In the second part of our interview with the COO at Trinchero Family Wine & Spirits, Corey Beck discusses how the company is navigating the macroeconomic turbulence and guides us through some other areas of the Sutter Home brand owner’s portfolio.
How do you negate for the impacts of macroeconomic matters that are beyond a company’s control?
We’re going to keep being creative. For example, the Ménage à Trois brand has done amazing volumes in Canada, historically. We’re going to put together a French blend under the brand name that’ll ship from France into Canada. Things like this aren’t going to solve everything, but at least it’s showing that we’re trying.
Are the import tariffs working in favour of sales of domestic wine in the US for Trinchero?
We import brands from Italy and Spain, so the tariffs have definitely limited some of the opportunities for them. But, does that mean a consumer who’s looking for an Italian barolo chooses a Napa cabernet sauvignon? I don’t know those trade-offs. Or, do they trade down to a barolo at a different price point? I’m a little hesitant to say one way or the other.
Turning to Fre (above), which has been around for the better part of 30 years, where does the brand sit in what feels like an ongoing journey for non-alc wine?
We’ve had so many years of trial-and-error to feel comfortable about the products we’ve put out there, so that’s given us a leg up. The biggest problem for us had been that there was no category for non-alc. We were on our own, really, in this little space. We couldn’t get a lot of people to try it and, for many years, we didn’t sell many cases.
We kept at it and as the category has grown, we had the quality aspect established. That’s what we feel has got Fre to be the largest in the US.
You also own the Tres Agave tequila brand (above). I’m sensing a lot of Californian wine companies have expanded beyond their category in recent years.
That’s a common thinking. I mean, look at Gallo with High Noon, the number one RTD by far in the US! Without speaking for everybody, you look at your company and look for other things you could be doing that remain core to who you are as a company. For us, Tres Agave is 100% organic and the majority of our vineyards are not only organic but are certified sustainable. So, that’s part of our DNA.
Another part of it is looking at how to add more legs to your stool. Wine’s got a couple of speedbumps going on at the moment, so we look for areas where we’re able to get route-to-market while also being able to speak about wine as well – it’s accretive to what we do and it’s about being able to do things a little bit differently.
How’s Tres Agave weathering the agave bubble burst in the US?
It’s still doing very well, in part thanks to its good price point. Our Tres Agaves mixers range (below) is also growing well. We’re currently rethinking how the range is sold – as the mixers are non-alc, why can’t they be sold at Home Depot, for example? Home Depot sells barbecues and patio furniture; it also has 4th of July and Cinco de Mayo displays. Why shouldn’t Tres Agaves be there?
Innovation doesn’t always come in the form of a new brand or label or size. Innovation can come from where – and how – things are sold. You’re thinking outside of your normal comfort zone.
What else do you have to declare, spirits-wise?
We also have Amador, a brandy that sells very small volumes. We’ve had great success with Tres Agaves, but right now, we’re looking at the next phase of what our spirits division might look like. This area may have to take a back seat while we get Mumm integrated, but spirits is another opportunity, whatever that looks like.
