Market Watch, April 2018

APRIL 2018 MARKETW ATCHMAG COM MARKET WATCH 35 PHOTO BY TK TK E J Gallo remains the Hot Brands lists most prolific honoree in domestic wines Gallo counts seven California labels as Hot Brands including returning players Liberty Creek Apothic and Dark Horse first time winners Prophecy Chateau Souverain and J Vineyards and William Wycliff which returned to the list after previously winning in 2014 Among the newcomers Prophecy around 12 a 750 ml has emerged as a standout jumping from 14000 cases in 2015 to around 290000 cases last year In addition to its California Pinot Noir the brand offers an Italian Pinot Grigio a New Zealand Sauvignon Blanc and a red blend jointly sourced from California and Washington Meanwhile Deutsch Family Wine Spirits Josh Cellars 13 19 a 750 ml continues to surge The brand blew past the 2 million case mark last year on 40 growth bolstered by the popularity of its Cabernet Sauvignon By value Josh Cellars leapt 46 to 179 million in Nielsen channels for the 52 weeks ending December 30 2017 with the ranges Nielsen dollar sales up more than 100 million over the past two years the best fruit sources in the Napa Valley while selling for under 40 a bottle says Michelle Perry vice president of fine wine marketing visitor programs and DTC for Constellation Brands Perry adds that Robert Mondavi Winerys higher end Oakville 40 65 and Reserve tiers 52 175 are also driving gains particularly within the on premise Joining Constellation in the surging premium boxed wine segment is Delicato Family Vineyards DFV Bota Box 18 20 a 3 liter box which follows close on Black Boxs heels at approximately 6 million cases The brand has expanded its lineup to 15 expressions and is seeing robust growth from its core 3 liter product and its 15 liter Bota Brick offshoot 13 launched in late 2014 DFV says Bota Box consumers are responding to the brands environmentally responsible packaging and its ability to keep wine fresh for up to four weeks after opening Bota Box has roughly doubled its volume over the last three years Together Black Box and Bota Box now account for about 126 million cases in the U S up from about 71 million cases in 2014 2017 DOMESTIC WINE HOT BRANDS12 thousands of 9 liter case depletions Percent Change3 Brand Company 2014 2015 2016 2017 14 15 15 16 16 17 Black Box Constellation Brands 4015 4440 5380 6600 106 212 227 Bota Box Delicato Family Vineyards 3055 3913 5078 6040 281 298 189 Liberty Creek E J Gallo Winery 3375 3950 4405 4625 170 115 50 Apothic E J Gallo Winery 2150 2450 3050 3400 140 245 115 Josh Cellars Deutsch Family Wine Spirits 510 980 1500 2100 922 531 400 Dark Horse E J Gallo Winery 350 1225 1470 1690 200 150 Meiomi Constellation Brands 500 790 1080 1200 580 367 111 Joel Gott Joel Gott Wines 550 695 775 860 264 115 110 Trinchero Family Estates Decoy by Duckhorn Duckhorn Wine Co TSG 332 406 484 587 223 191 214 Duplin Duplin Winery 365 411 456 518 126 109 136 William Wycliff E J Gallo Winery 295 320 360 420 85 125 165 Line 39 ONeill Vintners Distillers 166 196 242 406 181 235 678 Butter Chardonnay JaM Cellars 46 151 250 325 658 300 Chloe4 The Wine Group 97 168 290 324 728 730 117 Chateau Souverain E J Gallo Winery 80 120 165 300 500 375 815 Seaglass Trinchero Family Estates 208 225 252 290 82 120 151 Prophecy E J Gallo Winery 14 196 290 480 A to Z A to Z Wineworks 192 219 253 285 141 153 128 House Wine4 Precept Wine 167 203 239 272 215 175 136 Robert Mondavi Winery Constellation Brands 207 205 225 260 10 98 156 The Federalist Terlato Wines International 5 110 200 260 818 300 Justin Justin Vineyards Winery 120 170 200 250 417 176 250 J Vineyards E J Gallo Winery 100 120 175 250 195 460 430 Total Hot Domestic Wine 16886 21480 26724 31550 272 244 181 1 Criteria Established brand with double digit growth each year in 2015 2016 and 2017 Established brand with at least 15 growth from 2016 to 2017 Special consideration top ten brand with at least 5 growth in 2017 and at least 15 growth since 2014 Significant new product 2 Calendar 2017 minimum volume requirement 250000 cases 3 Based on unrounded data 4 Includes some imports Source IMPACT DATABANK 2018