Wines & Vines

April 2016 Oak Barrel Alternatives Issue

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D irect-to-consumer shipments saw a large one-month jump in February, increasing in value by 32% from a year ago. The increase helped to bump the 12-month sales total to 11%, which is its highest mark since September. February's unusually large increase was due in part to the once-every-four-years re- turn of leap day, Feb. 29, which added an extra day that happened to fall on a Monday. (Mon- day is typically the busiest day of the week for DtC shipments.) Sales in the DtC shipment channel were dominated by wines priced $30 per bottle and above. Sales growth among the price ranges was almost equally strong at the bot- tom as at the top. —Jim Gordon Direct to Consumer O ff-premise sales of domestic table wine and sparkling wine rose by 4% in Feb- ruary compared to February 2015, ac- cording to Chicago, Ill.-based market research firm IRI. The IRI report from multiple-outlet and convenience stores also showed that sales increased 6% during the most recent 52 weeks. Volume grew 3% for 52 weeks, while the volume in February was up just 1% from 2015. IRI recently created two new high-end price segments to break down off-premise sales in their reports, which are released every four weeks. The change helps wineries and the trade to focus on the fast rates of growth in these segments. In terms of sales growth, domestic table wines priced $20-$24.99 per bottle and pack- aged in glass are the hottest category, with a 30% sales increase in 52 weeks. The dollar total in this category, however, is small com- pared to the most popular segments priced at $4-$7.99 and $8-10.99 per bottle. A few dollars make a big difference for con- sumers even at the high end, as demonstrated by the relatively more modest growth rate of 12% for wines priced $25 and above. —Jim Gordon Off-Premise February Off-Premise Domestic Wine Sales Up 4% Source: , Wines & Vines. Total table wine in glass packaging 52 weeks through Feb. 21, 2016, from IRI multiple outlet and convenience stores OFF-PREMISE SALES GROWTH BY PRICE SEGMENT Percentage Bottle Price -10% 0 10% 20% 30% $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 <$4 Source: , Wines & Vines. Total table wine in glass packaging 52 weeks through Feb. 21, 2016, from IRI multiple outlet and convenience stores OFF-PREMISE SALES BY PRICE SEGMENT $ Billions Bottle Price 0 $.75 $1.5 $2.25 $3 $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 <$4 DTC SHIPMENTS SALES BY BOTTLE PRICE Source: Wines Vines Analytics/ShipCompliant, 12 months through February 2016 0 $200 $400 $600 $800 $100+ $60-$99.99 $30-$59.99 $20-$29.99 $15-$19.99 < $15 $ Millions Bottle Price DTC SHIPMENTS SALES GROWTH Source: Wines Vines Analytics/ShipCompliant, 12 months through February 2016 0 6% 12% 18% 24% $100+ $60-$99.99 $30-$59.99 $20-$29.99 $15-$19.99 < $15 Percentage Bottle Price METRICS April 2016 WINES&VINES 11 Leap Day Boosts February Sales by 32%

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