Wines & Vines

METRICS Collector's Edition WINES&VINES 13 O ff-premise sales through multiple-outlet and con- venience stores in the four weeks ended Dec. 2 totaled $808 million, market research firm IRI reported, a 3% increase from last year. Case volumes gained just 1% to 9.7 million. Sales for the latest 52 weeks were flat at just over $9 billion on softer case volumes. The data pointed to a willing- ness among consumers to spend, but more selectively. This was seen not only in the aggregate data but even among the most expensive wines, those selling for $25-plus a bottle. Total sales in the segment increased 8% in the latest 52 weeks to $235 mil- lion against a backdrop of low unemployment and Conference Board reports of exceptional consumer confidence. The top five varietals accounted for 85% of the value, or $201 million. This was up 9% from a year ago. Case volume, however, increased just 7%. The result was an aver- age bottle price for the top five varietals of $36.68. Cabernet Sauvignon retained its top rank in the segment, with sales of $78 million and a 39% share of the top five varietals. Its share was down a percentage point from last year, while Pinot N o i r a n d S a u v i g n o n B l a n c inched up a percentage point each. Sauvignon Blanc saw the greatest growth among the top five varietals in the segment, rising 25% in the past year to sales of $14 million. Sauvignon Blanc also saw its sales value rise faster than vol- ume sold, one of three varietals to experience the phenomenon. Consumers also opted for more expensive Cabernet Sauvignon a n d C h a r d o n n a y, t h e l a t t e r standing out as case volumes actually declined while sales value rose 3% to $58 million. Pinot Noir and red blends saw their average bottle price drop slightly but remained strong off- premise performers. Red blends took the hardest knock, with stronger volumes pulling the av- erage bottle price down 3.5% to $34.87. Pinot Noir slipped 1% to $36.07. These stood against 2.8% growth in the average price of Cabernet Sauvignon, the most expensive of the varietals, at $47.30 a bottle. —Peter Mitham Chardonnay OFF-PREMISE $25-PLUS RELATIVE SHARE Pinot Noir Sauvignon Blanc Source: , Wines Vines Analytics. Table wine sales in multiple-outlet and convenience stores; 52 weeks ended Dec. 2, 2018. Cabernet Sauvignon 39% 29% 7% 13% 12% Red Blends Off Premise Selective Consumer Buying Boosts Off-Premise Sales 3% Direct to Consumer N ovember direct-to-con- sumer (DtC) shipments were flat versus a year ear- lier at $416 million, Wines Vines Analytics/ShipCompliant by Sovos reported. The lack of movement followed an exceptionally strong performance a year ago when win- eries resumed shipping after the wildfires of October 2017. Volumes slipped nearly 1%, totaling 797,451 cases. Shipping activity also dropped compared to the prior month be- cause October 2018 had five Mondays, which is a popular day for wineries to send club ship- ments. In general, DtC shipments appear to be following the overall trend in the U.S. market; value is outpacing overall volume. Stable shipment value on lower volume pointed to overall strength in advance of the holi- day season. The trend wasn't seen just among Napa and So- noma wineries where two-thirds of DtC shipments originate from, but further afield in Washington, which accounts for just 4% of shipments. "Overall volume has leveled, if not contracting some- what, but value has continued to stay strong," said Ryan Penning- ton, senior director of communi- cations and corporate affairs with Ste. Michelle Wine Estates in Woodinville, Wash. "You're getting that discerning consumer in the DtC channel." Underscoring the strength of the market, shipments of $60- plus bottles totaled $1.4 billion in the latest 12 months, or 47% of the $3 billion worth of wine shipped DtC during the period. The price segment enjoyed 29% growth from $1 billion a year ago. Cabernet Sauvignon led the segment, with shipments worth $678 million. Red blends — many of them Cabernet-dominant — followed at $253 million. Pinot Noir ranked third in terms of value at $229 million worth of shipments, but case volumes ex- ceeded those of red blends, total- ing 238,957. This was second only to Cabernet Sauvignon, which saw 445,284 cases shipped. C a b e r n e t - d o m i n a n t r e d b l e n d s t o o k t h e t o p s p o t i n terms of price, averaging $134 a bottle compared to $127 for Cabernet Sauvignon. Pinot Noir trailed the top five varieties with an average bottle price of just $80. Cabernet Franc vari- etals trounced it, averaging $88 a b o t t l e , w h i l e C h a r d o n n a y checked in at $81. —Peter Mitham DtC Shipments Hold Steady in November Source: Wines Vines Analytics/ShipCompliant by Sovos; 12 months through November 2018. DTC SHIPMENTS FOR $60-PLUS $ Millions 0 $200 $400 $600 $800 Cabernet Sauvignon Red Blends Pinot Noir Chardonnay Cabernet Franc Merlot Syrah Sparkling

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