Issue link: http://winesandvines.uberflip.com/i/101495
METRICS Off-Premise Wine Sales Up by 6% High-end wines continue to grow even faster with price drops Three-Year Sales for $20-Plus Wines Change in Bottle Price of $20-Plus Wines $1.00 $.75 2011 $28 $0.50 $26 $.27 2012 $24 $0 $22 -$.08 -$.35 -$.41 $ Millions -$0.50 -$1.00 -$1.50 -$1.37 $18 $16 $14 $12 ig Pi io no /G t ris Pi no tN oi r Re d Bl M e er nd ita s ge / Gr Sa Cab uv er ig ne no t n Ch ar do nn ay Sa uv Fu ig m Bl non ��/ an c M er lo t -$1.60 -$2.00 2010 $20 All table wines at major food and drug stores, 52 weeks through Nov. 4, 2012. S an Rafael, Calif.���Retail sales of domestic table wines maintained a growth rate of 6% during the 52 weeks ending in November. Volume grew just 2%, but the average price per bottle rose by 21 cents, according to the latest data from the Symphony IRI Group (SIG.) Major U.S. food and drug stores sold more than 71 million cases of U.S.-produced wine for $5 billion, reported SIG, a market research firm based in Chicago, Ill. Case prices rose by $2.58, and the average bottle price reached $5.85. The four-week performance in November 2012 vs. November 2011 lagged only slightly behind those numbers, growing 5% in dollars but staying flat in volume. Chardonnay on top Looking at the data by varietal, Chardonnay remained the biggest seller, with $1.4 billion and a 22% share during the most recent 52 weeks. Cabernet Sauvignon was second with just under $1 billion. Merlot was a fairly distant third, showing $550 million and negative growth, while Pinot Grigio/Gris had $497 million and, with a 9% growth rate, gained on Merlot. $10 $8 Jan Apr Jul Oct Dec $20-plus domestic table wine sales, major U.S. food and drug stores. Red blends enjoyed the fastest growth rate (23%) of all major varieties and rose to sixth place in market share, behind fifth-place Pinot Noir, which also grew. Washington state wines grew 7% in value, and Oregon wines grew 9%, leading California wines, which nevertheless counted for 72% of the total market share. Imports claimed 20% market share, led by Italy and Australia in a near-tie. At the high end Merlot producers at the high end had some good news in terms of bottle price, as the medium-bodied red rose faster over the past year than any other major varietal in the $20-plus range. This runs counter to Merlot���s price performance in direct-to-consumer shipments. Topend red blends also grew significantly in price, paralleling their performance in the DtC channel. Sales in the $20-plus range grew faster than any other price point for bottled wines in the past year, gaining 18% and totaling $222 million for domestic table wine. Similarly priced imports grew by 11%. Decreased prices accompanied all that growth, however. In a category where the sky is the upward limit on price, the average price per domestic bottle was just $25, and this had dropped by 58 cents. The category accounts for only 4% of market share, yet it is important to thousands of wineries that make relatively small quantities of higher priced wines. The growth rate for this top tier slowed in the later months of 2012, while sales still surpassed the previous two years shown in the graph on this page and at least two years earlier. Sales growth vs. bottle price Cabernet Sauvignon and Chardonnay led the $20-plus category in sales, but Pinot Noir was the fastest growing varietal at 31%, followed by red blends at 27% and Cabernet Sauvignon at 22%. Merlot���s 5% sales shrinkage helped drag the category���s growth down. It is interesting to note that the increased bottle price of Merlot came with a decreased sales total, while decreased prices for Cabernet Sauvignon and Pinot Noir accompanied very healthy sales gains. Red blends may have had the best of both worlds, increasing in both bottle price and sales total. ���Jim Gordon Win es & Vin e s JA N UA RY 20 13 13