Bill Terlato On The State Of The Wine Market

With annual U.S. volume of approximately 1.85 million cases, according to Impact Databank, Illinois-based Terlato Wines ranks among the leading wine marketers in the premium-and-above segment. Its portfolio includes California offerings like The Federalist and Chimney Rock (whose Cabernet Sauvignon Stags Leap District 2021 ranked among Wine Spectator’s Top 10 Wines of 2024), along with imports ranging from Terlato Family Vineyards to Wairau River, Loveblock, Seven Daughters, Lanson, Il Poggione Brunello, Feudi di San Gregorio, Cecchi Chianti Classico, Nino Franco DOCG Prosecco, Riondo Prosecco, Cusumano, and Alta Mora, among others. The company’s spirits portfolio, which numbers about 200,000 cases, includes labels like Nonino Amaro, Riazul Tequila, Bunnahabhain single malt Scotch, and Dublin Ink Irish whiskey, among others. SND recently caught up with CEO Bill Terlato for an update.

SND: What consumption trends are you seeing in the wine market so far this year?

Terlato: Wines from iconic regions like Burgundy, Tuscany, and Napa Valley continue to perform well, but consumers are also seeking out wines that reflect authenticity and craftsmanship from emerging regions, especially among younger consumers looking for more variety and discovery.

SipSource data suggests that $50+ has become one of the best performing price tiers in table wine. In the off-premise, $50+ whites are growing +2.7% in volume, and $50+ reds are growing a staggering +11%. These luxury reds are also growing in on-premise channels at +2.8%.

There is also a growing demand for wines that are sustainably produced, organic, or biodynamic. U.S. consumers are more conscious about where their wine comes from and how it’s made.

SND: Which categories remain vibrant on the import side?

Terlato: We believe wine is driven by food culture, which has never been stronger in the U.S. than it is now. The U.S. imported wine market is navigating a period of shakeout and change. The future is likely to be shaped by evolving consumer preferences, changes in trade policies, and economic factors.

Currently, Rosé continues to be a growing category, especially in the warmer months, while sparkling wines, including Prosecco and Cremant, are becoming increasingly popular for everyday celebrations and casual drinking. We’re also seeing an increasing shift toward more adventurous consumers who are exploring a wider range of options from regions like New Zealand.

We are continuing to see great retail performance with luxury Italian imports. In NIQ data, many Italian varietals are significantly outpacing total wine, such as Pinot Grigio, Montepulciano (+2.5%), Chianti Classico Riserva (+8.0%), Chianti Classico (+3.1), Brunello (+0.8%), and Other Italian White Blends (+13.4%).

SND: Are you releasing any new import labels or varietals this year?

Terlato: We added three new European suppliers in the first quarter: Castello di Bolgheri, the oldest and most historic winery in the renowned Bolgheri region of Tuscany; Vidal Fleury, the oldest continuously operating wine producer in the Rhône Valley; and André Delorme Cremant de Bourgogne, which has established itself as the Grands Crémant de Bourgogne specialist.

In addition, last November we executed a full relaunch of our Seven Daughters brand in partnership with Academy Award nominee Taraji P. Henson. The elevated brand platform and packaging instantaneously appealed to a broad audience and is currently the fastest growing Moscato SKU and the only Moscato item showing dollar and velocity growth in Nielsen.

SND: What’s your take on the tariff situation?

Terlato: While it’s still too early to predict the long-term impact, we are hopeful that a permanent negotiated solution will emerge soon. Our primary focus remains on minimizing disruptions, protecting our market share, and remaining agile in the face of an evolving landscape.

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