Wines & Vines

March 2016 Vineyard Equipment & Technology Issue

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T he 15% sales growth of di- rect-to-consumer shipments in January easily beat the 12-month average of 9%, accord- ing to the Wines Vines Analytics/ ShipCompliant model. It was the largest one-month rate of growth since April 2015. January shipments from U.S. wineries are typically among the lowest of the year, however, so the change was from a small base. The case volume was the lowest for a single month since January 2015, though it did rise 3% in comparison. DtC shipment value reached $86 million for the month, an $11 million improvement from a year ago. The 12-month value remained just under the $2-bil- lion mark. A flattening trend in average bottle price has emerged for DtC shipments. The price change for the most recent 12 months mea- sured just 7 cents (or 0.2%) to $38.27. Half the major winery origin districts saw decreases in average prices. In Sonoma and other downtrending areas, the decrease is partly due to newly active DtC wineries offering products at lower prices, not from other brands dropping prices. Napa, Oregon and other U.S. regions, however, saw average bottle prices go up. Napa's average grew by 5% to $61.36 in the 12 months through January. Oregon's average price increase was 1%. Average bottle price for "Rest of U.S." (the entire country except California and the Northwest states) went up 6% to $19.46. Prominent states in this category include New York, Texas, Michi- gan, Virginia and North Carolina. The Wines Vines Analytics/ ShipCompliant Model is dedicated to wines shipped directly from wineries to the end consumer. It tracks sales by winery region, an- nual production, destination of shipments, varietal/wine type and price points. —Jim Gordon Direct to Consumer Source: Wines Vines Analytics/ShipCompliant model. 12 months through January 2016. DTC SHIPMENT BOTTLE PRICE CHANGE BY REGION Percentage 6% 4% 2% 0 -2% -4% -6% -8% 10% Napa $61.36 $40.13 $19.46 $28.71 Rest of CA Oregon Washing- ton Rest of U.S. Sonoma $26.06 $33.98 J anuary off-premise sales growth of do- mestic wine as measured by IRI reached 10%, the highest four-week growth rate in 23 months, and boosted the 52-week growth rate to 7%. Domestic sparkling wine sales grew by 18% in January compared to a year ago, which helped boost the total. Domestic table wine sales increased by 9%. The four-week period spanned Dec. 28 to Jan. 24, so the data in- cluded New Year's Eve sales. Sales of domestic wine by case volume in January rose 7% from January 2015. Sparkling wine volume grew 14% and accounted for 8% of cases of domestic wine sold in the multiple- outlet and convenience stores tracked by IRI, the Chicago, Ill.-based market-research firm. The top 20 table wine brands in off-premise sales shifted somewhat since Wines & Vines last displayed them seven months ago. Woodbridge by Robert Mondavi moved from No. 4 to No. 3, replacing Franzia. Chateau Ste. Michelle passed Beringer to take the No. 7 spot. Liberty Creek moved onto the list at No. 20, and Rex Goliath dropped off. Barefoot from E. & J. Gallo kept the No. 1 slot as its sales grew 11% during the past 52 weeks. —Jim Gordon Off-Premise Store Sales Grow 10% in January; Woodbridge Hits No. 3 METRICS March 2016 WINES&VINES 11 January DtC Shipments Grow Fast From Small Base OFF-PREMISE TOP 20 TABLE WINE BRANDS Rank Brand Parent/Importer 52-Week Sales (Millions) Sales Change Average Price (750ml) 1 Barefoot E. & J. Gallo $656 7% $5.59 2 Sutter Home Trinchero Family Estates $357 0% $5.32 3 Woodbridge by Robert Mondavi Constellation Brands $329 6% $5.52 4 Franzia (box) The Wine Group $329 1% $2.22 5 Yellow Tail Deutsch Family Wine & Spirits $285 -3% $5.68 6 Kendall Jackson Vintner's Reserve Jackson Family Wines $207 8% $12.04 7 Chateau Ste. Michelle Ste. Michelle Wine Estates $174 10% $9.90 8 Beringer Treasury Wine Estates $172 1% $5.03 9 Ménage à Trois Trinchero Family Estates $165 13% $9.60 10 Cupcake Vineyards The Wine Group $161 0% $9.05 11 Gallo Family Vineyards E. & J. Gallo $154 0% $4.14 12 Apothic E. & J. Gallo $141 19% $9.52 13 Black Box Wines Constellation Brands $130 18% $5.01 14 Carlo Rossi E. & J. Gallo $127 -2% $2.51 15 Bogle Vineyards Bogle Vineyards $124 14% $9.49 16 Clos Du Bois Constellation Brands $115 12% $9.61 17 14 Hands Ste. Michelle Wine Estates $103 15% $9.79 18 Robert Mondavi Private Selection Constellation Brands $101 -5% $8.35 19 Livingston Cellars E. & J. Gallo $97 -4% $3.24 20 Liberty Creek E. & J. Gallo $97 18% $3.48 Source: . All table wine in multiple outlet and convenience stores, 52 weeks through Jan. 24, 2016.

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