Wines & Vines

September 2015 Finance Issue

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Key Indicators B oth four-week and 52-week sales of domestic table and sparkling wine at off-premise locations grew 6% in value in July compared to a year ago, according to an analysis of data from IRI, the Chicago, Ill.- based market-research firm. Domestic spar- kling wine sales alone increased 9% in July and 8% in 52 weeks, buoying the overall per- centages slightly. Domestic wine sales continued to grow faster than imports and held 81% market share in value and 84% in case volume, according to IRI's multiple-outlet and convenience store data through July 12. Examining domestic and imported sales to- gether, six varietal/wine type categories drove the growth across multiple price points with increases of 9% or more in the past year, while the relatively small segment of $20-plus wines had six varietals with double-digit growth. Sauvignon Blanc experienced the fastest sales growth rate of any major varietal or wine type during the most recent 52-week period— this was from a relatively small base of more than $420 million in the stores that IRI mea- sures. Red blends/Meritage wines were close behind in rate of growth, but from a bigger base of $654 million. Pinot Noir, Pinot Gris/Grigio and Cabernet Sauvignon were close in growth rates at 9% or higher, yet Cabernet's overall contribution was much larger due its base of $1.5 billion. The increase from the previous 52 weeks was $122 million for Cabernet. Pinot Noir totaled less than half that at $628 million, and Pinot Gris/ Grigio accounted for $861 million. The highest price segment that IRI calls out in its monthly reports is $20-plus, and recently it has been growing at the fastest rate while remaining relatively small. Sales of domestic table wine in this segment accounted for just 4% market share, while the dominant segment of $8-$10.99 was worth $3.8 billion and held 40% market share. W hile winery hiring activity continued to grow, the pace of winery job growth slowed slightly in July, ac- cording to Winejobs.com. The July Winery Job Index was up 4% compared to the same month the previous year. The 12-month index rose 18% higher than the previous 12-month period in July. Although the winemaking sub-index for July dipped compared to July 2014, the post- ings that comprise the index show strength in full-time and harvest-help cellar and produc- tion postings. Winejobs.com has begun captur- ing winemaker and enologist jobs separate from cellar, lab and production jobs, and the dominant counts were on the production side. Hospitality job hiring activity increased 12% in July compared to July 2014—the smallest July gain since 2009. Winejobs.com reported that July sales and marketing hiring activity rose 16% from the previous July, which had seen a 22% drop. Off-Premise Sales Winery Job Index Complete data is available at winesandvines.com/metrics METRICS 12 WINES&VINES September 2015 Winery Job Index MONTH July 2015 323 July 2014 312 12 MONTHS July 2015 262 July 2014 222 MONTHLY INDEX 4% 18% Off-Premise Sales MONTH July 2015 $603M July 2014 $568M 12 MONTHS July 2015 $8,136M July 2014 $7,701M MONTHLY SALES 6% 6% Direct-to-Consumer Shipments MONTH July 2015 $66M July 2014 $61M 12 MONTHS July 2015 $1,906M July 2014 $1,674M MONTHLY SHIPMENTS 14% 9% Source: winejobs.com Source: , Wines Vines Analytics. Domestic table and sparkling wine sales in multiple-outlet and convenience stores, four weeks ending July 12, 2015. $ Millions $800 $700 $600 $500 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2014 2013 2015 2014 Source: Wines Vines Analytics/ShipCompliant $ Millions $300 $250 $200 $150 $100 $50 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2015 2014 2013 2014 winejobs.com Index 500 400 300 200 100 2015 2014 2014 2013 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Sales, Hiring Achieve Moderate Growth in a Slow Month Fast-Growing Pinot Noir, Red Blends and Cabernet Sauvignon Boost Sales Rate of Growth Slows Slightly

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