The Restaurant Wine newsletter, published by wine consultant Ronn Wiegand MS, has released its annual ranking of the 100 best-selling wine brands in restaurants as well as the 60 most frequently ordered wines. Beringer Vineyards of Foster's Wine Estates tops the list of brands, followed by Franzia, part of The Wine Group portfolio. Rounding out the top five are: Kendall-Jackson; Yellow Tail, from W.J. Deutsch & Sons; and Inglenook, part of Constellation Brands' Centerra Wine Company portfolio. The Restaurant Wine survey covers the entire spectrum of U.S. restaurants, from casual dining chains to fine dining restaurants.

The report found that case sales in the on-premise segment grew 6 percent, or 4 million cases, to reach 64 million cases sold. The value of on-premise wine sales now exceeds $12 million. In terms of the overall market, on-premise sales account for 22 percent by case volume and nearly 50 percent of dollar value.

Wiegand told Wine Business Insider that he believes ongoing consolidation will continue to make an impact in on-premise sales. However, he also said that increased competition from new brands would begin to change the landscape.

While the top five wine brands, and eight of the top 10, are from different wine companies, consolidation is certainly making an impact. The survey found that 15 companies control 77 of the top 100 brands and 86 percent of all on-premise sales. The last time the survey was conducted, in 2004, the companies controlled 73 of the top 100 brands and 82 percent of sales.

Two companies in particular, Constellation and E&J Gallo, dominate the on-premise channel. Constellation has placed 21 brands on the top 100, and accounts for 10 percent of the total market. Gallo, which has 14 of the top 100 brands, represents 6 percent of the total market. Together, the companies sell 9.4 million cases of wine on premise.

"I think overall it's a validation of the leadership that Constellation has taken in the wine industry," said Dale Bishop, vice president, strategic on-premise accounts at Constellation Wines. "It is a testament to the strength of the sales and marketing teams at Constellation. They've been able to take those existing brands and grow them, and also take new brands and gain traction in the marketplace."

This year, Restaurant Wine tracked both the top 100 brands and the top 60 individual wines in on-premise accounts. The survey found that the top 60 wines are responsible for 19 percent of all on-premise sales, or the equivalent of one in every five bottles sold.

In terms of restaurants alone, the top 60 wines account for $3.5 billion in sales, approximately 29 percent of all restaurant wine sales. Chardonnay was the most dominant category, accounting for 34 percent of sales and 21 of the 60 wines. On the list, white wines outsold red wines by a more than 2-to-1 margin (55 percent to 23 percent of total sales).

Unsurprisingly, the top 60 wines are dominated by large national brands. In fact, 59 of the top 60 wines sold 100,000 cases or more on-premise in the U.S. in 2005. Also, the top 60 wines accounted for 44 percent of the entire sales of the top 100 wine brands, out of more than 600 SKUs.

In March, Wine & Spirits magazine also released the findings from their own survey of restaurant wine sales. That survey tracks the popularity and prices of wines by brand, variety and country of origin at the Zagat Guide's leading restaurants. (see Wine Business Insider, March 20, 2006)

The top brands in the Wine & Spirits survey naturally skewed toward the high-end and luxury categories. Cakebread Cellars topped the list, followed by Sonoma-Cutrer Vineyards, Kendall-Jackson Vineyards, Silver Oak Wine Cellars and Jordan Vineyard & Winery.

The Wine & Spirits survey shows how different consumption trends are in high-end restaurants rather than casual dining chains. Wiegand found that white wines and even White Zinfandels have a significant presence on the top 60 wines sold on premise list, while Wine & Spirits found that red wines accounted for 61 percent of on-premise sales.

"I think red wines will still outsell whites, but when you have the emergence of Pinot Grigio and New Zealand Sauvignon Blanc on top of an already strong Chardonnay base, you are going to see that reflected in the sales," said Bishop.

Wiegand said the diversity of the top 60 wines illustrates the changing tastes of American consumers. "[I expect] sales to continue to increase, [and there will be] more diversification in terms of taste," said Wiegand. "I think White Zinfandel will continue to decline slowly, and there will be continued emergence of new varietals. One of the top 60 wines, and there wasn't a Sauvignon Blanc, is a Riesling. So, Riesling is coming back, and there is a broadening of tastes as the consumer becomes more educated."

Restaurant Wine compiles the list using "reliable industry sources from hundreds of interviews with restaurateurs, distributors, importers and wineries throughout the U.S." The "Top 100 Wine Brands" and "Top 60 Wines" lists are published only in Restaurant Wine. Single copies are available, and may be ordered online at: www.restaurantwine.com.