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Exclusive: TWE Looks To Boost Penfolds’

U.S. Profile With Super-Premium Max’s

Range

Treasury Wine Estates (TWE) is launching a new super-premium wine range in the U.S. market, Penfolds Max’s, looking to increase the stateside presence of one of its most prestigious brands. Penfolds Max’s will initially include a Cabernet Sauvignon and a Shiraz-Cabernet, both retailing at $25 a bottle. TWE tells SND that it expects to import about 15,000 cases of each of the Max’s wines this year.

Penfolds winemaker Peter Gago sourced the new entries from premium vineyards in McLaren Vale, the Barossa Valley, Coonawarra and Upper Adelaide. The Max’s wines are named for Penfolds’ original winemaker Max Schubert, known for his creation of Grange, Penfolds’ iconic, multi-region red blend. TWE says Penfolds Max’s honors that legacy of featuring multi-regional and multi-varietal blending to achieve consistency of style and quality across vintages.

In an effort to draw younger consumers, Penfolds Max’s wines will be packaged in a bright red shrink-wrapped package, which can be unzipped after purchase to reveal a classic Penfolds bottle.

In a recent interview with SND, Treasury CEO Michael Clarke noted, “With Penfolds, we’ve really only dabbled in the U.S. to this point. Looking into our 2018 fiscal year, we plan to invest behind Penfolds and grow that brand in the U.S.” Last year, Penfolds’ U.S. volume stood at about 80,000 cases, according to Impact Databank, down significantly from Australian wines’ high-flying days of the early and mid-2000s.

Now, however, Australia’s upscale tier is again rallying in the U.S. market. While overall Australian bottled wine shipments to the U.S. fell 6% to 10.8 million cases last year, offerings above $13 a bottle jumped by 59%.

Constellation Reportedly Eyeing Ste. Michelle

Ever-acquisitive Constellation Brands may be lining up its next target. Forbes reports that Constellation may be eyeing a potential purchase of Washington’s leading winemaker, Ste. Michelle Wine Estates (SMWE). The speculation follows a recently released Wells Fargo report highlighting the fact that SMWE’s business only accounts for around 3% of sales and 2% of profits for brand owner Altria, whose core business is in tobacco. Some believe that Altria will eventually offload Ste. Michelle at a price estimated to fall between $3 and $4 billion.

With revenues totaling $7.3 billion in its fiscal year through February, Constellation is considered a prime bidder for the Ste. Michelle business. The upstate New York-based company has been one of the most acquisitive players in the drinks industry over the past few years, with recent purchases including craft brewer Ballast Point, Utah distiller High West, Joe Wagner’s Meiomi wine brand, Washington-based Charles Smith Wines and California’s The Prisoner Wine Company. SMWE, whose core brands include Chateau Ste. Michelle, 14 Hands and Columbia Crest, among others, posted a net revenue rise of 7.8% to $746 million in 2016.

Excelsior Aligns With Young’s In Seven Western States

Excelsior Wines, the U.S. joint venture between Concha y Toro and Banfi Vintners, is shaking up its distributor profile in the western U.S., SND has learned. Effective June 1, Excelsior will transition from Southern Glazer’s to Young’s Market Co. in seven states: Alaska, California, Hawaii, Oregon, Utah, Washington and Wyoming.

Excelsior, formed in 2011 and helmed by president Marc Goodrich, includes Concha y Toro’s South American lineup—including Don Melchor, Casillero del Diablo, Frontera and Trivento—as well as Little Black Dress wines from California. The company says several new third-party brands are expected to join the fold this fall. According to Impact Databank, Concha y Toro’s U.S. volume was roughly flat last year at 2.7 million cases.

News Briefs:

•Joe Wagner’s Copper Cane Wine & Provisions has extended its Quilt wine brand with the launch of a new Chardonnay and Reserve Cabernet Sauvignon. Sourced from the Carneros AVA, Quilt’s Napa Valley Chardonnay ($35 a 750-ml.) sees 15 months in French oak barrels. The Reserve Cabernet Sauvignon ($100) features fruit from a variety of Napa vineyards and, after cold fermentation and extended maceration, is put in French oak for a secondary fermentation. The two additions join the brand’s existing Quilt Cabernet Sauvignon.

•The Gerber Group has opened The Campbell in New York City’s Grand Central Terminal, a revival of the former Campbell Apartment venue. The historic property, first used in 1923 as American financier John Campbell’s office space and reception hall, was initially converted into a bar and lounge in 1999. The Gerber Group’s full restoration of the property pays homage to its history as a place of entertainment with three distinct venues: The Campbell Bar, the main indoor bar area; The Campbell Palm Court, an indoor lounge with a view of the main terminal; and The Campbell Terrace, an outdoor veranda with a full-bar. Classic cocktails, signature house drinks, wines and local craft beers are served alongside upscale bar food.

•Russian Standard vodka has released a new limited edition Fabergé art-inspired bottle. The Russian Standard Fabergé Edition will initially be offered for pre-sell on Reservebar.com at $23, with availability in select U.S. and Canadian stores to follow in June. It marks the second iteration in Russian Standard’s Fabergé bottle series. Owned by Roustam Tariko’s Roust Corp., the Russian Standard brand grew 3.1% to 3.3 million cases globally last year, according to Impact Databank.

•New York-based Seaview Imports has added New Zealand’s Invivo Wines to its portfolio. Invivo Sauvignon Blanc ($19), Pinot Noir ($40) and special edition Graham Norton’s Own Sauvignon Blanc by Invivo ($19) are now available at Kroger, as well as in select on- and off-premise accounts in New York, New Jersey, Connecticut and California. Seaview’s portfolio also includes Sonoma’s Wilson Artisan Wineries, François Lurton (including French, Spanish and Argentine offerings) and France’s Charles Sparr among others. The company was formed in 2013 by former Pasternak Wine Imports president and CEO James Galtieri.

Craft Brewing and Distilling News:

•Tennessee Brew Works and Diageo’s George Dickel Tennessee Whisky have launched the first two beers in a collaborative series. The Tenn. No. 12 Belgian Style Quad is a 10%-abv Abbey-style ale, while the Tenn. No. 12 Imperial Porter is a dark 9%-abv porter. Both were aged for six months in George Dickel No. 12 barrels. The beers are available for purchase in 22-ounce bottles from the TBW Taproom and on draft in select locations in Nashville.

•This Saturday, Hemingway Rum Co.’s new Key West distillery will open to the public. Housed in a 19th-century tobacco warehouse, the venue will also feature a tasting room, store and information center where guests can learn about rum-making and Ernest Hemingway’s ties to the spirit. Both Papa’s Pilar Dark and Blonde rums are available on-premise and at retail locations in 25 states and Washington D.C., retailing at $39.99 and $29.99 a 750-ml., respectively.

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