GALLO SURGING AHEAD IN CATEGORY GROWTH

IRI data concluded that U.S. wine leaders – Gallo, Constellation and the Wine Group – experienced August volume growth of 3.9%, 2.1% and 1.6%, trailing the category’s growth of 5%. The lagging numbers are influenced by the fact that these companies have average prices below the industry, where low-end wines are flat or down. Sales increased by 7.2% for Gallo, 6% for Constellation and 1.8% for the Wine Group.

While Constellation’s volume growth continues to sink below the industry, downward trends slowed in August due to premium wine growth and the Woodbridge brand. Premium wines grew 26.4% ahead of the fine wine category (up 23%), while Woodbridge saw a 5.5% volume gain in August and is flat YTD.

IMPORTS TRUMPING DOMESTICS. Imported wine volumes up 7.5% continue to outpace a domestic growth of 4.4% in August, driven by double-digit volume gains from Argentina, Germany, New Zealand, Spain and Portugal, and triple digit gains from South Africa. California-based wine shipments rose by 4.2% while Washington and Oregon wines increased by 11.8%.