Lawrence Family’s Demeine Estates Bucking Trends With Diversified Portfolio

Demeine Estates, the California-based importer and marketer of luxury wines founded by the Lawrence family and Carlton McCoy Jr., is seeing marked growth this year despite tough market conditions. Shipments are expected to easily surpass 100,000 cases across a portfolio including California labels such as Heitz Cellar, Burgess, Brendel, and Ink Grade, along with an expanding import stable that counts producers like Villa Sandi Prosecco, Mazzei from Tuscany, La Chablisienne, and Philipponnat Champagne among others. SND executive editor Daniel Marsteller spoke with Demeine president Philana Bouvier for an update.

SND: How’s business across the Demeine portfolio heading into the holiday season?

Bouvier: Every day you read about negative news that’s going on in our industry. But we are bucking the trend. Our portfolio is continuing to grow despite all of the headwinds. Through the first three quarters of 2024, we’ve seen double-digit growth in revenue and we’re up 71% in cases.

Our on-premise depletions are up 30% across the portfolio. We’ve added over 5,000 on-premise accounts, and that’s been possible through both distributor engagement and also managing price (Demeine’s biggest wholesale partner is Southern Glazer’s, with RNDC, Martignetti, Fedway, and independents also in the mix). With costs rising, it’s natural that wine prices have to go up. However, we’ve been able to manage it, and we’ve accentuated our by-the-glass programming.

SND: What are you seeing in terms of trends within the California portfolio?

Bouvier: It’s clear that consumers are very interested in the return of classically styled California Cabernet, which is the type of wine Lawrence Wine Estates makes. That’s why you’re seeing impactful organic growth, particularly with Heitz Cellar, and why we’ve found success raising price. In addition, we’re seeing growth with Burgess, Brendel, and Ink Grade. Across the Napa Valley Cabernet portfolio, depletions are up 32% year-to-date.

SND: What price points are faring best in California Cabernet at the moment?

Bouvier: $50 by-the-glass is definitely a winner. We know there is a Mendoza line for wine by the bottle; anywhere between $200 to $250 is what a consumer is willing to pay. But for a known brand, if you look at Heitz Cellar, our single vineyards are still growing organically and very strong, and there’s great consumer interest. Especially in the Napa Cab portfolio, the goal is to be over $50 by-the-glass. Once you go under $50, you won’t be able to go back. For us that seems to be the sweet spot. And we’re just getting started in that area because it’s something we plan on growing and being consistent with across the portfolio.

SND: Which brands are driving growth on the import side?

Bouvier: We’ve placed bets in Chianti with Mazzei, La Chablisienne from France, and Villa Sandi in Prosecco. That has really helped expand the diversity of the portfolio beyond Napa Cabernet. Young people are interested in different regions and exploring wines at more casual price points.

Villa Sandi is now our largest agency brand. Champagne went through price increases that they’ve had to obviously maintain and reposition, where Prosecco has remained value driven and overdelivers for price.

On top of that the Chablis category is still growing aggressively. La Chablisienne accounts for 22% of production across the region, so it offers consistent quality at a consistent price all year-round, and it’s up 20% versus last year. It’s part of our strategic vision to dominate the growing Chablis space.

SND: How is the outlook for the holidays and into the new year?

Bouvier: We’re anticipating our growth trends to continue through the holidays into 2025. Yes, the economy has softened, but we’re seeing signs that the market is going to come back. It’s taking longer than we expected for sure. We’re investing in our team and hiring more people so that when it does come back we’re in a position to take share. We’re focused on luxury, fine wine on-premise accounts and independent retail while also ensuring we’re strategically aligned with the right retailers across the country.

Tagged : Demeine, Heitz, Lawrence Wine Estates

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