Brandy Marketers Emphasize Innovation To Boost Category
January 17, 2025While American brandy has faced declines in recent years, it remains a nearly 7-million-case category in the U.S., led by big labels like E.&J. (Gallo) at 2.8 million cases, Paul Masson (Sazerac) at 2.1 million cases, and Christian Brothers (Heaven Hill) at 1.1 million cases. Category marketers are emphasizing innovation efforts to draw in new consumers.
Among the newer entrants, Italian wine brand Stella Rosa dipped into the spirits sector with the launch of three brandies: Stella Rosa Smooth Black, Tropical Passion, and Honey Peach. Retailing at $35 a 750-ml., they’re positioned as more affordable alternatives to Cognac. Company president and CEO Steve Riboli says the strength of the Stella Rosa wine brand, coupled with a celebrity partnership with singer, songwriter, actress, and model Brandy, gave the extensions instant credibility. Packaged in a heavyweight bottle that mimics the dramatic designs of many Cognac bottles, Stella Rosa’s brandies are positioned for gift-giving as well, Riboli says.
Gallo is also focusing on the higher end of the brandy category, putting emphasis on its Germain-Robin and Argonaut brands. The goal is to attract a new generation of brandy consumers. “To help broaden the consumer base, as well as the occasions where they’re enjoying the spirit, we must start with trade education,” says Spirit of Gallo executive vice president and general manager Britt West. “Within the Spirit of Gallo portfolio, brands like Germain-Robin and Argonaut are doing this by prioritizing brand advocacy.”
Sazerac, which acquired Paul Masson from Constellation Brands in 2021, has been busy revamping the brand’s flavor portfolio. “The great news is that Paul Masson brandy is growing,” says Sazerac vice president Jess Scheerhorn. “We are committed to moving the needle for the entire category.” The moves have included refreshing nine new flavors in two years, including the latest innovation, Paul Masson Ice, backed by brand partner rapper Paul Wall.
Oregon’s Hood River Distillers is targeting both consumers and trade to spur demand. Its line of Clear Creek brandies has seen growth slow in recent years, says vice president of marketing Korrie Dodge, but the company is “doubling down on efforts to enhance brand awareness and education. Consumers are opting for quality over quantity. We see numerous opportunities to introduce our super-premium artisan portfolio of fruit brandies to these selective consumers, as well as the bartenders and retailers who serve them.”
At Heaven Hill, director of legacy spirits Aaron Wilke sees green shoots in what has been a challenging time for the category. “While brandy declines continue to outpace the total spirits industry, the latest trends for brandy are showing positive results,” he says. “In all the most recent scan periods brandy is nearing flatness from a year-over-year comp perspective. We expect the recent positive trends to continue into 2025.”
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