Cheers April/May 2018

Cheers is dedicated to delivering hospitality professionals the information, insights and data necessary to drive their beverage business by covering trends and innovations in operations, merchandising, service and training.

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Page 37 of 59 38 • April/May 2018 2018 Growth Brands wine 2018 Growth Brands wine VINO INNOVATION By Kyle Swartz W ine consumption in the U.S. increased again during 2017, growing 1.3% to 345.7 million nine-liter cases. This comes after a total of 341.1 million cases sold in 2016, which itself represented a 2% volume growth over 2015. That puts 2017 in line with recent growth trends. The U.S. wine category has had 1% to 3% annual growth rates dating back to 2011, when the country fi rst began to emerge from the Great Recession. What's behind this recent growth? Millennials play a large part. They are an explorative group, a generation more interested in trying new fl avors than adhering to one style or one brand. Look for younger legal-drinking-age consumers to continue buying across different categories, countries and varietals of wine. How do you capture their attention? Labels are important: Millennials are drawn to eye-catching art. They also want to know the brand's story and learn about the varietal. Savvy brands such as The Prisoner and 19 Crimes have increased sales with labels that stand out and invite customers to explore the stories behind the wines. This past year, 19 Crimes even used an augmented reality cell phone app to bring to life the historical criminals depicted on its labels. In terms of popular wine styles, sparkling wines, red blends and rosé remained red hot. The days of rosé being a woman's drink, sipped only during warmer weather, are long gone. Rosé is now a year-round beverage, and the pink wine is enjoyed by men and women alike. Prosecco, Champagne and other bubblers have also overcome their reputations as wines meant only for holidays and special events. As more consumers discover that any time or day of the year is appropriate to pop open some sparkling wine, the bubbly boom will continue. Red blends, especially from California have become a go-to wine purchase for many consumers in the U.S. Customers who may not know their varietals or regions can still feel safe buying a California red blend, since they are familiar with the quality and rich, fruity fl avors. Brands have continued to tap into social media to connect with customers. Instagram and Snapchat campaigns are reliable ways for wine brands to get in front of consumers. Another way for savvy brands to stand out is partnerships with charitable causes. This is a win-win: Brands gain positive publicity for helping a worthwhile cause—and plenty of social-media content—while also driving attention towards a deserving charity. ESTABLISHED WINES CLIMB Many long-successful wine brands enjoyed another year of growth in 2017. Ménage à Trois continues to be a crowd pleaser. The Trinchero Family Estates brand increased 2.7% over 2016, reaching 2.9 million cases sold. "Ménage à Trois has been one of the most infl uential retail brands in wine since Wine Established Growth Brands (000 9-liter cases) '16-'17 Brand Supplier 2014 2015 2016 2017p % Change Woodbridge by Robert Mondavi Constellation Brands 9,150 9,300 9,750 9,760 0.1% Liberty Creek E&J Gallo Winery 3,010 3,475 3,940 4,415 12.1% Apothic E&J Gallo Winery 2,130 2,450 2,920 3,268 11.9% Menage a Trois Trinchero Family Estates 2,474 2,700 2,823 2,900 2.7% Ruffi no Constellation Brands 1,025 1,130 1,250 1,310 4.8% Barefoot Bubbly E&J Gallo Winery 1,150 1,170 1,198 1,236 3.2% J. Roget Constellation Brands 777 850 920 1,000 8.7% Taylor Dessert Constellation Brands 814 820 840 950 13.1% Cupcake Sparkling The Wine Group 475 350 600 635 5.8% Nobilo Constellation Brands 500 560 615 620 0.8% Real Sangria (Cruz Garcia—Real) Shaw-Ross International Importers 560 585 611 615 0.7% Simi Constellation Brands 550 590 600 610 1.7% Noble Vines DFV Wines 463 549 556 608 9.4% Decoy Duckhorn Wine Co. 332 406 483 587 21.5% Starborough E&J Gallo Winery 370 400 455 522 14.7% Raspberry Sparkletini Carriage House Imports 347 386 390 421 7.9% CK Mondavi & Family CK Mondavi & Family 338 366 402 406 1.0% Source: The Beverage Information & Insights Group (p) Preliminary.

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