Special Report: Premium-Plus California Wine Rising Sharply, As Cupcake Leads Charge
June 13, 2013California’s premium-plus wine segment ($10-and-above) is thriving, despite a challenging on-premise environment. The top 10 premium-plus California wines grew by an aggregate 8.2% in 2012, according to Impact Databank, far outpacing wines priced below $10.
Eight of the top 10 brands in the $10-plus segment posted growth last year, and those eight brands now account for more than 40% of total volume at that pricing tier.
Growth in the $10-plus segment is being led by Cupcake ($11-$12), which jumped by 25% to 3 million cases last year. Cupcake, marketed by Underdog Wine Merchants (The Wine Group), has been on a tear over the past few years. After selling roughly 60,000 cases in its launch year of 2008, Cupcake leapt to 300,000 cases in 2009 and hit the 1-million-case mark the following year. The brand’s upswing continued in 2011, when it more than doubled sales to 2.4 million cases. This year, Cupcake is on pace to leapfrog Kendall-Jackson (which rose by 3.9% to nearly 3.1 million cases in 2012) as the U.S. market’s top-selling wine priced above $10.
While California’s $10-plus segment has been rising swiftly, wines priced above $20 are faring even better. According to SymphonyIRI, domestic table wines priced above $20 a bottle rose 17% by volume and 15% by value in the 52 weeks through April 21, with California accounting for 94% of the domestic category.
While the market is generally strong and enthusiasm abounds—especially about the highly anticipated 2012 vintage—leading players admit that work remains, particularly on-premise. “It’s been a bumpy ride on-premise, trending with consumer confidence, but that channel is in growth again and we’re focused on by-the-glass listings,” says Michelle Perry, marketing director for Constellation’s luxury wines.
For a comprehensive report on California’s premium-plus wine business, see Impact’s June 1&15 issue.
| U.S. – Top 10 California Table Wine Brands Priced Above-Premium1 (thousands of nine-liter case depletions) |
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| Rank | Brand | Company | 2009 | 2010 | 2011 | 2012 | Percent Change 2011-2012 |
|---|---|---|---|---|---|---|---|
| 1 | Kendall-Jackson | Kendall-Jackson Wine Estates | 2,780 | 2,875 | 2,970 | 3,085 | 3.9% |
| 2 | Cupcake2 | Underdog Wine & Spirits | 300 | 1,000 | 2,400 | 3,000 | 25.0% |
| 3 | Menage a Trois | Trinchero Family Estates | 1,375 | 1,785 | 2,010 | 2,145 | 6.7% |
| 4 | Bogle | Bogle Vineyards | 1,210 | 1,370 | 1,510 | 1,750 | 15.9% |
| 5 | Clos du Bois | Constellation Brands | 1,620 | 1,700 | 1,660 | 1,715 | 3.3% |
| 6 | Sterling Vineyards3 | Diageo Chateau & Estate Wines | 1,405 | 1,300 | 1,290 | 1,255 | -2.7% |
| 7 | J Lohr Estates | J Lohr Vineyards & Wines | 885 | 975 | 1,085 | 1,220 | 12.4% |
| 8 | Mirassou | E. & J. Gallo Winery | 700 | 765 | 880 | 915 | 4.0% |
| 9 | Estancia Estates | Constellation Brands | 795 | 805 | 860 | 875 | 1.7% |
| 10 | La Crema | Kendall-Jackson Wine Estates | 655 | 740 | 870 | 850 | -2.3% |
| Total Top 10 | 11,725 | 13,315 | 15,535 | 16,810 | 8.2% | ||
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1 at least $10 per 750ml 2 includes some imports and sparkling wine 3 includes Sterling Vintners Collection and Sterling Napa Source: IMPACT DATABANK |
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Tagged : California, The Wine Group, wine
