Is Charles Shaw Attracting New Wine Buyers?
New research from ACNielsen provides insights into one of the biggest stories in the wine industry: Two-Buck Chuck. There is little question that Trader Joe’s is selling considerable volume of Charles Shaw (affectionately nicknamed Two-Buck Chuck in trade circles), but the question is whether or not this strategy is attracting new consumers, or just rewarding present wine buyers with more value. According to an analysis of ACNielsen information, Charles Shaw is sourcing the vast majority of its volume from other brands. As the chart below shows, nearly 90% of its volume is coming from brand switching. Another one in seven purchases of Charles Shaw represents an incremental category purchase (that is, existing wine category buyers are buying more wine via Charles Shaw.) None of its volume is coming from new wine category buyers. Click on thumbnail to enlarge, or click here. The 750 ml $4-$7.99 price segment appears to be most affected, as 42% of Charles Shaw’s shifting gains came from b
