Red Wine Takes the Helm in 2008
Red wine is expected to beat white wine in popularity yet again for the third consecutive year, according to The U.S. Wine Market: Impact Databank Review and Forecast, 2008 edition. Red wine is projected to increase 3% in 2008 to 121 million case, but white wine isn’t far behind. White wine consumption is expected to grow 2% to 118 million cases, while rosé and blush wine consumption is projected to decline -3%.
Prior to 2006, red wine had not outsold white since 1976, reports Wine Spectator. At that time white wine took center stage until wine coolers became popular in the mid-80s, soon replaced by blush wine and White Zinfandel. White wine and red wine also grew during that period, mainly due to the increasing number of working women the number of legal-age drinkers in the mid-1990s.
The majority of red wine’s growth this year is attributed to both domestic and imported varietals, particularly Pinot Noir, which is expected to advance 12%, to 9 million cases. Cabernet Sauvignon is also projected to perform well. Why the renewed interest in red wines? The article names increased wine knowledge by Americans and openness to experimentation.
Old faithful Chardonnay is expected to lead the pack, except with imports which were led by Pinot Grigio. Total Chardonnay consumption is projected to grow 2% in 2008 to 63 million cases, but outpaced by Pinot Grigio's expected 7% gain to 18 million cases. Sauvignon Blanc and Riesling imports will continue to grow at double-digit rates.
CAMPARI TAPS INTO GROWING TEQUILA CATEGORY
In its third quarter results today, Campari Group announced it has bought a Mexican tequila distillery for $17.5 million plus $10 million of debt. Mexico-based Destiladora San Nicolas includes a tequila distillery, brands Espolon and San Nicolas, tequila stock and a distribution platform for the Mexican market. Campari said the deal will allow it “to develop a fully fledged Tequila strategy in the US by including a premium price offer,” where tequila is showing tremendous growth.
"In the first nine months of 2008, we achieved good results in spite of a tough environment," said ceo Bob Kunze-Concewitz.
Melissa Earlam of UBS noted Skyy Spirits, Campari’s subsidiary, was strong in the U.S. during the quarter with “9M sales of +4.8% vs flat in H1 08.”
ONLINE WINE MARKETER REPORTS TRADING DOWN
Online wine marketer, My Wines Direct, says consumers are shifting towards lower priced wines rather than less buying overall. Despite reports of lighter traffic in tasting rooms and higher dropout rates from wine clubs, the website claims it is recording double digit growth during the financial meltdown.
When comparing top selling wines from October 2008 to October 2007, My Wines Direct says total order volume increased 172%. The average price of its top selling wines has dropped just over $2 per bottle from $12.93 to $10.87 (16%).
"The sales and survey data clearly point to consumers continuing to enjoy wine at home but they are much more budget conscious," according to Bryan Dougherty, ceo of My Wines Direct. "Half of our wines are under $15 and we do not charge for shipping wine -- so the current trends are really working for us."
The website delivers wines to consumers in 32 states.
KIRKLAND KNIGHTSBRIDGE FOR SALE VIA AUCTION
International Wine Associates, along with Braun Auctioneers and The Beverly Group, have been asked to conduct a sealed bid auction of the Kirkland Ranch Winery, based in Napa Valley. The Minimum Opening Bid is $ 22 million, less than half of the previous value.
The timetable for the Kirkland Ranch Winery Sealed Bid Auction process begins with an announcement to buyers of invitation to participate in the auction. Due diligence is available and winery visits will be completed with interested buyers through Tuesday, December 2, 2008. Lastly, sealed bids can be delivered no later than Wednesday December 3, 2008, by noon.
WSD BRIEFS:
APPEAL FOR NEW AVA IN WASHINGTON. A group of wineries and vineyards on Naches Heights near Yakima, Washington, has filed a petition with the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) to establish Naches Heights as an American Viticultural Area (AVA). If approved by TTB, the Naches Heights AVA would be the first AVA in Washington consisting entirely of one soil type, according to a statement. The proposed AVA encompasses a deposit of Andesite lava that flowed from the Cascade Mountains and stopped near Yakima one million years ago.
LEBLON CACHACA is debuting a new out-of-home creative in the Los Angeles, Miami, and New York Markets, which will run on outdoor billboards, bus shelters and wild postings. Leblon invites America to take a break from the recession with its new campaign "Come to Leblon. Have a Caipirinha".
Until tomorrow, Megan
“The nice part about being a pessimist is that you are constantly being either proven right or pleasantly surprised.”
George F. Will
Herbert Bayard Swope
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 19
Sell days this month last year: 21
This month ends on a: Fri.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
BEER SUMMIT 2009 - The Four Seasons, Austin, Texas - Join us for great speakers, intelligent discourse, good food, and of course great beer at the next Beer Summit on March 1 - 2, 2009. Click here: http://tinyurl.com/beersummit
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
Prior to 2006, red wine had not outsold white since 1976, reports Wine Spectator. At that time white wine took center stage until wine coolers became popular in the mid-80s, soon replaced by blush wine and White Zinfandel. White wine and red wine also grew during that period, mainly due to the increasing number of working women the number of legal-age drinkers in the mid-1990s.
The majority of red wine’s growth this year is attributed to both domestic and imported varietals, particularly Pinot Noir, which is expected to advance 12%, to 9 million cases. Cabernet Sauvignon is also projected to perform well. Why the renewed interest in red wines? The article names increased wine knowledge by Americans and openness to experimentation.
Old faithful Chardonnay is expected to lead the pack, except with imports which were led by Pinot Grigio. Total Chardonnay consumption is projected to grow 2% in 2008 to 63 million cases, but outpaced by Pinot Grigio's expected 7% gain to 18 million cases. Sauvignon Blanc and Riesling imports will continue to grow at double-digit rates.
CAMPARI TAPS INTO GROWING TEQUILA CATEGORY
In its third quarter results today, Campari Group announced it has bought a Mexican tequila distillery for $17.5 million plus $10 million of debt. Mexico-based Destiladora San Nicolas includes a tequila distillery, brands Espolon and San Nicolas, tequila stock and a distribution platform for the Mexican market. Campari said the deal will allow it “to develop a fully fledged Tequila strategy in the US by including a premium price offer,” where tequila is showing tremendous growth.
"In the first nine months of 2008, we achieved good results in spite of a tough environment," said ceo Bob Kunze-Concewitz.
Melissa Earlam of UBS noted Skyy Spirits, Campari’s subsidiary, was strong in the U.S. during the quarter with “9M sales of +4.8% vs flat in H1 08.”
ONLINE WINE MARKETER REPORTS TRADING DOWN
Online wine marketer, My Wines Direct, says consumers are shifting towards lower priced wines rather than less buying overall. Despite reports of lighter traffic in tasting rooms and higher dropout rates from wine clubs, the website claims it is recording double digit growth during the financial meltdown.
When comparing top selling wines from October 2008 to October 2007, My Wines Direct says total order volume increased 172%. The average price of its top selling wines has dropped just over $2 per bottle from $12.93 to $10.87 (16%).
"The sales and survey data clearly point to consumers continuing to enjoy wine at home but they are much more budget conscious," according to Bryan Dougherty, ceo of My Wines Direct. "Half of our wines are under $15 and we do not charge for shipping wine -- so the current trends are really working for us."
The website delivers wines to consumers in 32 states.
KIRKLAND KNIGHTSBRIDGE FOR SALE VIA AUCTION
International Wine Associates, along with Braun Auctioneers and The Beverly Group, have been asked to conduct a sealed bid auction of the Kirkland Ranch Winery, based in Napa Valley. The Minimum Opening Bid is $ 22 million, less than half of the previous value.
The timetable for the Kirkland Ranch Winery Sealed Bid Auction process begins with an announcement to buyers of invitation to participate in the auction. Due diligence is available and winery visits will be completed with interested buyers through Tuesday, December 2, 2008. Lastly, sealed bids can be delivered no later than Wednesday December 3, 2008, by noon.
WSD BRIEFS:
APPEAL FOR NEW AVA IN WASHINGTON. A group of wineries and vineyards on Naches Heights near Yakima, Washington, has filed a petition with the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) to establish Naches Heights as an American Viticultural Area (AVA). If approved by TTB, the Naches Heights AVA would be the first AVA in Washington consisting entirely of one soil type, according to a statement. The proposed AVA encompasses a deposit of Andesite lava that flowed from the Cascade Mountains and stopped near Yakima one million years ago.
LEBLON CACHACA is debuting a new out-of-home creative in the Los Angeles, Miami, and New York Markets, which will run on outdoor billboards, bus shelters and wild postings. Leblon invites America to take a break from the recession with its new campaign "Come to Leblon. Have a Caipirinha".
Until tomorrow, Megan
“The nice part about being a pessimist is that you are constantly being either proven right or pleasantly surprised.”
George F. Will
Herbert Bayard Swope
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 19
Sell days this month last year: 21
This month ends on a: Fri.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
BEER SUMMIT 2009 - The Four Seasons, Austin, Texas - Join us for great speakers, intelligent discourse, good food, and of course great beer at the next Beer Summit on March 1 - 2, 2009. Click here: http://tinyurl.com/beersummit
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 5:26 PM
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