Deutsch Says Josh Cellars Will Hit Half-Million Cases In 2014May 16, 2014
Deutsch Family Wine & Spirits has added a new red blend to its thriving Josh Cellars brand, and is eyeing other opportunities across the burgeoning red blend category. Josh Cellars’ new offering, Legacy, is a blend of Merlot, Zinfandel, Syrah and Petite Sirah that retails at around $15. It joins a brand portfolio that includes Cabernet, Merlot, Pinot Noir, Chardonnay and Sauvignon Blanc varietals ranging from $14-$17 a bottle.
An Impact “Hot Brand,” California-sourced Josh Cellars is currently at around 350,000 cases, says Deutsch Family CEO Peter Deutsch, and this year is expected to reach the half-million case mark. So far, the brand has made its biggest impact at around $10 a glass in the on-premise, as well as in the independent retail channel. This year the focus will be on leveraging that popularity to expand in the national and regional chain sector.
“Josh Cellars has the potential to eventually be an 800,000-to-1 million case brand,” Deutsch says. Joseph Carr, a Napa-sourced sister brand to Josh Cellars that retails around $25, is also on the upswing, with volume expected at 60,000 cases this year, compared with 15,000 two years ago.
Meanwhile, Deutsch Family is also banking heavily on continuing success in the red blend category through a recent extension to Yellow Tail, Big Bold Red. With red blends on pace to become the third-leading wine style in the U.S. within two years, Deutsch says Big Bold Red is well-positioned, at around $7 a 750-ml., to take share from category leaders like Trinchero’s Ménage à Trois and Gallo’s Apothic, both of which are at roughly $9. In particular, Deutsch sees an opening for Big Bold Red to thrive in the 1.5-liter red blend format, where some of the segment’s top brands aren’t yet represented.
Big Bold Red is projected to hit 400,000 cases this year. Another recent addition to Yellow Tail, its sangria, has also enjoyed a strong start, depleting 138,000 cases in its 2013 debut. The Yellow Tail brand overall rose 0.9% last year to 8.6 million cases in the U.S.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.