News Alert: Deutsch To Take On Sales And Marketing For Layer CakeDecember 11, 2017
California-based Vintage Wine Estates has acquired the Layer Cake, Cherry Pie and If You See Kay brands from One True Vine for an undisclosed amount. As part of the deal, Vintage Wine Estates partner Deutsch Family Wine & Spirits will now handle sales and marketing for the Layer Cake brand nationally—by far the biggest brand in the deal. The sale is set to close on January 2.
One True Vine’s Jayson Woodbridge, founder of the three brands, will serve as a winemaking and public relations consultant for Layer Cake and Cherry Pie. While Deutsch will handle sales and marketing for Layer Cake, Vintage Wine Estates will take on responsibility for Cherry Pie and If You See Kay. The acquisition will add over 450,000 nine-liter cases to the Vintage Wine Estates portfolio, according to the company.
“We’re very excited to soon be leading the sales and marketing of Layer Cake,” said Peter Deutsch, CEO of Deutsch Family. “In partnership with (Vintage Wine Estates president and founding partner) Pat Roney and his team, we’ll drive existing and new items as part of our mission to grow the brand.”
Layer Cake was created in 2004 to bring well-crafted wine from around the world to the market for $10-$15 a bottle. Currently there are nine varietals sold by the brand sourced from popular regions including Malbec from Argentina, Primitivo from Italy, Australian Shiraz, and Cabernet Sauvignon from California. In Nielsen channels for the 52 weeks ending October 7 2017, Layer Cake was down 1.4% to 211,529 cases. For 2016, Impact Databank estimated that Layer Cake was up 8% to 516,000 cases.
As for the other brands, Cherry Pie is a Pinot Noir-focused brand that sources California grapes to produce wines from general regions down to single vineyards. If You See Kay is an Italian-sourced Cabernet blend notable for its irreverent name and assertive label design. In Nielsen channels, Cherry Pie is up 12.4% to 1,085 cases for the 52 weeks ending October 7 and If You See Kay is down 22.3% in to 3,750 cases in the same period.
Impact Databank estimates that Vintage Wine Estates sells roughly 1.2 million to 1.3 million cases a year, which would put them just outside of the top 25 wine markets in the U.S. This acquisition will push Vintage Wine Estates closer to the 2 million case mark.—Shane EnglishSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.