Exclusive: Southern Glazer’s Bolsters Its Fine Wine Unit Amid Premiumization Trend

With upscale wine sales reaching new heights, Southern Glazer’s Wine & Spirits is adding new fine wine companies to its operations in Washington, Oregon, Illinois, Colorado and Florida. Southern Glazer’s also is adding 80 new wine experts to its existing fine wine field team, which already numbers 600 people.

“Wine sales volumes in the U.S. continue to grow, and at the same time we’re seeing that consumers are more willing than ever to explore wines at a higher price point,” said Mel Dick, senior vice president of Southern Glazer’s and president of the company’s wine division. “We’ll continue to invest in this important growth segment.”

Steve Slater, executive vice president and general manager of Southern Glazer’s wine division, added that the company’s “specialty wine houses provide a tighter focus on luxury brands that require increased attention by virtue of their premium positioning in today’s market.” In recent days, Southern Glazer’s also unveiled a new national wine education team, said to be the first of its kind in the industry, providing wine education and certification for Southern Glazer’s employees nationwide.

Ste. Michelle Posts 8% Sales Growth In First Three Quarters

Ste. Michelle Wine Estates saw its revenues rise by 8% to nearly $500 million during the first nine months of 2016, driven by the growth of its core premium brands, which include Chateau Ste. Michelle and 14 Hands, among others. Ste. Michelle’s shipment volume grew 6% to 6.2 million cases during the period, while adjusted operating income rose 6% to $103 million. In recent days, Ste. Michelle president and CEO Ted Baseler told SND that the company is planning a “significant expansion” of its flagship Chateau Ste. Michelle winery for next year, coinciding with the winery’s 50th anniversary.

News Briefs:

•Total Wine & More is entering the Houston market with a 23,500-square-foot store near the Willowbrook Mall, according to the Houston Business Journal. Opening today, the new location is the first Houston store for Total Wine, which now has around 150 locations nationwide—including several in the Dallas/Fort Worth, Austin and San Antonio markets. The Houston entry puts Total Wine head-to-head with rival retail chain Spec’s, which is based in Houston, as well as Goody Goody Liquor, which also has multiple stores in the market.

•Rémy Cointreau has entered exclusive negotiations toward an acquisition of French single malt whisky producer Domaine des Hautes Glaces. Rémy says Domaine des Hautes Glaces, which produces whiskies from certified organic grains in the Trièves Mountains region of the French Alps, constitutes “a high-end brand with genuine potential.” Rémy’s current whisky stable includes Islay’s Bruichladdich, which it acquired in 2012 for $90 million.

•Freixenet USA is launching new luxury wine brand Windvane to the U.S. market. Windvane initially will include a Carneros Reserve Pinot Noir ($80) sourced from estate vineyards in the western part of the Carneros appellation. The release is limited to 100 cases distributed to select California and New York accounts. Next year, Freixenet USA expects to release about 3,000 cases of Windvane Estate Grown Chardonnay and Pinot Noir nationwide. Sonoma-based Freixenet USA also markets Segura Viudas Cava, California sparkler Gloria Ferrer, Australian table wine Deakin/Faldo and Spanish table wine Rene Barbier, among other brands. Freixenet’s flagship cava brand has hovered around 550,000 cases in the U.S. recently.

Craft Brewing And Distilling News:

•Little more than a year after being named chief executive officer of New Belgium Brewing Co., Christine Perich is leaving the company. Perich, who joined Fort Collins, Colorado-based New Belgium in 2000 as chief financial officer, also held the posts of chief operating officer and president before becoming CEO in August 2015. She succeeded New Belgium co-founder Kim Jordan, who then assumed the role of executive chair of the board of directors. Perich will leave New Belgium by the end of November. Day-to-day management will be handled by the executive team while new CEO candidates are considered. After years of impressive growth, New Belgium—one of the country’s five largest craft brewers—lost ground in 2015, though it appears on pace for growth this year. Amid craft beer’s current dealmaking frenzy, it’s been frequently reported that the employee-owned New Belgium might sell out, with a valuation expected to surpass $1 billion. Perich said in August that there were no plans for a sale.

•Bloomington, Indiana-based Cardinal Spirits has partnered with local craft brewer Upland Brewing Co. to launch Black Bear Bierschnaps. Billed as a German-inspired distilled stout, Black Bear Bierschnaps is made with a base of Upland’s Teddy Bear Kisses seasonal stout, and intended to be consumed as a shot or a digestif. The new entry will be around 60-proof and will retail at $28 a 750-ml., available at the Cardinal Spirits distillery, as well as alongside Teddy Bear Kisses stout at Big Red Liquor stores throughout Indiana. Established in 2015, Cardinal Spirits also produces a variety of craft whiskey, gin, vodka, rum and liqueur offerings.

•Kentucky’s Alltech Lexington Brewing and Distilling Company is releasing its flagship Kentucky Bourbon Barrel Ale in cans. Originally launched in 2006 and sold as a bottled offering, Kentucky Bourbon Barrel Ale will roll out in canned six-packs starting this month, available across Alltech Lexington’s 27-state footprint. In addition to Kentucky Bourbon Barrel, Alltech Lexington’s Kentucky Ale range includes the Kentucky Ale, Kentucky Kölsch, Kentucky Bourbon Barrel Stout and Kentucky IPA labels.

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