Issue link: http://winesandvines.uberflip.com/i/602988
Key Indicators T he off-premise wine channel observed a milestone in early October, when red blend wines passed Merlot in sales for the first time, making red blends second only to Cabernet Sauvignon among red wines sold in U.S. retail stores. Buoyed by fast-growing brands in- cluding Apothic, Ménage à Trois, Cup- cake and 14 Hands, the category of red blends and Meritage wines tallied $6 million more than Merlot in the 52-week period ending Oct. 4, ac- cording to IRI. The Chicago-based market-research firm's report, based on sales from multiple-out- let and convenience stores, said red blends were up 14% in value during that period, while Merlot dropped 3%. Merlot continued to lead in terms of volume, however, selling 9.9 million cases versus 6.5 million for red blends in the stores tracked by IRI. The volume gain for red blends was 12% over the previous period, while Merlot dipped 4%. Merlot's low average bottle price ($5.62) compared to red blends' aver- age of $8.64 explains the difference between value and volume perfor- mance. Red blends gained 13 cents per bottle during the period, while the av- erage Merlot price went up by 10 cents per bottle. IRI's red blends/Meritage cat- egory is a broad one that includes both dry and sweet red table wines as well as more traditional Bor- deaux-style red blends often called Meritage, as well as the newer breed of blends that are often made by combining Merlot, Syrah and Zinfandel. The sales data quoted here combine domestic and im- ported wines. T he Winery Job Index in October reached its highest monthly growth rate since April, rising 29% from the previous October. The 12-month growth rate in winery hiring activity inched up 1 point to 20% as the harvest season came to a close. Hiring growth in administration and finance contrib- uted to the October rise. Winemaking job activity rose by 10% over October 2014. The rise was from a small base, however, and the winemaking jobs index dipped to its lowest point of the year. This is normal because few wineries choose to change winemakers during the harvest period. Wineries appeared confident that direct sales would continue into the winter months as they looked for new people to fill DtC, hos- pitality and retail jobs at an 18% higher rate than in October 2014. After huge increases in August and Septem- ber, hiring activity for sales and marketing jobs grew by 9% in October vs. October 2014. Off-Premise Sales Winery Job Index Complete data is available at winesandvines.com/metrics METRICS 10 WINES&VINES December 2015 Winery Job Index MONTH October 2015 179 October 2014 139 12 MONTHS October 2015 271 October 2014 226 MONTHLY INDEX 29% 20% Off-Premise Sales MONTH October 2015 $604M October 2014 $572M 12 MONTHS October 2015 $8,267M October 2014 $7,790M MONTHLY SALES 6% 6% Direct-to-Consumer Shipments MONTH October 2015 $288M October 2014 $284M 12 MONTHS October 2015 $1,919M October 2014 $1,751M MONTHLY SHIPMENTS 10% 2% Source: , Wines Vines Analytics. Domestic table and sparkling wine sales in multiple-outlet and convenience stores, four weeks ending Oct. 4, 2015. October Metrics Indicate a Thriving Wine Industry Red Blends Overtake Merlot as Second Most Valuable Red Wine Type Hiring Stays Up as Harvest Ends $ Millions $800 $700 $600 $500 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2014 2013 2015 2014 Source: Wines Vines Analytics/ShipCompliant $ Millions $300 $250 $200 $150 $100 $50 0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2015 2014 2013 2014 Source: winejobs.com winejobs.com Index 500 400 300 200 100 0 2015 2014 2014 2013 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct