Costco, which has been facing a bruising antitrust lawsuit, is getting ready to launch its next-generation of wine at a $15 price point, according to the firm’s CEO.
Gartner’s Q2 earnings report released on Thursday revealed the company is expected to break even on its wine business, but the wine maker will have to sell more than $1 billion of its products to make up for the shortfall.GARTNER, which owns wine brands such as Gartners, Wine Country, and Trader Joe’s, expects its wine to net $1.3 billion in sales this year, or $8.5 billion in the current quarter.
The company is planning to introduce two new wine products in 2017, according the company’s chief financial officer, David Gartener.
The first is a $3.50 bottle of Gartens new “Aristoteles,” which costs $3,750, while the second will be a $8 bottle, Gartening said in the report.
Gartenner said the two new products will launch “in the fourth quarter of 2017.”
He also said the company has been preparing for its merger with Wal-Mart, which is expected later this year.
Costco is facing a bitter antitrust lawsuit from rival Sysco, who claims the company unfairly subsidizes its wine sales.
Coste’s wine prices are $9 for a 750ml bottle and $8 for a 700ml bottle, but Syscom’s wine pricing is $8 a 750 and $11 for a 1,000ml bottle.
Costus, which operates the bulk of the Costco brand, has said that it has no plans to compete with the company in the marketplace.
Costumes and food sales are also expected to continue to grow, as is the company and its grocery business.
Costo has been a key player in the grocery industry, and its shares are up more than 11 percent in 2017 to $1,096.70.