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Exclusive: Treasury Americas To Debut Pepperjack, Australia’s Top Selling Red Wine By Value

October 16, 2013

Treasury Wine Estates is set to launch a new super-premium Australian brand in the U.S. The label, called Pepperjack, will hit national distribution November 1. Pepperjack initially will feature a single wine—Barossa Red—comprised of 78% Shiraz and 11% Cabernet Sauvignon, with smaller amounts of Merlot, Malbec, Grenache, Sangiovese, Cabernet Franc and Tempranillo.

Treasury Americas is starting with 10,000 cases of Pepperjack, but it likely has far higher volume goals for the long term. Treasury Americas managing director Sandra LeDrew notes that Pepperjack has been Australia’s top-selling red wine by value for the past 34 consecutive months.

Retailing at $24 a bottle and selling by the glass at around $13, Pepperjack is aimed squarely at the upmarket segment, where Treasury—and the wine market overall—has seen its best results lately. Luxury red blends priced from $20-$25 are currently growing at a rate of nearly 40% in the U.S., according to Nielsen.

Pepperjack is geared toward “the consumer who enjoys exploring new wines and is looking for that go-to red under $25 that delivers real value,” LeDrew says, adding that Pepperjack’s Barossa Valley sourcing offers the kind of “unique regionality” that’s been identified as an area of opportunity on which Australian wines can build in the U.S. market.

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