Wines & Vines

Key Indicators O ff-premise sales of domestic wine seemed to keep some of the holiday cheer flow- ing this January, gaining 7% in value compared to January 2014, according to IRI, the market-research firm based in Chicago, Ill. Domestic sparkling wine sales grew by 17% during IRI's four-week period from Dec. 29 to Jan. 25, compared to 6% for table wine sales. This period included one extra pre-New Year shopping day than the previous year, which may have contributed to the dramatic differ- ence in sparkling wine sales. Shoppers' favorite style of domestic spar- kling wine was brut in the multiple-outlet and convenience stores whose sales are analyzed by IRI. Domestic brut grew by 19% in value during four weeks, and grew by 7% during the most recent 52-week period. Its volume on a yearly basis was up 6%. Domestic (still) table wines grew by 6% in value and 3% in volume in four weeks, and by 5% in value and 3% in volume during 52 weeks. These grew in bottle price by 2% or 14 cents. In contrast, imported table wine shrank by 2% in volume but rose by 28 cents in aver- age price per bottle. Extra dry came in second for domestic sparkling sales. When considering domestic and imports together, all the major varietals or types grew in bottle price over the previous year. These are shown in the graphs on the next page in order of sales revenue with Chardonnay at the top. It's clear that Pinot Noir and Cabernet Sauvi- gnon led the way with more than 3% growth each. Red blends and Sauvignon Blanc grew the most in volume compared to a year ago, while also rising in price. —Jim Gordon W inery hiring activity started 2015 with a sharp increase of 26% over January 2014, and the 12-month average growth in the Winery Job Index was 15%. Winery hospitality jobs drove much of the growth, according to data from Wine- jobs.com. Winemakers were in 12% higher demand in January than in January 2014, according to hiring activity on Winejobs.com. Activity in winery sales and marketing jobs rose by 13% in January. Meanwhile, hospitality jobs were the fastest growing category of win- ery job activity in January, growing by 44% compared to a year ago. Vineyard jobs were also up significantly in January, although the growth was from a small base since vines are typically dormant during this part of the year. Off-Premise Sales Winery Job Index Complete data is available at winesandvines.com/metrics metrics 10 Wines&Vines March 2015 Off-Premise Sales and Winery Job Index Rise in January The January metrics rose by considerably better-than-average rates in off-premise sales of domestic wine and in the Winery Job Index com- pared to January 2014. The pace of direct-to-consumer shipments, however, dipped into negative numbers as lower priced wines entered this channel in January. DtC shipments value was 15% higher for the past 12 months. Sparkling Wine Boosts Growth Rate Of Domestic Wine in Off-Premise Sales 2015 Starts With 26% Job Growth Off-Premise Sales MOnth Jan. 2015 $623M Jan. 2014 $583M 12 MOnthS Jan. 2015 $7,912M Jan. 2014 $7,514M MOnthly SaleS 7% 5% Winery Job Index MOnth Jan. 2015 259 Jan. 2014 205 12 MOnthS Jan. 2015 233 Jan. 2014 203 MOnthly InDex 26% 15% Direct-to-Consumer Shipments MOnth Jan. 2015 $75M Jan. 2014 $77M 12 MOnthS Jan. 2015 $1,818M Jan. 2014 $1,584M MOnthly ShIPMentS 3% 15% Source: , Wines Vines Analytics. Domestic table wine sales in multiple-outlet and convenience stores, four weeks ending Jan. 25, 2015. $ Millions $800 $700 $600 $500 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2014 2013 2015 2014 Source: winejobs.com winejobs.com Index 350 300 250 200 150 100 50 2015 2014 2014 2015 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan $ Millions $300 $250 $200 $150 $100 $50 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Source: Wines Vines Analytics/ShipCompliant 2015 2014 2013 2014

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