U.S. Wine Market’s Leading Super-Premium Players In Growth Mode

Thanks to robust premiumization trends, the U.S. market’s premium-plus wine segment ($10-and-above a 750-ml.) rose 5.8% last year, to 68.4 million nine-liter cases, according to Impact Databank. But while the $10-$14 area remains a sweet spot, growth has been even faster for the market’s leading deluxe wine brands—defined as those priced at $14-and-up—whose top five players collectively grew 7.3% in 2015.

“Discovery and authenticity are two trends driving growth in the segment,” says Steve Lohr, chairman and CEO of San Jose-based J. Lohr Vineyards & Wines. “If a buyer has a few more dollars to spend on a bottle of wine, she or he is often curious to find out how much more flavor—and value—those dollars can provide.”

The J. Lohr Estates label—the market’s leading deluxe-priced brand at more than 1.4 million cases—declined slightly in 2014, but it bounced back with a 3.4% increase in 2015, and this year it’s within striking distance of the 1.5-million-case mark. The range’s best sellers are its Seven Oaks Cabernet Sauvignon and Riverstone Chardonnay, but J. Lohr Estates’ Flume Crossing Sauvignon Blanc has also gained notable traction. Lohr tells SND that the J. Lohr Estates range currently does around 80% of its business off-premise, though it’s seeing its fastest growth within the independent on-premise channel.

Another stalwart at the deluxe level, Jackson Family Wines’ La Crema, posted an impressive 11.7% gain in 2015. Though best known for its Sonoma Coast Chardonnay and Pinot Noir ($15-$20), the brand’s Monterey collection of wines has contributed substantial momentum in recent years. La Crema recently augmented its Monterey lineup with a Pinot Noir Rosé, and plans to expand production of that offering for next year.

Meanwhile, Francis Ford Coppola’s Diamond Collection ($16-$21) has become a million-case brand after growing 4.2% last year. The Diamond Collection is led by its Claret, followed by Chardonnay, Cabernet, Pinot Noir and Merlot. Its Pavilion label, a Chardonnay sourced from California’s Santa Lucia Highlands and packaged similarly to the flagship Claret, featuring gold netting around its bottle, has also shown solid advances lately. Fellow California brand Rodney Strong also continues to rise steadily, and is projecting 6% growth for this year.

On the import side, Constellation’s Kim Crawford ($17-$33) remains one of the hottest brands on the market. Among the key drivers of the New Zealand wine boom, Kim Crawford is likely to cross 1 million cases in U.S. volume this year for the first time. —Christina Jelski

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