Morning Brew - ☕ Dressed to the wines

A winery that’s shifting the perception of Sonoma County.
July 12, 2024

Retail Brew

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Hey there, it’s Friday. If you’re headed to a Chili’s this weekend, you might consider not wearing that vintage Beastie Boys T-shirt. It seems the band is suing the restaurant chain for copyright infringement.

In today’s edition:

—Jeena Sharma, Cassandra Cassidy

DTC

Wine of the times

Vérité winery in Sonoma County Vérité

California isn’t the first place most people think of in terms of the finest wines in the world. That reputation is still held by the vineyards of France and Italy. There are, however, some brands that are trying to shift that long-held perception.

Take Vérité Wine. Located in the foothills of the Mayacamas Mountains in Sonoma County, vigneron Pierre Seillan who has been crafting the set of fine wines in the region since 1998 sells their product for anything between $250 and $330 a bottle on average. A family-run business, it is currently owned by Jackson Family Wines, with Seillan’s daughter Hélène recently stepping into the role of assistant winemaker.

“We’re very lucky at Vérité that we’ve had consistent family ownership and consistent winemaking for over 25 years now, and we own our own vineyards,” Trey Christy, brand manager at Jackson Family Wines, told Retail Brew, adding that Pierre, who hails from France, spent decades producing wine in Bordeaux (and still does), blending French winemaking techniques into Vérité.

“He’s not trying to make Bordeaux in California, but that experience in Bordeaux, that true drive for balance in the wine, the tension of acids and tannins and fruits and non fruit complexities, all of these things that make a wine balanced when it’s young, and therefore, allow it to age the way that Bordeaux famously will age for decades,” Christy said. “He takes all that, he brings all that to the new world with him.”

While the meticulously crafted wines offer more in terms of quality, they also come with a hefty price tag, especially from the vintage category. Although neighboring regions like Napa are now selling wines that cost over $100 on average, Sonoma has yet to catch up.

Keep reading here.—JS

   

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FOOD & BEV

Beer and now

Athletic Brewing cans The Washington Post/Getty Images

The nonalcoholic beer that’s brought new meaning to brewskis with the boys is about to pop up on even more drink menus. Athletic Brewing closed a new round of funding that values the company—known for its cool branding and less than 0.5% ABV—at $800 million, the Wall Street Journal reported.

The new valuation, which doubled from two years ago, comes as the company received $50 million in funding led by private equity giant General Atlantic. With the money raised, Athletic plans to expand at retailers and increase production.

Keep reading here on Morning Brew.—CC

   

STORES

Ups and downs

Awning of a Burberry store Robb Report/Getty Images

This week in fashion: One major luxury retailer is set to cut hundreds of jobs, and another has a new CEO. Here’s our weekly fashion dispatch.

Adidas on the road to win

Adidas is on its way to a profit margin of 51.4% in Q2, its largest in three years, per analysts’ expectations. According to Reuters, the news comes as Nike has seen sales decline, while Adidas continues to thrive with high demand for products like Samba and Gazelle sneakers.

Why this matters: Things have been generally looking up for Adidas over the past year. In fact, the retailer had been concerned about excess Yeezy inventory after it cut ties with singer Ye (formerly Kanye West) over his antisemitic remarks in late 2022. Instead, it sold $565 million worth of Yeezy inventory in spring 2023, and this April, it reportedly raised its profit target for the year following continued demand for Yeezys.

Keep reading here.—JS

   

TOGETHER WITH PLACER.AI

Placer.ai

A fresh buzz is brewing. The talk of the town says there are two new players in the retail media space: Costco and Wawa. Placer.ai’s white paper explores how both stores are set to become powerhouses for advertisers looking to boost exposure and win over new customers. Get the scoop.

SWAPPING SKUS

Today’s top retail reads.

Chipping in: Some price-conscious consumers are saying no to that bag of potato chips, and it’s got companies trying to decide if their prices are too high. (the New York Times)

Push and pull: Tractor Supply has pulled back all of its diversity, inclusion, and climate change related initiatives following an “anti-woke” protest, causing significant backlash. (Retail Dive)

A jarring truth: Why are jars of Trader Joe’s bagel seasoning being seized at South Korea airports? (the Washington Post)

Easy-peasy: Does it always have to be so difficult? Actually, no. Join us to discuss how brands can overcome growing acquisition hurdles.

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