Wines & Vines

May 2014 Packaging Issue

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M E T R I C S S an Rafael, Calif.—Although the growth rate for off-premise sales of domestic table and sparkling wines slowed to 5% during the most recent four-week period, the 12-month growth rate remained steady at 7%. Table wine volume grew 3% in 12 months and 3% in four weeks, according to IRI, the Chicago, Ill.-based market-research firm. Domestic sparkling wine grew 4% in value and 3% in volume over 12 months. Bottle prices for domestic table wine edged up 19 cents, on average, to $5.94 during the previous 12 months, apparently adding to total sales while not stopping volume growth. Price increases in the more expensive wine segments correlated loosely with revenue increases, IRI data showed. The highest priced segment took the biggest per-bottle increase, 47 cents, and grew 18% in value. The three next lower priced segments took increases of a few cents each per bottle, and they also grew between 7% and 16% in value. $20-plus segment Growth in the $20-plus (per bottle) seg- ment has stayed consistently in the double digits for several years. To put it in per- spective, this segment comprises less than 1% volume share, but it claims a 12% share by value. Among wine varietals in the $20-plus price segment, Chardonnay increased 14% in value, Cabernet Sauvignon grew 19%, and Pinot Noir rose 23% during the previous 12 months. Wines priced $8-$10.99 per bottle claimed 20% market share by value and gained $152 million. Not far behind in dollar gains was the $11-$14.99 segment, which added $120 million. The $15-$19.99 segment grew by the slowest percentage of the four highest-priced segments. It accounted for a 5% dollar share. Washington up 8% Washington wine sales increased 8% dur- ing the previous 12 months, beating Cali- fornia's 7% rise. Imports improved just 1% overall. Australian wine sales dipped 6% in value, and Italian sales rose 3%. The news for domestic sparkling wine was positive but not quite as bright as that for table wines. U.S. bubbly increased in sales by 5% during 12 months. Import- ed sparkling wines went up 10% in sales, led by Italy with 15% growth. The fastest growing price segment for domestic spar- kling was also the highest, as those priced at $18-$34.99 per bottle rose by 12%. Glass bottles in the standard 750ml size are of course the most popular pack- age format in the food, drug, liquor and convenience stores whose checkstand scan data IRI analyzes. With $5.9 billion in sales during 12 months, this format almost quadruples the performance of the next nearest format, 1.5-liter glass magnums. The 750ml size grew 6%, while the 1.5-liter size grew by 3%. Aseptic pouch- es or cartons had the fastest growth rate of 21% but from a small sales base. —Jim Gordon M E T R I C S TTB LABEL APPROVALS Low per-label costs Gov't. Liaison Negotiations or Footwork Reasonable Hourly Rates TRADEMARK SEARCHES 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. Phone or write for details. 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 GovtLiaison_Dir08 11/29/07 2:00 PM Pag W i n e s & V i n e s M AY 2 0 1 4 11 Domestic Wines Continue 7% Growth in Sales Change in Bottle Price Source: , Wines & Vines $8-10.99 $0.50 $0.40 $0.30 $0.20 $0.10 0 $11-14.99 $15-19.99 $20-plus Domestic table wine, 52 weeks through March 23, 2014 Percentage Change in Sales $8-10.99 20% 15% 10% 5% 0 $11-14.99 $15-19.99 $20-plus Domestic table wine, 52 weeks through March 23, 2014 Source: , Wines & Vines

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