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EXCLUSIVE: Terlato’s Surging Seven Daughters Accelerates Growth In 2014

July 21, 2014

Terlato Wines’ Seven Daughters, one of the U.S. wine market’s hottest brands, appears to be getting even hotter. After achieving a 34% sales jump in Terlato’s fiscal 2013 (ending March 31, 2014), Seven Daughters’ sales are up by 42% in the early months of fiscal 2014, according to Terlato Wines CEO Bill Terlato.

Seven Daughters’ advance has been particularly strong in the on-premise, which currently accounts for roughly 46% of the brand’s sales, up from 44% in fiscal 2013. “We’ve gained broad distribution—the brand is now available in more than 25,000 outlets—and its availability is growing faster in the on-premise than the off-premise,” says Terlato.

The California-produced Seven Daughters line includes Moscato, Chardonnay, Crisp White Blend, Pinot Noir, Cabernet Sauvignon and Rich Red Blend. Each retails for around $14 a 750-ml.

Seven Daughters sold 146,000 cases in calendar 2013, according to Impact Databank, a 19% increase over the previous year. Terlato is projecting the brand’s 2014 sales at more than 175,000 cases, and believes it will exceed 300,000 cases by 2016. These ambitious targets are backed by a multipronged marketing approach that has struck a chord with the brand’s target audience: consumers ages 25-34. “More than 30% of Millennials favor wine over beer, and nearly half of all Millennials order wine at a restaurant at least once a month,” says Terlato. “They are a powerful demographic and Seven Daughters is in the sweet spot for them.”

Seven Daughters’ “Add a Splash of Color” integrated marketing campaign features digital and print advertising, and a rapidly expanding social media presence, with a community of nearly 100,000 on platforms such as Facebook and Pinterest. Terlato tells SND that TV ads are also in the works, and that the brand was recently refashioned with new packaging—its second makeover since its 2008 launch.

While Seven Daughters is standing out with its eye-catching growth, Terlato says that the overall company portfolio—led by Italian import Santa Margherita—is also sharply rising. Depletions are up by 11% in fiscal 2014, and, like Seven Daughters, growth is faster in the on-premise (+12.5%) than the off-premise (+10%).

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