Category: Bordeaux Wine

Old World Wines Gaining Share Across US On-Premise

CGA by NIQ’s latest On-Premise Measurement Research explores the share of total wine, with a focus on domestic white and red wine categories across the US, to highlight the opportunities for suppliers as old-world wines continue to gain share.

Using insights from the latest 52-week period of CGA’s OPM data to 12/31/2022, it is apparent that domestic wines account for the largest share of total wine across the US On-Premise (66.4%), but opportunities emerging for suppliers and operators to capture changing consumer preferences as they explore and consume old-world origin varietals.

At a total US level, domestic wines still hold the largest share of the market, however, old-world wines have continued to gain share. While domestic share has largely been maintained (-0.8pp), recent share changes demonstrate that US consumers are increasingly opting for old-world wines, specifically of regions including Italy (+0.5pp), New Zealand (+0.3pp) and France (+0.2pp).

Within red, domestic wine continues to hold a significant proportion (72.8%) of the share of red wine, up 0.8pp vs YA – continuing to increase its importance in comparison to all other major origins. Within the category, international origin wines tracked are losing share, including Italy (-0.1pp), Argentina (-0.4pp) and Spain (-0.1pp).

Whereas, white domestic wine has lost share (-1.6pp) and holds 61% of total share of white wine. Consumers are increasing looking to old world regions for white varietals in the US On-Premise. Most notably, from Italy (+0.9pp) has seen the largest increase in share gain, followed by New Zealand (+0.5pp) and France (+0.3pp).

Andrew Hummel, Client Solutions Director for North America, states: “Category and varietal insights are so important to help shape effective strategies for the On-Premise. Consumer preferences are changing, and being armed with the knowledge and insight to adapt offerings will enable success in 2023. While domestic wines still hold the largest share of the market across the US, increasing competition and innovation is gaining traction with consumers. OPM data tracking over time gives a comprehensive view of how the channel is evolving and helps identify opportunities for growth.”

Here is the research link: https://cgastrategy.com/unlock-the-potential-of-opm/

 

 

New Index “WB Stock Index (WBIX)” Tracks Performance of Public Wine Companies

A new tool rooted in publicly traded wine companies and offering insights into the health of the wine sector has launched on winebusiness.com.

The WB Stock Index (WBIX) is a composite metric representing a portfolio of 13 publicly traded wine companies, weighted by each company’s annual wine revenue. The index reflects the daily percentage change in stock price at the end of the previous business day according to the significance of each producer in the marketplace.

The baseline for the index is Jan. 1, 2020, a time of strong performance by other indices and well before the onset of pandemic disruptions. The index stood at 119.02 as of March 1, indicating that publicly traded vintners have seen fortunes strengthen during the pandemic. The market’s confidence in the sector as a whole remains high. The index is intended to provide a snapshot in time and help benchmark a company’s performance against its peers. Performance can vary depending on the interval chosen, meaning a comparison across several intervals can be helpful.

Some of the strongest performers have been the luxury wine companies LVMH and Pernod Ricard, which have both performed well as aspirational and discretionary spending remained strong over the past year. LVMH’s share price has increased 28% over the past year to $170.45 while Pernod Ricard’s increased 3% to $42.22. The gains continued in the latest three months, with LVMH up 14% and Pernod Ricard up 7%, underscoring the long-term momentum underpinning each company.

The least fortunate company among those tracked by the index has been Vintage Wine Estates, which has seen its share price fall 83% versus a year ago to $1.39, with much of the slide registered in the past three months after the company restated earnings for the first quarter of fiscal 2023, released preliminary numbers for the second quarter that projected lower than expected revenue and gross margins for the year, and withdrew guidance on expectations for the remainder of the fiscal year, which ends June 30. The company also made a change at CEO with founding partner Pat Roney moving to the role of executive chairman and Director Jon Moramarco assuming the role of interim CEO. Moramarco is also the editor of the Gomberg Fredrikson Report and founder of bw166. On March 10, the company announced it had sold a 42-acre vineyard in Napa Valley for $11 million to reduce its overall debt. Following the sale, Vintage reported it owns approximately 1,600 acres of vineyards and leases an additional 800 acres.

Vintage is significant enough to influence the index but not sway it. Two of the largest components are instead LVMH and domestic vintner Constellation Brands, which has increased 2% over the past year but fallen 11% in the latest three months as its most recent earnings report underwhelmed the investment community. This is in line with the challenges other public companies have seen.

While a value decline can indicate a lack of confidence by the markets, it also creates a buying opportunity for long-term investors. The Duckhorn Portfolio, for example, has underperformed the index with a 19% drop in its share price over the past year. Currently trading in the range of $14.99, its shares have ranged between $12.64 and $22.29 over the past 52 weeks. Despite a lower price, several analysts have maintained a buy rating on the stock, an expectation that its share price will increase and reward investors. Bank of America analysts are among them, while Barclays upgraded its rating on the stock because of its latest earnings report.

This is in contrast with response to shifts in Vintage’s stock price, where sentiment has shifted in favor of “sell” from a uniform “buy” rating a year ago. Canaccord Genuity Group is among the bears, noting that it had more questions than answers about the company’s financials and future.

When it comes to public perception, however, the market is largely in favor of the wine sector. WBIX has outperformed the S&P 500, rising nearly 4% over the past year as the S&P 500 fell nearly 7%. The latest three months have seen it increase 2%, or twice the growth posted by the S&P 500.

Link to Index:  https://www.winebusiness.com/finance/wbix

Source:  Wine Business

 

Sandrine Chamfrault appointed Director of the Wine Syndicate of Graves Wines

Sandrine Chamfrault has recently been appointed Director of the Wine Syndicate of Graves Wines. Originally from Bordeaux, Sandrine and began her career in communication agencies, before joining the French Rugby Federation as part of the World Cup in 2007. In 2008, she became a consultant partner in an audit firm, then joined Château Marquis de Terme in 2013 with the mission of developing the tourism, communication and marketing division.

As Director of the Syndicat Viticole des Graves, Sandrine Chamfrault aims to support the marketing of Graves wines and to increase its visibility in France and internationally, as well as its brand’s digital presence.

“I want to premiumize the perception of Graves, which are quality wines, well rated, and which offer a wide variety of choices. I will continue the substantive work-initiated years ago to create a strong identity for the wines of Graves. The Syndicate has a role of network animation, it is an entity which must become essential, which federates the local ecosystem, must be a driving force and an example for the members. I have always had this desire to carry out a collective project, which is why I am delighted to join the Syndicat Viticole des Graves” explains Sandrine Chamfrault.

“The Syndicate has a role of network animation, it is an entity which must become essential, which federates the local ecosystem, must be a driving force and an example for the members. I have always had this desire to carry out a collective project, which is why I am delighted to join the Syndicat Viticole des Graves  ”  Sandrine adds.

 

 

 

Clarendelle and Domaine Clarence Dillon Announce Partnership with the 2023 Oscars

The Chairman & CEO, Prince Robert of Luxembourg, is thrilled to announce a partnership with the Oscars®.  From the March 12th awards ceremony at the Dolby® Theatre in Hollywood to the Governors Ball and extending to all other Oscar®-related events, Clarendelle, Quintus and Haut-Brion will be the exclusive red and white wines poured. They are also named the Academy Museum of Motion Pictures’ official wine partners in 2023.

 

The Clarendelle “inspired by Haut-Brion” family of wines finds its roots in the 1935 acquisition of Château Haut-Brion by American financier, Mr. Clarence Dillon. Today, under the leadership of his great-grandson, Prince Robert, the mother company of Clarendelle has grown to include famed Paris restaurant Le Clarence (proclaimed one of the 50 Best Restaurants in the World), a fine wine merchant (Negociant) and a number of exceptional wine retail shops, launched in 2015 under the banner of “La Cave du Château”. While principally renowned for its excellence in the worlds of oenology and gastronomy, over generations the family company has also become a stalwart supporter of the arts.

Like the Academy Awards®, also steeped in a nearly century-long tradition, Clarendelle offers a resolutely contemporary expression of our times and the celebrated French “Art de Vivre”. This everyday luxury benefits from the expertise of the Haut-Brion winemakers, who oversee the blending process, vintage after vintage, as they do for the notorious La Mission Haut-Brion and Quintus estates. The bottles are then cellared before being released to the market when they are judged to have reached their apogee and can offer the finest expression of their Bordeaux terroirs to wine lovers around the globe.

Also featured at the Oscars will be Le Dragon de Quintus, a veritable rising star of the Bordeaux Right Bank, hailing from the relatively newly minted Saint Emilion estate. Backstage, a few lucky nominees and winners will also be able to relish one of the rarest white wines produced in Bordeaux, which is born from the Château La Mission Haut-Brion and Château Haut-Brion properties: La Clarté de Haut-Brion.

 

New Direct Line from London to Bordeaux to Launch in 2026

The “wine train” a new direct train line launching in 2026 will transport you from London to Bordeaux in just five hours!

Currently, anyone making the journey will need to get a flight or two trains: the Eurostar from St Pancras to Paris’ Gare du Nord and a TGV service from Paris’ Montparnasse station to Bordeaux.

A spokesman for HSI, which operates the UK Eurostar route, said there was a “clear demand” for a direct train route from London to Bordeaux, and said they were aiming to begin in 2026.

The direct train is still in the planning stages. The new direct train line is also expected to pave the way for future wine trains. This is the ultimate aim from HSI chief exec Dyan Crowther (behind the UK leg of the Channel Tunnel railway line), is hoping to open a series of new routes from 2026 in a bid to offer lower carbon emission alternatives.

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