Wines & Vines

April 2015 Oak Barrel Alternatives Issue

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Key Indicators M onthly off-premise sales of domestic wine in February rose 7% from Febru- ary 2014, making two months in a row when the monthly growth rate was higher than the 52-week rate. The data reflect results for combined table wine and sparkling wine pro- duced by U.S. wineries and sold in stores tracked by Chicago, Ill.-based market-research firm IRI. Domestic table wine alone rose by 6.7%, while domestic sparkling wine rose by 13% during the four-week period ending Feb. 22. Sparkling wine accounted for just 5% of do- mestic wine sales value, but its growth was strong enough to boost the combined sales growth rate above 7%. From the longer view of 52-week sales, the domestic growth rate was 5% for table wine and 7% for sparkling, highlighting the opti- mism of the current February data. The news was even better for domestic va- rietal wine in 750ml sizes. These sales grew by 8% in four weeks and 6% in 52 weeks, accord- ing to IRI. Imported table wine also gained substantial sales but at a slower pace. Import sales in gen- eral went up 4% during February compared to a year ago, and varietal imports in 750ml sizes rose by 7%. These numbers reflected signifi- cant increases over the 52-week sales growth rates of 2% and 4% for imports. Imported sparkling wine and Champagne rose 19% in sales for February alone, and 14% during 52 weeks. Italy continued to drive the rapid growth, with 24% more sales in February and 19% more in 52 weeks. California wine producers and industry ana- lysts in recent months have been discussing W inery hiring activity rose sharply in February compared to February 2014. Hospitality jobs and wine- making jobs were the subcategories most responsible for the increase. Job postings for winemakers shot up 53% in February compared to February 2014. Postings for winery DtC, tasting room and retail jobs grew by 26% from the same month last year. Winery sales and marketing job hiring activity in February was down 10% from February 2014. Winejobs.com created the Winery Job Index to show how active winery hiring is in general and in the the three sub-categories. January 2007 was set with a base index of 100. The following months' indexes reflect percentage changes since that base index, pro- viding a quick way to gauge rises and drops in job postings. Off-Premise Sales Winery Job Index Complete data is available at winesandvines.com/metrics METRICS 10 WINES&VINES April 2015 Wine Industry Metrics Grow in February The wine industry economy looked very positive in February, when off-premise sales, direct-to-consumer shipments and the Winery Job Index all rose compared to a year ago. The Winery Job Index was the most promising metric, showing 26% growth in February and 16% growth over the past 12 months. February off-premise sales also beat their 12-month average. Domestic Wine Sales Grow by 7% As Lower Priced Segments Decrease Job Index Rises 26% Over 2014 Winery Job Index MONTH Feb. 2015 275 Feb. 2014 219 12 MONTHS Feb. 2015 238 Feb. 2014 206 MONTHLY INDEX 26% 16% Direct-to-Consumer Shipments MONTH Feb. 2015 $132M Feb. 2014 $126M 12 MONTHS Feb. 2015 $1,823M Feb. 2014 $1,598M MONTHLY SHIPMENTS 4% 14% Off-Premise Sales MONTH Feb. 2015 $643M Feb. 2014 $601M 12 MONTHS Feb. 2015 $7,954M Feb. 2014 $7,560M MONTHLY SALES 7% 5% Source: , Wines Vines Analytics. Domestic table wine sales in multiple-outlet and convenience stores, four weeks ending Feb. 22, 2015. $ Millions $800 $700 $600 $500 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2014 2013 2015 2014 Source: winejobs.com winejobs.com Index 350 300 250 200 150 100 50 2015 2014 2014 2013 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb $ Millions $300 $250 $200 $150 $100 $50 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Source: Wines Vines Analytics/ShipCompliant 2015 2014 2013 2014

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