Wines & Vines

September 2014 Wine Industry Finance Issue

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M E T R I C S M E T R I C S C hardonnay remained the most valuable wine type in the U.S. off- premise market during the past year, according to IRI, but sales of Cabernet Sauvignon (No. 2) grew at a faster rate, and sparkling wine emerged as No. 3. Chardonnay captured 19% market share in value, bringing in $1.8 billion in the stores tracked by IRI. Many of the same trends played out during the 52 weeks ending July 13 as a year ago, when Wines & Vines last looked closely at market share and growth rates by varietal or type. The newest data from IRI show that the leading red wine, Cabernet Sauvignon, sped up from a 7% growth rate last year to 10% this year, totaling $1.39 billion in the hundreds of stores tracked by the Chicago, Ill.-based market-research firm. The growth of Chardonnay slowed by one percentage point to 3% growth. Sparkling growth from Italy Sparkling wine virtually ties with Pi- not Grigio in terms of sales. Sparkling brought in $780 million, and Pinot Grigio sold $777 million in the stores tracked. Imported sparkling wine drove most of the growth. While the sparkling category grew by 8%, imported sparkling grew by 11%, and Italian sparkling grew by 15%. Growth rate slows for red blends Last year at this time it was news that Pinot Grigio had grown enough to edge out Merlot in relative market share. This year, however, Pinot Grigio garnered 8% market share among the nine leading types, while Merlot managed 7%. Red blends/Meritage wines have built sales faster than all the other eight major types in recent years, so it was inevitable that they slowed at some point. This group of non-varietally labeled red wines grew by 16%, compared to 21% a year ago. Focusing on domestic table and spar- kling wines, combined sales grew by 6% during the 52-week period. Domestic wine's market share rose to 81%. —Jim Gordon W i n e s & V i n e s s e P T e M B e R 2 0 1 4 11 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 Irrigation Dripline Holder •DripLok™ won't stretch out of shape. •Its built-in 'saddle' prohibits cutting into drip tubing. •Withstands mechanical harvesting stress. •Competitively priced. •Conveniently packaged. •Will last up to 5 years in the field. •Available in 2 sizes. Won't deteriorate in hot or cold weather or in harsh chemical environments. Toll-Free: 877.552-4828 909-464-1373 • Fax: 909-464-1603 For your nearest dealer, contact: DRIPLOK™ Wines-Vines DL Ad 7 2014_Wines/Vines DL Ad 9/00 Chardonnay at No. 1, While Cabernet Gains Source: , Wines & Vines Growth in Off-Premise Sales by Varietal White Zinfandel Merlot Chardonnay Sparkling Pinot Grigio Cabernet Sauvignon Pinot Noir Sauvignon Blanc Red Blends Includes domestic and imported, 52-week sales ending July 13, 2014, multiple outlet and convenience stores. -10% -5% 0 5% 10% 15% 20% -8% 3% 8% 9% 10% 10% 12% 16% -3% Source: , Wines & Vines Share of Market by Varietal Includes domestic and imported, 52-week sales ending July 13, 2014, multiple outlet and convenience stores. Pinot Grigio 8% Cabernet Sauvignon 14% Other (e.g., non- varietal) 29% Chardonnay 19% Sparkling 8% Pinot Noir 6% Red Blends 6% White Zinfandel 3% Merlot 7%

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