Market Watch, April 2016

APRIL 2016 MARKETWATCHMAG COM MARKET WATCH 87PHOTO BY LEFT JON WYANDwhats been represented over the years Theres still a lot of room for growth in the category because more and more people have yet to discover the quality of some of these wines Price ElasticityThe sweeter White Zinfandels that once dominated the market still sell large volumes often at prices below 8 or even 5 a 750 ml bottle But the rosés that now capture consumer atten tion are dry and usually priced in the 12 to 25 range The range for good dry rosé is really 15 to 30 which is a huge change because it used to be 10 says Sinkoff of Frederick Wildman Wine prices are largely bunched up at just under 20 for Provençal rosés notes Terlato of Terlato Wine Ours run from 1299 up to 1999 The M Chapoutier Côtes du Rhône Belleruche rosé is about 1399 The largest rosé in Palm Bays portfolio Jean Luc Colombo has a suggested retail price of 1299 a 750 ml bottle Whitman says the sweet spot for rosé pricing sits right around 15 The top end for rosé pricing is fairly low compared to promi nent red or white wines Some rosés are carrying higher prices but they dont represent serious volumes with the exception of Domaines Ott Terlato notes Other than that no rosés have established significant presence above the 20 price point Paulinski says BevMos selection maxes out at around Sparkling rosés are also making headway I see a continuum between the popularity of Prosecco and the popularity of rosé Brauer adds Theyre both very approachable wines You dont need to have a degree in enology to enjoy them They just deliver tremendous pleasure to the consumer Taking Cues From EuropeThe recent growth of premium rosés hasnt come as a complete shock to those in the trade We saw the rosé phenomenon starting to happen in Europe 12 to 13 years ago says William Terlato CEO of Terlato Wine Group The prominence of rosés Dry premium rosés have surged with French offerings leading the push toward higher price points Côtes du Rhône producer Michel Chapoutier pictured left At Epic Steak in San Francisco right rosé is still seasonal but the season grows longer every year in the United Kingdom several years ago also tipped off Bob Paulinski senior vice president of wine at BevMo I see the British market as a benchmark he explains What seems to be hot there often becomes hot in the United States a few years later The U S market has caught onto rosés more slowly because of the presence of White Zinfandel and other sub premium blush wines In this market rosé was hampered by the popu larity of White Zinfandel Terlato says People who wanted a serious rosé thought everything pink was White Zinfandel In Europe they were much more open to high quality rosé There are mixed opinions about whether the low end conno tations around pink wines still exist in the United States Has the association with lower quality wines completely evaporated No but its rapidly evaporating says Pasternaks Brauer If you walk into a store on either coast or in other major urban markets retail space devoted to premium rosés is now dominating Rosé has definitely transcended that cheap association Marcy Whitman senior vice president of marketing at Palm Bay International believes that theres more work to be done in the United States In the metropolitan centers and with people who are entrenched in the wine world theres high awareness of more sophisticated styles of rosé she says I think the general or occasional wine drinker still associates rosés with