Merlot Sales No Longer ''Sideways''

Three years after a fictional wine snob in a popular Hollywood movie knocked one of America’s best-selling red wine varietals “Sideways,” wine drinkers once again are enthusiastically embracing Merlot.

During the 12-month period ending December 7, 20071, dollar sales of domestically produced Merlots rose 6%, led by category leader Blackstone Winery, whose benchmark Merlot jumped 11.6% in sales in the last four week period alone. Blackstone Merlot is the best-selling Merlot and the single best-selling domestic red wine in the United States. Blackstone enjoys a 16% share of the fast-growing, super-premium ($8.00-$10.99 per 750ml bottle) Merlot market, and it is the top-selling domestic red wine brand in the overall super-premium category, which for years has enjoyed double-digit sales growth.

Blackstone winemaker Gary Sitton attributes the resurgence of Merlot to the enduring appeal of the wine’s style, which emphasizes forward fruit and soft tannins.

“American wine drinkers may be fickle in the short term,” Sitton says, “but eventually they come home to what tastes good to them, and what has tasted good to them for a long time is Merlot.”

Sitton’s observations are confirmed by the fact that the U.S. wine market continues to be dominated by Merlot, Chardonnay and Cabernet Sauvignon, which together account for 45% of total wine sales. Sales of Merlot are more than double those of Pinot Noir, the next best-selling red wine. Domestic super-premium-priced Merlot like Blackstone’s are displaying particular strength, and now constitute 17% of the total domestic super premium red wine market.

Sitton predicts these figures will become even more impressive with the release of Blackstone’s 2006 Merlot, which begins shipping to stores this month. As in past vintages, the wine is a blend of carefully selected grapes from Monterey County and other premium, cool-climate regions, including Sonoma and Napa counties.

“2006 was a winemaker’s vintage,” says Sitton. “It was cool and drawn out, so we had the luxury of allowing the fruit to hang on the vine developing the ripe fruit flavors and tannins we wanted. I believe 2006 is a strong vintage for Merlot; certainly, it is for us here at Blackstone. Our 2006 Merlot delivers the signature Blackstone style in spades: fragrant black cherry and berry aromas, plenty of plush fruit flavors, wonderfully silky tannins and a smooth, lingering finish.”

Those are precisely the traits that attracted American wine lovers to Merlot in the first place and – despite a little “Sideways” detour – are winning them back all over again.

About Blackstone

Founded in Sonoma County in 1990, Blackstone Winery has become one of California's leading wine brands. Today, Blackstone Winery offers a range of super premium wines from Monterey County and California -- including the #1 selling Merlot in the US and an ultra premium tier from Sonoma County called Sonoma Reserve. Blackstone is produced by Vintas, which is headquartered in San Francisco. Vintas is the premium and super premium wine division of Constellation Wines U.S. (CWUS), the largest wine company in the U.S. based upon sales dollar value. CWUS encompasses three wine businesses: Vintas, Icon Estates, and Centerra Wine Company. The portfolio includes such brands as Woodbridge by Robert Mondavi, Clos du Bois, Robert Mondavi Private Selection, Blackstone, Ravenswood, Robert Mondavi Winery, Simi, Estancia, Wild Horse, Arbor Mist and Paul Masson Grande Amber Brandy. CWUS is an operating division of Constellation Brands, Inc., a leading international producer and marketer of beverage alcohol in the wine, spirits and imported beer categories.

1 IRI, 52 weeks ending 12/07/07