Issue link: http://winesandvines.uberflip.com/i/122527
METRICS Fast-Growing Sales Accompany Lower Prices Wines priced $20 and above benefit from cuts; premium segments grow T he premium wine category with the biggest price reduction enjoyed the biggest percentage gain in sales during the past 52 weeks, according to March data from the Symphony IRI Group (SIG). Domestic table wines priced at $20 and higher came down in price by $3.62 per case, yet they rang up sales of $238 million (a 15% increase). Wines priced from $8 to $10.99 retail were the second fastest-growing segment in the major food and drug stores monitored by SIG. Their sales increased by 10% despite an increase in price per case of 42 cents. In fact, all four of the premium segments measured by the Chicago, Ill.-based market research firm found growth of 8% or more, while the three lower priced segments either shrank or grew less slowly. In the four weeks ending March 24, U.S. wines priced $20 and up grew even faster (21%), while the average for all price points hit 7% sales growth, beating the 6% growth rate in 52 weeks for domestic wines overall. Also hot: $11-$14.99 wines The $11-$14.99 segment was perhaps the most vibrant during the past year. The average price per case went up $1.01, accompanied by a growth rate of 10%. This is a big category, with $908 million in sales—about TonnellerieDeJarnac_Dir10 four times as much as the $20-plus11/11/09 category. Percentage Change in Retail Case Price in Premium Segments Percentage Change in Sales in Premium Segments 16% .6% 14% .4% 12% .2% 0% -.2% $8$10.99 $11$14.99 $15$19.99 $20Plus -.4% 10% 8% 6% -.6% 4% -.8% -1.0% 2% -1.2% 0% Price change for 9L cases of domestic table wine. 52 weeks through March 24, 2013. Sauvignon Blanc and red blends/Meritage priced $11-14.99 both grew at 20% in dollars, but Sauvignon Blanc had a much higher total of $109 million. Chardonnay was the most popular wine at this price point. It grew more slowly at 7% while garnering $332 million. The Pinot siblings, Gris and Noir, both gained 14%. Cabernet is a big and steady 3:40 PM Pagemost price points, and it was performer at 1 $8$10.99 $11$14.99 $15$19.99 $20Plus Domestic table wine sales. 52 weeks through March 24, 2013. no different here, growing 11% and having sales of $221 million, second only to Chardonnay. Not every wine at every price point was a winner, however. White Zinfandel dropped 8% in sales across price segments. Syrah/Shiraz dropped 17%, and Merlot shrank by 4%. Imported table wines were flat, growing just 0.4% in 52 weeks. —Jim Gordon "People, Product, Profit Without top people, you cannot do much with the others." - Malcolm Forbes Handcrafted & Authentic WWW.RECRUITINGASSOCIATESNETWORK.COM Tel: 707-931-4707 Contact: Yannick Rousseau 822 College Avenue, Ste. B, Santa Rosa, CA 95404 Tel: (707) 332 4524 • Fax: (707) 224 8734 Email: yannickrousseau@sbcglobal.net Website: www.tonnellerie-de-jarnac-16.com Discover the Difference of Our Specialized Services: It's Our Niche It's Our Network It's Our Approach It's Our Guarantee! Win es & V i n es M AY 20 13 11