Wines & Vines

January 2016 Unified Symposium Issue

Issue link: http://winesandvines.uberflip.com/i/619725

Contents of this Issue

Navigation

Page 12 of 171

METRICS January 2016 WINES&VINES 13 D irect-to-consumer ship- ments experienced an un- usual surge in value from October to November. Instead of retreating slightly as usual, they rose by $22 million. This is the first time November has been the biggest month for DtC shipments since 2010, when Wines & Vines first joined Ship- Compliant in tracking DtC ship- ments from U.S. wineries. It also showed the fastest growth since April in monthly value compared to the same month a year earlier. DtC shipment value increased 13% in November over the same month in 2014 to reach $310 mil- lion, bringing the 12-month total to $1.96 billion. This was a rise of $36 million from the November 2014 total. The volume of DtC shipments in November rose to 558,199 9-liter cases. This year's growth of only 4% in September and 2% in October, however, may have represented a pause in demand that needed to be made up later. High November sales brought the 12-month total to a more predictable level. DtC sales were set to surpass $2 billion per 12 months in December. Since 2010, the total DtC mar- ket has grown by around $800 million at the rate of about $200 million per year. Cabernet Sauvignon priced $60 per bottle and higher domi- nated other varietals and types for DtC shipments in that price range during the 12 months through November. $60-plus wines ac- counted for 46% of DtC shipment value. The market for DtC shipments looks very different from the over- all off-premise wine market. Prices skew much higher for DtC, so that the segments of $60-$79.99, $80- $99.99 and even $200 and more per bottle are significant. For example 322,634 cases of Cabernet Sauvignon priced $60 and above were shipped direct, totaling $463 million. Pinot Noir was the runner up in this range with 138,860 cases worth $129 million. All wines priced $60 per bottle and above reached 709,894 cases and $909 million. —Jim Gordon Direct to Consumer November Becomes Biggest Month for DtC Shipments OFF-PREMISE SALES FOR $20-PLUS Source: . Wines Vines Analytics. Sales in multiple outlet and convenience stores, 52 weeks ending Nov. 30, 2014 and Nov. 29, 2015. 0 $20 $40 $60 $80 $100 $120 $ Millions Cabernet Sauvignon Chardonnay Pinot Noir Pinot Gris Red Blends Sauvignon Blanc Zinfandel Merlot n = 2015 n = 2014 Source: . Wines Vines Analytics. Sales in multiple outlet and convenience stores, 52 weeks ending Nov. 29, 2015. OFF-PREMISE BOTTLE PRICE CHANGE FOR $20-PLUS -$2.50 $2.00 -1.50 -$1.00 -$0.50 0 $0.50 Merlot Chardonnay Pinot Noir Zinfandel Cabernet Sauvignon Sauvignon Blanc Red Blends Pinot Gris DTC SHIPMENT SALES FOR $60-PLUS Source: Wines Vines Analytics/ShipCompliant model. 12 months through November 2015. Cabernet Sauvignon Chardonnay Pinot Noir Pinot Gris Red Blends Sauvignon Blanc Zinfandel Merlot 0 $100 $200 $300 $400 $500 $ Millions

Articles in this issue

Archives of this issue

view archives of Wines & Vines - January 2016 Unified Symposium Issue