Santa Margherita to open subsidiary in the US

The brand will be imported and marketed in the United States through its wholly owned subsidiary, SM USA Inc., effective starting from January 1, 2016
Santa Margherita to open subsidiary in the US

Italian winemaker Santa Margherita will transform into Santa Margherita USA Inc. from Terlato Wines International. The Chicago-based company is losing its flagship brand, Santa Margherita, to the new U.S. marketing arm owned by the Italian winemaker, Santa Margherita USA Inc.. That is to say that import and commercial activities of the Santa Margherita brand will continue to be exclusively managed by Terlato Wines International until the close of December 2015. Also, effective January 1, 2016, Santa Margherita USA Inc. will add the Santa Margherita brand to its portfolio.

Bill Terlato, Terlato Wines’ chief executive, confirmed that the contract to import Santa Margherita which began 36 years ago, will end on December 31 this year. “We have been in negotiations for several years to extend our successful 36-year relationship with Santa Margherita,” he added. Terlato established the pinot grigio category stateside and built the brand into a powerhouse in the luxury-priced segment. The Italian company said that sales for 2015 are tracking ahead of 2014; a record year.

Gaetano Marzotto, Santa Margherita Wine Group’s chairman, thanked Terlato Wines Chairman Anthony Terlato, calling him “a driving force in the development of Italian wine in the U.S.” About 650,000 cases of the wine were sold in the U.S. last year, “more than triple the amount 20 years ago,” said a Terlato spokeswoman. Santa Margherita, which retails for between $27 and $28, is by far the best-selling bottle priced over $25; more than 100,000 cases ahead of any competitor in the U.S. market, according to marketing statistics.

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