RED BLENDS KEEP ON ROLLING

IT WAS a great year for the US wine industry. The category continues to thrive with red blends growing more and more popular. The off-premise wine channel observed a milestone this past fall when red blend wines passed Merlot in sales for the first time, making the category second only to Cabernet Sauvignon among red wines sold in US retail stores. Overall off-premise sales for the month grew 6% over last year to reach $604 million in October. Buoyed by fast-growing brands including Apothic, Ménage a Trois, Cupcake, and 14 Hands, the category of red blends and Meritage wines tallied $6 million more than Merlot in the 52-week period ending October 4, according to IRI. The Chicago-based market-research firm’s report, based on sales from multiple-outlet and convenience stores, said the wines were up 14% in value during that period, while Merlot dropped 3%. Merlot continued to lead in terms of volume, however, selling 9.9 million cases versus 6.5 million for red blends in the stores tracked by IRI. The volume gain was 12% over the previous period, while Merlot dipped 4%. Merlot’s low average bottle price of $5.62 compared to red blends’ average of $8.64 explains the difference between value and volume performance. IRI’s red blends/Meritage category is a broad one that includes both dry and sweet red table wines as well as more traditional Bordeaux-style blends often called Meritage, as well as the newer breed that are often made by combining Merlot, Syrah and Zinfandel. The sales data quoted here combine domestic and imported wines. The hot brands in the category typically contain 1% or more residual sugar, which is enough to soften the mouthfeel and moderate the drying effect of tannins. But the category also includes sweet reds on the one hand and traditional, bone-dry Bordeaux-style, Rhône-style and Italian-style blends on the other.