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Retail Value Rises For Key Players In Wine Market’s Above-$10 Tier

August 13, 2018

With consumers moving upscale, wines retailing at $10 a 750-ml. and higher continue to significantly expand their share of the U.S. market. In 2017, the $10-and-up segment rose 5.7% to 75.7 million cases, according to Impact Databank, while the total table wine category advanced 0.2% to just under 290 million cases. Over the past four years, the $10-plus segment has grown its share of category volume from 21.8% to 26.2%.

Jackson Family’s Kendall-Jackson leads the $10-and-up tier with retail sales value of $542 million on volume of 3.2 million cases. After steady growth from 2010-2016, the Chardonnay-focused brand declined last year, but remains $86 million ahead of second-ranked Ménage à Trois. Jackson Family’s La Crema is also among the top premium brands in the U.S. with retail sales of $322.7 million and volume of 1.2 million cases. La Crema is looking to further premiumize its mix with its Wines of Distinction Collection ($45-$65), which features single-vineyard and small-parcel Pinot Noir and Chardonnay wines aimed at the on-premise.

Trinchero Family Estates’ Ménage à Trois grew 2.7% in 2017 to 2.9 million cases. Retail sales for Ménage à Trois, which averages about $13 at retail, advanced 3.1% to $456 million. Trinchero has had a robust innovation pipeline for the brand, including releases like Decadence Cabernet Sauvignon ($14), as well as Silk ($14) and Midnight ($12) red blends, Gold Chardonnay ($14), and Prosecco ($15). “Ménage à Trois will continue to innovate with new line extensions,” Trinchero president and CEO Bob Torkelson recently told SND.

Deutsch Family Wine & Spirits’ Josh Cellars shot ahead 40% to 2.1 million cases on a 600,000-case increase last year. Averaging about $13.40 a 750-ml., the brand saw retail sales grow by 41.6% to $337.7 million. The Cabernet Sauvignon-led franchise has steadily expanded to include Chardonnay, Sauvignon Blanc, Pinot Noir, Merlot, Rosé, and a Legacy red blend.

J. Lohr Vineyards & Wines’ namesake label has also shown consistent growth, up 2.2% to over 1.5 milllion cases in 2017. With an average price of $15 across its extensive portfolio, J. Lohr’s retail sales edged up to $274.8 million last year. J. Lohr’s premium stable includes the Vineyard Series of reserve-level wines ($22-$60)—featuring wines like Hilltop Cabernet Sauvignon and Arroyo Vista Chardonnay—while its Cuvée Series includes luxury Bordeaux blends priced at $50. “We’re now putting a lot more emphasis on the Vineyard Series tier,” notes brand ambassador Cynthia Lohr.

Rising interest in luxury Pinot Noir has benefited Constellation Brands’ Meiomi, which continued its upward trajectory last year with an 11.1% rise to 1.2 million cases. Retail sales grew 12.4% to about $320.4 million. Meiomi’s flagship Pinot Noir ($25) accounts for the majority of sales, but the portfolio also includes a Chardonnay ($21) and Rosé ($25), as well as three Reserve Pinot Noirs at $50. Constellation’s Clos du Bois, meanwhile, declined by 1.6% to 1.9 million cases and had retail sales of $318 million.

After years of progress, Ste. Michelle Wine Estates’ flagship Chateau Ste. Michelle brand was down 4% to 3.28 million cases last year, posting retail sales of $434.6 million. In the first half of this year, however, Ste. Michelle’s portfolio rebounded, with both shipments and revenue up about 6%. Like Chateau Ste. Michelle, E.&J. Gallo’s Apothic is one of only four $10-and-up wine brands with U.S. retail sales of above $400 million. With an 11.5% increase to 3.4 million cases in 2017, Apothic is the largest brand by volume in the above-$10 segment.—Kimberly Tharel

Top 10 Premium-Plus Table Wine Brands in the U.S. by Retail Value1
(millions of dollars)
Rank Brand Company 2016 2017 Percent
Change2
1 Kendall-Jackson Jackson Family Wines $572.7 $541.9 -5.4%
2 Ménage à Trois Trinchero Family Estates 442.1 455.9 3.1
3 Chateau Ste Michelle Ste Michelle Wine Estates 452.5 434.6 -4.0
4 Apothic E. & J. Gallo Winery 386.1 432.5 12.0
5 Josh Cellars Deutsch Family Wine & Spirits 238.5 337.7 41.6
6 La Crema Jackson Family Wines 320.8 322.7 0.6
7 Meiomi Constellation Brands 285.1 320.4 12.4
8 Bogle Bogle Vineyards 320.9 319.3 -0.5
9 Clos du Bois Constellation Brands 323.1 318.1 -1.6
10 J. Lohr Estates J. Lohr Vineyards & Wines 264.3 274.8 4.0
Total Top 103 3,606.1 3,757.8 4.2
Other Brands 8,442.5 9,034.6 7.0
Total Premium-Plus $12,048.6 $12,792.4 6.2%
1 at least $10 per 750ml bottle, on average
2 based on unrounded data
3 addition of columns may not agree due to rounding

Source: IMPACT DATABANK

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