Josh Cellars, La Marca, Decoy By Duckhorn Keep Growth Rolling In Year-To-Date

The overall wine market in the U.S. is projected to see a small value gain this year despite a 1% decrease in volume, according to the current edition of The U.S. Wine Market: Shanken’s Impact Databank Review & Forecast. Earlier this year, a total of 19 wine brands (excluding wine-based RTDs) earned Impact “Hot Brand” honors for their 2022 performances, representing the fastest-growing brands in the industry. The five largest Hot Brand award winners—Josh Cellars, La Marca, Decoy by Duckorn, Bread & Butter, and Oyster Bay—are up solidly again in the off-premise through the first half of 2023, auguring well for another growth year when all is said and done. Each of the five wines depleted well above a million cases in the U.S. last year and all five labels retail solidly above $10 a 750-ml.

Josh Cellars from Deutsch Family Wine & Spirits was the largest wine Hot Brand for 2022 at over five million cases, and the market’s largest-selling wine over $10 a bottle, according to Impact Databank. Josh has nearly doubled its volume since 2018, and it continues to register impressive growth in 2023. Deutsch recently extended Josh with a new variant called Hearth Cabernet Sauvignon ($17 a 750-ml), inspired by trends showing that consumers are imbibing more at home and in intimate gatherings. Hearth features a higher abv—14.5%—than the standard Josh Cabernet Sauvignon.

Josh’s Reserve tier is growing even faster, up 23% last year to crest 400,000 cases, according to Impact Databank. To further boost growth, Deutsch rolled out a new campaign for Josh across TV and online channels featuring founder Joseph Carr and centered on its message of gratitude.

Gallo’s La Marca Prosecco is the market’s fourth-largest-selling imported wine in the U.S., according to Impact Databank, and the biggest sparkling wine overall by volume. La Marca has become the Prosecco category’s clear standard-bearer, with a portfolio including the core bottling as well as a Rosé expression and a higher-priced Luminore DOCG offering.

Cabernet Sauvignon has been the primary growth driver for Decoy by Duckhorn, which topped 1.4 million cases last year, and the brand now accounts for roughly 70% of The Duckhorn Portfolio’s total volume. Decoy’s depletions have nearly doubled since 2018. Growth is continuing in the off-premise so far this year. The Duckhorn Portfolio is targeting sales of around $400 million for its full fiscal year.

Bread & Butter, from WX Brands, which is majority owned by Argentina’s Bemberg family, hit 1.34 million cases in 2022, according to Impact Databank. California Pinot Noir, Chardonnay, and Cabernet Sauvignon comprise about 80% of Bread & Butter’s U.S. depletions, and its volume was nearly three times larger last year pre-pandemic. Bread & Butter now accounts for roughly 40% of WX Brands’ total U.S. volume.

Delegat USA’s Oyster Bay, at 1.23 million cases last year, has capitalized on the continued popularity of Sauvignon Blanc to become New Zealand’s second-largest-selling wine in the U.S., according to Impact Databank, after Kim Crawford, which is at 1.83 million cases. In spite of supply-chain disruptions during the pandemic, Oyster Bay’s 2022 depletion volume was more than 50% higher than the brand’s total five years prior.—Juan Banaag

Tagged : Bread & Butter, Decoy, Delegat USA, Deutsch, duckhorn, E.&J. Gallo, Hot Brands, Josh, La Marca, oyster bay, WX Brands

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