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Terlato Builds Upscale Cru Collection, Targeting The On-Premise

December 19, 2018

With the wine market continuing to premiumize, Terlato Wines is targeting the luxury on-premise segment with its growing Cru Collection portfolio. Spearheaded by company vice chairman John Terlato, the Cru Collection range has a total of 24 producers and is focused heavily on Burgundy, but also includes high-end offerings from Spain, Austria, and other regions. Terlato tells SND that the portfolio will finish this year at around 20,000 cases, with an average retail price of $100 a 750-ml. and most of the volume drawn from the on-trade.

“We see continued movement toward premiumization, and we feel we’re well-positioned to take advantage of that trend,” Terlato says. “The Cru business will grow at somewhere between 30%–35% this year.”

At the high end of the market, Terlato says Cru wines like Ramonet, Roumier, Château de la Tour Clos-Vougeot, Niellon, Damoy, Groffier, and Château de Meursault are well-established among Burgundy consumers and continue to appeal to the connoisseur set. “We also see potential in hidden gems like Bruno Clavelier, Drouhin-Laroze from Gevrey-Chambertin, and Jérôme Castagnier from Morey-Saint-Denis,” he notes. “These are ascendant wines that are coming into their own.” Domaine Castagnier and Domaine Groffier are among the newer entrants to the range, having been added over the past 12 months.

While the Cru Collection portfolio is led by Burgundy, Terlato also sees potential for terroir-driven wines from other regions, such as Austria’s Kracher and M. Chapoutier’s Alsatian and German project Schieferkopf, “These are wines that represent a specific vineyard and a specific place,” he says. “Those are the types of wines where we see the most interest.”

Moving forward, Terlato plans to continue building the Cru Collection Burgundy lineup with a focus on grand cru and premier cru offerings, while also expanding the portfolio into other regions, such as California. “We’re in discussions with another half-dozen winemaking families” about joining the fold, Terlato says.—Daniel Marsteller

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