Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
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50 Beverage Dynamics • March/April 2017 www.beveragedynamics.com 2017 GROWTH BRANDS WINE 2017 GROWTH BRANDS WINE UNCORKING THE WINNERS By Kyle Swartz The wine category in 2016 saw its second consecutive year of 2% volume growth. After selling 332.1 million 9-liter cases in the U.S. in 2015, the category is projected at 339.1 million cases last year. This puts 2016 in line with recent growth trends. The category has had between 1-3% annual growths since 2011, as wine gains new fans from the youngest LDA generations, but also fi ghts off emerging threats from craft beer and spirits. Millennials and their curious palates continue to defi ne the market — as do adventurous drinkers in general. Perceptive brands tapped into both demographics last year by releasing eye-catching bottles that showcased unique vineyards and varietals. Savvy use of social media also propelled contemporary-minded brands towards sales success. In terms of styles, it was a boom year for red blends and sparkling wines. Consumers no longer think of "blended" as a pejorative, meaning "of lower quality." Rather it's a positive term denoting fi nely tuned fl avors. California red blends have benefi tted from this trend, as have many winemakers from South America. Meanwhile, the boom in rosé and prosecco appears to be for real. More men are buying sparklers (creating the portmanteau "brose") while consumers overall are increasingly drinking bubblies year- round, rather than just at holidays and celebrations. Expect more of the same in 2017. Digital again played a huge role in 2016. Social media allowed companies to promote partnerships with charities and events. Cre- ative POS materials and hashtag campaigns encouraged consumers to share branding and bottles on social media. THE MILLENNIAL MARKET Wine brands remain keenly focused on Millen- nials — and for good reason. Research from the Wine Market Council found that 36% of wine drinkers in 2015 were from this generation. That WINE FAST TRACK BRANDS (000 9-liter cases) '15/'16 Brand Supplier 2013 2014 2015 2016p % Change Black Box Constellation Brands 3,410 4,015 4,440 5,380 21.2% Bota Box DFV Wines 2,517 3,054 3,913 5,055 29.2% Apothic E & J Gallo Winery 1,120 1,670 2,450 3,010 22.9% 14 Hands Ste. Michelle Wine Estates 1,374 1,662 1,848 2,032 10.0% Josh Cellars Deutsch Family Wine & Spirits 300 510 980 1,500 53.1% Kim Crawford Constellation Brands 685 815 955 1,150 20.4% Meiomi Constellation Brands 355 500 790 1,080 36.7% La Marca E & J Gallo Winery 305 521 750 1,025 36.7% Oyster Bay Delegat 468 549 629 693 10.2% Cupcake Sparkling The Wine Group 425 475 530 640 20.8% Nobilo Constellation Brands 426 500 560 616 10.0% Mionetto Mionetto USA 438 499 550 610 10.9% Joel Gott Joel Gott Wines/Trinchero Family Estates 385 440 490 550 12.2% William Hill E & J Gallo Winery 295 325 358 402 12.3% Matua Treasury Wine Estates 176 267 314 346 10.1% Starborough E & J Gallo Winery 165 215 237 263 11.0% Seven Daughters Terlato Wines 146 180 205 230 12.2% Line 39 O'Neill Vintners & Distillers 143 166 196 218 11.2% Chateau d'Esclans Shaw-Ross International Importers 50 76 118 200 69.5% The Prisoner Constellation Brands -- -- 110 140 27.3% Whitehaven E & J Gallo Winery 72 100 125 139 11.2% Duckhorn Vineyard Duckhorn Wines 89 102 121 138 14.0% Barone Fini Deutsch Family Wine & Spirits 88 107 124 137 10.5% Petite Petit Michael David Winery 49 73 100 37.0% Source: The Beverage Information & Insights Group (p) Preliminary.