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Tracing the Roots: How the Wine Cooler Craze Began on the California Coast

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Believe it or not, wine coolers were immensely popular before becoming a common reference in underage drinking jokes. While wine-based drinks like sangria have a longstanding history, the beverage known as “wine coolers” first became commercialized in 1981, sparking significant interest in the alcohol market during the 1980s.

The concept of the wine cooler originated with Michael Crete, a beer and wine salesman from Northern California. He popularized a blend of tropical fruit juice, white wine, and club soda at beach parties in Santa Cruz. Realizing the potential for broader distribution, Crete partnered with Stuart Bewley, a high school friend and business associate, to launch California Cooler. Their marketing embodied the quintessential sunny, Californian surfer vibe, featuring ads with lively beach parties. The brand positioned itself as a fun, fruity beer alternative, with an alcohol level that appealed predominantly to a female audience.

This trend, initiated by California Cooler, proved beneficial for California, a state that produces nearly 90% of all American wine. During the early 1980s, the American wine industry was facing stiff competition from international imports, leading to a surplus of domestic wine. Bewley explained to Vice that there was a “lake of wine in California” at the time. Wine coolers provided a crucial outlet for excess wine, which helped to sustain the local wine industry.

Read more: 15 Popular Hard Seltzer Brands, Ranked Worst To Best

At the peak of its popularity, California Cooler was selling about 12.5 million cases annually. In 1985, the founders, Crete and Bewley, sold their company to the alcohol corporation Brown–Forman, known for distributing Jack Daniel’s among other brands, for $55 million. Following the launch of California Cooler, major spirits companies like E & J Gallo Winery and Seagram’s introduced their own versions of wine coolers, leading to a significant reduction in market share for California Cooler.

Within a few years, the demand for wine coolers had plummeted so drastically that the trend seemed to disappear overnight. A 1992 study from Cornell University’s Department of Agricultural Economics highlighted a 17% decrease in wine cooler sales in 1989 alone. The market took another hit in 1991 when a federal excise tax increase made wine five times more expensive to use in coolers, prompting many companies to switch to malt liquor alternatives.

By that time, wine coolers had garnered a negative reputation as a drink for underage consumers due to their sweet taste, low alcohol content, and eye-catching packaging. Approximately 35% of wine coolers in the U.S. in 1991 were consumed by teenagers, according to a report by Education Week. As the perception of wine coolers turned negative among legal-aged drinkers, their preferences shifted to other types of alcoholic beverages.

While coolers fell out of favor years ago, the modern trend towards canned, ready-to-drink (RTD) alcoholic beverages indicates a resurgence in similar products. Although California Coolers has ceased operations, its competitor, Bartles & Jaymes, is making a comeback in the market with a new collection of canned wine coolers featuring more upscale flavors. In 2019, parent company Gallo expressed to Esquire their excitement to re-introduce Bartles & Jaymes to nostalgically inclined consumers from the 80s and 90s, while also aiming to appeal to the tastes of modern consumers.

They might be one of the O.G.s, but the market is once again expanding, creating fierce competition. We recently ranked our favorite wine coolers available today, and upscale, contemporary brands with a European flair, like Ramona and Lolea, came out on top. Most of these brands aren’t marketing themselves as wine coolers anymore, preferring terms like “spritzer” or simply “sangria.” But the classic combination of wine, fruit juice, and carbonation remains the same.

Though malt-based beverages, like White Claw and Smirnoff Ice, still lead the RTD pack in popularity, the canned wine sector is growing exponentially. A 2020 trend forecast by Grand View Research predicted that, between 2021 and 2028, the global canned wine market would grow at a compound annual rate of 13.2% and be valued at $571.8 million by 2028. Whether because of nostalgia, the pandemic, or their busy lives, it seems consumers once again want their wine on the go.

Read the original article on Tasting Table.

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September 7, 2024 Wine
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