Wines & Vines

June 2012 Enology & Viticulture Issue

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METRICS Easter Boosts Wine Sales 11% U.S. sparkling wine grew 27% through mid-April S an Rafael, Calif.—Off-premise sales of domestic table wine shot up 11% over the same period in April last year, largely due to a very positive Easter holiday. This high growth rate in the four-weeks ending April 15 also lifted the 52-week growth rate to 8%, according to Wines & Vines' analysis of Symphony IRI data. Easter is the only major holiday that falls in different months from year to year, and it has become a wine-drinking occasion for Ameri- cans, so its effect on monthly sales data is very dramatic. In 2011, Easter was celebrated April 24 (about as late as it gets), while this year it came April 8. SIRI takes its data from major U.S. retail stores every four weeks (13 times per year), rather than by calendar months. Easter sales this year were recorded in the 0% 5% 10% 15% 20% 25% 30% Easter Effect on Growth Rates 27% 11% Four-week Easter sales period 2012 0% 5% 10% 15% 20% 25% 30% 27% Sparkling Table Easter Effect on Growth Rates Sparkling Table Easter Effect on Dollar Sales 7% 11% 8% Four-week Easter sales period 2012 52 weeks ending April 15, 2012 Domestic wine sales through mid-April grew over the previous year at major U.S. food and drug stores. four weeks ending April 15, during which domestic table wine sales hit $384 million. Easter did not fall in the similar period in 2011, and wine sales then grew only 2%. Domestic bubbly up 27% Sparkling wine benefited especially during the spring holiday period, as domestic bub- bly soared 27% over last year. Sales totaled $20.5 million in the big food and drug stores where SIRI, a Chicago-based market research firm, reviews check stand scan data. Imported sparkling wine brought in $12.7 million and grew at 31%. The Easter effect on domestic sparkling wine sales brought retailers an extra $4.3 7% 8% 52 weeks ending April 15, 2012 Domestic wine sales through mid-April grew over the previous year at major U.S. food and drug stores. $50 $100 $150 $200 $250 $300 $350 $400 $0 Same period during 2011 Four weeks ending April 15, 2012 $16 $20 Sparkling $50 $100 $150 $200 $250 $300 $350 $400 $0 $346 Same period during 2011 $384 Easter Effect on Dollar S Four weeks ending April 15, 2012 $346 $ $16 $20 Sparkling Table million. The Easter effect on domestic ta- ble wine improved sales by an impressive $39 million. Sales for the 52 weeks ending April 15 gave a longer view on what's hot and what's not. Most of the fastest growing price/varietal segments were in red wines. The biggest single price segment was for wines priced $8-$10.99, and the fastest growing types in this range are red blends/ appellation of origin wines that rose 54% over last year and red blends/Meritage wines that grew 48%. This year, Americans celebrated Easter on April 8, or during the four-week period ending April 15, 2012, as measured by SymphonyIRI. Easter fell outside that same period in 2011, highlighting the holiday's effect on wine sales. This graph is based on domestic wine sales for four weeks ending April 17, 2011, and April 15, 2012, at major U.S. food and drug stores. Table This year, Americans celebrated Eas April 8, or during the four-week per ending April 15, 2012, as measure SymphonyIRI. Easter fell outside th period in 2011, highlighting the ho effect on wine sales. This graph is b domestic wine sales for four weeks April 17, 2011, and April 15, 2012 major U.S. food and drug stores. Cabernet Sauvignon grew by 24% in the $15-$19.99 segment and by 35% in the $20-plus range. Red Zinfandel grew at the dramatic rates of 24% for $15-$19.99 wines and 29% for $20-plus wines. The other fast- growing reds in the top price tier were Pinot Noir and red blends/Meritage, both at 40%. —Jim Gordon Our expertise can mean your company's success. Benchmark Consulting provides human resources consulting and retained executive search services exclusively for the wine industry. tel: 707.933.1500 n fx: 707.933.1508 n www.benchmarkhr.com email: response@benchmarkhr.com Wines & Vines JUne 2012 11 Millions Millions

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