Cheap Wine is Out!
Well, it seems like lower-priced wines are heading out to pasture! Constellation brands just announced that they are going to be discontinuing almost 40% of their wine portfolio over the next the next 3 years. Many of the brands that will be on the chopping block are those that sell for $11-a-bottle or less.
Now while this is major news from an international company, to us it also bodes well for the little manufacturers across the globe. This means that the consumer market is looking for something with more character and heritage/quality to it – and they’re willing to pay a bit more for that bottle! The article points out that:
Some 60% of [Constellation’s] portfolio’s profit is driven by so-called “power brands,” which are wines that sell for more than $11 per bottle at retail.
and that they’ll be focusing on growing those brands in the coming years. That could be very good news for the urban winery trend we’ve been watching and working with the past few years – as long as you’ve got the product the customers are looking for! If you’re ready, we’re willing!