Selling from the market sidelines: how do peripheral brands vary in their category role?

Most product categories contain few leading brands and many peripheral brands. This study examines the role of peripheral wine brands by linking Wine Enthusiast review data with US household panel purchases, covering about 80 winery brands annually from 2017 to 2021. The abundance of peripheral brands provides a challenge for wine retailers to decide which brands to stock. Using an established NBD-Dirichlet classification framework, brands are identified as filler, niche, or change-of-pace brands, based on penetration and purchase frequency patterns. The findings show that reviewed brands tend to occupy more peripheral market positions and attract heavier category buyers. However, review activity itself is not associated with stronger market share performance. The results indicate that peripheral brands are not homogeneous, and that distinguishing between niche, change-of-pace, and filler brands provides a richer understanding of how smaller brands compete and fulfil distinct roles in the market periphery.