Bread & Butter Drives Rapid Growth For California’s WX Brands
February 28, 2024California winemaker WX Brands, majority owned by Argentina’s Bemberg family, has seen rapid gains for its Bread & Butter label, which is now approaching 2 million cases globally. Most of that volume is from the U.S., where Bread & Butter has roughly doubled since pre-pandemic, increasing 15% to above 1.5 million cases in 2023, according to Impact Databank.
With its core range retailing at $16, Bread & Butter has continued to show solid growth lately amid tight conditions in the wine market. “It’s the second fastest growing brand in its segment, and that’s driven by a lot of our core items, Chardonnay, Pinot Noir, and Cabernet,” WX Brands chief commercial officer Jeff Ngo tells SND. “Unlike other brands, we have multiple varietals that are successful. We have strong brand awareness within the wine category, but if you think about the overall alcohol beverage world, it’s still relatively light in terms of penetration and awareness, so there’s more room for us to grow.”
Ngo adds that Bread & Butter is an approachable entry point to wine for younger generations. “We know that Gen Z and younger Millennials have not taken to wine as much as we want them to,” he says. “So we speak to them in a much more approachable way. Our tagline is ‘don’t overthink it’.” This year, the brand is targeting the better-for-you wine segment with Bread & Butter Sliced ($16), a 9% abv extension with 85 calories a serving. The franchise is also active higher on the pricing ladder with its Reserve series, including a Russian River Pinot Noir ($25) and Chardonnay ($23), as well as a Napa Valley Cabernet ($30).
Within its more than 3-million-case U.S. portfolio, WX also includes labels like True Myth, which Ngo says has been growing at 30% to 40% a year, targeting female drinkers. True Myth includes a Paso Robles Cabernet ($24), Edna Valley Chardonnay ($18), and a new San Luis Obispo Coast Pinot Noir ($28). Another up and coming label is Icon Rock ($15-$40), which Ngo calls a “multi-varietal, multi-appellation wine that showcases the best vineyards of every region. We started with wines out of Argentina, Chile, and New Zealand, and it will eventually expand into wines from the United States as well.” Argentina’s Trapiche is another key label, with U.S. volume of around 190,000 cases in recent years.
Beyond its own brands, WX is also a key supplier of exclusive wine labels for retailers. “In Whole Foods we will launch a brand called Madame Sunshine, which is a low-cal, better-for-you type item. In Albertsons-Safeway, we brought them a new lightweight PET bottle wine that’s 100% recyclable called BeeLightly,” says Ngo. “And Kroger’s our largest customer. We do a lot of business with them across multiple segments and varietals.”—Daniel Marsteller
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