Joiy has US market in the can
One of New Zealand’s largest exporters of canned wine has launched a multimillion-dollar expansion into North America, as its share of the global small-format wine market grows.
Joiy Wines, the first local winemaker to export canned wine, now produces more than 700,000 cans for five markets across the world each year. The company is on track to double its annual sales volume this year and now has the top-selling canned wine in Canada, the world’s largest liquor buyer and one of nine countries where the government operates the retail sale of alcohol as a monopoly.
The move by Joiy Wines into the United States market follows the brand being approached by Wholefoods, a $16 billion retail chain, after a win in a major canned wine competition.
Joiy Wines co-founder Cath Hopkin said the company’s focus has been on taking premium wines into small-format packaging.
‘‘Originally we could see that the spirit and beer categories were thriving in small format and yet wine was nowhere to be found,’’ she said. ‘‘We then saw an opportunity to specialise in this category and moved our entire product range into cans.’’
The international market for canned wines is growing at a rate of 13 per cent a year and is projected to reach more than $807 million by 2028. In contrast, the bottled wine category remains stagnant with growth of 4 per cent.
But the wine industry has struggled to attract millennials, and small-format options are seen as a mechanism to deliver a more portable, environmentally friendly and portion-controlled product for this health-conscious segment.
‘‘The domestic and export demand is now there,’’ Hopkin said, ‘‘and we are seeing small-format wines resonate strongly with millennials as well as our core target demographic aged 35-plus who are choosing these products for convenience and health reasons – such as portion control, lower alcohol, sugar and calories.’’
Chris Archer, Joiy’s winemaker and co-founder, said their entry into the US would put pressure on an already limited local grape supply, with projections suggesting their production volumes could increase tenfold overnight.
The pair’s latest innovation is a range of wine seltzers as well as their Mimosa canned wine cocktail already securing a listing with the world’s largest liquor buyer, LCBO, in Canada. Hopkin said their original sparkling white and rose´ wines have enjoyed a No 1 position there for the past four years.