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Deutsch Family’s Josh Cellars Nears 1 Million Cases, Leading The Company’s “Low Lux” Growth

November 30, 2015

Long known for the 8.3-million-case Yellow Tail brand, Deutsch Family Wine & Spirits has successfully diversified its portfolio in recent years, with so-called “low lux” wines—retailing in the $10-$25 segment—leading the way.

Deutsch’s low lux portfolio totaled 1.8 million cases on 30% growth last year, and the company tells SND that the surge has continued in 2015.

California’s Josh Cellars, an Impact “Hot Brand,” has emerged as the star of Deutsch’s low lux range. In 2011, Josh Cellars was at 20,000 cases in the U.S. market, according to Impact Databank. Last year the brand’s depletions grew by 70% to hit the 500,000-case mark, and it’s currently on pace to eclipse 1 million cases by the end of Deutsch’s fiscal year on March 31. Deutsch expects Josh Cellars to soon become the second-largest wine brand in the U.S. priced between $10-$15 in Nielsen channels, after Kendall-Jackson.

Deutsch is also seeing significant gains from Josh Cellars’ sibling brand, Joseph Carr, whose Napa Cabernet is showing triple-digit growth on-premise, both by the bottle and by the glass. The on-premise has likewise become fertile ground for Deutsch’s Barone Fini label, an Impact “Hot Prospect” that the company expects to hit 130,000 cases on a 20% advance this year. Barone Fini, which sells 50,000 cases on-premise annually, is now among the leading Pinot Grigio labels nationwide by the glass.

While Deutsch Family is thriving at the $10-$25 level, it’s also seeding growth at the luxury tier. The Calling, a collaboration between CEO Peter Deutsch and sportscaster Jim Nantz, is currently rising at nearly 25% from a relatively small base, the company says. The Calling includes Sonoma-sourced Pinot Noir, Chardonnay, Cabernet Sauvignon and Bordeaux blend offerings retailing from $30-$65.

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