Beverage Dynamics

Beverage Dynamics Mar-Apr 2016

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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www.beveragedynamics.com March/April 2016 • Beverage Dynamics 53 2016 GROWTH BRAND AWARDS WINE it doubled its cases sold from 44,000 in 2014 to 88,000 last year. This included a 6-ft.-tall "strong man" POS stand up poster, and coffi n- inspired displays. Melissa Phillips Stroud, vice president of sales and marketing for supplier Michael David Winery, also believes Freakshow has grown because "distributors have really gotten behind the brand. They talk about it, take it to parties and help show it off." Terlato Wines scored another Rising Star Growth Brand this year for The Federalist, a colonial-themed wine that found fans among Millennial males. In particular, the brand benefi ted from an app with which users could "Federalize" themselves in the style of The Federalist label art, and share messages with their friends. Other marketing by The Federalist for Millennial men included traditional advertising, from fi ne wine media to more target-centric outlets such CNN, GQ and ESPN. Something worked: The brand's sales shot up from 21,000 cases in 2014 to 110,000 last year—a 423.8% gain. Santa Julia made our Growth Brand list in 2016 with a Comeback Award. After dipping to 147,000 cases in 2014 (following successive years of 162,000 and 158,000), the Argentine wine brand rebounded last year with 183,000 cases. New packaging likely played a role in the turnaround. A redesigned label for Santa Julia Reserva "aimed to show the essence of the mountains of the Uco Valley in Mendoza," explains Jordan Sager, vice president of supplier Winesellers Ltd. Further tapping into the trends of authenticity and variety, the brand released Santa Julia Reserva Mountain. This line, launched exclusively for upscale grocer Whole Foods, "brought awareness of other unique varietals within the region," Sager says. "The program was a huge success." GETTING SOCIAL Social media continues to play a major role in the wine industry. Producing content and connecting with fans in these digital communities was a core component of many brands' marketing in 2015. 14 Hands won a Fast Track award for its steady growth. Rebekah Gunderson, marketing manager of supplier Ste. Michelle Wine Estates, attributed this in part to a win-win relationship with the Kentucky Derby. COMEBACK BRANDS: WINES Winners must be a previous Growth Brands Award winner, and must have exceeded the sales from their previous win following a recent decline. (Thousands of 9-liter cases) % Growth Brand Supplier 2012 2013 2014 2015 p 2014/15 Chateau Ste. Michelle Ste. Michelle Wine Estates 2,780 2,753 3,035 3,253 7.2% J. Lohr Estates J. Lohr Wines 1,219 1,439 1,406 1,439 2.3% Freixenet Freixenet USA 530 519 541 560 3.5% Santa Julia Winesellers, Ltd. 162 158 147 183 24.5% La Fiera Winesellers, Ltd. 54 49 61 65 7.3% (p) Preliminary Source: The Beverage Information & Insights Group. For more data, visit www.bevinfostore.com. Q&A with LUNETTA PROSECCO Sparkling wine benefi ted in 2015 from the prosecco boom. And brands such as Lunetta—which grew 15% last year and won a Fast Track Award—led the way for proseccos. We caught up with the Palm Bay brand team for a quick Q&A. BD: What is behind the prosecco boom? PB: Value. Approachability/accessibility. Italian intrigue. BD: Does Lunetta's price point intend to capture a certain demographic? PB: We think Lunetta appeals to a wide demographic. The price is consumer-friendly, and the new package lends a premium look while still feeling approachable. BD: How does Lunetta position itself more as an every-day wine, not just for celebrations? PB: Through our use of cocktails. Over this summer, we will be promoting cocktail booklets on the bottles that feature over 10 recipes, as well as savings on mix components. BD: What's next for Lunetta? PB: Next for Lunetta will be the launch of our Sparkling Rosé. This taps into two of the hottest categories in the wine industry.

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