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.
Issue link: https://read.dmtmag.com/i/751263
Sparkling Wine 24 Beverage Dynamics • November/December 2016 www.beveragedynamics.com than 50 percent in the past decade, driven at least in part by the largest coop, Champagne Nicolas Feuillatte. Olivier Zorel, Feuillatte's area export manager for the Americas, says the com- pany's non-vintage Brut Réserve, which retails for $36, "contin- ues to perform well, as consumers have come to recognize this Champagne consistently delivers great quality at a fair price." Zorel adds that sales during the holiday season are helped by the release of a specialty bottle. Heitner notes another trend that is boosting Champagne: the popularity of rosé wines. Nearly 15 percent of the Champagne shipped to the U.S. is rosé, and that figure is growing, despite the fact that rosé Champagne is often significantly more expensive than non-rosé. Rosé Champagne, Heitner says, works well as an aperitif, "but also goes into a meal a little further." U.S. SPARKLING Domestic sparkling wine dominates U.S. sales, with more than 55 percent of the market, according to Nielsen. The category – which includes inexpensive wines produced in pressurized tanks (called the charmat method) as well as traditional-method bub- blies – is up more than 8 percent in dollar sales and 6.6 percent in volume. The top-selling traditional-method domestic wine is Korbel, which has seen modest growth. The fastest-growing tradition- al-method brand on the Beverage Information and Insights Group's top 20 list is Mumm Napa from the Napa Valley. Sales of Mumm Napa, owned by Pernod Ricard USA, were up nearly 20 percent from 2014 to 2015. Mumm Napa's Lock- wood attributes a lot of its success to its association with the Napa Valley, an appellation that, for many, is synonymous with high quality. "It's a strong differentiator for Mumm Napa," she says. Moët Hennessy-owned Chandon, the No. 2 tradition- al-method domestic brand, has seen growth on three fronts, according to spokeswoman Korinne Munson. The winery's "lim- ited edition" program continues to do well; in 2016, the wines featured bottles by fashion designers Carol Lim and Re- becca Minkoff. In addition, Munson says, the rosé trend has helped drive sales of Chandon Rosé, and the winery has introduced Sweet Star, a sweeter wine aimed at fe- male Millennials. Among charmat-method wines, Barefoot Bubbly, owned by E&J Gallo, has seen healthy growth – up about 4 percent in 2015 after 22 percent growth the year before. Winemaker Jen Wall says the wines, which retail for about $10, "over-deliver in quality." Since the first Barefoot Bubbly (Extra Dry) was introduced in 1998, the company has added a number of other prod- ucts, ranging from Brut Cuvée to Pink Moscato. Gal- lo's Andre brand, another charmat-method wine, is the company's top-selling domestic sparkling. CAVA Sales of Spanish Cava are up about 9 percent in both dol- lars and volume, Nielsen reports. Cava, produced mostly in Catalonia, is made in the traditional method – which is partic- ularly striking when you consider that the average retail price is about $9 a bottle. The top-selling brand is Freixenet, whose best-known wine is Cordon Negro, in the distinctive black bottle (Freixenet is the largest producer of traditional-method sparkling wine in the world). Freixenet's smaller sister brand, Segura Viudas, has seen particularly healthy growth, up 11 percent from 2014 to 2015. Jane Scott, vice president of marketing for Freixenet USA, says both brands are being aimed at Millennials with social media and other digital marketing. Millennials, she says, are the target audience because they are adding bubbles to their "every- day repertoire." Because Segura Viudas is smaller and not as well-established in the U.S., Scott says, the company can experiment more with its pro- motional efforts. For example, it has partnered with vocalist and DJ Anna Lunoe on a video titled "Sip It." Because of similar pricing, most Cava goes head-to-head in the market with Prosecco. So part of the Freixenet message is what sets Cava apart – traditional method vs. Prosecco's charmat method – without being "too wine-speaky," Scott says. The Cava Regulatory Board is working to promote a new, high-end category - Cava de Paraje Calificado – which was cre- ated in 2016. Pedro Bonet, chairman of the regulatory board, says such Cavas must be produced from a single vineyard and conform to other production requirements. "This new category," he says, "is placed definitely at the tip of the qualitative pyramid of wine and gives visibility to the excellence of Cava." PROSECCO Prosecco accounts for 15 percent of U.S. sparkling wine sales, according to Nielsen. "I think it's got more growth," Brager says, although he adds: "Nothing can grow at those rates forever." Alan Tardi, U.S. ambassador for Conegliano Valdobbiadene Prosecco DOCG, thinks the overall popularity of sparkling