Market Watch, April 2018

36 MARKET WATCH MARKETWATCHMAG COM APRIL 2018Deutsch recently backed Josh Cellars with a 10 million ad campaign featuring brand founder Joseph Carr Also on the list is Trinchero Family Estates with its Joel Gott and Seaglass brands both of which play in the thriving accessibly priced premium category Joel Gott around 15 18 a 750 ml neared 900000 cases last year while sister brand Seaglass around 10 13 makes its Hot Brand debut at roughly 300000 cases Slightly up the pricing ladder is Duckhorn Wine Co s Decoy range Originally launched in 1985 as a red blend Decoy by Duckhorn 20 25 a 750 ml has expanded significantly in recent years adding Cabernet Sauvignon Chardonnay Merlot and Pinot Noir among other varietals to the mix Decoy has benefited from its position as a gateway brand to Duckhorns more upscale offerings which retail between 25 and 125 and include the Duckhorn Vineyards Paraduxx Goldeneye and Migration labels ONeill Vintners Distillers Line 39 brand 11 a 750 ml surpassed 400000 cases on nearly 68 growth last year The acces sibly priced lineup features eight expressions including Pinot Noir and Cabernet Sauvignon two of the brands most popular labels and Excursion Red a new red blend launched last summer Line 39 Pinot Noir continues to be one of our top sellers with sales that exceeded 46 million in 2017 says ONeills chief sales officer Mark Federighi citing Nielsen data Our Cabernet Sauvi gnon is also growing at an impressive rate up more than 79 Cabernet Sauvignon red blends and Pinot Noir are currently the top three growth varietals in the U S and that positions us well for continued expansion Also making strong progress are The Wine Groups Chloe brand and JaM Cellars Butter Chardonnay both retailing in the 16 18 range Introduced in 2014 Chloe has grown from less than 100000 cases in its first year on the market to nearly 325000 cases in 2017 Chloes lineup includes a Prosecco DOC Valdadige DOC Pinot Grigio Sonoma County Chardonnay Central Coast Rosé Monterey County Pinot Noir and Cali fornia North Coast Red No 249 with a single vineyard Merlot from Monterey County joining the portfolio last year We believe that Merlot is poised for a comeback and that Chloe can help lead the way based on the brands consumer appeal Chloe brand manager Belinda Harcombe recently told Market Watch sister publication Impact Targeted primarily toward the millennial male demographic The Federalist around 18 23 a 750 ml is led by its Lodi Cabernet Sauvignon which accounts for around 45 of the ranges total sales The Federalists fastest growing expression however is its Honest Red Blend The brands Bourbon Barrel Aged Zinfandel which launched last August is also off to a strong start Innovation is important to staying relevant with our target consumer and we want to continue to explore unique appella tions and breakthrough aging techniques says Terlato Wines CEO Bill Terlato adding that The Federalist is set to debut a second Bourbon barrel aged offering this May Likewise Justin 15 72 a 750 ml from Justin Vineyards Winery has been expanding its lineup with the brand slated to unveil a rosé this spring The new addition will join Justins existing stable of 16 varieties which includes its Cabernet Sauvignon 26 the brands largest seller by volume and luxury red blends Isosceles 72 and Justification 60 among other offerings Isosceles a Bordeaux style red blend has been Justins flagship wine for over 25 years Though California labels account for the vast majority of domestic wine Hot Brands North Carolinas Duplin Winery shows that lesser known regions can also find success given the right proposition Despite a distribution footprint that spans just 15 states the winerys Duplin brand 7 10 a 750 ml which specializes in sweeter wine styles joined the list after reaching more than 500000 cases last year The brands top sellers are its sweet red blends including its Hatteras Red Black River and Carolina Red labels Duplin Winery owner and president Dave Fussell says retailers within what he calls the U S markets sweet wine pocket a swathe of territory comprising the South parts of Michigan and New York Ohio and Pennsylvania have contributed significantly to the brands sales Also among this years non California winners are A to Z 15 20 a 750 ml from Oregons A to Z Wineworks and Precepts House Wine brand from Washington state In addi tion to being available in a traditional 750 ml bottle around 10 House Wine has built a strong business around its 3 liter boxed format which retails at roughly 20 Mean while the brand made its entry into the canned wine space last May rolling out 375 ml canned versions of its red blend Chardonnay and rosé at 550 each Imported Wine Italy France DominateOld World wines reign supreme on the Hot Brands imported wine roster for 2017 with Italian and French brands account ing for over half of all honorees Italy has the largest Hot Brands contingent for the second straight year with eight labels even HOUSE WINE 2012 2017 thousands of 9 liter case depletions Calendar YearsSource IMPACT DATABANK 2018 50100150200250300201720162015201420132012MW0418_