Market Watch, December 2020

56 MARKET WATCH MARKETWATCHMAG COM DECEMBER 2020PHOTOS BY LEFT JUSTIN COIT RIGHT ALBA RODRIGUEZand Avaline White is organic with minimal intervention says Wolfe Most Spanish wines abide by similar organic and natural standards and should perhaps focus more on promot ing these aspects to their respective consumer bases On the sustainability front Familia Torres boasts a decarbonization program and works as most Spanish wineries do to remain sustainable and environmentally friendly In early 2019 the company partnered with Jackson Family Wines on the Inter national Wineries for Climate Action initiative which encourages wineries to reduce carbon emissions Overcoming ObstaclesWhile Spanish table wines have seen increased popularity with U S consumers they still face some obstacles Last fall importers distributors retailers and restaurateurs had to scramble when a 25 tariff was slapped onto a number of European Union drinks imports in the U S market owing to a long running dispute over aircraft subsidies At Sparrow Wine Luis has indeed seen some price increases though the retailer notes that most of the wineries behind his Spanish table wine offerings have decided not to pass the tariff to retailers Indeed most of the bigger brands are absorbing the tariffs including Campo Viejo though Prior notes that as more and more consumers are gaining interest in Spanish wine they may be willing to trade up Perinet has likewise absorbed the tariffs and maintained pricing though Baggett says the costs will have to be passed onto consumers if they persist Gregory Doody president and CEO of Vineyard Brands which has a broad international portfolio of fine wines that includes three offerings from Spain discussed the situation with Market Watch sister publication Shanken News Daily in August Im not a fan of trade wars as they never end well for anyone and Im particularly opposed to the tariffs on wines from France Germany and Spain he said When the tariffs were first announced our goal was to maintain as many of the ment says Avaline CEO Abbott Wolfe We were able to reach tens of thousands of Instagram followers within a week As Avaline targets a younger consumer base its marketing is solely online Virtually everything we do is on social media says Wolfe Were very strong on interacting with consumers and having dialogues Avaline White has also made gains by promoting itself to a health and wellness minded consumer base The vegan friendly offering is made from organic grapes and forgoes added sugars concentrates and colors The millen nial wine consumer is definitely looking for a clean product BOTTLED SPANISH TABLE WINEEXPORTS TO THE U S 1990 2019 millions of 9 liter case shipments Calendar YearsSource IMPACT DATABANK 2020 123452019201520102005200019951990Spanish wine appellated Avaline White has seen success thanks to the celebrity status of co founders Cameron Diaz and Katherine Power pictured left Perinet barrel cave pictured right meanwhile has made gains in the off premise as consumers stock their at home bars