Latitude Sees Ongoing Gains For 90+ Cellars, Revamps Canned Lila WinesApril 3, 2017
Boston-based Latitude Beverage is projecting another year of solid growth for 90+ Cellars, an Impact “Hot Brand” that has nearly doubled in size to 350,000 cases over the past three years. Perhaps most impressive, 90+ has carved out a sizable niche while distributing to only 14 states.
“Right now, we don’t have any plans to enter new markets, but we’ll look at opportunities as they come and as our supply grows,” says Latitude president Kevin Mehra. “The focus is on quality, and we don’t have an infinite supply of high quality wine.” In 2017, Mehra estimates that 90+ Cellars will grow by around 20%, mirroring the growth rate for Latitude as a whole. The $12-$25 price bracket is providing the strongest progress for the company, he adds.
While 90+ Cellars continues to surge, Latitude is relaunching its premium canned wine brand Lila Wines and adding a new Italian sparkler to its range. For 2017, Lila Wines is primarily targeting retail spaces and has secured distribution in major chains like Safeway and Harris Teeter. In the future, Lila will look to expand on-premise distribution to outdoor music venues, golf courses and country clubs, Mehra notes.
The company also has a new streamlined production process to help ensure that the wine supply can match customer demand. In its inaugural year, Lila Wines shipped 23,000 cases nationwide, but was limited by production issues. Thanks to improvements in the supply chain, Mehra said, the brand is on track to ship 48,000-55,000 cases this year.
Last year, Lila wines were shipped from Europe and New Zealand before being canned in the U.S. According to Mehra, getting the wine from the foreign wineries to the canning facility would often take weeks. By shifting to European canning facilities, the company is now able to get the wine from the wineries into cans in 48 hours. Lila has three wines in its portfolio: a Pinot Grigio, a French rosé and an extra-dry Italian sparkling wine. The line is aimed at millennial consumers and retails at around $12 for a four-pack of 8.4-ounce cans. —Shane EnglishSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.