Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
08.15.2012  
 

Ste. Michelle Dominates $8-$10.99 Wine Sales

Washington winery group has No. 1 and three other contenders in premium category

 
by Jim Gordon
 
 
symphony iri sig wine
 
San Rafael, Calif.—Wines from Washington state make up less than 10% of U.S. wine production, but in at least one price segment they dominate sales: wines from $8 to $10.99 retail, also known as “premium” by some marketers.

Washington’s Chateau Ste. Michelle brand leads this category in sales at major U. S. food and drug stores with $94 million in the 52 weeks ending July 8, according to the Symphony IRI Group (SIG.) Parent company Ste. Michelle Wine Estates claims three additional spots in the top 20 table wine brands at this price: 14 Hands, Columbia Crest Grand Estates and Red Diamond.

Chateau Ste. Michelle, based in Woodinville, Wash., has long been the dominant U.S. wine brand in the Northwest, and in this category it stands as an equal with California marketing giants Constellation Brands, E. & J. Gallo and The Wine Group. Chateau Ste. Michelle’s popularity in the category is based on Riesling, Chardonnay, Cabernet Sauvignon and Merlot, in descending order of sales.

14 Hands hottest
In terms of pure sales growth, Ste. Michelle’s 14 Hands brand was the hottest among the Top 20, expanding by 182% to $29 million. A red blend wine and a Cabernet Sauvignon are the brand’s best-selling items in this price range. Red Diamond was the only Ste. Michelle Wine Estates brand in the Top 20 to lose sales.

While Chateau Ste. Michelle grew in sales by 6% over 52 weeks, its nearest competitor, Cupcake Vineyards, closed the gap fast with 67% growth and $87 million in sales. Cupcake’s parent company is The Wine Group.

“Everything Cupcake is selling is on fire,” said Curtis Mann, director of client insights for SIG, a Chicago-based market research firm. “They are growing faster than practically anything I’ve ever seen.”

Cupcake Chardonnay
Cupcake’s best-selling varietals are Chardonnay, Sauvignon Blanc, a red blend and Cabernet Sauvignon, according to the data from checkstand scans that SIG analyzes. Its sales of the red blend grew by 222% in the past year, and its Sauvignon Blanc grew by 59%.

Gallo’s Apothic brand was the company’s fastest growing of five brands among the top 20. Based largely on a red blend, the young $10 brand grew by 129%. Gallo imports, Alamos from Argentina and Ecco Domani from Italy, along with traditional California brand Mirassou, also made the top 20.

The $8-$10.99 price category is the second-largest in terms of sales after the category just below it, $5-$7.99. Mann observed that many consumers enter the wine market in this lower range, then some of them move up to $8 and above in a search for higher quality, while others shift down to even less expensive purchases.

Domestic sales up 7%
Domestic table wines in general had another good month, growing 7% in dollars during the four weeks ending July 8. This rate appears locked in this year, since the 52-week growth rate is the same. Off-premise import wine sales stayed flat during the four-week and 52-week periods.

Washington table wines beat the average U.S. growth with 8%, and Oregon grew by 9% in 52 weeks. Australia, the No. 1 import country according to SIG’s data, saw sales shrink by 5%, while Argentina and New Zealand enjoyed growth in the double-digits.

Domestic table wines priced at $20 and up continued their growth pattern with 14% greater sales in four weeks, which was slower than their 52-week average of 25%.

SHARE »
Close
 
Currently no comments posted for this article.
 
CURRENT NEWS INDEX »


 
Wines & Vines Home
 
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
65 Mitchell Blvd., Ste. A San Rafael, CA 94903
info@winesandvines.com
Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
April 2015 $627 million
5%
$8,028 million
5%
April 2014 $595 million $7,623 million
     
Direct-to-Consumer Shipments » Month   12 Months  
April 2015 $184 million
17%
$1,890 million
15%
April 2014 $157 million $1,649 million
     
Winery Job Index » Month   12 Months  
April 2015 406
34%
252
19%
April 2014 302 212
     
 
MORE » Released on 05.15.2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Direct To Consumer
Wine Shipping Report
2015
 
Download full report »
 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

CALENDAR
  • May 26
     
    Mendocino Economic Summit
     
  • May 28-29
     
    Direct2015
     
  • May 28-30
     
    WIneMaker Annual Conference
     
  • May 28-30
     
    International Chardonnay Symposium
     
  • MORE »
 

READER COMMENTS
 
Article: $10 Wine Would Cost $40-plus Under COOL »
 
As a Napa Valley producer, we have spent 30 years building our brands in the...
Reader: Pete Przybylinski
 
Article: Be a Sustainable Wine Ambassador »
 
A great idea. All TR employees at every responsible estate should be encouraged/required to become...
Reader: Guest
 
Article: Historic Napa Winery Standing Tall Again »
 
It would be nice to know that Trost Jacking and Heavy Moving is the structural...
Reader: Guest
 
Article: Women for WineSense offering scholarships »
 
This is fantastic! Women in Wine Education must find ways to continue their individual pursuit...
Reader: Guest
 
Article: Historic Napa Winery Standing Tall Again »
 
Very Interesting, I'm so glad the building is successfully being saved.
Reader: Guest
 
 


Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
2015 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
 
 
EXPANDED ONLINE SEARCH INCLUDED WITH PURCHASE
 
ORDER NOW »
 
LEARN MORE »
 
 
Wines & Vines Magazine
 
 
LEARN MORE »
 
SUBSCRIBE »
 
Digital Edition Now Available!
Wines & Vines Digital Edition Now Available
 
LEARN MORE »
 
ORDER NOW »
 
 
The Wines & Vines Online Marketing System
 
The Industry Standard winery marketing application
 
FREE LIVE DEMO »
 
VIEW VIDEO »
 
 
 
 
Latest Job Listings
 Epicure By Jcb Manager
 Yountville, CA
DTC, Tasting Room and Retai
 Retail Sales
 Sonoma, CA
Sales and Marketing
 Marketing & Social Med...
 Sonoma, CA
Sales and Marketing
 Market Manager
 Various, NA
Sales and Marketing
 Region Sales Manager-M...
 Minneapolis, MN
Sales and Marketing
 Chain Account Speciali...
 Seattle, WA
Sales and Marketing
 Area Sales Manager In ...
 Atlanta, GA
Sales and Marketing
 Sales Representative
 Manhattan, NY
Sales and Marketing
 Area Sales Manager-S.N...
 Cherry Hill, NJ
Sales and Marketing
 Director, Hospitality ...
 Napa, CA
DTC, Tasting Room and Retai
 
More Job Listings >>
Follow Us On:
 
 





Home  |  About Us  |  Editors  |  Subscribe  |  Print Edition  |  Digital Edition

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2015 by Wine Communications Group, Inc. All Rights Reserved.
No material may be reproduced without written permission of the Publisher.
Wines&Vines does not assume any responsibility for any unsolicited manuscripts or materials.