Drive down any major high street, or walk through any international airport and iconic American branding follows everywhere. From the McDonalds arch, to the Nike swish, to the bite out of the Apple logo, we have been brought up with little bits of America all around us.
It was that vintage Americana that Terlato Wines wanted to tap into when it first created the Federalist brand in 2012 with the country’s Founding Father Presidents sitting proudly on the label, there to represent and pay homage to the the pioneering spirit that is the backbone of the country. After all it was the Federalists that helped gain the country’s independence and it was California where so much of that pioneering spirit became synonymous with.
The Federalist brand has gone on to become one of California’s biggest selling wine exports - consolidating its place in the $20 to $25 price point - and it is now present in over 60 countries around the world, including 23 in Europe and the Middle East.
So it was not an easy decision to completely change its look and feel, confirms Chuck Cramer, responsible for managing Terlato Wines’ portfolio of premium wines in the UK, Europe, Middle East and now major Asian markets.
But if you are going to do it make sure you do it with full conviction - which is why the re-branding is being described as a “Bold new dawn” for “America’s craft wine” and a chance to not only introduce new labelling, but to also completely re-think how and where the wines are made - all under the tagline of “Boldly Re-invented, Boldy Re-designed”.
Drew Stephen, director of marketing, explains how the re-branding came about: “We saw the brand growth beginning to slow and decided to do some consumer research to determine what was going on. I can’t say we were shocked with the results, but what we found was consumers were associating our old labels with politics at a time when many people were simply exhausted by the political climate in the US. Moving to our Eagle iconography allowed us to continue to embody the American spirit and optimism innate to the brand, while dropping the political connotation.
“The new labels feature bolder iconography, clearer branding and a more premium fresh look. The label itself is much larger than previously and includes some tasting notes on the front label so consumers are able to get useful info on the wine profiles. Based on our accelerating trends in a tough market, they have clearly been a home run with consumers.”
Cramer adds: “This is a brand that clearly communicates it is an American wine from California. The brand team have done a great job in continually to innovate in the Federalist range,” says Cramer.“It is also opening up more doors for us and we have already seen a big uplift in sales and great feedback from the markets where we have introduced the new wines and labels.”
Fruit forward styles
The majority of grapes for the new Federalist range of wines comes from Lodi in California
Up to now the Federalist range has been based on fruit sourced from vineyards across California, but mainly focused in Lodi, Sonoma and Medocino Counties. But now wine sourcing and production has been switched mainly to Lodi (and the Central Coast for the Federalist Pinot Noir) in order to take advantage of more fruit forward grapes and hopefully make more approachable, easy drinking, but still premium craft wines.
These are wines made in small batches that drill down into the single vineyards and AVAs where they come from across Lodi, stresses Cramer.
“We want to focus in on the craft nature of these wines,” he adds. “The wines now come from specific vineyard sites within the Borden Ranch sub-regions of Lodi. It has really helped to raise the quality of the overall range.”
All in keeping, says Cramer, with the opportunity to “re-imagine” the Federalist brand for both existing, but importantly new potential drinkers, attracted to the fruit forward, friendly varietal styles.
“We want these wines to be accessible on the palate and open them up to more people” says Cramer. “In Lodi the tannins are softer and it just makes very approachable wines which are easy to drink on their own, but really work well with food.”
Federalist's new winemaker Corey Garner says the Borden Ranch areas of Lodi produces grapes with "greater concentration and character than other parts of Lodi"
The range also has a new winemaker behind the brand too - Corey Garner who was previously at Frank Family Vineyards in the Napa Valley.
Garner says: “Being family-owned was an important factor in making my decision to join Terlato Wine Group, and the people I met in the process were incredibly kind and welcoming.I really enjoy working with such a dynamic and experienced team to craft wines that blend tradition with innovation, while always striving to improve the brand.”
She adds: “At The Federalist, our goal is to craft wine with the same small-batch care and attention that goes into a $200 bottle, while keeping it accessible to most wine drinkers. We do this by sourcing grapes from outstanding family-owned vineyards in lesser-known or emerging wine regions.
“Once we have the grapes, our winemaking process remains consistent in quality and detail, no matter the price point. All of our wines are made at our renowned sister winery, Rutherford Hill, in Napa Valley with no factory-size tanks and no mega-brand hype. As a family-owned brand, we are committed to producing high-quality wines that appeal to a wide range of palates at an affordable price. We believe that great wine should be for everyone.
"Our goal is to create wines that are welcoming and approachable for beginners, yet nuanced and complex enough for the seasoned wine drinker to appreciate. There is a middle ground, and we are dedicated to delivering it because the best part about wine is sharing and enjoying it together.”
As for the quality of the fruit being used in the re-launched Federalist wines, Garner says: “The key to elevating the fruit and quality of our wines lies in sourcing grapes from specific sub-regions within the Lodi AVA that offer exceptional growing conditions. For example, Borden Ranch, where we source our Cabernet Sauvignon grapes, has rich red soils with great drainage that naturally produce fruit with greater concentration and character than other parts of Lodi.
“This area reminds me a lot of the world renowned red dust soils in the Rutherford AVA, but at a much more accessible price point, almost like a younger sibling or cousin. Working with family-owned vineyards that practice attentive and sustainable farming allows us to begin with the highest quality grapes the region has to offer. By selecting the right sites and focusing on vineyard practices that respect the land, we can bring out the true potential of the fruit with minimal intervention in the cellar. For me, it is all about collaborating with growers who understand their vines and soils the best.”
The range
The new re-branded Federalist wines with a new advertising tagline
The Federalist range now consists of Chardonnay 2023; Cabernet Sauvignon 2022; Zinfandel 2023; Red Blend 2022; and a Pinot Noir 2023 (the only wine to be made outside Lodi with fruit from Monterey and Central Coast AVAs but still with a fruit forward, easy drinking style).
It also has three Bourbon Barrel wines including a Cabernet Sauvignon 2022; Zinfandel 2022; and a Red Blend 2022 - all from Lodi and aged six months in American oak and six months in bourbon barrels with the unique alligator-style char from Kentucky. “It gives it that lovely, Coca-cola, caramel and bacon notes,” says Cramer.
Noticeably the varietals used in the wine are now prominently displayed in gold foil in the centre of the front label rather than being on the back as before.
“That way the consumer knows what they are getting and they stand out far more as an everyday drinking wine,” says Cramer.
Global distribution
Cramer is quick to stress the new branding and re-launch has not affected its pricing: “These are also price-friendly, everyday wines that retail around £25 in the UK and €20-25 in Europe depending on the market. It is important that the pricing is accessible and consumer friendly too. We are raising the bar for quality, without raising the price.”
Cramer concedes the new ABV-driven duty system in the UK is not any help at all to a brand with natural ABVs for its reds sitting close to 14.5% but its Sauvignon Blanc comes in at 12.5% ABV, particularly with the strength of the US dollar.
Whilst its target market in the UK is in the premium on-trade and with specialist wine merchants, it has been able to gain a stronger foothold in the grocery and supermarket sector for Federalist in Europe and other markets, which is very much where it has made its name in the US where it is now of the biggest and most consistent US grocery wine brands - with 84% of it US business is in grocery retail.
Drew Stephen says: “We’ve seen the brand completely take off in the US since making big changes in 2024. The new labels and improved wine quality have definitely resonated with consumers and we’ve seen double digit gains over the last four months since rolling vintages into these new labels in the fall.
"Our biggest channel of distribution is retail chains. These wines hit a sweet spot in pricing and offer incredible value to consumers. Grocery drives well over half the Federalist business where many loyalists have found the Federalist offers amazing everyday drinking wines.”
In Denmark, for example, The Federalist is now being listed by Meny where it is in 80 stores, whilst in Romania our distributor partner, Alma Tim, has got the brand on sale at 120 Kaufland stores whilst in Poland it is in Auchan and Carrefour hypermarkets.
Chuck Cramer says he is looking forward to showing the new Federalist wines to all the distributors and buyers he has lined up to see at ProWein after successfully introducing them at Wine Paris
The “solid footprint” the brand now has in the US, the Caribbean, Europe and the Middle East is starting to “open doors” in Asia, says Cramer. “We are now in talks in Japan, China and Taiwan, but it is early days. It is, though, the next big market for us.”
“It helps with our credibility to be able to say we have such strong distribution with major retailers across Europe like Carrefour, Auchan and Waitrose Cellar. Then we have the 90+ point plus scores from Wine Enthusiast magazine, and a solid 16 points for our Pinot Noir from Jancis Robinson MW and personal endorsement from key figures like Matthew Jukes.”
Todd Wolger, export director: in the Caribbean, says: “We have seen an increase of 15% of shipments with the new packaging, and Mexico has seen an uptick in retail sales with the reimagined labels. When I'm out with our key distributor partners and accounts, I'm stressing that we are sourcing fruit from single vineyards within Lodi's Borden Ranch AVA, and we are in control of the quality of fruit that goes into the Federalist wines.
Wolger adds: “Our new winemaker, Corey Garner is crafting the wine from vineyard to the bottle. The proof is in the bottle when getting liquid to lips, reinforcing the step up in quality and 90-point scores. Social media is bringing awareness to the reimagined Federalist range of wines which allows consumers to follow the Federalist journey to excellence. Current trends are outpacing the category by double digits, and the Federalist Cabernet Sauvignon is the number one growing Cabernet Sauvignon in the USA above $19 a bottle in retail.”
Cramer adds: “Since we launched the reimagined Federalist brand across Europe and the Middle East, reception has been overwhelmingly awesome. Our business with ABS Wines in the UK has doubled over the previous 12 months. In Denmark, retail drives distribution for the Federalist brand, and as a result our business with Strandgaarden is up 59%.
"In Romania, reception to the new labels has been extremely positive, and our business is growing at a fast clip. In Poland, retail sales drive our Federalist brand in Auchan and Carrefour, and we've doubled sales in the past six months alone with our importer, Cerville Investments.
“We are now looking to duplicate the success we enjoy in Europe, in Asia, focusing on a relaunch in six key markets. Our new Federalist winemaker, Corey Garner has done a tremendous job improving quality, crafting enjoyable, everyday quaffing wines. I need to give a shout out to the Federalist brand team, led by Drew Stephen, who's done an awesome job setting the strategic tone and vision for the relaunch of the Federalist.”
Face to face
Even Better. Even Bolder. The new look advertising for The Federalist
The wines were first introduced to international buyers at Wine Paris, where he says they were “extremely well received” and Cramer & Wolger will now show the range to current and prospective importers and distributors at ProWein next week.
“ProWein will be the launchpad for our global distribution and will hopefully help us expand into other markets,” he says.
But, he is also quick to stress how impressed he was by Wine Paris and how far it has grown as a show in such a short period of time.
As for the UK, he says The Federalist has “traditionally been an on-trade brand, but that is changing”. “We are getting wider distribution now, particularly thanks to our partners - ABS Wine Agencies, with customers such as Waitrose Cellar for our Pinot Noir and Chardonnay.”
He says ABS Wines has helped it get good and strategic by the glass listings in key accounts such as JW Marriot, Smith & Wollensky and The Savoy. “It’s a great by the glass brand as it is so true to California,” he says
“Independent wine merchants also play an important role for the Federalist and we are doing increasing business with them. We think the brand can co-exist very well in premium on-trade and premium off-trade and retail channels.”
As Cramer, and Todd Wolger prepare for Dusseldorf and meeting new and existing customers at ProWein he is also excited about the potential not only for the new look Federalist brand but the knock-on effect it has on Terlato’s other wines and brands.
As he says: “It’s clear The Federalist helps us to start the conversation and open up new business for our other brands too. I can’t wait. I just love talking about what The Federalist and our other brands can do for our customers’ businesses.”
* You can find out more about The Federalist at its website here.
* If you would like to meet The Federalist team at ProWein contact Chuck Cramer on chuck@mrcawine.com. Or visit Terlato Wines, Hall 12 #A60-3 in the California Barn.
