Exclusive news and research on the wine, spirits and beer business

Lodi’s Michael David Winery In Expansion Mode

July 12, 2017

Lodi, California-based Michael David Winery has been expanding markedly in recent years, led by its fast-growing 7 Deadly Zins label. Last year, 7 Deadly Zins ($16 a 750-ml.) depleted 302,000 nine-liter cases, up 15%, to earn Impact “Hot Brand” honors.

Two of the company’s other key labels are growing substantially as well. Freakshow ($20 a 750-ml.), which includes a Cabernet and Red Blend, surged 63% to 140,000 cases last year, and Petite Petit ($18), a blend of Petite Sirah and Petit Verdot, jumped 39% to 100,000 cases. Kevin Phillips, Michael David’s vice president of operations, tells SND that 7 Deadly Zins is projected to rise by 25%-30% this year, with Freakshow expected to advance by about 20%.

In April, Michael David acquired a Geyserville winery from Silver Oak Cellars. “The Geyserville facility has a two pronged purpose,” says Phillips. “The immediate purpose is to consolidate all of our fruit purchases in the North Coast into one facility. The long-term goal is to provide support for the Lodi brands and to eventually establish some North Coast brands.” Currently, around one-third of the grapes used to produce Michael David wines are harvested from company-owned vineyards.

With investment ongoing, Phillips adds that Michael David will triple its annual grape crush capacity to 15,000 tons by 2019. If the company continues to grow at its current rate, he adds, further expansion up to 30,000 tons per harvest will follow.

While Michael David’s wines have enjoyed much of their success in the off-premise, building a larger on-premise presence is also a priority. In March, the company hired Jennifer Lumley—formerly of Terlato, DFV and Southern Glazer’s—as national on-premise accounts manager. Lumley’s role will include focusing attention on Lodi’s grape farmers in an effort to continue raising the region’s profile with on-premise consumers. “The goal is to promote the true quality of the wines produced in Lodi,” says Lumley. “We’re no longer the new kid on the block.” —Shane English

Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.

Tagged :

Get your first look at 2018 data and 2019 projections for the wine and spirits industries. Order your 2019 Impact Databank Reports. Click here.

Previous :  Next :