Interview, Part 2: Breakthru’s Regional Presidents
October 31, 2023n the second part of our interview, Breakthru Beverage Group regional presidents Cristina Desmond (Central), Will Fulghom (East), Jeremy Tostrup (West), and Sam David (Canada) discuss conditions in the wine category, the low- and no-alcohol phenomenon, and progress in the e-commerce area.
SND: What trends in wine are driving the market in your regions?
Desmond (Central region): We all know the wine category has been soft and we’re starting to see some trade down, but we’re also confident this is the time where consumers are purchasing for their holiday gift giving and celebrations. From a category perspective, we’re still seeing large categories—Sauvignon Blanc, Cabernet, Chardonnay, and certainly sparkling wine—continuing to gain share. We’re well-positioned long-term with our Aspect team handling the fine wine portfolio.
Tostrup (West): Breakthru is bullish on the wine business long-term for growth ambitions across our footprint. That’s really why we entered the California market (via the acquisition of Wine Warehouse) as a strategic initiative for the company. We’ve added almost 150 new people into the market and we’re continuing to invest.
David (Canada): We have to get new consumers and that’s going to challenge the wine industry to be more innovative. But wine has history, authenticity, and uniqueness—all things that the younger consumer wants. So I think the opportunity is there.
SND: Low- and no-alcohol drinks have also been in the spotlight. Do you see more consumers gravitating there?
Tostrup (West): The younger generation has shied away from alcohol in some cases, but they still want that experience when they go out with their friends. Zero-alcohol provides them an opportunity, and you’re seeing explosive growth in those brands. The better-for-you category is fitting a niche with both low-alcohol wines and non-alcs.
Fulghom (East): Non-alc alternatives are still a very small share of what we do, but the trend will continue to accelerate. The non-alc sales off-premise are up 31% over the past year to $510 million according to Nielsen.
Desmond (Central): One thing I’m seeing on-premise is that our customers increasingly are creating space on their cocktail menus featuring mocktails and non-alcoholic options, helping attract more consumers into the space.
SND: E-commerce has been a key focus at the wholesaler level lately. How are you leveraging that area to drive performance?
Fulghom (East): The Breakthru Now platform helps our reps focus on being consultative and strategic sellers rather than just taking orders. It suggests products to our customers directly through AI suggestions and also offers curated marketing programs. We’ve sold 31,000 new items year-to-date through retailers. The reorder rate is nearly 55% and that AI-driven search has improved the customer experience. Customers that leverage the platform grow on average 7% faster than those that don’t. And so for us it’s a win-win for our customers and suppliers.
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