Constellation Brands Inc., the world’s largest wine company, Wednesday said the trend of putting animals and other eye-catching images on wine labels to spur sales is not a passing fad.
Thomas Summer, the chief financial officer, said the spectacular success of Yellow Tail, an Australian wine whose label features a wallaby, has shown that wine can attract younger, newer customers, with good marketing.
Sales of Yellow Tail, made by private label Casella Wines, are expected to total several million cases this year, and the brand has become the No. 1 U.S. imported wine.
Summer said, though, the proliferation of “critter” or ”concept” brands — often featuring kangaroos, koalas, lizards, penguins, swans and assorted pouched and unpouched animals —could reach a saturation point, diluting any one brand’s impact.
“Definitely starting with Yellow Tail, it has been a very rapidly growing part of the market, and we’ve captured more than our fair share,” Summer said at a Bank of America investment conference.
“Is it a fad? I don’t think so,” he continued. “It is actually a representation of (new), younger consumers coming into the wine market and being excited by things that are different ... It may not be as explosive in terms of its growth in the future, but it definitely affords an opportunity for growth now.”
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Constellation, based in Fairport, New York, has introduced its own wines with concept labels.
They include Monkey Bay, a sauvignon blanc from New Zealand’s Marlborough region with a label that features a mischievous-looking green monkey performing a pirouette, and Twin Fin, a California pinot noir featuring a ’50s-style finned red convertible.
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These wines remain only a small part of Constellation’s wine portfolio, which also includes Alice White, Ravenswood and Robert Mondavi, which the company recently bought for $1.04 billion.
Wine accounted for 68 percent of Constellation’s $1.1 billion in fiscal first-quarter sales. Beer, including No. 1 U.S. import Corona, and spirits accounted for the rest.
Despite the labeling changes, traditionally labeled wines still predominate, although there have also been changes. Many German producers have in recent years made their labels appear less daunting by replacing Gothic lettering with easier-to-read type.
“We’re not putting all our eggs in one basket,” he said. ”Whether it’s a wine in more exciting, sizzling packaging, or wines in more traditional packaging, at the end of the day it’s the wine itself that brings the consumer back for a repeat purchase.”















