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3-Tier Sales Channel | Overview of the U.S. Wine Industry | Part Five

February 29, 2016

3-Tier Sales Channel | Overview of the U.S. Wine Industry | Part Five

Pricing Terminology

Distributor FOB = price from the supplier to a wholesale distributor.
Wholesale = price from the wholesaler to an on- or off-premise account.
Suggested Retail Pricing (SRP) = the price from a supplier or off-premise account to a consumer:

Super Value (sometimes referred to as Jug Wines or Ultra Value) = wines priced $1.99 or under per 750-ml bottle;
Value = wines priced between $2.00 – $5.99 per 750-ml bottle;
Fighting Varietal (sometimes referred to as Economy) = $6.00 – $8.99 per 750-ml bottle;
Popular Premium = wines priced between $9.00 – $11.99 per 750-ml bottle;
Premium = wines priced between $12.00 – $14.99 per 750-ml bottle;
Super Premium = wines priced between $15.00 – $24.99 per 750-ml bottle;
Ultra-Premium = wines priced between $25.00 – $49.99 per 750-ml bottle;
Luxury = wines priced $50.00 and over per 750-ml bottle.

*Please note that the precise breakdown of the SRP pricing categories varies to a degree between industry sources.
Wine List = the price on a restaurant wine menu.
By-The-Glass (BTG) = the price of a glass of wine in an on-premise account. Sometimes refers to a special discounted price offered by the distributor to on-premise accounts.

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