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Despite a total wine market that grew less than 1% to 321.8 million nine-liter cases in the U.S. last year, E.&J. Gallo Winery has seen phenomenal growth for a number of its wine brands, both domestic and imported. Much of that success has come from innovations such as the extensive Barefoot label, in addition to targeting Millennial consumers and expanding consumption occasions.
Barefoot Cellars, the U.S. wine market’s second-largest brand by volume, reached over 17 million cases last year, according to Impact Databank. Acquired by Gallo in 2005, the Barefoot brand has since been extended to include the Refresh and Bubbly offshoots, which are resonating strongly with consumers looking to experiment. Barefoot Refresh, a line of lightly carbonated wines meant for consumption over ice, shot ahead by nearly 74% last year to reach 1 million cases since its 2013 debut. “Barefoot wines offer fun, flavorful and affordable options that reflect where, when and how people are enjoying wine today,” says vice president of marketing Stephanie Gallo.
Newer to the U.S. market is Dark Horse, which grew fivefold last year to a quarter-million cases despite limited distribution. This spring, the California-sourced brand ($9.99 a 750 ml.) is rolling out nationwide with tasting events planned across the country. Having made its national debut in September 2013, Gallo’s Cabernet Sauvignon-focused Carnivor label jumped by 155% in 2014 to 255,000 cases. Targeting its largely Millennial consumer base, Carnivor is continuing its “Devour Life” campaign this year with Devour Hour events planned nationwide in addition to an online component.
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Apothic, which offers red and white blends, also appeals to Millennial consumers and last year grew nearly 20% to cross the 2-million-case mark. Gallo recently rolled out the limited-release Apothic Crush, which is currently available through April. Liberty Creek, which offers nine varietals, reached just over 3 million cases last year and is geared toward everyday wine consumers at retail. Meanwhile, William Hill Estate reached a quarter-million cases on 67% growth last year.
With its import business, Gallo is finding success in new regions and styles. New Zealand import Starborough grew 21.3% to 370,000 cases, demonstrating the region’s growing popularity with U.S. consumers at a nearly 20% increase to 5.7 million cases shipments in 2014. Competitively-priced Starborough Sauvignon Blanc is characteristic of New Zealand’s Marlborough region, and is gaining traction with consumers who seek a refreshing style.
Gallo has joined the Prosecco boom with the La Marca Prosecco brand nearing the 400,00-case mark last year on 15.4% growth. Last May, the company introduced a new 187-ml. format ($5) for La Marca to tap into the single-serve occasion. “Sparkling wine is becoming a staple in American homes and is no longer reserved for holidays and celebrations,” says Gallo. “Sparking wine is now being enjoyed year-round.”
Other Gallo brands that made strong volume gains in 2014 include The Naked Grape (+5.5% to 765,000 cases), Edna Valley (+4.5% to 580,000 cases), Canyon Road (+6.5% to 330,000 cases) and William Wycliff (+4.9% to 260,00 cases). Imported brand Alamos, produced at Argentina’s Bodegas Esmeralda, grew 6.5% to come in just under 1 million cases last year.
•Brown-Forman’s Old Forester Bourbon has launched Old Forester Mint Julep, a new ready-to-drink cocktail intended to be served over crushed ice. Rolling out at retail across roughly 35 U.S. markets this month, Old Forester Mint Julep (60 proof) is packaged in a commemorative Kentucky Derby-inspired bottle and priced at around $25 a 1-liter. Additionally, the premixed cocktail will be served at Churchill Downs during the 141st Kentucky Derby, to be held on May 2. Old Forester was up 16% to 110,000 cases in the U.S. last year, according to Impact Databank. Earlier this month, Brown-Forman unveiled plans to grow the brand past 500,000 cases within the next five years, with the help of a new $30 million distillery and a $20 million marketing investment.
•R&B star Trey Songz has partnered with SX Liquors founder and CEO David Knight to launch the brand’s line of liquors nationwide as well as for promotional activities during his 2015 co-headlining tour in 25 U.S. cities. SX Liquors, which initially debuted in 2011, targets the female demographic with its range of handcrafted, small-batch Tequilas, rums and vodkas. Billed as gluten-free, the barrel-aged products are produced in Jalisco, Mexico and packaged in hand-blown and painted bottles. The range includes SX Negro Vodka, Blanco Vodka, ChaChaCha Tequila, Cafedoble Tequila, Mojito Rum and Samba Rum. SX Liquors retail for $29.99 a 750-ml. and $39.99 a 1-liter bottle.
•Middlebury, Vermont’s Woodchuck Hard Cider has debuted the newest offering in its limited release Out on a Limb series, Oopsy Daisy. The 5.5%-abv cider is the fourth and latest of the lineup’s rotating six-packs available nationwide. The semi-dry Oopsy Daisy is infused with real chamomile flowers for sweet honey and citrus notes, the company says. It is crafted with eating apples such as McIntosh and Cortland. A six-pack retails for about $10.99. This month, the company is also bringing back its Private Reserve Pink cider, which supports cancer survivors through Survivorship Now, available in six-packs and on draft. Woodchuck is also re-releasing its Summer cider in six- and 12-packs of 12-ounce cans. Both Pink and Summer ciders are available through August.
•Connecticut-based Barrell Craft Spirits, LLC has added to its line of small-batch craft whiskies with Barrell Bourbon Batch 004. The company’s fourth Bourbon offering (116.7 proof) is both distilled and aged for more than six years in Kentucky. With a mash bill of corn, rye and malted barley, Batch 004 features flavors of spices and peach butter for a finish of saddle leather and tobacco, the company says. It follows the successful launches of Bourbon Batches 001, 002 and 003—with the company saying it sold out of all 500 cases made available for each—as well as January’s release of Barrell Whiskey Batch 001 ($55). Batch 004 retails for about $79.99 a 750-ml., with about 1,000 cases available. Barrell Bourbon offerings are sold in a handful of states and as well as through online retailers such as Caskers.
•Providence, Rhode Island’s Narragansett Beer has announced the early release of two returning summer seasonals—Narragansett Del’s Shandy and Narragansett Summer Ale. First launched last May, Del’s Shandy is a 4.7%-abv blend of Narragansett lager with lemon extract from Del’s Frozen Lemonade, while Summer Ale is billed as a 4.2%-abv light session ale, made with Two Row Pale Malt, Citra Galaxy and Chinook hops. Starting this month, both seasonals will begin rolling out throughout Rhode Island, Massachusetts, Connecticut, New Hampshire, Vermont, Maine, New York, Philadelphia, Washington D.C., North Carolina and Portland, Oregon. Del’s Shandy will be available in six packs of 16-ounce cans ($8.99-$9.99) and 12-packs of 12-ounce cans ($13.99-$14.99), and Summer Ale will be offered in six-packs of 16-ounce cans ($8.99-$9.99).
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