Wines & Vines

December 2014 Unified Sessions Preview Issue

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M E T R I C S M E T R I C S W ine sales in October and the 52 weeks ending Oct. 5 both reached 6% in the off-prem- ise sector compared to the same time year ago, mark- ing the first time since April that the monthly growth rate moved above 5%. The results represent combined domes- tic table and sparkling wine sales as reported by IRI, the Chicago, Ill.-based market- research firm. Red blends/Meritage wines continued to lead the major varietals/types in sales growth during the past year. The cate- gory grew by 15% in sales and is now approaching the sales volume of Merlot in terms of 750ml and 1.5-liter bottles. Merlot in the same packaging dropped 4% in sales. The comparison to Syrah/ Shiraz is even more startling. Domestic and imported Syrah and Shiraz continued their steady and long-running decline, losing 13% in sales. The drastic decline in sales of Australian Shiraz imports is a big factor in the decrease. Red blend sales now are five times higher than Syrah/Shiraz. This does not mean Syrah and Shiraz grapes and wine are go- ing to waste, however—at least in domestic production. Many red blends use Syrah and Merlot as substantial compo- nents. In the case of the brand that was a category pioneer, Ménage à Trois, Zinfandel is also part of the blend. Red blends had the highest total sales in the $8-$10.99 price segment, according to IRI. Red blends from this segment grew by 19% in sales and volume. At higher price segments, red blends grew at even faster rates, but from much smaller bases. Syrah, however, lost sales at every price point in IRI's analysis, and notably dropped by 17% in the $8-$10.99 category that was so good for red blends. The news for Merlot in off-premise performance was better in comparison. For one thing, Merlot is a big, mature sales category second only to the leader, Cabernet Sauvignon. While Merlot sales dropped in several price seg- ments, they also increased in the $11-$14.99 segment and the $20-plus segment. —Jim Gordon Celebrating Over 35 Years of Serving the Wine Industry Premium French, American & Eastern European Oak Barrels French Oak Alternatives Tel: (707) 257-3582 sales@bouchardcooperages.com www.bouchardcooperages.com W i n e s & V i n e s D e C e M B e R 2 0 1 4 11 Off-Premise Sales Climb; While Red Blends Lead 52-week sales ending Oct. 5, 2014, in 750ml and 1.5L at multiple-outlet and convenience stores Source: , Wines & Vines Sales of Red Blends vs. Syrah and Merlot $ Millions Red Blends Merlot Syrah 0 $100 $200 $300 $400 $500 $600 $565,456,640 $573,669,381 $113,249,374 52-week sales ending Oct. 5, 2014, in 750ml and 1.5L at multiple-outlet and convenience stores Source: , Wines & Vines Growth Rate of Red Blends vs. Syrah and Merlot Red Blends Merlot Syrah -15% -12% -9% -6% -3% 0 3% 6% 9% 12% 15% 15% -4% -13%

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