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D A T A CENTER High-Priced Wines Are Hot Domestic varietals at $20-plus increase 26% ines 0% 10% 20% 30% 40% 50% 011 s, . S Dollar Sales Growth Rate by Varietal for $20-Plus Wines 43% 35% 32% 26% 18% 12% Cabernet Sauvignon Chardonnay Fumé/ Sauvignon Blanc Merlot Pinot Noir Total table wine dollar sales growth rate in major U.S. food and drug stores, 52 weeks ending Dec. 25, 2011. an Rafael, Calif.—Domestic table wines priced at $20-plus grew faster than any other bottled wine category during December. They beat the previous year's figure by 26% and reached $24.7 million in revenue at major U.S. food and drug stores. During the previous 52 weeks, the growth rate in this price category ran even higher, 29% for $191 million in sales. The price point of $20-plus is the highest that Symphony IRI (SIRI) breaks out when analyzing check stand scan data from stores. While there is a tendency to think that this category's hot growth reflects a recovery from the recession and bank crisis of 2008, the numbers don't bear that out. High-priced wines recovered immediately in 2009 and then grew to new heights in both 2010 and 2011. Domestics hit $4.69 billion Domestic table wines at all price points grew 8% over a year ago in the four weeks ending Dec. 25, 2011, according to SIRI, a Chicago-based market research firm. Sales reached $448 million over four weeks, and $4.69 billion over 52 weeks, a 7% annual growth rate. Among varietal table wines selling for $20-plus in both domestic and imported categories, Cabernet Sauvignon had the highest 52-week sales at $64.5 million, while also increasing at the second- highest rate (35%) of the 10 most popular varietals. Pinot Noir continued to grow the fastest—its sales expanded by 43% and reached $22.4 million. Chardonnay up 18% Chardonnay is the second-biggest varietal in dollars at $20-plus, and it grew at a very respectable 18%. Syrah/Shiraz may be shrinking by double-digits at other price points, but the high-end wines grew 16% over 52 weeks. Red Zinfandel sales were $7.5 million over 52 weeks, a nice increase of 26%. —Jim Gordon December Sales for $20-Plus Wines $10 $15 $20 $25 $0 $5 0% 10% 20% 30% 40% 50% 2007 2008 2009 2010 2011 $20-plus domestic table wine sales, major U.S. food and drug stores, 52 weeks ending Dec. 25, 2011. Dollar Sales Growth Rate by Vari Red Blends/ Zinfandel Meritage 35% INSURANCE FOR WINERIES Great Price, Broad Coverage and Responsive Friendly Service. Wine Team - Debra Costa, Brian Stephenson and Liz Bishop. Because You're Different! 35% 32% 101 Second Street #120 Petaluma, CA 94952 707.781.3400 www.heffins.com License # 18% 12% Cabernet Sauvignon Chardonnay 0564249 Fumé/ Sauvignon Blanc Total table wine dollar sales growth rate U.S. food and drug stores, 52 weeks ending D Wines & Vines FeBRUARY 2012 11 Merlo Growth Rate $ Millions Growth Rate