Wines & Vines

September 2013 Wine Industry Finance Issue

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METRICS Wine Industry Metrics 533,075,041 Domestic Wine Sales 800000000 750 650 600 600000000 $ Millions Winery Jobs, DtC Shipments Increase by Double Digits Up 6% from 2012 700 700000000 2013 550 500 500000000 2012 450 400 400000000 Jan Apr July Oct Dec Source: IRI, Wines & Vines Off-premise sales of domestic table and sparkling wines rose to $533 million in July compared to July 2012, for a 6% increase. Twelve-month sales were up 7%. Direct-to-Consumer (DtC) Shipments 250 250000000 Up 15% from 2012 2013 $ Millions 200 200000000 150 150000000 2012 100 100000000 Latest Metrics Complete metrics data is available at: winesandvines.com/metrics A dramatically higher pace of winery hiring and a substantial increase in directto-consumer (DtC) shipments highlighted Wine Industry Metrics for July. Wineries boosted their hiring activity by 29% from the July 2012 level to staff tasting rooms and prepare for the 2013 harvest. DtC shipments were at their low point of the year, but that point was still 15% higher than in July 2012. In off-premise sales, domestic wine gained 6% in value. —Jim Gordon Off-Premise Sales Data Expands to More Outlets Editor's note: Wines & Vines' content for off-premise wine sales now includes a wider base of data from IRI, the market research firm, covering about 45% of all U.S. off-premise sales for table wine and sparkling wine. The data incorporates IRI's more inclusive multi-outlet and convenience store tracking, which includes food and drug stores, dollar stores, warehouse clubs, Target and Wal-Mart. DtC Shipment Value 2011 12 months August through July 50 50000000 50 Jan Apr Source: 0 Wines & Vines/ShipCompliant Model July Oct Dec 40 Direct-to-consumer shipments of domestic wine totaled $56,037,392 in July, surpassing the July 2012 level by 15%. 300 $ Millions Winery Job Index 300 300 $240 2013 $200 Winejobs.com Index 250 250 $160 250 200 200 $120 150 150200 $80 Up 29% from 2012 2012 20 0 2011 150 $0 Jan Apr July Oct Dec Source: Winejobs.com 100 The Winery Job Index rose 29% in July as the beginning of harvest approached. The biggest increase in hiring activity was in winery hospitality jobs. 10 W in es & V i ne s SE PT E M B E R 20 13 Pinot Grigio h24% 2012 2013 2012 2013 Source: Wines & Vines/ShipCompliant Model $40 50 30 10 100 100 50 50 Merlot h6% DtC shipments of Merlot grew 6% in value in 12 months, while Merlot shrank in off-premise sales (see opposite page). Pinot Grigio/Gris just passed Merlot in off-premise sales, but it remained relatively small in DtC shipments. Still, Pinot Grigio/Gris grew 24% in the DtC channel compared to the previous 12 months.

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