FAST TRACK BRANDS

RISING STARS

ESTABLISHED GROWTH BRANDS

COMEBACK BRANDS

Total retail dollars generated by sales of wine, beer and distilled spirits topped $100 billion for the first time ever, registering a 1.6% increase in 1997 compared to 1996, according to the latest industry statistics compiled by the Adams Business Media research database. Wine dollar sales grew almost 5% to $13 billion; spirits garnered sales of $34.1 billion, gaining 2.2%, and beer sales were more than $53 billion, up 0.4%.

These dollar increases reflect an interesting overall trend across all segments of the industry. For example, among distilled spirits, total consumption was down slightly–0.5% –at 137.8 million 9-liter cases. However, higher-end products, such as cognac, single malt Scotch, imported gin and vodka and superpremium brands across all categories had increased sales. The same holds true in the wine segment. While total consumption of wine was up 1.8%, premium varietal wines generally grew at much heftier rates. And while total beer consumption rose a modest 1%, the higher-priced imports had sales gains of 13.5%. Americans, it seems, are spending more money for higher-priced beverage alcohol products.

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This year, there are six spirits brands that meet the criteria of a Fast Track brand. Kobrand’s Alizé, the cognac and passion fruit cocktail, attained Fast Track status for the third year in a row and boasts a four-year ACGR of 80.2%.

Since Canandaigua repositioned Paul Masson Grande Amber Brandy and upgraded the product, packaging and positioning, the brand has exploded, moving from sales of 150,000 cases in 1993 to 619,000 last year, when it grew 27.9% compared to 1996. Skyy Vodka, from Skyy Spirits, is also positioned as a high-image brand and has seen tremendous success during the past few years.The brand has an amazing ACGR of 133.4%. Finally, Sauza Tequila, marketed by Domecq Importers, has made the Fast Track list for the third straight year. The Sauza portfolio of premium and superpremium tequilas reached sales of 360,000 cases last year, gaining 33.3% from the year before. Sauza’s innovative ad campaigns as well as consumers’ increasing interest in prestigious brands within the tequila category have helped the brand grow.

Reminiscent of last year, the 13 wines included in the Fast Track reflect the increasing popularity of varietal table wine, both red and white as well as imported and domestic. Heading the list is Franzia, from The Wine Group, which over the past few years has seen skyrocketing sales, mostly on the strength of its incredibly successful bag-in-box wines. It now ranks as the best-selling table wine in the U.S. by more than 5 million cases.

Making the Fast Track for the third straight year is Vendange Sebastiani Vineyards. The brand has seen its sales grow to more than 3.8 million cases since its introduction five years ago. Sales of the Corbett Canyon line, from The Wine Group, have grown four-fold since 1995, and gained 137.6% just last year. Inglenook Estate Cellars, has likewise seen eye-opening growth. With sales of 800,000 cases, Estate Cellars boasts an ACGR of 39.7% since 1993.

Among the six imported Fast Track wine brands, Georges Duboeuf, eclipsed the 1 million case sales mark for the first time. Two Australian imports had stellar years: Lindemans increased sales almost 13% to 790,000 cases, and Rosemount Estate showed a sales gain of more than 58% in 1997, reaching 540,000 cases. Two Italian imports also made the Fast Track list. Santa Margherita, had a 13.1% sales increase last year (251,000 cases) and Placido’s sales reached 239,000 cases for a 24.5% increase. And for the second year, Veuve Cliquot joined the ranks of Fast Track brands, growing almost 26% in 1997, with sales of 170,000 cases.

Last modified: 02/09/2007

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