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EXCLUSIVE: Deutsch Acquires Eppa SuperFruit Sangria

April 9, 2013

Deutsch Family Wine & Spirits has acquired the thriving Eppa SuperFruit Sangria brand from Miami’s Eppa Wine Co. for an undisclosed sum. Billed as premium entry made with organic Mendocino grapes and antioxidant-rich fruit juices, Eppa sold 40,000 cases and reported revenues of around $2.7 million in 2012, after just over a year on the market. The brand is on track to double its volume to 80,000 cases this year, as reported by Shanken News Daily in January.

Launched in 2011 by former Bacardi USA executives Raul Marmol and John Gomez, alongside partners Gonzalo de la Pezuela, Britt West and Jim Goodwin, Eppa currently offers a single red expression, retailing at around $11.99 a 750-ml. The brand is available in 46 markets, and has been boosted primarily by its presence in retail chains like Whole Foods and BJ’s, among others.

“While (sangria) has always been popular in the on-premise, there’s a big opportunity to make a stronger impact off-premise with premium-quality, ready-to-serve sangrias,” said Deutsch chairman and founder Bill Deutsch. According to Nielsen, the premium ($10-and-above) sangria category in the U.S. market was up 19.4% in dollar volume over the past year, with Eppa accounting for roughly 26% of that growth.

The Eppa acquisition marks Deutsch’s second play within the sangria category, following its launch of Yellow Tail Sangria last month. Positioned slightly lower than Eppa, Yellow Tail’s sangria is available in 750-ml. and 1.5-liter formats, retailing for $6.99 and $12.99, respectively. Eppa, meanwhile, is slated to expand with a white expression this season, priced in line with its red counterpart.

Both Eppa and Yellow Tail join a variety of premium and accessibly-priced competitors in the growing RTD sangria segment, including Shaw-Ross International’s Reál Sangria ($6.99-$8.99 a 750-ml.), Biagio Cru and Estate Wines’ Lolailo Sangria ($6.99-$8.99 a 1.5-liter), Beam’s Skinnygirl Sangria ($14 a 750-ml.) and Aveníu Brands’ Pomagria ($11.99 a 750-ml.).

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