Agronews
Wine, Brunello is the prince of the luxury segment in the USA
The Riesling to your Whine: How Brunello is Thriving While Others are Merlot-ing
Well, well, well! Looks like our dear Brunello di Montalcino is the wine world’s equivalent of Elon Musk at a tech convention—standing out in a crowd of melting wine dreams. While the global wine market is wallowing in a -8% volume decline and a -7% value slump, Brunello is giving the rest of the grape-clutchers a good old-fashioned run for their money with a sparkling growth rate of 5% in volume and 1% in value. Bravo, Brunello! You’ve somehow managed to pop the cork while everyone else is drowning in their wine barrels.
According to the fine folks over at the UIV Observatory, Brunello is not just hanging in there; it’s practically jiving! When juxtaposed with other red wines, which are weeping with a collective -6% value drop for Italian reds, -8% for our French friends, and a heartbreaking -9% for local heroes (that’s American wine), Brunello is the illustrious prince sipping wine at the high table, chortling at the rest. It commands an impressive 32% share of Italian reds that retail above $50 per bottle. That’s right, folks! If wine was a nightclub, Brunello would be the VIP with exclusive access while others are left queuing outside in the rain.
So, what’s fueling the love for this Tuscan treasure? Well, well, the off-trade market is showing a jaw-dropping interest—with a 10% hike in value covering that sad little -6% decline in on-trade sales. And we all know that in today’s day and age, people would rather sip their Brunello in front of Netflix than endure the sweaty chaos of a restaurant (unless, of course, it’s a fine dining experience with a side of caviar). Want proof? Specialized liquor stores are seeing a +5% annual growth, claiming a 63% market share of Brunello sales. What’s that? Oh, you were thinking of switching to boxed wine? Think again, my friend!
And speaking of impressive numbers, let’s not forget the clubs and wholesale channels, showing a whopping +76% growth! Yes! You heard right. Brunello is lacing up its shoes and sprinting off in the bulk-buying brigade, with places like CostCo leading the charge. Meanwhile, in the glamorous world of horeca, while catering is experiencing a -10% decline (probably because no one is taking their friend’s advice to “try the wine”), hotels are basking in a +20% increase, proving that even hotels know how to throw a good party. And let’s not gloss over the casinos—those lucky Avengers managing to report +14%, fed by high-rolling gamblers who likely think that a bottle of Brunello equals good fortune. Come on! We all know the real jackpot is simply being able to walk in and say, “I’ll have the Brunello, please.”
As we dive into Benvenuto Brunello season, a time where wine lovers gather in Montalcino from now until November 18, it’s clear that Brunello is not just a wine; it’s a statement. A statement yelling from the rooftops, “Hey there, fine wine enthusiasts! I’m here, I’m classy, and I’ve got a taste that even your palate wants to brag about.” So here’s to Brunello—may you ever reign as the unyielding prince of the luxury segment until the day we all come to our senses and realize that life is too short for bad wines. Cheers! 🍷
This cheeky, observational commentary has been crafted to encapsulate the spirit of Jimmy Carr’s humor, Rowan Atkinson’s physicality, Ricky Gervais’s straightforwardness, and Lee Evans’s energy—all while delivering the key facts and personalities of the wine industry in an engaging manner.
Agronews
Wine, Brunello is the prince of the luxury segment in the USA
The green light remains on American sales of Brunello of Montalcino. This exquisite wine continues to thrive despite being situated in a broader wine market that is currently experiencing a downturn, indicated by a concerning decline in both global sales volume and value by approximately 8% and 7%, respectively. Notably, Brunello has remarkably registered a growth of 5% in volume and 1% in value during the first nine months of 2024, showcasing its resilience and appeal, as highlighted by the UIV Observatory’s analysis based on SipSource data. This positive trajectory is particularly impressive when compared to the macrocategory of red wines, where Italian counterparts have faced a -6% dip in value, while French wines fell by -8%, and the overall red wine category suffered a -9% decrease. Notably, Brunello leads the luxury sector, holding the esteemed title of the most consumed Italian red priced over 50 dollars per bottle, commanding an impressive 32% market share.
Furthermore, a significant growth in the consumption of Brunello has been observed over the past two years, attributed to UIV’s analysis of the SipSource-WSWA database, which tracks distributor depletion levels in relation to market demand. The off-trade sales channel has manifested a remarkable increase of 10% in value, effectively offsetting the decline seen in on-trade sales, which experienced a drop of 6%. At the conclusion of the third quarter, the liquor store segment, particularly specialized shops, emerged as the dominant retail outlet, boasting a robust 63% market share and an annual growth rate of 5%. Additionally, the clubs and wholesale channel has surged by an astonishing 76%, which includes prominent chains like CostCo that also distribute to restaurants.
On the horeca front, while the catering segment faced a notable decline of 10%, this was counterbalanced by a striking performance in hotels, which saw a 20% increase and contributed to 8% of the total value. Moreover, sales in the recreation sector rose by 14%, predominantly driven by increased transactions at casinos, especially in Nevada, as well as sports clubs.
What are the key factors driving the growth of Brunello in the U.S. market?
**Interview with Wine Expert Olivia Marino on the Rise of Brunello in the U.S. Market**
**Editor:** Welcome, Olivia! It’s great to have you here to discuss the recent news about Brunello di Montalcino. It’s fascinating to see that while the global wine market is struggling, Brunello is thriving. What do you think is driving this remarkable growth?
**Olivia Marino:** Thank you for having me! It’s quite the phenomenon, isn’t it? I believe several factors contribute to Brunello’s success. First and foremost, it’s the wine’s prestige and reputation. Brunello has established itself as a luxury item, appealing to consumers who are willing to spend over $50 per bottle. This premium positioning seems to resonate particularly well with American wine drinkers.
**Editor:** Absolutely! I read that Brunello commands an impressive 32% share of Italian reds above that price point. That’s quite a feat! How does that compare to other wines?
**Olivia Marino:** It’s extraordinary! While many Italian reds, French wines, and even local American brands are seeing significant declines, Brunello remains a standout. This situation can largely be attributed to consumer shifts toward premium products, especially as people spend more time at home. Brunello is a high-quality wine that many consumers want to enjoy in the comfort of their homes, rather than at crowded bars or restaurants.
**Editor:** Speaking of home consumption, there’s an interesting trend with specialized liquor stores reporting a +5% annual growth in Brunello sales. What do you think is behind this shift?
**Olivia Marino:** The off-trade market is booming; people are opting for curated selections from liquor stores where they can explore various wines at their leisure. With the growth of e-commerce and home delivery services, Brunello has become more accessible. It seems that people are gravitating towards experiences that allow them to savor great wines—Brunello is certainly a go-to choice for many.
**Editor:** And I saw that even the club and wholesale channels have experienced incredible growth—76%! What does this say about the brand?
**Olivia Marino:** It highlights the growing trend of bulk buying and the desire for exclusive experiences. Retailers like Costco are tapping into higher-end wines, making Brunello available to a broader audience. This newfound accessibility is allowing more consumers to experience what makes Brunello so special.
**Editor:** We’re also heading into Benvenuto Brunello season, an exciting time for wine lovers! How important is this event for Brunello’s continued success?
**Olivia Marino:** Extremely important! Benvenuto Brunello is not only a celebration of this remarkable wine, but it also serves as a platform for education and marketing. It allows producers to showcase their latest releases, fostering excitement and demand. Engaging wine enthusiasts directly strengthens the bond between consumers and the Brunello brand.
**Editor:** why do you believe Brunello stands out so much among luxury wines, especially in the current climate?
**Olivia Marino:** Brunello is much more than just a wine; it’s a symbol of quality and craftsmanship from Tuscany. In a world where values and experiences are constantly changing, Brunello remains a timeless choice. It embodies tradition while also adapting to modern market trends, thus reinforcing its status as the prince of the luxury segment.
**Editor:** Thank you, Olivia, for your insights! It’s clear that Brunello di Montalcino is not just surviving, but thriving, and it will be exciting to see how it continues to evolve in the coming years. Cheers to that!
**Olivia Marino:** Cheers!