The red blend juggernaut

Since they burst onto the scene earlier this century, New World red blends have taken the wine world by storm. James Lawrence has the story.

The red blend category is a lucrative one
The red blend category is a lucrative one

The red blend category has captured the imagination of millions of American consumers previously hard-wired to rely on grape varieties or price as their key purchasing cue. According to Nielsen, red blends account for more than 12% of the US wine retail market and outstrip sales of Pinot Noir and Merlot, while also threatening to undermine Cabernet Sauvignon’s top position. 

“Red blends are now one of the largest still wine categories in the US – we predict the category will continue to maintain a sizeable market share well into the future,” said Ryan Lee, analyst at the IWSR. “Moreover, our data shows red blends are actually outperforming the overall still wine market.”

The definition of a red blend

A commercial ‘red blend’ differs from a traditional blend, such as a Bordeaux blend, in being a branded blend created to taste a particular way. The trend really began in 2000, with The Prisoner, a blend of Zinfandel plus Cabernet Sauvignon, Syrah, Petite Sirah and Charbono, created by Dave Phinney. Originally produced in a small batch of just 385 cases, The Prisoner became such a juggernaut that Constellation Brands paid $285m for it in 2016. Notably, American consumers are willing to pay more than $50 a bottle for it – a price point where few commercial wines dare to tread.

Not only that, but The Prisoner created an entirely new category. One of the most successful is Gallo’s Apothic, which – like the vast majority of red blends – sells for under $20. Then there’s Kendall-Jackson’s Vintner’s Reserve Red Wine Blend, a mixture of Zinfandel and Syrah. While European companies have rushed their own red blends into production, the most successful remain those from the US – the one exception is 19 Crimes, owned by Australia’s Treasury Wine Estates (TWE).  

Producers in Bordeaux or Rioja may well cry “cultural appropriation” at this point. European winegrowers have been blending grape varieties for centuries. From their perspective, this is hardly an emerging category of wine. Indeed, one could argue that US firms have simply appropriated long-established formulae and falsely declared the birth of a fresh corporate initiative. In Europe, with certain exceptions, the ‘brand’ up for sale was always the place of origin, not grape variety. 

However, in the context of US wine history, the recent hype surrounding red blends makes sense. In the 1970s, Californian investors decided to ignore European traditions and shifted the marketing emphasis from place to grape. By the 1980s, the word “varietal” was the dominant marketing buzzword. No single factor has arguably made wine brands more accessible to consumers; Australian producers rarely omit the variety from the label, notable exceptions being prestigious brands such as Penfold’s Grange. Red blends may signify a massive cultural shift.

Nevertheless, grape varieties remain a vital part of the front label in Chile, Argentina, New Zealand and, of course, the US. As recently as 2014, Nielsen did not track red blends as a separate wine category. They were simply included in the data that covered sales of “sweet reds”. This was not unreasonable: red blends tend to be on the slightly sweeter side of red wines. But is this why they’ve become so popular?

“We currently have over 15 red blends in our wine portfolio – red blends continue to be an incredibly popular choice with consumers, particularly with people who are relatively new to wine and are looking for something rich and balanced to start with,” said Kate Voyten, senior vice president of marketing for wine and spirits at Constellation Brands.

Voyten added that while red blends have overwhelmingly been marketed at lower price points, the super-premium segment is growing. In 2019, Constellation introduced The Prisoner to several international markets, including Canada (where is has already become the best-selling red blend in the luxury category), Japan, Switzerland, China and the Caribbean. But there’s plenty of movement at the lower end as well; recently, E&J Gallo launched Barefoot Jammy Red, which retails in the US for around $4.99. Distributed in wholesalers, independents and supermarkets nationwide, Barefoot Jammy Red was launched to capitalise on the growth of red blends in the UK, valued at £620m with +6.4% revenue growth. It is the second largest market for the category, after the US. It appears that further expansion of the segment is inevitable. 

According to the IWSR, red blends are gaining market share in the US, UK, Canada and China. However, wine buyers in the Scandinavian markets report that the category has yet to take off. “We don’t have any red blends in our portfolio; these styles have never become popular in Norway. In Norway price and grape variety is key,” said Chiara Stroband, buyer for the Palmer Group. “Ripasso and Appassimento wines were in vogue, but this is declining now. All the top 35 most popular wines in Norway are marketed by their variety – Grenache and Barbera are currently very trendy.”

Finnish wine buyer Paivi Eklund said it’s similar in her country. “Barefoot is imported into Finland, but there is no demand in the on-trade for such styles of wine,” she said. “However, the demand in monopoly retail could potentially grow. Dry red blends dominate the market, but these sweeter red styles promoted by US firms might become trendy. I do believe that younger Finnish consumers could be draw towards these sweeter styles, as they’re a stepping point from the insanely popular ciders and breezers. Time will tell.”

Other styles

The success of the sweeter, richer styles has led to the growth of another trend – red wines fermented in unconventional barrels. In 2016, for example, Robert Mondavi Private Selection launched a series of barrel-aged wines, including a rye barrel-aged red blend. This was followed up with Cooper & Thief, a brand built on a Bourbon barrel-aged red blend. 

“Embracing a non-traditional approach to winemaking, while remaining focused on the consumer’s needs, is a critical component of successfully marketing red blends,” said Voyten. “When we understand what consumers want, we can then deliver on that. This allows us to stand apart from tradition and create something unique to each brand, positioning ourselves as more than just a wine. It allows for us to be creative, inspirational and open to new, consumer-driven possibilities.”

TWE has gone even further, launching the Lindeman’s Gentlemen’s Collection Coffee Shiraz, a wine with a “dash of cold brew coffee”.  

The popularity of red blends also suggests that some consumer trends have been inflated out of all proportion, particularly the claim that growing numbers of consumers want it “lighter, tighter, leaner, drier”. 

“We regularly hear that fashion is swinging away from bigger more powerful wines but I would question how much that is really happening, given the growing popularity of (sweeter) Napa Cabernet and Argentine Malbec,” said Jeroboams’ wine director Peter Mitchell MW.  

“Although I personally did not sell the ‘super-ripe jammy’ styles, I think the wine world at large is still consuming them in record amounts. Even in Manhattan, which I believe to be one of the most educated wine markets in the world, you still see this style of wine being sold in large quantities,” said sommelier Cedric Nicaise, who has extensive experience in managing Michelin-starred consumer expectations.

“I don’t agree with the notion that the American wine consumer has ‘by and large rejected’ ripe and jammy wines with residual sugar,” added Duncan Meyers, joint owner of Californian winery Arnot-Roberts. “That generalization just doesn’t ring true if you look at the numbers,” 

Of course, their success cannot be attributed to ‘Parkerised’ ripeness and residual sugar alone. Many varietally-labelled wines in the US share those characteristics – and yet prevent red blends from devouring their market share. The true marketing masterstroke was rebranding the heterogeneous category of blended wines as a homogenous one, and adding striking, masculine packaging. Indeed, in many ways the marketing of red blends has more in common with spirits marketing than traditional wine selling.

“In many cases now, it matters little what varietals are in the blend.... often these wines bear the most generic possible appellations, such as simply ‘California’. What matters is the design of the bottle and label, and the identity it communicates,” said Dave Rudman, executive director WSET Americas.

“In San Francisco I have certainly noticed that there has been less emphasis on grape variety when guests are selecting wine. The conversation has far more likelihood to revolve around stylistic preference as opposed to grape variety or even country of origin,” added San Francisco sommelier Matt Cirne.“Diners seem far more open minded these days and increasingly willing to experiment so long as their general preferences can be accommodated. This is particularly the case with younger diners and wine drinkers.”

Red blends are winning over many Millennials and debunking the notion that sugar and ripeness are not attractive to a critical mass of consumers. It turns out that cherished concepts of terroir and “sense of place” are completely sidelined in the marketing mix.

Of course, terroir-driven wines will always have an audience. Yet it’s striking that it’s the branded wines that are growing their market share at an impressive rate.

James Lawrence

 

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