Issue link: http://winesandvines.uberflip.com/i/602988
Merlot appears to bring a higher average price when labeled as a red blend, so wineries may have an incentive to shift it to a different program. Regarding the other main blenders, Syrah/Shiraz as a vari- etal has declined more dramati- cally in sales than Merlot, while red Zinfandel is a growing cate- gory with an average bottle price of $10.24. The bigger picture of off-prem- ise sales showed domestic wines up 6% for the most recent four weeks and 52-week periods. Vol- ume growth was slower at 2%. Domestic sparkling wines had a great four-week period, increas- ing 13% in value from the same period last year. Sparkling wines also showed 9% value growth dur- ing 52 weeks. —Jim Gordon METRICS December 2015 WINES&VINES 11 O ctober was the biggest month for direct-to-con- sumer (DtC) shipments by U.S. wineries since at least 2010, when Wines Vines Analyt- ics began partnering with Ship- Compliant to measure this form of wine sales. October brought in $288.41 million, for an increase of 2% from October 2014. Volume also rose by 2%, to 533,270 cases. The 12- month growth rate in dollars dipped slightly to 10%. Many winery wine clubs ship to members in October and No- vember, which has helped boost those months to the highest value of shipments each year since 2011. November had higher totals in 2011 and 2012, but in 2013 and 2014 October was a bigger month for DtC sales. Wines & Vines singled out red blends this month for further analysis in the off-premise, DtC shipments and flash sales chan- nels. This fast-growing wine type is the third most valuable in DtC shipments, accounting for $304 million in 12-month sales. Cabernet Sauvignon was the No. 1 choice by far among wines shipped direct to consumer, with $583 million in 12-month sales, followed by Pinot Noir at No. 2 with $316 million. Red blends were close behind with $304 million. DtC customers clearly skewed toward red blends at high per- bottle prices. Many of the $100- plus wines were Bordeaux-style blends from Napa Valley and So- noma County. In fact, $55 million of red blend sales involved per- bottle prices of more than $200. —Jim Gordon Direct to Consumer October DtC Shipments Reach New High of $288 Million OFF-PREMISE SALES OF RED BLENDS VS. MERLOT Source: . Wines Vines Analytics. Sales in multiple outlet and convenience stores, 52 weeks ending in October. $ Millions $800 $700 $600 $500 $400 $300 $200 $100 0 2012 2013 2014 2015 n Red Blends n Merlot OFF-PREMISE RELATIVE MARKET SHARE Source: . Wines Vines Analytics. Sales in multiple outlet and convenience stores, 52 weeks ending Oct. 4, 2015. Cabernet Sauvignon $1.57 Billion Red blends $672 Million Merlot $666 Million Pinot Noir $641 Million Zinfandel $170 Million Top-Selling Reds $3.72 Billion Source: Wines Vines Analytics/ShipCompliant model. 12 months through October 2015. DTC SHIPMENTS OF RED BLENDS BY BOTTLE PRICE $ Millions $120 $100 $80 $60 $40 $20 0 <$15 <$15-$19.99 $20-$29.99 $30-$59.99 $60-$99.99 $100+ Source: Wines Vines Analytics/ShipCompliant model. 12 months through October 2015. DTC SHIPMENTS RELATIVE MARKET SHARE Pinot Noir $316 Million Red blends $304 Million Syrah $54 Million Zinfandel $79 Million Cabernet Sauvignon $583 Million Top-Selling Reds $1.34 Billion