Wines & Vines

May 2015 Packaging Inssue

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increased their dollar share by 0.5 points to 3.5%. Among domestic wines in glass bottles, those priced at $20 and above had the highest sales growth rate of 19% during the past 52 weeks. Their average price dropped 50 cents to $25.95. Domestic sparkling wine sales rose 10% in March compared to March 2014 and 7% in 52 weeks, according to IRI. They claimed 52% of sparkling sales by value and 60% by volume. Domestic sparkling wine averaged $8.60 per bottle, up 16 cents in 52 weeks. Imported sparkling wine climbed 19% in March sales. Italy led sparkling imports with 30% market share in value and an average price of $11. France had 10% market share by value and an average price of $49. —Jim Gordon METRICS May 2015 WINES&VINES 13 Direct to Consumer Spurred by Wine Clubs, DtC Shipments Rise 19% in March T he value of direct-to-consumer ship- ments from U.S. wineries rose 19% in March compared to March 2014, and the 12-month growth rate stayed at last month's level of 14%. March is a big month for wine club shipments, including numerous high-value purchases, and those contributed s i g n i f i c a n t l y t o t h e m o n t h l y t o t a l o f $251,896,707. Average bottle price in March was $44.98 compared to $43.75 in March 2014, and com- pared to $38.40 for the 2014 overall average bottle price for DtC shipments. In 2014, March had the third-highest average bottle price after October and November, and in 2013 March had the highest average bottle price. March DtC shipment volume of 466,712 cases was also up 61,888 cases (or 15%) from March 2014. We took a closer look at Northwest wineries' DtC shipments this month. Oregon wineries passed Washington wineries in value of DtC shipments about two years ago and stretched their lead in the 12 months ending in March. Oregon direct-shipped $91,155,582 worth of wine during that period, up 38% from the previ- ous 12 months. This compared to Washington's value of $61,159,178, which was up 13%. The average bottle price for Oregon DtC shipments grew $2.18 in three years to $40.27, while Washington's average bottle price de- creased by $1.18 to $35.44. DtC shipment market share by varietal in Oregon and Washington also looks very different. The accompanying graphs show the product mixes in the adjoining states. It's no surprise that Pinot Noir dominates Oregon direct shipments, but the extent of its dominance—70% market share by value—is quite unusual. The next closest varietal, Chardonnay, had only a 6% share. Washington's most popular varietal or type in DtC shipments was Cabernet Sauvignon. But with a 24% share compared to a 21% share for red blends, it was not a commanding lead. The high diversity of wine types that Washington wineries ship to consumers is further illustrated by Syrah in third place. —Jim Gordon Source: , Wines & Vines. Domestic table wine in glass and box packaging, 52 weeks through March 22, 2015, multiple-outlet and convenience stores. Source: , Wines & Vines. Domestic table wine in glass packaging, 52 weeks through March 22, 2015, multiple-outlet and convenience stores. OFF-PREMISE DOLLAR SHARE OFF-PREMISE CHANGE IN DOLLAR SHARE Percentage Bottle Price -1.0% -0.5% 0 0.5% 1.0% 1.5% 2.0% $20+ $15-$19.99 $11-$14.99 $8-$10.99 $5-$7.99 $3.50-$4.99 <$3.50 $8 and up Less than $8 Source: Wines Vines Analytics/ShipCompliant model. 12 months through March 2015. DTC SHIPMENT VALUE SHARE WASHINGTON $61,159,178 OREGON $91,155,582 Cabernet Sauvignon Pinot Noir Other Red Syrah Red Blends All Other All Other Red Blends Syrah Chardonnay Pinot Noir Source: Wines Vines Analytics/ShipCompliant model. 12 months through March 2015. DTC SHIPMENT VALUE 2013 2014 2015 100 80 60 40 20 0 $ Millions n = Oregon n = Washington

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