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Treasury Americas Says Renewed Focus On $10-$20 Segment Is Paying Dividends

February 13, 2015

Among Treasury Wine Estates’ key initiatives in the U.S. market in recent months has been a renewed emphasis on the $10-$20 price area, a strategy that is now yielding growth on several of its main brands, the company tells SND.

“We’ve been relentless about driving focus across the business—particularly on our long-term strategy to grow in $10-plus,” says Sandra LeDrew, Treasury’s chief commercial officer for the Americas. “Our marketing investments have increased, our sales teams are focused, and our distributors are engaged on driving this segment.”

Indeed, in the 52 weeks through January 3, Treasury’s so-called “masstige” portfolio of $10-$20 wines outpaced category growth in both dollars and volume in Nielsen channels, rising 12% by volume and 9% by value, compared with an 8% gain in both volume and value for the $10-$20 category overall.

Treasury’s Matua brand from New Zealand has been leading the charge, jumping more than 50% to 280,000 cases last year, according to Impact Databank, largely on the strength of its Sauvignon Blanc offering. Another import, Australia-sourced red blend 19 Crimes, more than tripled in U.S. volume in 2014, rising to 106,000 cases. On the domestic side, Treasury’s Sledgehammer brand—aimed at Millennial males—also had a strong showing, nearly doubling to 60,000 cases.

While Sonoma’s Chateau St. Jean has been one of Treasury’s better performing brands in the $10-$20 area the past few years—averaging 11% volume growth from 2011-2013—it slowed to a rate of 2% in 2014, to close at 630,000 cases. Still, Chateau St. Jean had plenty of traction in Nielsen channels over the holiday period, with value up 12% on a 17% volume advance in the four weeks through January 3. Likewise, fellow California label Souverain—which was revamped and extended with a $15 North Coast-sourced tier a year ago—continued to hover around 80,000 cases in calendar 2014, but has showed an uptick more recently, posting double-digit value growth in Nielsen channels.

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