Josh Cellars Tracking Continued Double-Digit Growth This Year

With the wine industry focused on capturing the attention of larger numbers of younger consumers, few if any brands have had as much success doing so as Josh Cellars. The California wine label, part of the Deutsch Family Wine & Spirits portfolio, increased 14% from its already enormous base in 2023, with total U.S. volume reaching 6.2 million 9-liter cases, according to Impact Databank.

The core Josh brand has added more than 1 million cases to its total in just the past two years, excluding its Reserve and Prosecco offerings, and recently garnered even more momentum after going viral in a series of social media memes. “The Josh base is expanding household penetration faster than any other wine brand in the Top 50 by dollar sales in Circana channels,” Deutsch Family president Tom Steffanci told SND. “The huge uptick in memes about the brand shows its cultural relevance, especially with younger consumers.”

After the 14% bump in 2023, Steffanci noted, “We expect a slight deceleration in growth in 2024 due to planned price increases but still anticipate growth in the low double digits.” But even a “slight deceleration” by Josh’s standards still amounts to impressive annual growth. Deutsch has lately been fueling the brand’s rise by diversifying its range with bottlings like Prosecco, Hearth, and its latest introduction, a lower-alcohol blend of Sauvignon Blanc and Pinot Grigio called Seaswept ($16 a 750-ml.).

“We’ve invested heavily in advertising to show Seaswept as a wine that can be enjoyed in more casual and fun outdoor settings, breaking traditional wine rules,” said Steffanci. “The initial response to Seaswept is like what we saw with Hearth, so we believe it will be a significant addition to our brand.” While Seaswept is a lower-alcohol wine, Hearth targets the other end of the spectrum, as a Cabernet Sauvignon with a slightly higher abv than the standard Josh Cabernet.

Elsewhere in the lineup, there is “massive potential” for Josh Cellars Reserve to recruit new drinkers at a higher price tier, said Steffanci, adding that the company investing to leverage that opportunity. Josh Reserve grew from 412,000 cases in the U.S. in 2022 to 450,000 cases last year, according to Impact Databank. The brand’s Prosecco extension has also gained significant traction, up 18% to 246,000 cases in 2023, affording the franchise a prominent position in the sparkling segment.

Looking ahead, Steffanci said there remain “plenty of opportunities to grow the brand by encouraging our current customers to choose Josh Cellars for more of their beverage alcohol occasions.” That expansion will be underpinned by the “unwavering popularity of Cabernet Sauvignon, the explosive demand for our white wines, and the ongoing expansion of our Hearth, Prosecco, and Reserve collections,” he noted.—Daniel Marsteller

Tagged : Deutsch Family Wine & Spirits, Josh Cellars

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