Market research
Don Sebastiani & Sons has reported that it has doubled its sales in the past three years and will begin repositioning its brand up-market this year.
Today (16 January), the family-owned wine company, which saw sales lift from 1m cases in 2004 to 2m last year, said: "Our goals are to deploy our assets as best possible, attain a more sustainable level of long-term growth and start a gradual, steady and continual move up-market."
As part of the repositioning, several additional sales positions will be created in Sebastiani's The Other Guys division, and prices will be increased on various labels within its Three Loose Screws division, the company said. As well as the changes, Sebastiani also plans to introduce a series of "higher-priced, appellation-specific, limited release wines" to the market.
The Three Loose Screws division, which includes brands such as Pepperwood Grove and Smoking Loon, will "exchange rapid growth for better margins for all the company's business partners".
"As a result, we expect sales of the brands in this portfolio will level off somewhat as we reposition these wines at higher price points," added Sebastiani.
The Other Guys division, which markets labels such as Hey Mambo and Plungerhead, is set to expand its production of wines from the Russian River Valley, Dry Creek Valley, Napa Valley and Sonoma Coast appellations.
Sebastiani has also disclosed plans to seek more placements on upscale urban restaurant wine lists and in higher-end boutique retail wine establishments to support the upward move. The wines will retail in the US on-trade between US$15-$50.
Sectors: Wine
