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Growth brand winners: StateWays identifies the fastest-selling wines and spirits in the U.S.

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In 2009, everything was about trading down," states Eric Schmidt, research director for the Beverage Information Group. "There was a noticeable increase in sales of lower-priced domestic products, particularly among spirits. In 2010, however, this dynamic began to shift again. Though value-priced products are still doing well overall, consumers are beginning to trade up to above-premium and superpremium brands again. On-premise business, which suffered tremendously throughout 2008-2009, started picking up in 2010, though it has not reached pre-Recessionary levels."

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As the herky-jerky economy moves two steps ahead and one step back, it appears as if the wine and spirits industry, at least, has found its bearings. Indeed, overall wine and spirits sales volume still increased in 2010, according to the latest statistics just released in the Handbook Advance 2011, published by the Beverage Information Group. U.S. distilled spirits sales volume rose to approximately 192.7 million 9-liter cases, representing a 2.1 % gain versus 2009 (which saw an increase of 1.6% sales volume over 2008). Spirits revenue growth (the combined dollar total of off- and on-premise sales) actually outpaced volume gains in 2010, increasing 2.7% to $65.8 billion. This is an important indicator, which underlines the renewed interest in higher-margin, higher-priced products among spirits consumers.

In fact, the latest DISCUS report notes that sales of high-end spirits in the U.S. rose 10.9% in 2010, a vast improvement over the previous two years, but still not approaching sales levels seen before the financial crisis.

The same holds true in the wine segment. Mtal U.S. wine consumption increased by 1.7% in 2010, to just under 302 million 9-liter cases. This more than doubles 2009's 0,8% volume gains. However, the real momentum in the wine segment in 2010 can be seen in the overall revenue figures, which show a 2.4% increase to $26.8 billion. These results contrast sharply with 2009 overall wine revenue, which declined by 3.2%. Once again, this reflects a growing momentum toward consumption of higher-priced wines in 2010. Still, there remains a vibrant market in large-size box wines (3-, 4- and 5-liter) as well as wines priced in the $6-$10 range. And while sales of above-$10 have been increasing, superpremium wine sales still have a way to go to recovery.

Spirits Overview

For beverage alcohol professionals, vodka is the gift that keeps on giving. The huge spirits category rose another 5.8% in 2010, following a 5.7% increase in 2009. Overall, the vodka segment added almost 3.5 million 9-liter cases to its total of approximately 61.9 million cases. Indeed, vodka now represents 32.1% of all spirits consumed in the U.S. New vodka expressions abound, with flavors and brands from around the world still proliferating. The reasons remain primarily the easy mixability of the spirit and the continued popularity of cocktails made with vodka. We've asked this question before: Where are retailers and bar operators putting all these bottles? Obviously, they are making space because there seems to be little slowing the category down.

The second-largest spirits category, rum, also saw consumption rise in 2010. Still riding the popularity of the Mojito, the category activity also includes new spiced and flavored rums as well as a variety of aged expressions. Overall, rum gained 2.2% to more than 25.5 million 9-liter cases. Tequila also increased last year, with consumption up a respectable 3.7% to about 11.6 million cases. Largely driven by the Margarita, the category's consumption trends also take into account the various levels - from premium to superptemium to ultra-premium - of a brand's portfolio. American whiskey is another category that saw sales volume rise in 2010, both for blends and straights. American straight whiskey, the higher-profile, higher-priced segment, gained 2.2% to more than 15.2 million 9-liter cases; the smaller blends segment moved ahead by 1.0% to more than 5.2 million cases. Total American whiskey was up 1.9% to more than 20.5 million cases. Other good news comes from the smallest imported whiskey category: Irish and Other whiskies. They jumped ahead by 21.7%, but to a very modest total of 1.43 million cases, driven primarily by the ongoing success of Jameson Irish Whiskey. For their part, overall Scotch whisky declined 1.5% in 2010 to 8.7 million cases; and Canadian whisky decreased by a slight 0.4% to more than 15.5 million cases.

The third-largest spirits category, cordials& liqueurs, saw total consumption fall 1.8% to 19.7 million cases. Also losing ground was the brandy & cognac category. The higher-end cognac segment actually eked out a small gain, while domestic brandies declined, a reversal of recent trends. Overall, the category fell a modest 0.5% to 10.35 million cases. The gin category likewise saw a sales decrease in 2010, down 1.9% to 11.15 million cases. The good news here is that the higher-margin imported gins gained slightly, while the domestic gins took a larger hit. Finally, prepared cocktails fell another 2.1% to just over 6.2 million cases; however, there have been several successful launches of prepared cocktail lines in the past year, which hopefully bodes well for the future of the segment.

Wine Review

Table wine now comprises about 91.8% of all wine consumed in the U.S., and it continued growing in 2010, rising 1.8% in 2010 to reach 277 million 9-liter cases. Interestingly, domestic brands outperformed, gaining 2.8%, while imported table wines declined 1.0% overall. Domestic table wines now represent more than two-thirds of the overall U.S. wine market, and a significant majority of the sales of these wines are for under $10 per bottle, sometimes considerably less. As the economy continues to recover, premium and superpremium wine sales will undoubtedly pick up, though for now, value table wine brands are still the major players.

Though relatively small, champagne & sparkling wine increased by 3.0% last year, to just over 14.6 million 9-liter cases. This is the ninth straight year of gains for this segment, though it still lags behind its highpoint of more than 17 million cases in sales in the 1980s. Even smaller in size is the dessert & fortified wine category, which declined another 4.0% in 2010, while vermouth dropped 4.8%.

Brands Maintaining Growth

So, what is the rationale for publishing our Growth Brands lists? To quote what we've said here before, "There are beverage alcohol products in every category and at every price point that, for any number of reasons, have either lagged behind or outpaced their respective competitors. Often, a combination of elements - among them solid distribution and retail support, supplier resources, marketing creativity, product heritage and brand equity, the right economic environment, a solid product in the bottle, advantageous price positioning and sometimes just plain luck - help lead to product success." In the past few years, the tough economic environment has clearly played a role, cutting down brands that have regularly grown their business in "normal" times. And a significant percentage of high-image, high-priced brands also suffered in the wake of the Recession, particularly after the jet-fueled years that preceded it. But there are other brands that have thrived, and many others that adjusted to new market realities and maintained some growth, as well as a variety of additional brands that continue to make positive strides with consumers and retailers alike. Those are the brands that appear on the following pages. And though evaluating category consumption trends can provide the big picture, drilling down to actual brand performance provides the details. Thus, the reason for our annual Growth Brands report, which uses the most up-to-date industry results to highlight the wine and spirits brands with noteworthy growth over the past several years.

SPIRITS FAST TRACK BRANDS

The Fast Track Growth Brands category represents the top-performing brands, percentage-wise, during the past four years. The criteria are demanding: a wine or spirit must have maintained double-digit growth over each of those four years while selling at least 100,000 9-liter cases this past year. Based on the Beverage Information Group's 2010 statistics, 19 spirits brands made the Fast Track list, outpacing last year's total of 14. There are eight new Fast Track spirits members this year, five of them vodkas. Overall, there are 12 vodkas numbered among the 19 Fast Track brands, reflecting the continuing dominant position of vodka in the marketplace.

In fact, the top four brands in sales volume are all vodkas that were in the Fast Track category last year, led by Svedka, the Swedish import, which is priced lower than most other well-known imported vodkas. With five flavors joining the original brand, Svedka maintained its healthy performance, growing 2010 sales by about 500,000 cases to just under 3.3 million cases, which represents an 18.2% increase over 2009. For its part, Burnett's Vodka reached sales of more than 1.4 million cases in 2010, a 10.0% jump from the previous year. The value-priced brand has succeeded in the challenging economy, but its growth is also the result of the popularity of its wide array of flavor offerings. Indeed, Burnett's just released two new flavors - Limeade and Orange Cream - for a total of 23 flavors in its portfolio. Imported from France, the Pinnacle Vodka line is competitively priced and also features a wide array of flavors, with its Whipped Cream entry producing significant sales activity. Its latest addition is Pinnacle Chocolate Whipped Vodka. The brand had a wonderful 2010, gaining almost 400,000 9-liter cases for a sales total of more than 1.4 million, a 37.7% over 2009. Another value; priced vodka, UV, broke into the 1 million case club, notching a 24.9% increase. UV Vodka also features a wide range of flavored versions.
FAST TRACK

The brand must be have exceeded 100,000 9-liter cases in 2010, with
 double-digit growth over each of the past four years.

DISTILLED SPIRITS (Thousands of 9-liter cases)

Brand Supplier 2006 2007 2008 2009 2010P '09/'10%
 Chg

Svedka Constellation 1,023 1,526 2,100 2,762 3,264 18.2%
 Spirits

Burnett's Heaven Hill 750 885 1,025 1,280 1,408 10.0%
Vodka Distilleries

Pinnacle White Rock 151 263 608 1,017 1,400 37.7%
Vodka Distilleries

UV Vodka Phillips 373 507 662 845 1,055 24.9%
 Distilling

Jameson Pernod Ricard 439 540 684 815 1,026 25.9%
 USA

Ciroc Diageo 78 98 247 339 750 ++

Admiral Luxco 281 316 430 570 698 22.5%
Nelson

Sailor William Grant 125 213 344 475 575 21.1%

Jerry & Sons
Platinum Sazerac 115 175 275 375 450 20.0%

7X
Tito's Fifth 160 200 245 284 364 28.2%
Handmade Generation

Vodka
Fris Pernod Ricard 166 192 221 261 360 37.9%

 USA
Jack White Rock 26 38 127 205 230 12.2%
Flavored Distilleries

Rums
Russian Russian 9 45 85 146 196 34.2%

Standard Standard USA

Pearl Luxco 32 39 44 54 113 ++

Milagro William Grant 38 54 75 90 113 25.6%

 & Sons
Ruskova AnSon Imports 17 53 65 91 110 20.9%
 Ltd.

Citronge The Patron 41 60 72 100 110 10.0%

Orange Spirits
 Company
Patron X0 The Patron 24 30 50 65 107 64.6%

Cafe Spirits
 Company
Hendrick's William Grant 26 42 58 75 101 34.7%
 & Sons

Brand '06/'10
 % ACGR

Svedka 33.6%


Burnett's 17.1%
Vodka

Pinnacle 74.5%
Vodka

UV Vodka 29.7%


Jameson 23.6%


Ciroc 76.1%

Admiral 25.5%
Nelson

Sailor 46.5%


Jerry
Platinum 40.6%

7X
Tito's 22.8%
Handmade

Vodka
Fris 21.4%


Jack 72.5%
Flavored
Rums

Russian ++
Standard

Pearl 37.1%

Milagro 31.3%

Ruskova 59.5%

Citronge 28.0%
Orange

Patron X0 45.3%
Cafe

Hendrick's 40.4%

(p) Preliminary. ACGR=Annual Compound Growth Rate.
(++) Greater than 100%.


Perennial Fast Track member Jameson Irish Whiskey is the only whiskey to be represented here. Jameson continues to impress, gaining more than 200,000 9-liter cases last year, breaking the 1 million case barrier, for a 25.9% increase. The brand continues to dominate the Irish whiskey category and is still the fastest-growing whiskey product with significant sales, percentage-wise, in the U.S. market. The superpremium grape-based vodka Ciroc, imported from France, more than doubled its case sales last year to 750,000. The brand continues to benefit from the marketing support of hip hop star and entrepreneur Sean "P. Diddy" Combs, as well as from last year's release of Ciroc's Coconut flavor.

Three flavored rums are once again members of the Fast Track, beginning with Admiral Nelson Spiced Rum. Imported from the Caribbean, the Admiral's competitive pricing for a spiced rum product helped propel the brand to a 22.5% gain in 2010, reaching just under 700,000 9-liter cases. The premium-priced Sailor Jerry Spiced Navy Rum garnered sales of 575,000 9-liter cases, a 21.1% gain. And Sailor Jerry is increasing its brand visibility with three new just-released limited; edition bottles. Jack Flavored Rums is the third rum brand represented here. The mid-priced brand gained 12.2% in 2010, to 230,000 9-liter cases.

Five vodka brands are new to the Fast Track this year, including mid-priced Platinum 7X Vodka, which saw sales increase 20.0% last year, to 450,000 cases. Tito's Handmade, the above-premium-priced vodka from Texas, grew 28.2% to 364,000 cases, while the competitively-priced import from Denmark, Fris Vodka, joined the list with sales of 360,000 cases (a 37.9% jump). Indeed, the brand added to its portfolio last year with three new flavors: Fris Cherry, Blueberry and Grape. Also attaining Fast Track status last year was Russian Standard Vodka, which saw sales reach just shy of 200,000 cases, a 34.2% gain. The premium-priced Russian Standard also boasts a higher-priced companion vodka, Russian Standard Platinum. Finally, Ruskova, the unabashedly value-priced vodka, which also accents its pot still production, moved from a Rising Star last year to the Fast Track this year. The brand notched 110,000 case sales in 2010, a 20.9% increase. For its part, Pearl Vodka, from Canada, returned to the Fast Track after another top-selling year. The premium-priced brand more than doubled its sales in 2010 (113,000 cases).

The sole tequila brand noted here is Milagro, a first time Fast Track member. The brand gained 25.6% in 2010 to 113,000 cases. The above-premium-priced tequila includes silver, reposado and anejo versions as well as the same higher-end Select Barrel Reserve expressions. Also new to the Fast Track is Patron XO Cafe, a luxury coffee flavored-liqueur with a tequila base, which gained an impressive 64.6% to 107,000 cases. Another Patron brand, Citronge Orange, is a returning Fast Track member, which gained 10.0% last year (110,000 cases). The above-premium priced orange and citrus flavored liqueur is produced in Mexico, and made with Jamaican and Haitian oranges.

And finally, the only gin to make the Fast Track is Hendrick's Gin, the superpremium brand with subtle, not forward, juniper characteristics. The brand grew to 101,000 cases in 2010, a 34.7% increase.

SPIRITS RISING STAR BRANDS

Rising Star brands have been on the market four years or less and are represented here for a few reasons: They have demonstrated significant growth over a short time; they have made a notable impression in the market; or they are still relatively small but show promise. Last year the list included 26 Rising Stars; this year there are 29, with 14 returning members. Interestingly, suggested retail prices for these Rising Stars span the range from a lineup of value-priced brands to a number of superpremium-priced products. This year, there are eight vodkas numbered among the Rising Stars, followed by six liqueurs, six rums, three tequilas, three prepared cocktails, and one each of bourbon, cognac and Irish whiskey.

The accepted wisdom in the beverage alcohol industry is that new product releases keep the industry vibrant and moving forward, whether it be flavored line extensions or completely new formulas in any number of categories. And distillers continue to play their part, last year launching several promising new products cited among the Rising Stars. Among 2010 launches, Skinnygirl, the Margarita prepared cocktail, exploded with sales of 120,000 cases. The brainchild of Bethenny Frankel, who gained fame as one of the Real Housewives of New York (though she wasn't a housewife at the time), the brand boasts 100-calorie per serving Margaritas made with natural ingredients. Three new vodkas launched in the fall by Diageo are showing potential in the marketplace. The first, Rokk Vodka, is imported from Sweden and very competitively priced for an import; it comes in an original version and four flavors. Rokk sales are an estimated 76,000 cases since its launch. Godiva Chocolate Infused Vodka is a 60 proof superpremium-priced offering, which nevertheless hit 73,000 cases in less than six months on the market. Finally, Ursus Vodka, an 80-proof value-priced brand, features an original version and three flavors. The bottles feature bright colors and come with a cold-activated label. The brand hit 40,000 cases, also in less than six months on the market.

New Mix el Jimidor is another early success story. This trio of Margarita pre-mixed cocktails that come in cans, and in three flavors, use el Jimidaor Tequila as their base. The brand reached sales of 75,000 cases in a short time in 2010. It's been sold in Mexico for years and is, in fact, the best-selling premixed cocktail there by far.

Familia Camarena Tequila also rolled out into the U.S. last year for the first time. Both the Silver and Reposado versions are made with 100% blue agave and produced using a small batch, pot still distillation process. The brand is created as a superpremium product, but sells at more consumer-friendly prices. It sold 75,000 cases during its first year and is expanding distribution across the U.S. throughout 2011. Also notching 75,000 cases in its launch year was The Kraken Spiced Rum. The tar-colored black rum sells for above-premium prices and boasts a rich, spicy character. Two other spiced rums made their first appearance last year, including Blackheart Premium Spiced Rum and Blackbeard Spiced Rum. Blackheart, a 93-proof brand is premium-priced that features a unique "sultry seductress" on the label, sold 30,000 cases last year, while Blackbeard, also premium-priced, sold 15,000 cases. That brand is made by the same folks that produce Don Q Rum, and say the Caribbean rum is made with nutmeg, cinnamon, vanilla and a blend of fruits.

Evan Williams Honey Reserve hit the shelves for the first time last year to the tune of 55,000 cases. The 70 proof liqueur, a mixture of bourbon and honey, comes in 1.75 liter, 750 ml and 50 ml packages and sells at premium price levels. Vesica Vodka, also in its first year on the market, is a Polish, triple-distilled potato vodka. The value-priced brand reached 16,000 cases. And the final initiate into the U.S. to make the Rising Star list is Paddy Irish Whiskey, a U.S. addition to the impressive Pernod Ricard Irish whiskey portfolio, which sold 10,000 cases in 2010.

Three other brands attained Rising Star status for the first time. Conjure Cognac, a superpremium-priced French import jumped to 37,000 cases in 2010, perhaps partly on the strength of its famous backer, the rapper Chris "Ludacris" Bridges; VeeV, a superpremium Acaiinfused liqueur, is a wheat grain-based spirit made in Idaho that hit 18,000 cases last year; and the above-pre; mium-priced Rum Chata, on the market for just over a year. It is, the company says, made with cream, vanilla, sugar and cinnamon, and it comes in an unusually shaped bottle. It sold 17,000 cases last year.

Topping the list of returning Rising Stars is Sobieski, the value-priced Polish rye vodka, which has had a fantastic three years. In 2010, the brand added another 225,000 cases total of 740,000. Its "Truth in Vodka" and "Not Every Vodka Is Expensive" campaigns struck a chord, emphasizing the brand's value proposition. Now, they've signed Bruce Willis to represent the brand, as well as launching more flavor line extensions this past October, including an Orange, Karamel and Raspberry.

Just on the market for two years, Red Stag by Jim Beam more than doubled its sales in 2010. The premium-priced black cherry flavored bourbon notched sales of 192,000 cases, proving that a flavored bourbon can be successful. For its part, Don Q Rum was relaunched in the U.S. a few years ago, and is continuing to find success: it scored 190,000 9-liter cases in 201.0. The ruin line includes the mid-priced Crystal, Gold and Anejo expressions, as well as flavored versions of Lime, Coconut and Mojito. Last year, the brand debuted an ultra-premium priced Grand Anejo rum. And in its third year on the market, Wild Turkey's line extension, the 71 proof Wild Turkey American Honey Liqueur, reached sales of 179,000 9-liter cases.
RISING STARS

The brand must be less than five full years of age, and must have
 exhibited notable growth over the past few years.

DISTILLED SPIRITS (Thousands of 9-liter cases)

Brand Supplier 2007 2008 2009 2010P '09/'10
 % Chg

Sobieski Imperial 50 255 515 740 43.7%
 Brands

Red Stag by Beam Global -- -- 81 192 ++
Jim Beam Spirits &
 Wine

Don Q Seralles USA 69 73 118 190 61.0%

Wild Turkey Skyy Spirits -- 85 130 179 37.7%
American USA
Honey

Skinnygirl Palm Bay -- -- -- 120 --
 International

Crystal Infinium -- -- 46 100 ++
Head Spirits

Azul Proximo -- -- 75 80 6.7%
 Spirits

Rokk Diageo -- -- -- 76 --

New Mix el Brown-Forman -- -- -- 75 --
Jimador Beverages

Familia E & J Gallo -- -- -- 75 --
Camarena Winery

The Kraken Proximo -- ---- -- 75 --
 Spirits

Godiva Diageo -- -- -- 73 --
Vodka

42 Below Bacardi USA 12 23 45 65 44.4%

Lunazul Heaven Hill -- 20 42 61 45.2%
 Distilleries

360 Vodka McCormick 16 17 38 61 60.5%
 Distilling

Southern Brown-Forman -- -- 49 55 12.2%
Comfort Beverages
Prep Cktl.

Evan Heaven Hill -- -- -- 55 --
Williams Distilleries
Honey
Reserve

St. Cooper Spirits 12 20 30 40 33.3%
Germain International

Ursus Diageo -- -- -- 40 --

TY KU TY KU 5 10 30 38 26.7%
 International

Conjure Conjure -- -- 1 37 ++
 Imports LLC

Blackheart Heaven Hill -- -- -- 30 --
Premium Distilleries
Spiced

Domaine de Maurice Cooper 1 11 15 22 46.7%


Canton et Cie
Spiced Jack White Rock -- -- 15 20 33.3%

94 Distilleries
Vesica Adamba -- -- -- 18 --

 Imports
VeeV Veev Spirits 1 5 12 18 50.0%

 LLC
Rum Chata Agave Loco -- -- 2 17 ++

 Brands

Blackbeard Seralles USA -- -- -- 15 --

Paddy Irish Pernod Ricard -- -- -- 10 --
Whiskey USA

(p) Preliminary. (++) Greater than 100%.


Another brand only in its second year on the market is the ultra-premium Crystal Head Vodka, being actively promoted by actor Dan Aykroyd. Selling for about $45, the brand is triple-filtered through Herkimer diamond crystals; it reached an impressive 100,000 cases in 2010. Meanwhile, the above-premium priced 42 Below Vodka, reached 65,000 9-liter cases last year. Using a distinctive distillation process, 42 Below hails from New Zealand and boasts of the purity of the water used in its production. The brand also has Honey and Passion fruit-flavored line extensions. And 360 Vodka, made from organic wheat, has been positioning itself as a product with an environmentally sustainable approach to production. It has also just debuted six new flavors, hoping to add to its 2010 case total of 61,000 cases.

Azul Tequila, from the well-known Gran Centenario tequila enterprise, totaled 80,000 cases in its second year in the market. The premium Reposado tequila is made from 100% agave. Another 100% agave tequila, Lunazul, also repeated as a Rising Star. The above-premium priced brand, made at the La Certeza distillery, notched 61,000 case sales in 2010. Its first line extension, Lunazul Afiejo 100% Agave Tequila, is due to be released nationwide in April.

Southern Comfort introduced two ready-to-drink cocktails in 2009 made with the famous spirit: Southern Comfort Sweet Tea Cocktail and Sothern Comfort Hurricane Cocktail. Both new brands are 30 proof and come in 1.75 liter bottles ($20 suggested retail). In 2010, the brand reached sales of 55,000 cases and added to the line of pre-mixed cocktails with Southern Comfort Lime.

The superpremium French elderflower liqueur, St.-Germain, continues to gain customers, hitting 40,000 cases last year. Meanwhile the superpremium TY KU -made from a blend of Asian pears, melon, tea, citrus, ginger, soju and other ingredients - saw 2010 sales increase to 38,000 cases. The cognac-based Domaine de Canton Ginger Liqueur continues to grow from a small base (22,000 cases), as does the value-priced, Spiced Jack 94, which hit 20,000 cases last year. The spiced rum is 94 proof and is presented as the concoction of legendary Navy pilot Jack Butler, supposedly stationed in Bermuda in the 1950s and whose visage is on the label.

SPIRITS ESTABLISHED GROWTH BRANDS

The Spirits Established Growth Brand category rep- resents large-volume brands (sales of more than 400,000 cases) that increased sales over each of the last four years. Clearly, the challenging economic environment of 2008-2009 resulted in a number of top brands losing their sales momentum during those years. Top brands such as Bacardi and Jose Cuervo, among others, have fallen from the list because of recent sales declines. At the same time, the brands cited here, mostly mature brands, should be commended for having managed to continue their sales gains. And, to a degree, they reflect the tenor of the spirits marketplace. Though there are a number of premium and above-premium priced brands here, many brands on the list are value-priced products. And, as many retailers point out, these brands are selling a lot of 1.75 liter packages. Of the 19 Established Growth Brands in 2010 (one more than in 2009), 15 return to the list from last year.

Of the four brands that are new to the list, three can be considered in the value-priced segment. Seagram's Vodka, which up until this year had been included in the Fast Track category, grew a respectable 6.0% in 2010 (but not the double-digit percentage increase necessary to make the Fast Track). With a portfolio that includes Extra Smooth, Platinum Select, Apple Flavored Extra Smooth and Sweet Tea Flavored Vodka, the brand reached sales of 1.15 million cases last year. Juarez Tequila also moved to this category from the Fast Track following 2010 results that saw the brand grow 3.6% to 778,000 cases. Another value-priced brand, Old Crow Bourbon, is new to the category, notching sales of 432,000 cases in 2010, a 6.1% increase. The final new member is the above-premium priced Three Olives line of vodka, imported from England, which also had been a recent member of the Fast Track. In 2010, the brand, which features an array of interesting flavors, grew a hefty 8.8% last year to 1.36 million cases. The brand's latest portfolio addition is Three-0 Purple, a grape juice flavored vodka.

Diageo claimed the top three brands among the returning Established Growth Brands. First, Smirnoff topped the list once again, with 2010 sales of more than 9.5 million cases, a 2.0% gain, and maintained its position as the best-selling spirit in the U.S. Captain Morgan Spiced Rum followed, garnering more than 6.25 million cases, a 1.3% increase. During the year, the brand debuted a line extension, Captain Morgan Lime Bite. And Crown Royal, the superpremium Canadian whisky that just keeps growing its business, jumped another 4.0% in 2010 (up 3.8%) to almost 4.2 million cases. The company also launched the 90-proof Crown Royal Black during the year, highlighting it as an "extra bold" whisky.

For its part, Skyy Vodka also continued its successful run, reaching 2.7 million cases (up 1.7%). And the brand just released two more line extensions to its portfolio of Infusions natural flavored vodkas, with Infusions Blood Orange and Infusions Dragon Fruit.

There are two additional tequilas in the category, both of them featuring super- and ultra-premium expressions. Patron continued its positive sales mornen; turn in 2010, with a 1.1% gain to hit 1.76 million cases, while 1800 Tequila totaled 688,000 cases, representing a remarkable 28.1 % increase.

The remaining returning vodkas are all so-called value-priced brands. Barton grew a respectable 5.0%, to reach just under 1.9 million cases last year; Skol was close by with a total of 1.6 million case sales (up 6.0%); Kamchatka broke the 1 million case barrier (up 3.5%); Aristocrat Vodka edged ahead by 0.5% to just over the 1 million case mark; and Taaka Vodka grew by 5.7% to 460,000 cases.

Two bourbons continued to thrive in the marketplace. The first, Evan Williams, climbed by 4.0% to just under 1.3 million cases. The bourbon's base brand is competitively priced; however, it also features an ultra-premium single barrel expression, which just released its 2001 vintage edition. Meanwhile, the iconic Maker's Mark Bourbon is another superpremium product that has maintained its growth status, jumping an eye-opening 14.6% in 21010, for a total of 920,000 cases. And the brand debuted its first-ever line extension last year, with Maker's 46, tabbed as a "bolder" Maker's Mark

Two value-priced Canadian whiskies, both from Sazerac, also returned to the Established Growth Brand category. Rich & Rare reached to 785,000 cases, a 2.6% increase, while Canadian LTD rose 3.6% to 725,000 cases.
ESTABLISHED GROWTH BRANDS

The brand must be a top seller, moving a minimum of 400,000 9-liter
 cases annually, and must have grown moderately or substantially
 over each of the past four years.

DISTILLED SPIRITS (Thousands of 9-liter cases)

Brand Supplier 2006 2001 2008 2009 2010P '09'/1
 0%
 Chg

Smirnoff Diageo 8,505 9,015 9,323 9,507 9,600 1.0%

Captain Diageo 5,540 5,860 6,072 6,177 6,255 1.3%
Morgan

Crown Diageo 3,610 3,794 3,847 4,025 4,188 4.0%
Royal

Skyy Skyy Spirits 2,270 2,322 2,485 2,655 2,700 1,7%
 USA

Barton Sazerac 1,584 1,653 1,699 1,800 1,890 5.0%
Vodka

Patron The Patron 1,075 1,630 1,725 1,740 1,760 1.1%
 Spirits
 Company

Skol Vodka Sazerac 1,470 1,591 1,592 1,595 1,690 6.0%

Three Proximo 630 850 1,100 1,250 1,360 8.8%
Olives Spirits

Evan Heaven Hill 980 1,030 1,120 1,235 1,284 4.0%
Williams Distilleries

Seagram's Infinium 807 890 980 1,085 1,150 6.0%
Vodka Spirits

Kamchatka Beam Global 902 921 954 995 1,030 3.5%
 Spirits &
 Wine

Aristocrat Heaven Hill 855 865 915 1,000 1,005 0.5%
Vodka Distilleries

Maker's Beam Global 666 720 770 803 920 14.6%
Mark Ssirits &
 Wine

Rich & Sazerac 650 680 715 765 785 2.6%
Rare

Juarez Luxco 591 598 650 751 778 3.6%

Canadian Sazerac 655 666 671 700 725 3.6%
LTD

1800 Proximo 435 505 520 537 688 28.1%
 Spirits

Taaka Sazerac 300 330 380 435 460 5.7%
Vodka

Old Crow Beam Global 381 385 398 407 432 6.1%
 Spirits &
 Wine


Brand '06/'10%
 ACGR


Smirnoff 3.1%

Captain 3.1%
Morgan

Crown 3.8%
Royal

Skyy 4.4%

Barton 4.5%
Vodka

Patron 13.1%

Skol Vodka 3.5%

Three 21.2%
Olives

Evan 7.0%
Williams

Seagram's 9.3%
Vodka

Kamchatka 3.4%

Aristocrat 4.1%
Vodka

Maker's 8.4%
Mark

Rich & 4.8%
Rare

Juarez 7.1%

Canadian 2.6%
LTD

1800 12.1%


Taaka 11.3%
Vodka

Old Crow 3.2%

(p)Preliminary ACGR=Annual Compound Growth Rate


SPIRITS COMEBACK BRANDS

This category recognizes those brands of significant volume that saw sales decline two years ago (2009) but which rebounded in 2010. The increase, however, must result in sales totals that are at least equal to or greater than the 2008 sales totals.

This year there are two Comeback Brands. Bombay Sapphire, after a slight decrease in 2009, regained its positive sales momentum in 2010. The superpremium gin tallied 810,000 last year. The comeback for Cruzan Rum was very impressive, given that the brand lost more than 100,000 cases in 2009. But 2010 was a different story for Cruzan, with its extensive line of flavored rums. The brand climbed a remarkable 21.8% to total 648,000 9-liter cases.
COMEBACK BRANDS

Recognizes brands of significant volume that saw a sales decline two
 years ago but which rebounded last year. This increase, however, must
 have resulted in total sales that are at least equal to or greater
 than the 2008 sales total.

DISTILLED SPIRITS (Thousands of 9-liter cases)

Brand Supplier 2008 2009 2010P '09/'10%
 Chg.

Bombay Bacardi 804 800 810 1.3%
Sapphire USA

Cruzan Beam 648 532 648 21.8%
Rum Global
 Spirits &
 Wine

(p) Preliminary.


WINE FAST TRACK BRANDS

Once again, the adage of offering good-tasting, fun, affordable wines is the not-too-secret recipe for succeeding in the wine market these days. And to reiterate what we've said for several years now, the Wine Fast Track emphasizes the popularity of approachable, easygoing wines with clear imagery that, importantly, generally sell for under $10 at retail, some for half that price. Of course, there are several Fast Trackers that sell for above $10 and a couple that retail above $15 (including a few that feature lower-priced labels while also offering higher-priced reserve and single vineyard wines in their portfolio, for example). There are even one or two superpremium- and above wine brands that are included here.

This year, Wine Fast Track brands number 31, compared to 27 from last year. Five brands fell off the list while nine new brands were added (these include three that were previously noted as Wine Rising Stars). There are 21 domestic wines on the list (17 from California).

E&J Gallo's penchant for building popular wine brands is highlighted by the continuing success of Barefoot Cellars, with an ever-increasing portfolio of varietals as well as a bubbly, which usually sell for under $10 (though suggested retail prices can be $10). After the company purchased the brand in 2005, it has grown from 1 million to 9.5 million 9-liter cases, adding 2 million more cases last year, representing a 26.7% increase. Other E&J Gallo brands in the Fast Track have likewise shown significant sales activity: Tisdale wines gained 50% to 1.2 million cases; and Liberty Creek's low-priced, fast-selling 1.5 liter varietals doubled its sales last year, from 600,000 cases to 1.2 million. The fourth E&J Gallo brand is new to the Fast Track, but was a Rising Star brand last year. Red Rock, which features a Reserve Merlot and Reserve Malbec at about $10 per bottle, garnered 175,000 cases in 2010.

DFV Wines is another supplier that has four brands represented here. Bota Box, the company's bag-in-box offering of varietals in 3-liter packages (priced approxi mately $15-$17), had another stellar year in 2010, increasing sales by 39.5% to 915,000 cases. DFV's other entrants include three returning Fast Track brands: the mid-priced Gnarly Head portfolio (508,000 cases, up 20.8%) and the lower-priced Twisted line of varietals (231,000 cases, up 15.5%), with both brands positioned to highlight drinking accessibility, flavor and fun; and the slightly higher-priced 337 Cabernet Sauvignon, named for a famed cabernet clone, and 181 Merlot (142,000 cases, up 24.6%).

Other notable high-volume Fast Tracks wines are also from California. These include Constellation's Black Box bag-in-box offerings, which notched another 25.8% sales increase to more than 1.92 million cases; and the Fish Eye line of wines, from the Wine Group, which hit 1.6 million cases (up 14.3%). At a higher price point than those value proposition wines is Trinchero Family Estate's Menage a Trois, usually sold for about $10 and up. Featuring a Red Table Wine, White Table Wine, Rose and Chardonnay, Menage a Trois gained an impressive 25.6% last year to reach more than 1.76 million cases. Trinchero's other Fast Track entry is Three Thieves Bandit, which features a line of wines that come in 1 liter and 500 ml tetra pack containers; the brand gained 34.1 % in 2010, hitting 165,000 cases.

In addition to Fish Eye, the Wine Group numbered two new members in the Wine Fast Track. The first is the under-$l0 line of Big House wines, including a Red, White and Pink, as well as Big House The Lineup and Big House The Prodigal Son. The brand rose by 20.0% to 450,000 cases. The second is the line of Octavin Home Wine Bar 3-liter varietals, sourced from a variety of areas with a half dozen different names (ie, Pinot Evil, Seven, Silver Birch, Monthaven Winery, etc.). The wines' point of differentiation lies in its value pricing and its eight-sided, environmentally conscious packaging that also keeps the wine fresh for an extended time.
FAST TRACK

The brand must have exceeded 100,000 9-liter cases in 2010, with
 double-digit growth over each of the past four years.

WINES (Thousands of 9-liter cases)

Brand Supplier 2006 2001 2008 2009 2010P '09/'10%
 Chg

Barefoot E &J Gallo 2,400 4,000 6,000 7,500 9,500 26.7%
Cellars Winery

Black Box Constellation 575 815 1,130 1,530 1,925 25.8%
 Wines

Menage a Trinchero 290 523 911 1,374 1,726 25.6%
Trois Family Estates

Fish Eye The Wine Group 650 950 1,200 1,400 1,600 14.3%

Tisdale E &J Gallo . 360 550 650 800 1,200 50.0%
 Winery

Liberty E &J Gallo 125 160 470 600 1,200 ++
Creek Winery

Verdi Carriage House 692 773 858 982 1,098 11.8%
Spumante Imports

Bota Box DFV Wines 187 207 347 656 915 39.5%

Gnarly DFV Wines 110 250 326 422 508 20.4%
Head

Big House The Wine Group 250 275 325 375 450 20.0%

Octavin The Wine Group 120 185 295 370 440 18.9%
Home Wine
Bar

Trapiche Frederick 190 225 250 350 410 17.1%
 Wildman and
 Sons

14 Hands Ste. Michelle 95 147 207 247 409 65.6%
 Wine Estates

Kim Constellation 153 259 298 349 389 11.5%
Crawford Wines

RELAX Schmitt Sohne 163 189 225 278 350 25.9%

Duplin Duplin Winery 205 240 273 303 335 10.6%
Winery

Mionetto Mionetto USA 120 142 179 218 264 21.1%

La Vieille Vineyard 145 160 191 226 252 11.5%
Ferme Brands

Oyster Oyster Bay 45 140 155 190 240 26.3%
Bay Wines USA

Twisted DFV Wines 64 116 140 200 231 15.5%

Cellar 8 Treasury Wine 82 105 149 184 217 18.1%
 Estates

Kin: Kin: Estate 117 130 143 159 206 29.6%
Estate Wine

Red Rock E &J Gallo 27 55 100 120 175 45.8%
 Winery

The Other The Other Guys 12 35 67 112 170 51,8%
Guys
Portfolio

Three Trinchero 31 64 101 123 165 34.1%
Thieves Family Estates
Bandit

Llano Llano Estacado 100 112 124 138 160 15.9%
Estacado Winery

Duckhorn Duckhorn Wine 51 62 75 85 144 69.4%
 Company

337/181 DFV Wines 12 40 68 114 142 24.6%

Little Brown-Forman 40 66 86 102 127 24.5%
Black Beverages
Dress

New Age Quintessential 5 7 19 78 112 43.6%
 Wines

Funf Schmitt Sohne 12 21 28 40 110 ++
Riesling

Brand '06/'10
 % ACGR

Barefoot 41.1%
Cellars

Black Box 35.3%

Menage a 56.2%
Trois

Fish Eye 25.3%

Tisdale 35.1%

Liberty 76.0%
Creek

Verdi 12.2%
Spumante

Bota Box 48.7%

Gnarly 46.6%
Head

Big House 15.8%

Octavin 38.4%
Home Wine
Bar

Trapiche 21.2%

14 Hands 44.0%

Kim 26.3%
Crawford

RELAX 21.1%

Duplin 13.1%
Winery

Mionetto 21.8%

La Vieille 14.8%
Ferme

Oyster 52.0%
Bay

Twisted 37.8%

Cellar 8 27.5%

Kin: 15.2%
Estate

Red Rock 59.6%


The Other 94.0%
Guys
Portfolio

Three 51.9%
Thieves
Bandit

Llano 12.5%
Estacado

Duckhorn 29.6%


337/181 85.5%

Little 33.5%
Black
Dress

New Age ++


Funf 74.0%
Riesling

(p) Preliminary. ACGR=Annual Compound Growth Rate.
(++) Greater than 100%.


Other domestic brands include Washington State's Ste. Michelle Wine Estates' mid-priced 14 Hands, which shined with a 65.6% increase to 409,000 cases; Oregon's King Estate, with wines ranging from premium to ultra-premium prices (up 29.6% to 206,000 cases); the Duplin Wine portfolio, from North Carolina, which saw sales jump 10.6% to 335,000 cases; and California's mid-priced Cellar 8 portfolio, which increased to 217,000 cases (up 18.1%).

There are ten imported wines here, including two Italian sparklers: the value-priced Verdi Spumanti, which broke the 1 million case mark last year, reaching almost 1.1 million cases (up 11.8%), and Mionetto, the premium-priced prosecco, which gained 2 1.1%. New Zealand counts the premium to superpremium-priced Kim Crawford wines, which sold a healthy 389,000 cases, as well as Oyster Bay, new to the Fast Track. The brand, which sells its line of varietals for a suggested retail of about $15 per bottle, hit sales of 240,000 cases. There are two entries from Argentina here, including the well-regarded Trapiche (410,000 cases), which highlights its reasonably priced Malbec; and another new Fast Track member: New Age (112,000 cases), with its Valentin Bianchi Vino Bianco, White Wine and Rose, all selling for below $10. The German wine, RELAX, was up 2 5.9% to 350,000 cases, while Funf Riesling (110,000 cases), also from Germany, joined the Fast Track after having been a Rising Star last year. Finally, La Vieille de Femme, the affordable French wine from the Cote du Rhone, reached 252,000 cases. And Little Black Dress made its inaugural appearance on the Fast Track, also after having been a Rising Star. The competitively priced French import features a line of five varietals and has had success appealing to female consumers.

Finally, three additional wines are new to the Fast Track: The Other Guys portfolio (up 51.8% to 170,000 cases), run by Donny Sebastiani, comprised by a lineup of eclectic labels including Plungerhead Zinfandels, Hey Mambo, Leese-Fitch, MooBuzz, Penny-wise and White Knight, ranging from $8 to $14 per bottle; Llano Estacado, the Texan wine, which saw sales hit 160,000 cases (up 15.0%); and the renowned Napa Valley Duckhorn (up 69.4% to 144,000 cases), with wines ranging from superpremium to ultra-premium prices. Besides its well-known line of Bordeaux varietals, Duckhorn also produces the increasingly popular line of Paraduxx blends as well as the Goldeneye, Migration and Decoy labels.
RISING STARS

The brand must be less than five full years of age, and must have
 exhibited notable growth over the past few years.

WINES (Thousands of 9-liter cases)

Brand Supplier 2007 2008 2009 2010P '09/'10
 % Chg

Cupcake The Wine 20 60 300 1,000 ++
Vineyards Group

Coastal Vines Bronco Wine 15 63 166 255 53.6%
 Co.

Don Miguel E & J Gallo 10 100 150 175 16.7%
Gascon Winery

Hob Nob W.J. Deutsch & 50 75 125 150 20.0%
 Sons

Kirkland E & J Gallo -- 45 120 150 25.0%
Signature Winery

"Down Under" Bronco Wine -- 19 111 147 32.4%
Cellars Co.

Redtree Cecchetti Wine 21 79 109 132 21.1%
 Company

Martin Codax E & J Gallo 35 60 80 120 50.0%
 Winery

Ghost Pines E & J Gallo 15 40 80 120 50.0%
 Winery

Apothic E & J Gallo -- -- 14 120 ++
 Winery

Green Fin Bronco Wine -- -- 3 91 ++
 Co.

Newman's Own Trinchero -- 54 67 85 26.9%
 Family
 Estates

Starborough E & J Gallo -- 30 65 75 15.4%
 Winery

Colores Del Treasury Wine -- -- 42 66 57.1%
Sol Estates

Line 39 Cecchetti Wine 11 19 33 62 87.9%
 Company

Ninety+Cellars Latitude -- -- 12 45 ++
 Beverage Co.

blufeld Constellation -- -- -- 44 --
 Wines

Jargon Trinchero -- 8 29 40 37.9%
 Family
 Estates

Villa Pozzi W.J. Deutsch & 5 30 35 40 14.3%
 Sons

The Crusher Don Sebastiani -- 5 27 39 44.4%
 & Sons

Loredona DFV Wines 1 19 34 37 8.8%

SeaGlass Trinchero -- 3 18 33 83.3%
 Family
 Estates

Brazin DFV Wines -- -- 17 32 88.2%

Ows Cellar The Other Wine -- 12 24 32 33.3%
Selection & Spirits
 Company

Santa Barbera Treasury Wine -- -- -- 28 --
 Estates

Peregrin/Mohua Vineyard -- -- 1 28 ++
 Brands

Yali Wetland Vilia -- -- 7 26 ++
 Ventisquero

La Marca E & J Gallo -- -- 14 25 78.6%
 Winery

High Note Winebow -- 8 20 25 25.0%

San Telmo Diageo Chateau -- -- 4 24 ++
 & Estates

Powder Keg 585 Wine -- -- 5 23 ++
 Partners

Wily Jack Diageo Chateau -- -- 10 20 ++
 & Estates

Volteo W.J. Deutsch & -- -- 8 20 ++
 Sons

Vigne Regali Banfi -- -- -- 18 --
 Vintners

Cantina di Mionetto USA -- -- -- 18 --
Soave

Superstition Schmitt Sohne -- -- -- 12 --

Anything Goes Schmitt Sohne -- -- -- 10 --

(p) Preliminary. ( ++) Greater than 100%.


WINE RISING STARS

Most Rising Star brands have been on the market for three years or less and have shown early sales success or, for even newer brands, initial potential. This year's list includes 37 wine brands (versus 34 Rising Stars from last year) that vary in price range from value to superpremium. And fifteen of the wines are new to the Rising Star category. Not surprisingly, these Rising Stars come from many of the best-known wine-producing regions in the world: while more than half of the brands are made in California, the others are spread among South American producers (Argentina and Chile), the Europeans (France, Spain, Germany and Italy), and New Zealand and Australia.

The top brand on the list, Cupcake Vineyards, more than tripled its sales to an eye-opening 1 million cases in 2010. Cupcake features a range of varietals made in California as well as several other well-known wine-producing areas, such as Australia, New Zealand, Argentina and Italy. The wines are retailing in a range of about $8 to $13. The brand just released a new Italian Prosecco ($14 suggested retail). Coastal Wine Cellars, from Bronco, is in the second slot, volume-wise, among the Rising Stars. The value-priced California brand hit 255,000 cases, a 53.6% increase. Bronco's two additional members in this category include the returning Down Under Cellars label, a competitively priced line of Australian wines (Chardonnay, Shiraz and Cabernet Sauvignon), which notched sales of 147,000 cases; and the new Green Fin label, a white table wine made from organic California grapes, which is being sold through Trader Joe's for $4 a bottle.

E&J Gallo numbers numerous brands here, and the brands are as varied as the entire Rising Star category, starting with Don Miguel Gascon, the competitively priced Malbec from Argentina that attained 175,000 cases in 2010. Other Rising Stars imported by Gallo include Martin Codex, the Spanish Albarino selling for above $10 (120,000 cases, up 50%); Starborough, from New Zealand, featuring a Sauvignon Blanc also selling for above $10 (75,000 cases); and La Marca, an Italian Prosecco priced about $12-$13 (25,000 cases). Also from Gallo is the Apothic, a California blended red (syrah, zinfandel and merlot), selling for below $10, which exploded to 120,000 cases; and the higher priced Ghost Pines label, which also moved 120,000 cases last year. Gallo is also continuing to supply the Costco-driven Kirkland Signature label (150,000 cases), which includes a range of wines from various regions, selling at different price points.

Once again, WJ Deutsch & Sons has two value-priced imported brands returning to the Rising Star list: Hob Nob from France (150,000 cases) and the Sicilian label Villa Pozzi (40,000 cases). Deutsch is also importing a new Rising Star: Volteo, a value-priced line of varietals from Spain. The Cechetti Wine Company continues to have good success with its Redtree line of Lake County varietals (132,000 cases, retailing at about $10), and its slightly higher-priced Line 39 label (the 39 designates the 39th latitude, a prime wine-making latitude around the globe).

Trinchero Family Estates numbers two returning Rising Stars: Newman's Own line of varietals (85,000 cases, up 26.9%), an extension of the famous actor's food line; and . the value-priced Jargon Pinot Noir (40,000 cases), which has been positioned as coming from the "Anti-Snob Zone." Trinchero also debuted a new Rising Star member last year: the Seaglass label (33,000 cases), which features California Sauvignon Blanc and Riesling, retailing about $10 or slightly above.

For its part, DFV Wines can count two returning Rising Stars from its portfolio: the Loredona label of predominately California Riesling and Pinot Grigio (37,000 cases); and Brazin Old Vine Zinfandel, also from California (about $15 retail, 32,000 cases).

Other returning members of the rising Star list include Colores del Sol, from Argentina, which climbed 57.1% to 66,000 cases; The Crusher line of affordable single vineyard varietals from California (retailing for $10 to $13; 39,000 cases in 2010); the OWS Cellar Selection, up another 33.3% to 32,000 cases; and the Argentinian High Note, priced above $10 (25,000 cases).

The remaining Rising Stars are all new to the list. They include Ninety + Cellars 45,000 cases), which features wines from California, Washington State, Italy, New Zealand, Australia, Argentina and France, all priced $10 and above; Blufeld, an off-dry Riesling from the Mosel in Germany selling for slightly above $10; Santa Barbera, which hit 28,000 cases in its first year on the market; Peregrine, a high-end line of varietals from New Zealand, focusing on several different Pinot Noir expressions; Yali Wetland, a line of value-priced wines from Chile; San Telmo, featuring four varietals priced well under $10 from Argentina; and at the higher end, Powder Keg, a line of California Petite Sirah, Cabernet Sauvignon, Merlot and Pinot Noir retailing for close to $20 a bottle; Wily Jack, the value-priced portfolio of California Chardonnay, Zinfandel and Cabernet Sauvignon featuring a cowboy label design; Vigne Regali, the premium-priced lineup of Italian labels, from white wine to brachetto; Cantiana di Soave, another line of premium Italian wines; and finally, two German imports, retailing for about $10, highlighting the latest in critter labels: Superstition, a Riesling Pinot Blanc with a black cat on the label, and Anything Goes, featuring a label with drawings of a fish, a chicken, a pig and a cow, meant to suggest that the wine matches with just about food.

WINE ESTABLISHED GROWTH BRANDS

The Wine Established Growth Brand category focuses on top-selling, high-volume wine brands that have shown consistent growth over each of the past four years. These are some of the industry's powerhouse brands that help comprise the backbone of wine sales in the U.S. This year, there are 22 brands represented compared to 21 that made the list last year. Clearly, a number of best-selling wines in the U.S. did not qualify, primarily because they had a sales decline for at least one year between 2007 and 2010. While there are a few premium and above-premium priced wines here, the vast majority of these brands are value wines. Indeed, the top volume Established Growth brand is Franzia Winetaps, known for its low-priced line of 3- and 5-liter box wines. The brand is the top-selling wine in the U.S. with 2010 sales of 23.75 million cases.

With sales of more than 10.2 million 9-liter cases, Sutter Home is one of only seven Established Growth Brands that saw a double-digit percentage increase in 2010 (up 10.7%), which translated into an almost 1 million cases gain. Other top percentage gainers are Chateau Ste. Michelle, with its lineup of competitively priced Washington State wines (up 14.9% to more than 2.3 million cases); Bogle, the California line of varietals that sells for a range of prices (up 14.0% to over 1.4 million cases); Sycamore Lane, featuring a line of value California varietals (up 18.2% to 564,000 cases); Castle Rock, the line of California wines that rang around $10 and above retail (up 10.0% to 528,000 cases); and then two new entries to the established growth category, including the Louis Martini portfolio of above-premium priced wines, primarily a line cabernet sauvignons as well as Gnarly Vine Zinfandel, which together saw an hefty increase of 58.7% to 500,000 cases; and Santa Rita wines, featuring a line of Chilean varietals from several different labels at a range of price points (up 11.0% to 433,000 cases).

Several other brands are new to this list, beginning with the well-known Woodbridge by Robert Mondavi, with a lineup of 14 value-priced California wines that climbed to 7.5 million cases last year; Cook's Champagne, the low-priced line of California sparklers (up 9.1% to more than 1.6 million cases); Crane Lake, which moved over from last year's Fast Track with its line of value-priced California wines (1.6 million cases); CK Mondavi Vineyards, with a line of varietals retailing about $10 and up (1.36 million cases); and Red Diamond from Washington State, another label that moved over from last year's Fast Track (506,000 cases).

Additional leading Established Growth brands include Peter Vella, a Gallo brand that markets large-size bag-in-box wines, and reached 6.3 million cases last year; the value-focused Cavit wine from Italy (more than 3.45 million cases); Corbett Canyon's value-driven California wines (3.3 million cases); the renowned Italian import Riunite (over 2.44 million cases); the premium-priced J. Lohr Estates, which notched a 9.8% increase to 975,000 cases; Mirassou, also from California (950,000 cases); Real Sangria, from Spain, totaling just under 500,000 cases; Salmon Creek, another successful line of value-priced California wines (467,000 cases); and finally, the rice wine Gekkeikan Sake (405,000 cases), from Japan.
ESTABLISHED GROWTH BRANDS

The brand must be a top seller, moving a minimum of 400,000 9-liter
 cases annually, and must have grown moderately or substantially over
 each of the past four years.

WINES (Thousands of 9-liter cases)

Brand Supplier 2006 2001 2008 2009 2010P

Franzia The Wine 21,750 22,500 22,750 23,000 23,750
Winetaps Group

Sutter Trinchero 7,673 8,166 8,493 9,271 10,263
Home Family
 Estates

Woodbridge Constellation 6,725 7,019 7,300 7,326 7,500
by Robert Wines
Mondavi

Peter E & J 5,450 5,850 6,100 6,200 6,300
Vella Gallo Winery

Cavit Palm Bay 3,000 3,350 3,410 3,450 3,455
 International

Corbett The Wine 2,650 2,850 2,950 3,100 3,300
Canyon Group

Riunite Banfi 2,263 2,352 2,378 2,416 2,445
 Vintners

Chateau Ste. Michelle 1,453 1,753 1,953 2,034 2,338
Ste. Wine Estates
Michelle

Cook's Constellation 1,344 1,390 1,396 1,491 1,626
 Wines

Crane Lake Bronco Wine 963 1,198 1,396 1,571 1,600_
Winery Co.

Bogle Bogle 927 1,014 1,138 1,252 1,427
 Vineyards

C K Mondavi Charles Krug 896 1,063 1,127 1,338 1,360
Vineyards Winery

J. Lohr J. Lohr 779 789 818 888 975
Estates Winery

Mirassou E & 1 575 720 880 910 950
 Gallo Winery

Sycamore Trinchero 345 371 400 477 564
Lane Family
 Estates

Castle Castle Rock 331 366 439 480 528
Rock Winery

Red Ste. Michelle 216 300 416 484 506
Diamond Wine Estates

Louis E & 1 175 230 240 315 500
Martini Gallo Winery

Real Shaw-Ross Intl 365 423 447 460 497
Sangria Importers
(Cruz
Garcia -
Real)

Salmon Bronco Wine 335 358 380 426 467
Creek Co.
Cellars

Santa Rita Palm Bay 300 320 350 390 433
 International

Gekkeikan Sidney Frank 350 385 397 405 408
Sake Importing

Brand '09/'10 '06/'10
 % Chg % ACGR

Franzia 3.3% 2.2%
Winetaps

Sutter 10.7% 7.5%
Home


Woodbridge 2.4% 2.8%
by Robert
Mondavi

Peter 1.6% 3.7%
Vella

Cavit 0.1% 3.6%


Corbett 6.5% 5.6%
Canyon

Riunite 1.2% 2.0%


Chateau 14.9% 12.6%
Ste.
Michelle

Cook's 9.1% 4.9%


Crane Lake 1.8% 13.5%
Winery

Bogle 14.0% 11.4%


C K Mondavi 1.6% 11.0%
Vineyards

J. Lohr 9.8% 5.8%
Estates

Mirassou 4.4% 13.4%


Sycamore 18.2% 13.1%
Lane


Castle 10.0% 12.4%
Rock

Red 4.5% 23.7%
Diamond

Louis 58.7% 30.0%
Martini

Real 8.0% 8.0%
Sangria
(Cruz
Garcia -
Real)

Salmon 9.6% 8.7%
Creek
Cellars

Santa Rita 11.0% 9.6%


Gekkeikan 0.7% 3.9%
Sake

(p) Preliminary. ACGR=Annual Compound Growth Rate


RELATED ARTICLE: IDENTIFYING THE GROWTH BRANDS

The four categories of Growth Brands are designed to organize the wine and spirits brands demonstrating notable growth in a meaningful way, so as to help retailers, restaurateurs and the industry at large to discern the existing and emerging trends and tap into the opportunities. The criteria remain the same for distilled spirits and wine.

FAST TRACK BRANDS

Criteria: The brand must have exceeded 100,000 9-liter cases in 2010, with double-digit growth over each of the past four years. All brands must be at least five years of age.

RISING STARS

Criteria: The brand must be less than five full years of age, and must have exhibited notable growth over the past few years.

ESTABLISHED GROWTH BRANDS

Criteria: The brand must be a top seller, moving a minimum of 400,000 9-liter cases annually, and must have grown moderately or substantially over each of the past four years.

COMEBACK BRANDS

Criteria: Recognizes brands of significant volume that saw a sales decline in 2008, but which rebounded in 2010. This increase, however, must have resulted in total sales that are at least equal to or greater than the 2008 sales total.
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Author:Brandes, Richard
Publication:StateWays
Geographic Code:8NEWZ
Date:Mar 1, 2011
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