Wines & Vines

November 2013 Supplier Issue

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GovtLiaison_Dir08 11/29/07 2:00 PM P METRICS Off-Premise Wine Sales Up 6% Pinot Noir especially fast moving at top price point Pinot Noir by Price Segments Sales Growth Rates $150 25% TTB LABEL APPROVALS Low per-label costs Gov't. Liaison Negotiations or Footwork Reasonable Hourly Rates 15% Percentage $90 TRADEMARK SEARCHES 20% $ Millions $120 $60 $30 As Low as $185 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. 10% 5% Phone or write for details. $0 Source: , Wines & Vines O ff-premise sales of domestic wine rose by 6% in September compared to September 2012, while the annual growth rate stayed at 7%, according to scan data analyzed by IRI, the Chicago, Ill.-based market research firm. Fourweek sales reached $541 million, and 52-week sales reached $6.8 billion at the food, drug, convenience and wine/liquor stores monitored by IRI. Two red and two white wine types grew dramatically: Pinot Noir and red blend/ Meritage for reds, and Fumé/Sauvignon Blanc and Pinot Grigio/Gris for whites. These all grew at 11% or more and helped offset the declining sales of Merlot, Syrah, white Zinfandel and Riesling. Pinot Noir up 11% Combined domestic and imported Pinot Noir sales hit $520 million for 52 weeks, which beat the previous year by 11% in dollars and 10% in volume. Pinot sales were highest in the three mid-price segments from $5 to $14.99 per bottle, but the fastest rate of growth came at the high end. Pinot Noir in the $11-$14.99 segment had perhaps the most positive picture overall, with the second-highest total sales of $128 million in 52 weeks and the second-highest growth rate of 18%. The < $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 0% 52 weeks through Sept. 8, 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 HoytShepston_Monthly09 10/31/08 www.trademarkinfo.com Since 1957 average price per bottle dropped 24 cents. Pinot Noir sales increased by 44% in IRI's most expensive price segment, $20plus bottles. An average price reduction of 70 cents per bottle (3%) to the current $22.94 average price was associated with that sales growth. U.S. market share 80% Domestic wines maintained an 80% market share of sales in the IRI data through September. California wines held a 72% share, followed by Australia and Italy, both with 6%, Washington state with 5%, and other states and countries splitting the remaining 11%. Wines produced in Washington state grew at 9% during the past 52 weeks and Oregon wines grew at 12% in the stores measured by IRI. Imports grew by 2% in value. New Zealand led all import countries in growth rate with 21% and claimed 1% of market share. Sales of domestic sparkling wines grew 7% to $404 million in 52 weeks, matching the table wine growth rate. Domestic sparkling wine had 57% of the bubbly market, and imports had 43%. The blush/rosé category was the fastest growing segment and the smallest in sales. —Jim Gordon Win es & Vin es N OV EM B ER 20 13 11 4:44

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