Royal Wine Corp. Eyes Growth In The $15-$20 TierDecember 9, 2019
Known for offerings like Italian import Bartenura as well as its own Herzog Wine Cellars label, New Jersey-based Royal Wine Corp. is targeting growth in a wide range of price points. Bartenura continues to make gains in the above-$10 Moscato segment, and the Herzog brand has unveiled a new Lineage offshoot aimed at the $15-$20 price bracket.
Bartenura recently debuted a Moscato Rosé, which Royal Wine CEO Mordy Herzog projects will reach 30,000 cases this year. About two-thirds of volume for the newcomer is derived from the company’s stronghold in the northeastern part of the country. Herzog anticipates that over the next three years the Moscato Rosé will build to approximately 100,000 cases annually.
Overall, Bartenura has posted an 18% average annual growth rate over the past decade to approach 700,000 cases in the U.S. The Italian label is backed by a “Hello Bluetiful” ad campaign referencing its striking blue bottle and had a media spend of $4.2 million last year according to Kantar and Impact Databank, ranking it among the top five most advertised wine brands in the U.S.
Herzog Wine Cellars, meanwhile, is north of 200,000 cases a year. In recent years, the Herzogs have toyed with different pricing tiers for the Ventura, California-based label and have settled on an effective division. The Baron Herzog entry-level offering previously retailed at approximately $14 a bottle, but has now dropped to $10, and the range has been expanded with Lineage, which sells at $15-$20. “That’s where we’re trying to grow our presence,” says Herzog. Overall, the Herzog brand has six tiers ranging from Baron Herzog at $10 up to Herzog Generation VIII at $200.
More recently, Royal Wine has branched out into spirits, which Herzog says is now the fastest-growing part of the portfolio. It began with an American whiskey and Bourbon marketed under the brand Boondocks. The company has also begun importing Lvov, a Polish vodka distributed to eleven states that Herzog estimates will reach 50,000 cases in the next year.
“We like the slow, steady growth path as a company,” he notes. “We haven’t really been big on introducing a product and putting it out in 50 states. We want to make sure that we can support the product in the states it’s in.”—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.