Issue link: http://winesandvines.uberflip.com/i/1031957
METRICS October 2018 WINES&VINES 13 Source: , Wines Vines Analytics. Domestic table wine sales in multiple-outlet and convenience stores; 52 weeks ended Aug. 12, 2018. OFF-PREMISE CABERNET SAUVIGNON SALES $ Millions 0 $100 $200 $300 $400 $500 $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 <$4 n = 2018 n = 2017 O ff-premise sales through multiple-outlet and con- venience stores in the four weeks ended Aug. 12 totaled $641 million, market research firm IRI reported. This was up 1% versus a year ago, even as case volumes declined 1% to 8.1 mil- lion. The shift pointed to the movement of higher-priced wines and helped support a 2% increase in sales during the latest 52 weeks to nearly $9 billion. Domestic sparking wine sales posted consis- tent growth in both the latest four weeks as well as the past year, ris- ing 2%. This was double the growth rate for table wines in the latest four weeks, but even with table wines in the latest 52 weeks. Cabernet Sauvignon was a good example of consumers' shift toward more expensive wines. A year ago, all price segments less than $25 a bottle saw average bottle prices drop. This year, all price segments $15 and up saw bottle price growth. Wines under $4 also gained three cents per bottle. Cabernet Sauvignon sales totaled $1.6 billion in the latest 52 weeks, with 56% in price seg- ments less than $11. The single biggest slice of sales occurs at $8- $10.99 at $469 million. —Peter Mitham Off Premise Cabernet Up as Off-Premise Sales Rise 1% Direct to Consumer D irect-to-consumer (DtC) shipments gained 5% in value in August versus a year earlier while volumes rose 7%, Wines Vines Analytics/Ship- Compliant by Sovos reported. Shipments totaled more than $136 million on a volume of 343,189 cases. Average price per bottle was $33.14, down 2% ver- sus a year ago but well above this year's summer average. Cabernet Sauvignon remains king of the channel, which has a total value of $2.9 billion. The varietal ac- counted for 28% of shipment value in the past 12 months, well ahead of Pinot Noir and red blends, which are neck-and-neck in second place with 16% share each. In terms of case volumes, Cabernet accounts for 16% of the channel, only slightly ahead of Pinot Noir and red blends, which are tied with 14% each. Cabernet shipments were worth nearly $814 million in the period, up 9% from last year. Bottles priced $100 and up rep- resented 54% of the value, at $443 million. Growth in the seg- ment was on par with the vari- etal as a whole at 9%. Cabernet's strongest growth occurred in the $20-$39.99 price band, with shipments rising 24% to $61 million. Shipments in the $80- $99.99 price band ranked sec- ond, increasing 19% to $95 million. Shipments of bottles less than $20 also showed well, rising 16% to $32 million and notching the largest volume of any segment at 231,909 cases. T h e o n e s e g m e n t t o l o s e ground was bottles priced $60- $79.99, which fell 9% to $98 million. The segment remained the second-biggest by value, however, and the overall growth of DtC shipments ensured a comfortable gain versus the $78 million shipped two years ago. Indeed, total Cabernet Sauvi- gnon shipment value was up 28% from two years ago, with all segments showing growth. —Peter Mitham Cabernet's Strength Lifts DtC 5% in August OFF-PREMISE CABERNET SAUVIGNON BOTTLE PRICE CHANGE 2017 2018 $ Change <$4 $3.40 $3.43 $0.03 $4-$7.99 $5.61 $5.56 -$0.05 $8-$10.99 $10.03 $10.02 -$0.01 $11-$14.99 $13.88 $13.82 -$0.06 $15-$19.99 $18.63 $18.65 $0.02 $20-$24.99 $23.70 $24.09 $0.39 $25+ $45.37 $46.99 $1.62 Source: , Wines Vines Analytics. Domestic table wine sales in multiple-outlet and convenience stores; 52 weeks ended Aug. 12, 2018. Source: Wines Vines Analytics/ShipCompliant by Sovos; 12 months through August 2018. DTC CABERNET SAUVIGNON SHIPMENTS BY PRICE $ Millions 0 $100 $200 $300 $400 $500 $100+ $80-$99.99 $60-$79.99 $40-$59.99 $20-$39.99 <$20 n = 2018 n = 2017