Enjoying Sweet Wine Success

Similar documents
IMPORTANCE OF LODI WINES IN THE RETAIL CHANNEL AND OPPORTUNITIES FOR GROWTH. Curtis Mann Director of Wine & Beverage Raley s Family of Fine Stores

California Report. May Volume 1, Issue No. 4. Ciatti Global Wine & Grape Brokers

Mango Retail Performance Report 2017

MILLENNIAL CONSUMERS SEEK NEW TASTES, WILLING TO PAY A PREMIUM FOR ALCOHOLIC BEVERAGES. Nielsen Releases Most Comprehensive Study To Date

Made for Grown Ups! HANDCRAFTED SANGRIA 12% ABV. Joya Import Export, Inc., Temecula, CA (951)

An Annual Report by ShipCompliant and Wines & Vines. Direct to consumer. Wine Shipping Report

Hit the Road: In Lodi, every winemaker has a story to tell

Why Exhibit at IBWSS?

Forecast Report

Craft Brewer Definition

2011 Regional Wine Grape Marketing and Price Outlook

U.S. Retail Coffee. Joe Stanziano Senior Vice President and General Manager, Coffee

Francis Coppola Winery

Dairy Market. November 2017

The alcoholic beverage market in Mexico. Consumption and trends

CATEGORY CLOSE UP: FUELING THE FOUNTAIN

FOB/ex-cellars winery selling (or transfer to winery tasting room or DtC sales) price per case:

MANGO PERFORMANCE BENCHMARK REPORT

THE ECONOMIC IMPACT OF THE WINE AND GRAPE INDUSTRY IN CANADA 2015

Drinks Sector Guide. The global alcoholic drinks market grew by 3.3% in 2014 to reach a value of $1,152,011.1 million.

Asia Loses Its Sweet Tooth for Chocolate

Dairy Market. Overview. Commercial Use of Dairy Products. U.S. Dairy Trade

The changing face of the U.S. consumer: How shifting demographics are re-shaping the U.S. consumer market for wine

QUICK SERVE RESTAURANT MANAGEMENT SERIES EVENT PARTICIPANT INSTRUCTIONS

Crown Imports. Bill Hackett

Marketing Seminar I Oregon Wine Symposium. Bulls eye! Developing Your Brand Identity and Targeted Distribution Strategy. Moderator

2016 STATUS SUMMARY VINEYARDS AND WINERIES OF MINNESOTA

Exhibitor Prospectus

Boston Beer Company, Inc. SELL Price Target: $110 Key Statistics as of 04/29/2016. Thesis Points: Company Description: NYSE:SAM

NEWS RELEASE. B.C. winery is served Buy Local funding

Lake County in the Marketplace. Christian Miller Lake County Winegrape Commission Momentum Seminar January 23, 2014

Challenges in Fluid Milk Consumption. October 25, 2017

August 13, 2015 Joseph W. Mollica, Chairman Michael R. Milligan, Deputy Commissioner

in California Jim Lapsley (with thanks to Julian Alston and Dan Sumner)

YAKIMA VALLEY TOURISM ANNUAL REPORT

The Economic Impact of Wine and Grapes in Lodi 2009

VLB 5th European MicroBrew Symposium 07.Nov 2016

Vegetable Imports Approaching 20% of Total

California Report. March Volume 1, Issue No. 2. Ciatti Global Wine & Grape Brokers

Case Study: Healthy Dinner Kit Pilot Test. Square One Markets

STATE OF THE INDUSTRY economic impact & consumer insights Christian Miller Proprietor, Full Glass Research

Citrus: World Markets and Trade

This is Haruhisa Inada. I will explain the financial results of the first quarter of FY 2018.

ACSI Restaurant Report 2014

OIV Revised Proposal for the Harmonized System 2017 Edition

Murray Darling & Swan Hill Wine Grape Crush Report 2016 Vintage

A CELLAR FULL OF COLLATERAL: BORDEAUX v NAPA IN THE SEARCH FOR OENOLOGICAL GOLD

much better than in As may be seen in Table 1, the futures market prices for the next 12 months

Wine On-Premise UK 2016

Market Update. May 22, 2017 Telephone:

RESTAURANT OUTLOOK SURVEY

Produce at the Southwest Border

Market Prospects for 2011

Acreage Forecast

British invasion: Mars maltesers muscle in on Hershey malted milk balls

How To Buy, Sell, And Profit On EBay: Kick-Start Your Home-Based Business In Just Thirty Days By Adam Ginsberg

BREWING UP POSSIBILITIES.

ICC September 2018 Original: English. Emerging coffee markets: South and East Asia

Bergman. Euro-National VINEYARD VALUES STARTING 2017 FOR NAPA AND SONOMA COUNTIES

and the World Market for Wine The Central Valley is a Central Part of the Competitive World of Wine What is happening in the world of wine?

Brewery Packet March 4th, 2017

Sonoma County Strategic Considerations. Chardonnay. Sonoma County

Inventory of the Bern C. Ramey Papers, No online items

Wine On-Premise UK 2018

Beer & Cider Category Session. Chris Robertson, Director, Beer & Cider, LCBO LCBO PSM Trade Symposium 2017 April 25, 2017

2017 FINANCIAL REVIEW

La Taqueria, the Mission s most famous taqueria, finds its future in doubt with controversial building sale

Inside the United States The Fish and Seafood Trade

The Economic Contribution of the Colorado Wine Industry

Dairy Market. May 2016

Global sparkling wine market trends. June Peter Bailey. Manager - Market Insights. Wine Australia

OREGON WINE BOARD MARKETING SYMPOSIUM PRESENTATION. February 24, 2015

Charles Scicolone on Wine

For the purposes of this page, this distribution arrangement will be referred to as a wine boutique and wine includes wine coolers.

CALIFORNIA WINERY DIRECTORY 2006 MEDIA KIT

Consumers Favour Fairtrade as Ethical Label of Choice Fairtrade Ireland releases Fairtrade International annual report on Unlocking the Power

Paper.

KOREA MARKET REPORT: FRUIT AND VEGETABLES

Record exports from Brazil weigh heavy on the coffee market

agnitiowines.com T: Latour Court, Suite A, Napa, CA PRESENTED BY

WORLD WINE SUPPLY OUTLOOK MARCH 5, 2017 THE VINEGAR INSTITUTE 2017 ANNUAL MEETING

GLOBAL DAIRY UPDATE. Welcome to our March 2015 Global Dairy Update IN THIS EDITION Financial Calendar

EMBARGO TO ON FRIDAY 16 SEPTEMBER. Scotch Whisky Association. Exports of Scotch Whisky; Year to end of June 2016 (2016 H1)

Volatility returns to the coffee market as prices stay low

THE WINE AND SPIRIT TRADE ASSOCIATION MARKET REPORT Q To reserve a place please go to

Paper and Pulp Foreign Trade

MARKET ANALYSIS REPORT NO 1 OF 2015: TABLE GRAPES

Calendar year Segment. Meat snacks $88.29 $ % Nutritional $49.07 $ %

QUICK SERVE RESTAURANT MANAGEMENT SERIES EVENT PARTICIPANT INSTRUCTIONS

An update from the Competitiveness and Market Analysis Section, Alberta Agriculture and Forestry.

Nestlé Investor Seminar 2014

Preliminary unaudited financial results for the full year ended 30 June Amount for this reporting period

Economics Homework 4 Fall 2006

Bordeaux 2017 shrinkage charted

BREWERS ASSOCIATION CRAFT BREWER DEFINITION UPDATE FREQUENTLY ASKED QUESTIONS. December 18, 2018

Imperial FFA Market Plan Team

TAKECRAFTBACK BREWERS TOOLKIT

GENERAL DESCRIPTION OF INDUSTRY AND COMPANY

EXHIBIT ON THE 2019 TRADESHOW FLOOR! catersource.com

California Report. February Volume 2, Issue No. 2. Ciatti Global Wine & Grape Brokers

Transcription:

Search Site Sign In Create Account 10.07.2016 Enjoying Sweet Wine Success Quady Winery expands on strength of Moscato sales even as sales for the variety elsewhere have slowed by Andrew Adams Wine grape clusters destined to become Moscato wine move through the hopper at Quady Winery in Madera, Calif. Madera, Calif. For Andrew Quady and the rest of the team at his eponymous winery in California s Central Valley, the Moscato boom never ended. In fact, the winery s production of sweet Moscato wines has grown from 50,000 cases in 2010 to 110,000 this year. The winery has had to expand to accommodate the larger production, specifically increasing its capacity to keep sweet juice from fermenting. Back in 2011, the sudden and unexpected surge in Moscato sales was the talk of that year s Unified Wine & Grape Symposium, and in 2012 Wines & Vines reported that sales of Muscat wines had http://www.winesandvines.com/template.cfm?section=news&content=175556 1/8

surpassed Sauvignon Blanc has the third most popular white wine in the United States behind Chardonnay and Pinot Grigio. Yet by 2016 the variety did not come up much, if at all, during the seminars and panel discussions at Unified. Sales for lower priced Moscato wines have slowed, which could indicate a fad has come to an end, or it may just be another example of the wider premiumization trend, in which U.S. wine consumers are moving toward higher price points for all varietals. Sales growth down since boom According to Nielsen, sales for Muscat/Moscato varietal wines grew by 19% from 2012 to 2013, but that growth slowed to 7% the next year and has fallen to just 2.9% compared to last year. Moscato was a huge growth driver several years ago, growing from relative obscurity (less than 1% of table wine) to now being a top white wine varietal, said Danny Brager, senior vice president with beverage alcohol for Nielsen. Brager noted Moscato is No. 13 by sales volume, accounting for a 6% share of the total market, and is number 4 by value with 4.6% share of total dollars. The category has now settled down to lower single-digit growth, but on a much more significant base than it was several years ago. Brager said Moscato is also credited with bringing new wine drinkers to the category, especially Hispanics and African Americans who gravitated to its sweeter taste. The variety s early success was also fueled by it being mentioned in the songs of a few hip hop artists. In 2009, California growers produced about 61,000 tons of Muscat of Alexandria that sold for an average price of $310 per ton and 11,000 tons of Muscat Blanc that fetched an average price of nearly $600 per ton, according to the state s annual grape report. Four years later, Muscat of Alexandria tonnage had increased to 126,000, and the average price was $349, while Muscat Blanc had grown to 51,547 tons and the average price had fallen to $462. In 2015, Muscat of Alexandria production had grown to 180,000 tons, and the price had slipped to $283 per ton (or 4% less than the previous year). Muscat Blanc production in 2015 had fallen to 26,000 tons, but the average price had rebounded from $318 in 2014 to $418 per ton. Quady said he s also seen the market data that suggests the bloom has fallen off the sweet Moscato rose, but he credits his strong sales to enthusiasts of the sweet variety buying it at higher price points. Looking at the Nielsen data by price segment, sales growth for Moscato wines less than $8 are flat. http://www.winesandvines.com/template.cfm?section=news&content=175556 2/8

Sales in the $11-14.99 category, however, are up by 13% in both value and volume. According to figures from the market-research group IRI in Chicago, Ill., off-premise Moscato sales in the $11-$14.99 per bottle category more than tripled by volume and value in the 52 weeks ending Sept. 4, yet they remain a tiny slice of the off-premise market at just slightly more than $61,000 in value. White Moscato/Muscat at lower price points, however, is selling at a much higher volume and a much slower rate. During the same period, sales of this variety for bottles less than $8 came to nearly $250 million, which is 2.4% less than a year ago. Sales for boxes of Moscato at less than $5 did grow by 13% to more than $14 million. Quady produces a range of Moscatos that vary in degree of sweetness and alcohol. Some of the dessert wines are fortified to about 15% alcohol, while others only have about 4% to 5%, are slightly spritzy and packaged under a screwcap. They range in price from $14 to $24 per bottle. Andrew Quady and his wife Laurel founded the winery in 1975 and have focused on Port-style and Muscat wines since the beginning. So they were in a good place to ride the first big wave of interest in Moscato. The winery launched Vya Vermouth in 2012, which also was well timed to benefit from the surge in popularity for craft cocktails. The winery s production is about 90% Moscato. Finding consumers with a sweet palate Quady said sales are strong in California as well as in southern states, where consumers palates have always trended toward the sweeter side of the spectrum. He said these consumers want to enjoy wine but find traditional dry varietals a bit off-putting. He referenced the work done by Tim Hanni MW in promoting acceptance for a sweet palate, and he also mentioned the esteemed public relations man Harvey Posert, who helped build the legend of Robert Mondavi and Napa Valley but preferred a bourbon and Diet Coke to a glass of dry red wine. These people deep down inside want to be a wine drinker, Quady said. The don t want to be drinking beer and Coke with dinner. That s our niche. The expansion at Quady includes a new 80,000-square-foot cold room that will keep juice stable at 29 F. Grapes are crushed and then run through a must pump with a heat exchanger that drops the http://www.winesandvines.com/template.cfm?section=news&content=175556 3/8

temperature of the grapes by 20 F. Quady said even at night in the Central Valley it s still 85 to 90 F. The processed grapes sit on the skins for a day or two before getting pressed and filtered through large-volume diatomaceous earth a nd plate-and-frame filters. Quady said he s continuing to experiment with cross-flow filtration and centrifuges, but he has yet to be fully satisfied with the results. The expanded cold room and new tanks will allow him to keep tanks full of sweet wine so that he can bottle throughout the year rather than all at once. Earlier this year, from March to May, he said he was bottling 24 hours a day, seven days a week. You re trying to bottle your whole year s sales in about three months. Another winemaker with a great deal of Moscato experience is Jim Moore, owner and winemaker of l Uvaggio Di Giacomo. Moore has focused on producing Italian varietal wines under his own label since leaving Robert Mondavi Winery in 1998. While at Mondavi in the late 1980s, Moore said he changed the style of the winery s Moscato d Oro to be slightly lower in alcohol and a litter sweeter. In 2008, he began producing Uvaggio Moscato made with Moscato Giallo. It was then and still is now a difficult to sell when it is dry, he told Wines & Vines. However, by 2009 and 2010, when sweet Moscato was all the rage, we sort of jumped into the fray. In certain limited channels, it still sells well. Moore said he can t speak for his customers in general but mentioned he recently was pouring the secco (dry) and dolce (sweet) versions of the wine at the recent Wine Bloggers Conference in Lodi, Calif. Virtually every attendee declined to taste our dolce version. He said the sweet wine typically gets nothing less than 90 points. We believe that even if you do not like sweet wines, ours is worth sampling and evaluating at least once. Go figure. Moore is also not sure if consumers who found a preference for sweet Moscato during its boom are trading up to higher price points now. With our limited pockets of success, these could probably provide an argument supporting that point of view, he said. However these same pockets also did well during the craze, and we have not really seen too much growth in our sales volume. So again, go figure. http://www.winesandvines.com/template.cfm?section=news&content=175556 4/8

SHARE» POST A COMMENT» Currently no comments posted for this article. SUBSCRIBE TO WINES & VINES PRINT EDITION» CONTACT OUR EDITORIAL STAFF» CURRENT NEWS INDEX» SEARCH INDUSTRY DATABASES Wineries Suppliers Distributors Breweries Distilleries http://www.winesandvines.com/template.cfm?section=news&content=175556 5/8

WINE INDUSTRY METRICS Total U.S. Wine Sales» Month 12 Months September 2016 $3,600 mil $38,941 mil September 2015 $3,442 mil $37,755 mil 5% 3% Off-Premise Sales IRI Channels» Month 12 Months September 2016 $638 mil $8,540 mil September 2015 $612 mil $8,083 mil 4% 6% Direct-to-Consumer Shipments» Month 12 Months September 2016 $198 mil $2,197 mil September 2015 $169 mil $1,914 mil 17% 15% Winery Job Index» Month 12 Months September 2016 211 286 September 2015 192 266 10% 8% More Released on 10.14.2016 2017 DIRECTORY/BUYER'S GUIDE http://www.winesandvines.com/template.cfm?section=news&content=175556 6/8

Online Search Included with Purchase Pre-Order Now Learn More WINES & VINES MAGAZINE Learn More Subscribe DIRECT-TO-CONSUMER 2016 REPORT Download Now DIGITAL EDITION NOW AVAILABLE! http://www.winesandvines.com/template.cfm?section=news&content=175556 7/8

Learn More Order Now 866-453-9701 415-453-9700 Fax: 415-453-2517 65 Mitchell Blvd. Ste. A, San Rafael, CA, 94903 info@winesandvines.com Copyright 2001-2016 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. http://www.winesandvines.com/template.cfm?section=news&content=175556 8/8