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Why small formats are becoming big profit-drivers

In a category long dominated by 750ml bottles, small formats in wine and spirits are rewriting the rules in the drinks industry.

According to a new research from NielsenIQ, what began as a niche format is now a strategic lever—driven by evolving consumer habits, economic pressures and a growing appetite for flexibility. 

“Consumers aren’t walking away from alcohol—they’re simply drinking differently. Health-conscious lifestyles, GLP-1 medications, and cannabis use are reshaping consumption patterns, and small formats offer a way to moderate without missing out,” NielsenIQ said.

“Whether it’s a single-serve for a casual night in or a 375ml bottle for a weekend gathering, shoppers are choosing right-sized options that fit their occasions. Nearly half say affordability is a key reason for buying small bottles, while over 40% cite portion control and occasion fit. These formats are increasingly seen as wellness-aligned choices—less about restriction, more about intentionality.”

Peanut butter whiskey-flavoured liqueur Skrewball debuted its first-ever 200ml PET hipflask exclusively in Australia and New Zealand last month.

Owner Pernod Ricard noted that smaller, portable whiskey formats are gaining serious momentum—200ml hipflasks within the American whiskey category are experiencing high single-digit dollar growth year-over-year, significantly outpacing traditional 700ml formats.

Among the innovations generating buzz in the smaller format wine category is Australian Vintage’s new Poco Vino range. The single-serve wine brand only arrived on Australian shelves in October, but sold more than 100,000 bottles in its first month.

When announcing its FY2025 half-year results, the company said the initial $8 million nets sales contribution from Poco Vino to its bottom line had been upgraded to “conservatively over $10 million” for FY26, through increased global demand.

Vinarchy’s new CEO Danny Celoni has suggested the company will also pursue innovation in wine bottle sizes, citing that 90% of the category is currently in a 750ml bottle and 14% ABV.

“When we look to FMCG [fast moving consumer goods], whether it’s snacking or confectionery, there’s different packs for different occasions,” he said.

“There’s one for me, one for us two, one for a big party, whereas we [wine industry] tend to box ourselves into one corner.

“We’re looking forward to how we can untap the opportunity that different formats offers, whether that’s things like a half-bottle or an individual bottle for me.”

Meanwhile, a new brand called Half Sister produced at Trentham Estate winery in the Murray Darling region by sisters Renee Murphy and Adele McCreery, is being sold exclusively in 375ml half-bottles.

“As we’ve gotten older, Adele and I have changed our drinking habits,” Murphy told the Australian Financial Review.

“We’re drinking less, especially after having kids. And there’s the general trend for health and wellness and less alcohol consumption. We realised we’re now doing one of two things – tipping half-finished bottles of wine down the sink because we only wanted a glass or two, or saying no to opening a new bottle, because we know we’re not going to finish it.”

According to NielsenIQ, small sizes are unlocking trial at scale.

“Over 30% of buyers say they use small formats to sample new products before committing to a full bottle,” the consumer intelligence company said.

“This is especially true among younger consumers and the bottom half of buyers (also known as “Light” buyers), who over-index in small-size engagement.”

NielsenIQ data shows that together, Gen X and Gen Z (21+) drive 76% of growth and show strong engagement. Gen Z (21+), in particular, is fueling impulse-driven purchases in formats like 50ml and 375ml, often tied to social occasions and gifting.

“Small formats thrive in moments that large bottles can’t reach. Travel, casual gatherings, outdoor excursions, and gifting all rank high among usage occasions,” NielsenIQ said.

“Consumers also report broader social circles—female friends, coworkers, and mixed groups—as key companions for small-size consumption.

“Premium and ultra-premium tiers are leading small-size growth. Consumers are willing to pay more for quality, especially when the format lowers the barrier to entry.”

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