Korbel Rides Sparkling Wine Wave To New Heights

Long the dominant player in California’s Methode Champenoise sparkling segment, Korbel has gained momentum amid the U.S. market’s sparkling wine boom. Korbel advanced by nearly 8% to 1.43 million cases in 2015, according to Impact Databank, and is on track for similar growth this year.

“Our growth has accelerated as sales have shifted markedly from special occasions and events to more of an everyday appeal,” says Korbel president and owner Gary Heck. “Our promotions, advertising and digital activities reinforce the brand’s ‘celebrate everyday’ message, which really resonates with Millennials and our core consumers.”

With sparkling wine consumption becoming much more of a year-round proposition, Korbel has increased its use of limited-release packages in what used to be down periods for the category. Korbel, which is distributed in the U.S. by Brown-Forman, recently launched the “Summer Sparkle” wrap on its Extra Dry offering, which is the brand’s second-most popular label behind the flagship Brut.

Korbel far outsells any other $10-plus sparkling wine in the U.S. market. And, in terms of the sales value it generates, no other domestic sparkler comes close. Retailing at around $14 a 750-ml., Korbel generated retail sales of approximately $236 million in 2015, according to Impact Databank. That figure was nearly 50% higher than the nearest competitor. Among all sparklers, Korbel ranks third in retail sales, behind Veuve Clicquot and Moët & Chandon.

Heck cites Korbel’s positioning in the “sweet spot” of the pricing spectrum as integral to its success, and says he isn’t planning any across-the-board increases, although local market pricing occasionally is adjusted.

While Korbel’s volume has grown by more than 10% over the past two years, Heck is confident that the brand—and the sparkling wine category—still has plenty of upside. “We see growth in many areas, including expanded occasions, a greater variety of drinks offerings—particularly with cocktails—and a broader appeal across demographic groups, such as Millennials,” says Heck. “This is true for Korbel and the category as a whole, and it indicates that the growth is especially healthy and will continue for many years to come.”

News Briefs:

•Veteran drinks journalist Jeffery Lindenmuth has been named executive editor of Whisky Advocate, part of the M. Shanken Communications group of publications, effective August 1. He will work directly with Whisky Advocate editor and publisher John Hansell, who said Lindenmuth “will help take the magazine to the next level and foster its growth.” Lindenmuth has nearly 20 years of writing experience within the M. Shanken organization, with his work appearing regularly in Whisky Advocate over the years. In addition to being involved in the creative aspect of the magazine’s editorial future, beginning with the upcoming fall issue, Lindenmuth will write a whisky cocktail column and review whiskies in the buying guide, as well as help to grow Whisky Advocate’s blog, website and other platforms.

•Wine Spectator has revealed its full slate of 2016 Restaurant Awards, recognizing more than 3,500 restaurants around the world whose wine lists offer interesting selections, are appropriate to their cuisine and appeal to a wide range of wine lovers. With the 2016 edition, Wine Spectator has introduced a new searchable Restaurant Awards website, offering detailed info on the award winners as well as additional dining-related content.

•Domaine Select Wine & Spirits is launching Paul John Indian Single Malt Whisky in the U.S. Distilled in Goa, India, by John Distilleries Ltd., the Paul John brand is made from six-row barley grown in the Himalayan foothills. The Paul John whisky range includes Paul John Brilliance (retailing at $60 a 750-ml.), Edited ($65), Select Cask Classic ($95) and Select Cask Peated ($100).

•MacPhail Wines, part of Hess Family Wine Estates, has named Matt Courtney as consulting winemaker. Courtney will consult on MacPhail’s Pinot Noir and Chardonnay from the Sonoma Coast and Anderson Valley while continuing as winemaker for Sonoma’s Arista, as well as his own Ferren brand. Noting Courtney’s work with both Arista and Marcassin, where he previously spent eight years, Hess Family CEO Tim Persson called the move “a big step forward” for MacPhail.

•Republic National Distributing Company (RNDC) has appointed H. Alan Rosenberg as vice president, legal and general counsel. Rosenberg was most recently vice president, legal & general counsel, Americas and global chief privacy officer for information management firm Recall Corporation. At RNDC, he will direct all legal matters, initiatives and strategies, reporting to RNDC president and CEO Tom Cole.

Craft Brewing and Distilling News:

•Michigan-based Bell’s Brewery is set to debut its Roundhouse India Red Ale in 12-ounce cans this fall. First launched in 2009, Roundhouse—which is brewed with Michigan honey—was previously only available on draft. The hop-forward ale will be sold in canned six-packs starting in September across Bell’s 28-state footprint. Bell’s is the seventh-largest craft brewer nationwide, according to the Brewers Association.

•Littleton, Colorado’s Breckenridge Brewery, which was recently acquired by AB InBev, has unveiled Imperial White IPA, the inaugural entry in its new innovation-driven Brewery Lane Series. Made with Belgian yeast and Citra and Amarillo hops, Imperial White IPA is packaged in a 750-ml. cork-and-cage bottle and will roll out across Breckenridge’s 35-state distribution territory. The limited edition offering will be available for several months, with a second Brewery Lane expression to follow.

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