Hardy, an Australian unit of Constellation Brands, and Walnut Creek, Calif.-based Black Box will have distribution in 29 states by year end, thanks to a deal with Constellation's Pacific Wine Partners division. Jug wines have done well in 5-liter bags, but the smaller size lets retailers sale-price premium varietals at around $20, according to Ryan Sproule, Black Box's founder. Comparable wines in bottles cost about $10, and the bag holds the equivalent of four 750 ml bottles.
Sproule's firm purchases wine in bulk and packages it in aseptic bags in a cold-fill operation. Bags are supplied by Scholle Corp., Northlake, Ill. According to Jeff Jeffers, the bags are direct descendants of the 5 gallon collapsible bags the company introduced for milk in the 1950s, though many refinements in fitments, oxygen-barrier properties and polymer construction have been made to make them suitable for better wines.