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  
June 2014 $562 million
5%
$7,549 million
6%
June 2013 $535 million $7,094 million
     
Direct-to-Consumer Shipments » Month   12 Months  
June 2014 $87 million
17%
$1,669 million
11%
June 2013 $74 million $1,510 million
     
Winery Job Index » Month   12 Months  
June 2014 300
34%
220
21%
June 2013 224 182
     
 
MORE » Released on 07.15.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Wines & Vines
Packaging Conference
 
Learn More »
 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • July 24-27
     
    Taste our Terroir
     
  • July 25-27
     
    International Pinot Noir Celebration
     
  • July 26
     
    Introduction to Wine Analysis
     
  • July 26-27
     
    Anderson Valley Barrel Tasting
     
  • MORE »
 

READER COMMENTS
 
Article: Wineries May Lose Internet Domain Dispute »
 
All these arguments could be levied by any industry associated with any gTLD, new or...
Reader: Doug Barnett
 
Article: Wineries May Lose Internet Domain Dispute »
 
Do brands get hijacked now? Even though .wine does not yet exist, are there false...
Reader: Larry Chandler
 
Article: Resistant Weeds Threaten Vineyards »
 
Roundup is not benign. It does not always break down in a day or two...
Reader: Robert Rex
 
Article: Resistant Weeds Threaten Vineyards »
 
Mitigating water use in the vineyard in the first place is also an applicable tactic....
Reader: Guest
 
Article: Resistant Weeds Threaten Vineyards »
 
Having managed vineyards that have used both approaches, I would say that a diverse approach...
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 »
2014 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
 Office Manager
 Geyserville, CA
Sales and Marketing
 Employee Store Associa...
 Napa, CA
DTC, Tasting Room and Retai
 Tasting Room Lead
 Healdsburg, CA
DTC, Tasting Room and Retai
 Maintenance Working Su...
 St Helena, CA
Winemaking and Production
 Tasting Room
 Napa, CA
DTC, Tasting Room and Retai
 Northwest Area Manager...
 Seattle, WA
Sales and Marketing
 Regional Manager - Mou...
 Colorado, CO
Sales and Marketing
 Purchasing Coordinator
 Westlake Village, CA
General Administration and
 Tasting Room Associate
 Paso Robles, CA
DTC, Tasting Room and Retai
 Fine Wine Manager-On P...
 Modesto, CA
Sales and Marketing
 
More Job Listings >>
Follow Us On:
 
 





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

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2014 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.