Sandeman News Release
Posted: Wed Jan 06, 2016 11:22 pm
Hey all,
I subscribe to M. Shanken News Daily (Marvin Shanken's industry e-newsletter, the guy who founded/owns Wine Spectator) and was surprised that the headline wasn't about whiskey, Bordeaux or California bulk brands, but Port! Here it is:
Sandeman Port Projects Solid 2016 Advance, Led By Premiumization Drive
Although Port consumption has been shrinking worldwide, the U.S. has emerged as a bright spot, thanks in part to the market’s solid premiumization trends. One of the leading Port brands in the U.S., Sogrape Vinhos’ Sandeman—handled stateside by Pernod Ricard USA—is ramping up efforts on its premium-and-above offerings while looking to improve the category’s approachability at entry level. The brand has been hovering at around 55,000 cases in recent years, running closely with competitors Graham’s, Fonseca, Dow’s and Taylor’s, which have all been at around 50,000–55,000 cases since 2012, according to Impact Databank. House of Sandeman chairman George Sandeman expects premiumization to drive a rise of about 4% for the brand in 2016.
“Like all mature categories, Port tends to suffer from a maturing audience,” Sandeman tells SND, citing a challenging environment in most European markets. “However, in the U.S., growth has been very good at the premium level, and this is where our focus will be.”
Sandeman’s Founders Reserve ruby Port label ($20) accounts for the bulk of the brand’s U.S. sales, with a more than 40% share. Sandeman has encouraged serves of Founders Reserve chilled or on the rocks with a slice of orange, and also upped its outreach to mixologists to promote more cocktail consumption. Such moves can help open up the category for experimentation and expansion, Sandeman explains.
Founders Reserve acts as an entry point to higher marques like Sandeman’s Aged Tawnies collection, including 10-, 20-, 30- and 40-year-old expressions, ranging in price from $40-$137. Last year, Sandeman extended its Aged Tawnies lineup with Porto Very Old Tawny Cask 33 ($730), a 50-year-old blend made with wines as old as 70 years. More recently, Sandeman debuted a new limited edition Vintage 2000 Porto, The Hat and Cape ($100), created to commemorate the brand’s 225th anniversary.
“Much of our focus is on expanding the distribution footprint of our Aged Tawnies on-premise, especially in top restaurants,” says Sandeman, noting that the on-premise currently makes up 13% of the brand’s total U.S. business. “On-premise business is definitely an area of growth for us.”
I subscribe to M. Shanken News Daily (Marvin Shanken's industry e-newsletter, the guy who founded/owns Wine Spectator) and was surprised that the headline wasn't about whiskey, Bordeaux or California bulk brands, but Port! Here it is:
Sandeman Port Projects Solid 2016 Advance, Led By Premiumization Drive
Although Port consumption has been shrinking worldwide, the U.S. has emerged as a bright spot, thanks in part to the market’s solid premiumization trends. One of the leading Port brands in the U.S., Sogrape Vinhos’ Sandeman—handled stateside by Pernod Ricard USA—is ramping up efforts on its premium-and-above offerings while looking to improve the category’s approachability at entry level. The brand has been hovering at around 55,000 cases in recent years, running closely with competitors Graham’s, Fonseca, Dow’s and Taylor’s, which have all been at around 50,000–55,000 cases since 2012, according to Impact Databank. House of Sandeman chairman George Sandeman expects premiumization to drive a rise of about 4% for the brand in 2016.
“Like all mature categories, Port tends to suffer from a maturing audience,” Sandeman tells SND, citing a challenging environment in most European markets. “However, in the U.S., growth has been very good at the premium level, and this is where our focus will be.”
Sandeman’s Founders Reserve ruby Port label ($20) accounts for the bulk of the brand’s U.S. sales, with a more than 40% share. Sandeman has encouraged serves of Founders Reserve chilled or on the rocks with a slice of orange, and also upped its outreach to mixologists to promote more cocktail consumption. Such moves can help open up the category for experimentation and expansion, Sandeman explains.
Founders Reserve acts as an entry point to higher marques like Sandeman’s Aged Tawnies collection, including 10-, 20-, 30- and 40-year-old expressions, ranging in price from $40-$137. Last year, Sandeman extended its Aged Tawnies lineup with Porto Very Old Tawny Cask 33 ($730), a 50-year-old blend made with wines as old as 70 years. More recently, Sandeman debuted a new limited edition Vintage 2000 Porto, The Hat and Cape ($100), created to commemorate the brand’s 225th anniversary.
“Much of our focus is on expanding the distribution footprint of our Aged Tawnies on-premise, especially in top restaurants,” says Sandeman, noting that the on-premise currently makes up 13% of the brand’s total U.S. business. “On-premise business is definitely an area of growth for us.”
