WINE | AMERICAN WINE
most sales growth at $ 6.99 .” What he does think is interesting is the swift uptake of low calorie and low carb wines . “ Three years ago , we didn ’ t carry any of these items , but now we have five SKUs and they fly off the shelf .”
As one might expect , these prevailing conditions are leading vintners to aim higher with their new products . Fetzer Vineyards , the company behind Bonterra Organic Vineyards , is a B Corp that ’ s right on top of many of the hottest trends . One of its newest brands , 1000 Stories , is a super-premium Zinfandel aged in Bourbon barrels that is resonating with whiskey drinkers .
“ We continue to innovate across categories , most recently with our highly aromatic Adorada Rosé and Pinot Gris , which launched in select U . S . markets at $ 18 SRP this summer ,” says Fetzer ’ s vice president of marketing Rodrigo Maturana . “ Capitalizing on our depth of expertise in sustainable grape growing , we ’ ll also introduce a sustainability-minded 1.5-liter bag-in-box wine at the $ 10 price point . This new brand is partnering with grape growers to help convert their vineyards to certified sustainable farming practices .”
On the other end of the premiumization spectrum , J . Lohr is using the launch of its most expensive wine ever to cement a commitment to the grape that built its business . The new Signature Cabernet Sauvignon from Paso Robles retails for $ 100 per bottle .
“ Cabernet Sauvignon has been the number one driver for us for forty years .” says CEO Steve Lohr , who also serves as Board Chair for the Wine Institute . “ Our focus in Paso Robles in recent years has improved the quality of our wines from certain vineyard blocks enough that we felt confident putting our stake in the ground with a truly great wine .”
Not all California vintners are feeling quite as bullish , though . At CK Mondavi , Marc Mondavi agrees that times are good for now , but sounds a note of caution . “ Premiumization is happening , but it ’ s also vulnerable ,” he says . “ If we get a downturn in the economy , I have no doubt we ’ ll see a quick reset in consumer behavior and need to readjust our plans accordingly .”
So what do retailers need to know about the state of American wines as they plan for the next year ?
RED BLENDS REMAIN ON THE RISE “ Cabernet Sauvignon and Chardonnay are still at the top of the heap , but red blends are next in line ,” Mondavi says . “ The blend category is still growing , but not at the exponential rates we saw when Merlot or Moscato caught fire . The common factor behind those that catch on seems to be a touch of residual sugar , and that ’ s true whether we ’ re talking about a popular $ 10 wine or a cult Bordeaux blend for $ 300 .”
The president of Kreston Wine & Spirits , a retailer with two bustling locations in Delaware , sees the impact of the red blend trend reaching beyond those sweeter styles moving forward . “ I anticipate continued growth in this segment and for growth to move up in price point ,” says Bob Kreston . “ In part , this is because we ’ re already seeing higher-end blends like The Prisoner do so well . But it ’ s also because the younger shoppers cutting their teeth on sweeter blends today will be more open to trying drier blends as their palates evolve , whether that ’ s Bordeaux blends or Rhône blends .”
The blend craze hasn ’ t crossed over into white or rosé territory to date , but many companies that have traditionally hung their hat on varietal wines have released new red blends this year , and more are sure to follow . A prime example is the Line 39 brand , recognized in 2016 and 2017 as a Fast Track Growth Brand by the Beverage Information Group . Line 39 built its reputation with varietal wines , but its newest addition that launched in July is the richly-fruited Excursion Red , a blend of Petit Verdot , Petite Sirah , Zinfandel and Merlot .
ALL SHAPES , SIZES AND PACKAGING The industry ’ s fastest-growing segment is the premium 3-liter bag-in-box , which has doubled its market share in the United States in the past four years , according to American market research firm Information Resources Inc . This category remains dominated by California wines , but is growing more diverse
40 StateWays | www . stateways . com | September / October 2017