Shanken News Daily: Exclusive news and research on the wine, spirits and beer business
Jun 24, 2023
After growing by 6 million cases and $2.2 billion in retail value from 2017-2021, the above-$10 domestic wine category in the U.S. was flat in volume terms at 61.6 million cases last year, according to Impact Databank. The category continued to grow in value, however, with retail sales up 2.1% to $11.5 billion.
Within that performance, the over-$15 segment remained in solid growth last year, underscoring the long-term premiumization trend, with the $10-$15 segment facing tougher conditions. Domestic wines priced above $15 grew 4% to 17.6 million cases in 2022, with retail value increasing 6% to $4.64 billion. Conversely, the $10-$15 bracket declined 1.5% to 43.9 million cases and 0.4% to $6.85 billion.
Growth at the $15-plus level last year was led by million-plus-case brands like Meiomi (Constellation), La Crema (Jackson Family Wines), Decoy by Duckhorn (Duckhorn Portfolio), Bread & Butter (WX Brands), and Diamond Collection (Delicato Family Wines). The latter three have continued to show volume gains in IRI channels in the calendar year-to-date.
According to Impact Databank, Meiomi had U.S. retail value of more than $525 million last year, while La Crema was at $435 million, Decoy by Duckhorn tallied $410 million, Bread & Butter reached $245 million, and Diamond Collection registered $230 million. “While volume has continued to decrease, U.S. consumers continue to pay more for the wine occasion,” notes Matt McHargue, senior vice president of fine wine and craft spirits at Constellation Brands. “We believe the wine occasion can move into different spaces and will continue to be part of consumers’ choice in the near and long term.”
In the $10-$15 segment, leading label Josh Cellars from Deutsch Family Wine & Spirits continues to set the pace with double-digit growth, even after adding more than 4 million cases to its volume total from 2015-2022. This year the brand is up 13% in IRI channels through July 16. Jackson Family Wines’ flagship label Kendall-Jackson is also up solidly in IRI channels so far this year, logging 8% volume growth. Josh Cellars racked up U.S. retail value of nearly $850 million last year to lead all table wines priced above $10, while Kendall-Jackson approached the $500 million mark.—Daniel Marsteller
Tagged : Bread & Butter, Constellation, Decoy by Duckhorn, Delicato, Deutsch, Diamond Collection, Jackson Family Wines, Josh Cellars, Kendall-Jackon, La Crema, Meiomi, WX Brands
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