Question · Q1 2024
Inquired about the nature of the softness in the luxury wine category, asking whether consumers are trading down or simply buying less, and why distribution gains didn't offset the weakness.
Answer
The company acknowledged a slowdown in the $15+ wine category, which was flat in the last 12 weeks. They stated that their underperformance in Q1 was due to lapping a uniquely strong prior-year quarter. They see no signs of consumers trading down, citing the strong double-digit growth of their higher-priced Decoy Limited as evidence, and believe consumers are just buying less overall.