truly show their real credentials.

GlassRite: Wine Update

Tammy MarrettWRAP Project Manager

GlassRite: Wine project objectives

Develop and increase the use of lighter weight wine bottles;

Increase the volume of wine bulk imported into Europe; and

Increase the recycled content of wine bottles.

Industry achievements to date Lightweighting of

wine bottles 37,828 tonnes

Bulk importation 253 million 75cl bottles

Recycled content 55,420 tonnes of cullet

GlassRite web based guide

www.wrap.org.uk/wine

Contact for any enquiries going forward

Nicola Jenkin, Key Account Manager for Drinks, WRAP

nicola.jenkin@wrap.org.uk

Link to reports

Going Green – research report andsummary case available at: www.wrap.org.uk/goinggreen

Glass Rite Wine – update report andon-line tool available at:www.wrap.org.uk/wine