Winebow’s Leaders On Bright Spots In The Market
Winebow ranks among the leading wine suppliers in the U.S. market at $15-plus, with total volume of 1.7 million 9-liter cases annually. Its Winebow Imports unit houses a wide portfolio that includes offerings from France, Italy, New Zealand, Argentina, and Spain, among other import segments, as well as California and Oregon brands on the domestic side. The company also operates as a wholesaler across 17 states and Washington D.C., covering territory that accounts for 60% of U.S. wine consumption. SND executive editor Daniel Marsteller caught up with Winebow president and CEO Dean Ferrell and Winebow Imports executive vice president Ian Downey for an update.
SND: What’s your overall take on business conditions early in the year?
Ferrell: We have mixed views on business conditions affecting the industry. We see a marketplace that continues to be challenged on many fronts, yet we saw increased sales activity in December, January, and February.
Related to trends in premium categories, we’ve started to see price pressure emerge as value is changing more in line with volume. However, in many instances, our same-brand sales are operating above market trends due to the quality of the offerings and our commitment to specialized service. Additionally, we’ve had the chance to welcome some terrific new supply partners.
SND: What market segments is Winebow primarily focused on?
Ferrell: Our business is centered around fine wine and artisan spirits. Wine over $11 retail represents nearly 90% of our wine sales, compared to an industry average of less than 40%. Additionally, our wholesale business skews higher to the on-premise, as over 40% of our sales are to restaurants, which is more than double the industry.
Over the past five years our artisan spirits business has more than doubled and now represents nearly 20% of our wholesale sales. As with wine, our spirits offerings are premium focused with an average retail price point of nearly $40.
SND: Which wine segments and retail price points are consumers gravitating to at the moment? Are any particular countries of origin showing significant traction?
Downey: With volume sales outpacing revenue in the industry, offering true value in competitive categories is advantageous. Argentine Malbec, led by Catena’s globally acclaimed portfolio; New Zealand Sauvignon Blanc from producers like Villa Maria and Allan Scott; and Italian Pinot Grigio, like Zenato and Flora Lisa, continue to be leading categories for Winebow Imports.
Elsewhere, Sancerre continues to be one of the few categories where demand is still outpacing supply. Stylistically, fresher white wines like Sancerre and Chablis have performed well. Producers like Fouassier and L. Moreau are two examples of properties that have excelled from these historic areas. Sardinia’s Argiolas Costamolino Vermentino is another stylish white wine that has performed well by overdelivering on the quality-to-value proposition.
Our deep collection of iconic properties from regions such as Piedmont, Tuscany, Burgundy, and Gigondas also continue to be an important part of our business.
On the domestic side, each of our offerings has an accessibly priced tier of wines. Selections like Ancient Peaks One Stone, DeLoach Pinot Noir, and Cooper Hill Pinot Noir have been appreciated additions for many of our longstanding trade customers.
We’ll have more with Dean Ferrell and Ian Downey in the second part of this interview.
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Tagged : Ancient Peaks, Cooper Hill, DeLoach, Fouassier, L. Moreau, Villa Maria, Winebow, Zenato
