Wines & Vines

April 2014 Oak Alternatives Issue

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M E T R I C S Sales of domestic table wine and sparkling wine reached $590 million in February at stores monitored by IRI. This was a 7% increase from February 2013. The value of direct-to-consumer shipments from U.S. wineries in February increased 12% over the previous February and gained 7% during the past 12 months. Led by the hospitality category, February winery hiring activity was 21% higher than February 2013 and 28% higher for the past 12 months. Wine Industry Metrics Latest Metrics Complete metrics data is available at: winesandvines.com/metrics Winery Job Index winejobs.com index Source: winejobs.com 300 250 200 150 100 50 2013 2014 Up 21% from 2013 10 W i n e s & V i n e s A P R i L 2 0 1 4 DtC shipments of red blends generated much more revenue in the highest price categories than the low or mid-range. Red blends priced above $100 per bottle generated $93 million in DtC sales during the 12 months ending Febru- ary 2014. Wineries whose products are allocated are heavily involved in DtC shipments at the highest price levels, and many of them make non-varietally labeled red blends.This contrasts sharply with off-premise sales, in which the $8-$10.99 range is by far the biggest in value. Wine Sales Increase; Winery Job Activity Rises 21% Our Wine Industry Metrics all pointed up in February compared to February 2013. Both off-premise sales and direct-to-con- sumer (DtC) sales rose by healthy percent- ages for the month, and their 12-month averages converged at 7% growth. The Winery Job Index continued to increase rapidly, marking the fourth month of increases measuring 20% or more. DtC, tasting room and sales jobs have been on a sharp incline since December. —Jim Gordon Off-Premise Sales Source: , Wines & Vines $ Millions $800 $750 $700 $650 $600 $550 $500 $450 500000000 600000000 700000000 800000000 534912259 550298486 547576689 550861719 533094704 535433611 533075041 530551821 541093547 527911326 559618608 660515757 742182139 571964752 589747391 Jan 2013 Feb Mar April May June July Aug Sept Oct Nov Dec Dec Jan 2014 Feb Up 7% from 2013 Jan Feb Mar apr May June July aug sept Oct Nov Dec Jan Feb Mar apr May June July aug sept Oct Nov Dec 2013 2014 Direct-to-Consumer (DtC) Shipments $250 $200 $150 $100 $50 Source: Wines & Vines/ShipCompliant Model $ Millions Up 12% from 2013 Jan Feb Mar apr May June July aug sept Oct Nov Dec 2013 2014 Red Blends Shipped DtC Source: Wines & Vines/ShipCompliant Model $100-plus $60-$99.99 $30-$59.99 $20-$29.99 $15-$19.99 Under $15 $ Millions $100 $80 $60 $40 $20 0 12-month sales by bottle price through February 2014

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