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The Wine Group Targets On-Premise Opportunity

October 18, 2024

With annual volume of 39 million cases—led by the Franzia brand—The Wine Group is the second-largest wine marketer in the U.S., and a force in the retail segment. But its portfolio also includes smaller-production wines aimed at the premium and above tier, and the company is now sharpening its focus on opportunities to expand in the on-premise.

The Wine Group recently extended its Imagery, Benziger, and Tribute brands with on-premise exclusive bottlings. They include Benziger Running Wild Chardonnay, Tribute Paso Cabernet, and Imagery Monterey Pinot Noir. As a whole, Imagery was up 5% to 375,000 cases last year, according to Impact Databank, while Tribute reached 120,000 cases—up from 100,000 cases two years earlier—and Benziger was roughly stable at 120,000 cases.

“For by-the-glass, these new wines are generally priced at or under $18,” The Wine Group’s senior director of marketing Stacy Weisgerber tells SND. “We’re targeting both national accounts and top-tier independent accounts, with a particular focus on upscale casual and fine dining. These segments align well with the quality and profile of the wines, and we believe they will perform strongly in both national chains and select independent on-premise accounts.”

The new offerings have seen a strong response in the early going. “Early feedback has been encouraging,” Weisgerber notes. “The Running Wild Chardonnay from Benziger has particularly captured attention, with its storytelling around sustainable, organic, and biodynamic farming practices.”

While the on-premise exclusives will remain a relatively small piece of volume for their parent brands, the on-premise exposure is expected to burnish quality credentials across the brand range. “We expect small production runs that allow us to maintain a boutique feel while building a solid foundation in on-premise accounts,” Weisgerber explains. “The focus is on quality over quantity as we establish the wines in the market.”

The Wine Group sees current on-premise trends as favorable for the new effort on Tribute, Benziger, and Imagery. “The on-premise environment is constantly evolving, and we see this as a fantastic opportunity to expand our presence,” says Weisgerber. “The shift towards premium, relaxed environments creates an ideal space for wines like ours to flourish.”—Daniel Marsteller

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