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Exclusive: Newly Renamed Deutsch Family Wine & Spirits Approaching $500 Million In Sales For 2012

May 7, 2012

W.J. Deutsch & Sons has been renamed Deutsch Family Wine & Spirits, CEO Peter Deutsch said, while also projecting that company sales will reach $480 million in its current fiscal year (through March 2013), up from $460 million in the previous fiscal year.

In an exclusive interview with Shanken News Daily, Deutsch said the company’s core wine business has been strong, with both new and established brands contributing, while the spirits portfolio continues to expand. Deutsch said the company’s name change reflects an intent to remain family-owned and seek other family-owned firms as partners, while also boosting its presence in spirits.

Long a key player in the U.S. wine market with such success stories as Georges Duboeuf and Yellow Tail, Deutsch Family Wine & Spirits launched its spirits division in 2009. Its first foray was a partnership with Cognac Ferrand on Landy Cognac. Since then, the spirits unit has added Luksusowa vodka, The Original Moonshine, Villa Massa Limoncello and, more recently, Licor 43.

Last year, Deutsch also formed a joint venture with Adult Beverage Co. to market Adult Chocolate Milk, which sold 25,000 cases in the 12 months through March. The joint venture has followed up with Adult Limeade in recent weeks. Adult Beverage founders Tracy Reinhardt and Nikki Halbur say new versions are in the offing—including Adult Orange Cream, Adult Strawberry Milk and Adult Fruit Punch.

In the core wine business, Deutsch said George Duboeuf’s depletions are up 9% in 2012. “We expect the brand to reach 370,000 cases this fiscal,” he added. Yellow Tail, the company’s biggest brand (and the largest imported wine in the U.S.), has been helped by its Moscato extension, which reached 470,000 cases in the 12 months through March and is targeted hit 700,000 cases in Deutsch’s current fiscal year.

Yellow Tail’s Sweet Red Roo extension—a blend of Shiraz, Cabernet Sauvignon and other red varietals—was launched in March and is off to a fast start, with sales projected to hit 270,000 cases in the next 12 months. Meanwhile, French entry HobNob, an Impact “Hot Prospect,” is expected to hit 200,000 cases in the year ahead.

 

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