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Issue link: http://read.uberflip.com/i/808089
www.cheersonline.com 42 • March/April 2017 it," she adds. "Not only is this a new outlet for Petite Petit, but it also gave our winemakers a chance to create new wine that they can get creative with." PREMIUMIZATION PAYS OFF Tapping into one trend alone is not enough to reach the level of success attained last year by Michael David Winery. Other factors are necessary, including a consumer willingness to spend more on premium bottles like Freakshow and Petite Petit. "We aren't trying to compete in the $9.99 world or even at $11.99," says Phillips Stroud. "We have a different competitive set from the big guys, and it works to our advantage." Consumers who will open their wallet for better products allow Michael David Winery to "continue to make the best wine we can and meet their needs," Phillips Stroud adds. "It truly is a win-win." Premiumization also paid dividends in 2016 for the New Zealand-based Oyster Bay. This Delegat brand took home a Fast Track award after growing 10.2% in 2016 to 693,000 cases. Jenn Fox, Delegat USA trade marketing manager, attributes this growth in part to the Oyster Bay brand establishing an identity through its premium quality and price point. "A top-fi ve, superpremium wine in America, 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS WINE WINE WINE WINE WINE WINE Q&A WITH TERLATO WINES Terlato Wines enjoyed a robust year in 2016 as a number of their brands performed strongly. The colonially themed wine The Federalist topped 200 cases for the fi rst time, thanks to an amazing 81.8% growth last year. Piper-Heidsieck Champagne grew 7.1% in 2016 to 45,000 cases, while sales of Le Charmel increased 12.2% in its fourth year to 22,000 cases. Seven Daughters saw another year of growth, 12.2%, fi nishing 2016 with 230,000 cases. We spoke with Bill Terlato, CEO, Terlato Wines, about his brand's impressive 2016. Cheers: What industry trends are impacting your brands? BT: People looking to trade up and willing to spend more for quality is benefi tting brands across our portfolio. Piper-Heidsieck's prestige cuvee, Rare, at a $180 suggested retail price, is gaining share and growing value for the brand. For The Federalist, Millennials are much more engaged with wine at an earlier age, are more willing to trade up and are helping to drive the growth of the luxury segment ($15-plus). Seven Daughters is winning with huge consumer enthusiasm for packaging innovation and access to higher quality wine in cans. Exceptional quality, convenience and portability have enormous appeal with Millennials. Cheers: What on-premise marketing programs and activations in 2016 led to your brands' success? BT: Piper-Heidsieck has achieved great success on-premise with a competitively priced by-the-glass-only SKU called 1785. And we've created exciting partnerships with iPic Theaters and the American Express Centurion Lounge that are generating visibility with the right customers. Seven Daughters continues its on-premise leadership as the number-one by-the-glass moscato—a position we've held for three years and counting. The Federalist has gained huge popularity on premise by-the-glass, by- the-bottle and in kegs. Cheers: What marketing do you have planned for this year? BT: Piper-Heidsieck will launch a new integrated campaign called "Dash of Seduction" that will target the new generation of Champagne drinkers: upper Millennials, aged 30 to 40, with a heavy focus on digital activation. The Federalist just launched its fi rst bourbon barrel-aged zinfandel with fantastic results. We sold out of the fi rst vintage in weeks. This was a natural extension for the Federalist brand, and we'll launch our second vintage next fall. Seven Daughters will continue its growth streak with the launch of Italian rosé in cans this spring—perfect timing for spring and summer concerts, festival and picnics. WINE COMEBACK BRANDS (000 9-liter cases) '15/'16 Brand Supplier 2013 2014 2015 2016p % Change Chateau Ste. Michelle Ste. Michelle Wine Estates 2,753 3,035 3,253 3,400 4.5% Clos du Bois Constellation Brands 1,765 1,690 1,755 1,930 10.0% J. Lohr Estates J. Lohr Wines 1,439 1,406 1,439 1,493 3.8% Freixenet Freixenet USA 519 541 560 590 5.4% Segura Viudas Freixenet USA 225 225 250 270 8.0% Santa Julia Winesellers, Ltd. 158 147 183 200 9.3% Black Stallion DFV Wines 32 50 42 60 42.9% Soleil Mimosa Southwest Wines 43 48 45 50 11.1% Source: The Beverage Information & Insights Group (p) Preliminary. 2017 GROWTH BRANDS 2017 GROWTH BRANDS 2017 GROWTH BRANDS WINE WINE WINE WINE WINE WINE