Market Watch, Summer 2020
those higher end wines are gravitating to online sellers Those wines are still doing well if theyre values The wipeout of the on premise channel combined with the economic crisis has changed consumer purchasing patterns argues Michael Quinttus founder of New York based importer Vintus Consumers are behaving the way we saw during 2008 09 Great Recession in that theyre looking for value when buying at retail Quinttus says The price points for 15 20 are really strong and Chile has a perfect entry into those price categories Thats a sweet spot for Chile In the longer term more economic uncertainty could bode well for Chilean wines Well see what happens some indications from the retail side show that people arent spending as much per bottle says Challacombe People who were spending 50 60 on California Cabernet Sauvignons are trading down and often that benefits a category like Chile The 13 25 range is where Chile is doing great business That could be a positive for us especially coinciding with the fact that every year the quality of Chilean wine is stepping up Another factor that might aid Chilean wines growth is packaging Precept Wines owns the fifth and sixth ranked wines from Chile House Wine and Provisions both 20 a 3 liter box Neither is marketed explicitly as a Chilean wine but both have reaped benefits during the pandemic due in part to changing shopping patterns Its just easier Hal Landvoigt Precepts director of winemaking and Provisions winemaker says of the SUMMER 2020 MARKETW ATCHMAG COM MARKET WATCH 87 LEADING CHILEAN WINE BRANDS IN THE U S thousands of 9 liter case depletions Percent AACGR1 Change2 Brand Importer 2014 2018 2019 2014 2019 2018 2019 Concha y Toro Fetzer Vineyards 2723 2200 2120 49 36 Santa Rita Delicato Family Wines 430 435 405 12 70 Gato Shaw Ross International Importers 665 335 340 126 15 Corbett Canyon3 The Wine Group 340 265 245 63 75 House Wine Box Precept Wines 100 181 200 148 105 Provisions Precept Wines 124 175 417 Natura Banfi Vintners 77 128 133 114 35 Walnut Crest Banfi Vintners 184 97 90 133 75 Los Vascos Taub Family Cos 94 95 85 20 105 Cono Sur Fetzer Vineyards 130 61 54 162 126 Total Leading Brands4 4743 3921 3845 41 19 1 Average annual compound growth rate 2 Based on unrounded data 3 Excludes wines from other origins 4 Addition of columns may not agree due to rounding Source IMPACT DATABANK 2020 When North Carolina based Pacific Highway Wines began importing Santa Ema winery left chief winemaker Andres Sanhueza right last September the goal was to promote the brands higher end in the on premise Covid 19 however has put a dent in projected outreach
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