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MARKET WATCH TIM TEICHGRAEBER white, torrontés, but there are still significant plantings of muscat in Argentina. Terry Wheatley, CMO and founding partner of Middle Sister, told me that her brand's moscato, introduced in 2010, is already the No. 1 SKU for the 5-year-old brand that is selling 225,000 cases per year. (Pinot Grigio is No. 2 and the company's red blend, pinot noir and cabernet sauvignon, are in a dead heat for No. 3). "When (moscato) started heating up, we wanted in, but supply was the issue," said Wheatley. "It took six months longer than we wanted because we knew we needed a lot more wine than we could get our hands on. We w e n t w i t h C a l i f o rnia originally for the launch, but then a year and a half ago we had to convert our supply to Argentina." Due to limited domestic supply, Middle Sister is sourcing muscat grapes from Argentina. "Two years ago, moscato was firecracker-hot. Last year it continued to be hot, but maybe not as hot," she added. "Our numbers are still showing double-digit growth. I think it's here to stay for a while. I see the product presentations that are being made to large stores and what's hitting the marketplace, and there's still a lot of moscato. Some are more frizzante style, and there are also reds that are moscato-based. "I think people are climbing the (price) ladder. I hate to say it's just the packaging, but you look at (a brand like Kobrand's) Caposaldo Moscato (from Italy), I watched it come and open up at $14.99, and that brand is rockin'. When we launched Middle Sister Moscato at $10.99, people said, 'You can't w w w. v w m media.com sell moscato at that price.' Then, behind us, came some sparkling moscatos at $14.99, and they overtook us." I would tend to agree with Wheatley that moscato will probably be a significant player for a long time, unless the diversity of offerings winds up confusing customers and sinking the category. Whether consumers are moving from very inexpensive moscato to higher-priced offerings is still unclear. Nielsen numbers don't signal that, but anecdotal reports might support that theory. Plus, what is happening in the major retailers tracked by Nielsen might not mirror what is happening in smaller accounts. I suspect that many retailers have already made significant adjustments in the way they order and display wines. When customers come in asking for moscato, they want to be directed to the moscato section, not shuffled from the Italian section to the California department and then over to the Argentina aisle to choose between three wines. They want to have the full glory of all known moscato displayed before them. It's the American way, and it saves sales staff from having to explain the nuanced differences between them. Most customers will likely be happy as long as it tastes like moscato … whatever that is. Tim Teichgraeber cut his teeth in retail wine sales before becoming the wine columnist for the Minneapolis Star Tribune. Today he is a contributor to the San Francisco Chronicle, Tasting Panel, Opus Vino and other publications, when he's not working as an entertainment lawyer in San Francisco. Comments? Please e-mail us at feedback@vwmmedia.com. S e p t - O c t 2 0 13 | V I N E YA R D & W I N E RY M A N A G E M E N T 23