The wine category is back in growth at Endeavour Group and it’s all down to a new product called Zoncello.

Endeavour announced sales of $6.7 billion during the first half of FY24, an increase of 2.5% from the prior corresponding period, with growth driven by lemon flavoured drinks such as limoncello and Hard Rated.

Endeavour Group Managing Director and CEO Steve Donohue told analysts: “People are loving anything that is refreshing and lemon flavour is one of the most refreshing drinks out there.

“What we’ve also seen is an explosion in demand for limoncello, for example. We just about doubled our sales in limoncello in Dan Murphy’s in December.”

He said a a popular new wine product called Zoncello was performing particularly well.

“It is an Australian wine product, which is sensational, it is very appealing to Gen Z and is now part of what is driving growth in the wine category again.”

“We are back in growth in the wine category thanks to that innovation.”

Zoncello is a Limoncello Spritz drink made with Yarra Valley Winery Zonzo Estate’s Limoncello and Prosecco. It retails at Dan Murphy’s for $20 a bottle.

As to why limoncello sales are booming, Donohue puts it down to the rising popularity of refreshing, spritz-style drinks.

Limoncello Spritz is giving the Aperol Spritz a run for its money with Australian consumers. The classic Limoncello Spritz is made with 50ml limoncello, 60ml prosecco, 30ml soda and 15ml sugar syrup. Ingredients are stirred and poured over ice.

Or, in the case of Zoncello, simply poured out of the bottle onto ice.

“The old wine spritzer that was big in the ’70s is going to be back, and it’s already demonstrating that it’s back through some of the initial data that we’re seeing,” Donohue said.

“Lighter, refreshing styles with fruit characters in them – this is what customers are looking for.”

Zoncello isn’t the only product on the rise. Smart Company reported last month that Melbourne-based start-up Solbevi rolled out its limoncello beverages -– including Australia’s first Limoncello Spritz in a can — on the shelves at Dan Murphy’s within nine days of launching.

Since launching in August 2023, Solbevi has sold more than 25,000 cans and 2,500 bottles, with the business on track to double this by the end of February.

Strong sales saw the brand expand to 106 Dan Murphy’s stores Australia-wide after two months. Solbevi has also rolled out in 15 independent bottle shops and 65 on-premise venues across Australia.

Limoncello’s renaissance

Limoncello has been produced in Italy since the beginning of the 1900s. According to the Spirits Business, “limoncello has been enjoying a renaissance, with brands and bartenders recognising its versatility in cocktails and twists on the Spritz serve, thrusting the liqueur out of the after-dinner realm into aperitivo territory”.

IWSR Drinks Market Analysis shows limoncello accounts for 2% of the liqueurs market, global limoncello volume sales rose by 8% between 2021 and 2022. Premium-and-above limoncello saw sales grow by 11% over the same period, driven by a strong performance in its homeland of Italy and leading export markets such as the US, the UK and Spain.

“Limoncello has become much more international, and has attracted foreign investment in what was previously a predominantly Italian category,” saidJosé Luis Hermoso, research director for Central & South America at IWSR. “A decade ago, more than two out of every three bottles of limoncello were being consumed in its home country, while last year 50% of limoncello was exported.”