90+ Cellars Sees Growth With Value-Oriented Approach
September 21, 2012Boston-based Latitude Beverage Co.’s 90+ Cellars wine brand has seen success since launching in 2009, last year nearly doubling in volume to 81,000 nine-liter cases, according to Impact Databank. The company also nearly doubled its revenues, up from $3.8 million in 2010 to $6.9 million last year.
As a negoçiant brand, 90+ Cellars (an Impact “Hot Prospect” this year) sources its wine from the surplus supply of wineries with a history of 90+ ratings or other wine industry accolades. The international wines are bottled at the source and imported by Latitude, while domestic wines are bottled at a crush facility in California. 90+ Cellars has benefited from growing numbers of value-seeking consumers as well as its positioning as a more casual wine. Latitude founder and president Kevin Mehra said he expects volume to reach between 110,000-120,000 cases in 2012.
“People are realizing they don’t need to spend $50-$60 to get a good wine,” he said. “Cheap is now chic. People are having fun finding the values and finding the deals.”
Most of the brand’s offerings fall within the $10-$15 price range, but they do offer some higher-priced wines through the Reserve and Collector Series labels. Top sellers in the portfolio are Marlborough Sauvignon Blanc, Malbec from Mendoza, Argentina and Pinot Noir from the Russian River Valley. This fall, 90+ Cellars is releasing their first Bordeaux—a St.-Emilion Grand Cru. It’s priced around $25.
Nearly 50% of the brand’s business comes from Massachusetts. It is also available in Connecticut, New Hampshire, Vermont, Maine, Rhode Island, New York, New Jersey, Texas, California, Illinois, Florida, South Carolina and Pennsylvania.
“Our goal is to continue growing in our core markets in the Northeast, Illinois and parts of Southern California and Dallas, and possibly launch one new market in 2013,” Mehra said.
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