Fast-growing wine-in-a-box
market is moving upscale

Given the success of low-priced labels such as Charles Shaw, aka "Two Buck Chuck," the oversupply of wine grapes, more consumer interest in wine and the need for a more reliable and convenient closure than cork, wine-in-a-box is making a move to upgrade its image.

Charles Shaw, which has sold more than 1 million cases of its $1.99-per-bottle wine, proved there is a demand for good, inexpensive wines. Bronco Wine Co., the makers of Charles Shaw, took advantage of the grape glut by buying juice at cut-rate prices on the bulk market, blending it, bottling it and selling it cheap.

Now wine producers are asking, "Why can't we do the same, but with better quality wine?" And they are, but in a whole new category: premium boxed wine. While boxed wine carries the stigma of being inferior, new brands such as Black Box are showing the wine world that there is a place for premium boxed wines.

Black Box is one of the first to take wine from specific vintages and highly regarded California appellations and package it in a 3-liter bag, packed in a box. Black Box wines include cabernet sauvignon from Paso Robles, chardonnay from Monterey and merlot from Sonoma -- all from the 2003 vintage.

They sell for $20 to $25 per 3-liter box, equivalent to $4 to $5 per 750-millileter bottle. If the wine were packaged in the traditional bottle and sealed with cork, it would be nearly twice the price.

Wine-in-a-box has advantages besides lower cost. The wine stays fresh longer; it will last easily four to six weeks in the refrigerator. With an easy-to-use pour spout, there is no need for a corkscrew.

Boxed wine is one of the fastest growing segments of the wine market. Last year 11 million cases were sold in the United States, representing a 23 percent increase. Of that, 600,000 were premium boxed wines that sell for more than $20.

With at least a half-dozen new brands, such as X Box (around $40) and Bliss (around $30) set to hit the market soon, customers will have even more options.

Black Box has been available at Vintage Wine Cellar for a couple of months. The first month was a little slow, but we are starting to see a growth in sales. The best sign is repeat customers -- and new customers who come for the wine based on a friend's recommendation.

The main message is that boxed wine can be as good as, if not better than, some bottled wines -- at a better price and with more convenience.