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Tony Terlato, a Giant in the U.S. Wine

Industry, Dies at 86

Anthony “Tony” Terlato, who devoted his life to bringing great wines to American consumers as a retailer, distributor, importer and winery owner, died early yesterday morning. He was 86.

“My brother John and I learned everything we know from our father. He taught us so much,” said Bill Terlato, CEO and president of Terlato Wine Group, the company his father established. “We were fortunate to have him for 86 years. We only wish it could have been more.”

As founder and chairman of the Chicago-based Terlato Wine Group, an importer that markets top producers including Gaja, M. Chapoutier, Piper-Heidsieck, and Nino Franco, Tony introduced Americans to high-quality wine for decades, particularly Italian wines. He almost single-handedly put Pinot Grigio on the map in the United States.

In the 1990s, Terlato's company became a wine producer as well, purchasing California wineries such as Rutherford Hill, Chimney Rock, and Sanford, establishing brands like the Federalist and Seven Daughters, and partnering with Michel Chapoutier on wineries in France and Australia. In 2004, he was awarded Wine Spectator's Distinguished Service Award for his philanthropy and the incredible mark he made on wine.

“Tony Terlato did so much for the wine world,” said Marvin R. Shanken, editor and publisher of Wine Spectator. “He knew every aspect of the business, and everything he touched he made better. Tony and I met more than 40 years ago and he, and his family, became important people in my life. He led by example, and will be greatly missed.” Wine Spectator has more on Terlato's life and career.

Exclusive: The Wine Group Unveils Cupcake Light

Hearted, An Alternative Concept That Aims To Create

A New Category

The Wine Group has entered the low-calorie, low-alcohol drinks market with Cupcake LightHearted. The new line is packaged in 750-ml. bottles and retails at $10. It comes in at around 80 calories per 5-ounce serving, with 8% abv and less than one gram of sugar. LightHearted is aimed at health-conscious consumers looking for an alternative to hard seltzers and other lower-alcohol drinks.

Cupcake LightHearted includes California-sourced Chardonnay, Pinot Noir, Rosé, and Pinot Grigio. The company notes that, per serving, LightHearted has 20% fewer calories than the typical hard seltzer, which clocks in at around 100 calories. "We see this not as a replacement to wine, but as an opportunity to expand usage occasions,” Wine Group CMO Jeff Dubiel told SND.

The wines are made from grapes harvested at a variety of brix levels, plus wines that have had their alcohol reduced through a filtration process that Dubiel said allows them to retain much of their character. For the final product, the reduced alcohol wines are blended back into the lots harvested at specific brix levels.

The Wine Group will focus on distributor education and marketing for this year, before making a big move toward consumers in early 2021. “July through December is all distribution and trial. It's a lot of hyper-targeted pre-shop and post-shop digital, plus in store activations, point of sale merchandising, and so on,” said Dubiel. “Phase two, after we've built distribution, is a national consumer communications launch. We've got a multi-million dollar advertising campaign lined up.”

The company sees LightHearted as an opportunity to develop a new category, not just an extension of the Cupcake brand. “If you can truly get to something that starts to look like what the beer guys did in the seventies and what the soda folks did much earlier than that, then I think it's going to unlock a lot of potential growth,” he said. Including both still and sparkling wines, Cupcake has U.S. volume of approximately 2.7 million cases, according to Impact Databank.

Wine Spectator: A Live Chat With Laura Catena

“When I decided to become a doctor, my father was not that happy,” said Laura Catena. “My mother said, ‘You know, Laurita, he’d always thought you would come work with him….’” The physician, author, mother, and fourth-generation winemaker and managing director at Argentina’s Bodega Catena Zapata recalled her impressive journey in the June 23 edition of Straight Talk with Wine Spectator, an Instagram Live series sponsored by Wine Access.

Speaking with senior editor James Molesworth from her San Francisco home, Catena discussed the difficulties of harvesting during the coronavirus pandemic and how the market for Argentine Malbec has changed and will continue to evolve.

“Malbec is on fire,” Catena said of sales for the country’s premier red grape. “Argentine wine is selling really well.” But there’s still room to grow, and Catena believes the next challenge will be gaining the attention of high-end wine collectors. “I think the true next hurdle is that every collector in the world has an Argentina section [in their cellar],” Catena said, citing a track record for wines that age well as the key to achieving a place on the world’s stage of collectible wines. Watch the full episode on Wine Spectator's Instagram channel.

News Briefs:

•Suntory Holdings is upping its commitment to sustainability, setting a new target to achieve net-zero greenhouse gas emissions across its entire supply chain by 2050. In a statement, the company said it “will implement renewable energy solutions, utilize next-generation infrastructure options, and work together with supply chain stakeholders to contribute to realizing a carbon-free society, while maintaining its current energy conservation initiatives.” In addition to renewable energy plans, Suntory's sustainability project includes an emphasis on preserving water sources and reducing water usage at its plants around the globe.

•Constellation Brands has announced a $100 million push to improve diversity and advance social justice. The company will donate $1 million to the Equal Justice Initiative in support of its mission to challenging racial and economic injustice in the U.S. It has also pledged to invest $100 million over 10 years in Black and minority-owned businesses to improve their representation in the beverage alcohol industry. With the company, Constellation says it will update policies and practices, providing training for employees to eliminate bias and striving for a safe and inclusive working environment. “We categorically denounce bigotry, racism, and social injustice,” said president and CEO Bill Newlands. “We stand in solidarity with the Black community and we are committed to achieving meaningful and lasting change.”

•In case you missed yesterday's news alert, Dave McNulty has been named global chief marketing officer of Stoli Group. McNulty joined the company as vice president of marketing and communications last year. Here's the full story.

•Miami-based Royal Dutch Distillers has partnered with Blue Ridge Spirits & Wine Marketing in the U.S. Blue Ridge will handle sales and distribution management for Royal Dutch, whose portfolio includes including ChocoVine, a cream-based wine, as well as Rutte gins and genevers, Mandarine Napoléon liqueur, Cherry Heering, Bebo Cuban Coffee Liqueur and Fiorito Limoncello. Royal Dutch, the U.S. subsidiary of Netherlands-based De Kuyper Royal Distillers, has U.S. volume exceeding 100,000 9-liter cases.

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