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GovtLiaison_Dir08 11/29/07 2:00 PM METRICS Cabernet Grows in Sales, Volume No. 2 varietal increases by 7% and 23 cents per bottle Cabernet Sauvignon by Price Segments Sales Growth Rates 20% $300 TTB LABEL APPROVALS Low per-label costs Gov't. Liaison Negotiations or Footwork Reasonable Hourly Rates $250 TRADEMARK SEARCHES 15% Percentage $ Millions $200 $150 As Low as $185 10% Your trade names or designs are searched at the U.S. Patent Office to help establish valuable ownership or avoid costly legal liability. Over 100 years' total staff experience handling every government liaison need for industry. 5% $100 0% $50 Phone or write for details. $0 Source: , Wines & Vines W hat's not to like about Cabernet Sauvignon? From the off-premise perspective it is the second largest-selling varietal—behind Chardonnay in overall sales, but faster in sales growth, in volume and in price per bottle. Cabernet Sauvignon reached $1.28 billion in sales during the 52 weeks ending Aug. 11 at stores tracked by IRI, a Chicago, Ill.-based market research firm. Its sales growth rate of 7% beat Chardonnay's 4% and matched the overall domestic wine sales growth rate. Cabernet increased in volume by 4% and price per bottle by 23 cents, while Chardonnay rose just 4% in sales, 1% in volume and 16 cents in bottle price. Cabernet's best-selling segment Looking at Cabernet by price, the $5$7.99 segment is the varietal's best seller, although it performs nearly as well in the two segments just above, forming a slightly concave top on the classic bell curve. The average sales price for Cabernet overall is $7.36, but in 750ml bottles the average rises to $9.47. Domestic Cabernet grew fastest in the $20-plus segment, where sales increased 19% during the past year and volume < $3 $3. 5 .5 0- 0 $4 . $5 99 -$ 7 $8 .99 -$ $1 10 1- .99 $1 $1 4.9 9 5$1 9. $2 99 0pl us < $3 $3. 5 .5 0- 0 $4 . $5 99 -$ 7 $8 .99 -$ $1 10 1- .99 $1 $1 4.9 9 5$1 9. $2 99 0pl us -5% 52 weeks through Aug. 11, 2013 200 N. Glebe Rd., Suite 321 Arlington, Virginia 22203 Phone: (703) 524-8200 Fax: 525-8451 TOLL-FREE 1-800-642-6564 Major Credit Cards Accepted www.trademarkinfo.com Since 1957 increased 32%. It may have come at the cost of brand prestige in some cases, however, since the average bottle price dropped 10% (or $2.93) along the way. The second-fastest growth for Cabernet came in $11-$14.99 brands, as sales rose by 13% and volume climbed 11%. The average price rose by 21 cents. Sales at the two lowest price points dropped both in dollars and volume. Import competition Domestic wineries selling mostly in off-premise channels appear to have few immediate worries about foreign competition. Domestic wines have held their 80% market share while growing at a rate of 7%. Imports grew by just 2%. Australia is the most popular import country, selling more than $522 million worth of wine annually in IRI's data. But Aussie wines decreased 5% during the past year. Italy is the No. 2 importer with $492 million and 4% growth. California accounted for 72% of table wine sold and grew by 7% in sales. Washington state accounted for 5% and grew by 9%. Oregon wine sales grew at 13% to account for 1%. —Jim Gordon Win es & Vin es O C TO B ER 20 13 11 P