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-10% D A T A CENTER Retail Wine Sales Spike in May Pinot Noir, red blends, Sauvignon Blanc and bubbly see gains Domestic table wine, dollar sales growth rate in major U.S. food and drug stores, 52 weeks ending May 15, 2011. S an Rafael, Calif.—The four-week period ending May 15 was a hot one for off-premise wine sales. Dollar sales of domestic table wines grew 10% over the same four-week period last year, according to Symphony IRI Group, a Chicago- based market research firm. The unusually high spike in sales was partly due to Easter falling in the four-week period this year, while it came earlier in 2010. The longer measure of 52-week performance showed 6% growth in domestic table wine dollar sales, as measured by SIRI at major food and drug stores. In contrast, imported table wines grew just 1% over 52 weeks. Hottest price points Price points at the top and the middle showed the highest growth rates for both four-week and 52-week performance. SIRI's prici- est category measured, $20-plus, grew an amazing 37% over the same four-week period in 2011, presumably because people splurged on the fastest growing high-priced varietals—Pinot Noir and Sauvignon Blanc—to accompany their Easter ham. Cabernet Sauvignon was the third-fastest-growing varietal in the $20-plus category, and the overall leader in total dollar sales, followed closely by Chardonnay. Growth over 52 weeks for this whole price category of domestic table wines was 21%. The middle range of domestic table wines, priced from $8 to $10.99, which enjoys a much bigger volume than the top tier, grew by 15% over four weeks and by 11% over 52 weeks. Dif- ferent varietals were the stars in this price category compared to the $20 wines. Red blends and/or Meritage wines spiked phe- nomenally by 62% in four weeks and 46% over 52 weeks. Riesling and Syrah/Shiraz bucked the trends in both of these price categories. Riesling at $20-plus shrunk by 8%, while it grew by 8% in the mid-price range. Domestic producers offer relatively few high-priced Rieslings. Syrah/Shiraz stayed just above even in the top price category, where it has struggled recently. But sales dove deeply in the mid- tier prices, down almost 18% from a year ago. Sparkling wines grow May 15 also closed out a great four weeks of growth for spar- kling wine, as domestics grew by 24% and imported bubbly by 32%, confirming that the winter holidays are not the only sparkling occasions. To demonstrate that growth in sparkling wines was not a total fluke caused by Easter, the 52-week rates were a healthy 6% growth for domestic fizz and a stronger 10% for imports. The accompanying pie chart illustrates the most popular price ranges for all sparkling wines. SIRI uses different price points for these than for table wines. Clearly, the $8-$12.99 category domi- nates with 41% of the market at the stores SIRI analyzes. This is where many domestic, Spanish and Italian brands live. Imports command a much higher market share in sparkling wines than table wines, according to the SIRI data. Over 52 weeks, 37% of bubbly sales were imports while 63% were domes- tic. For table wines, the parallel numbers are 22% imports and 78% domestic. —Jim Gordon Domestic table wine, dollar sales growth rate in major U.S. food and drug stores, 52 weeks ending May 15, 2011. -20% -10% 0% 10% 20% 30% 40% 50% Domestic table wine, dollar sales growth rate in major U.S. food and drug stores, 52 weeks ending May 15, 2011. -20% -10% 0% 10% 20% 30% 40% 50% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 37% $8-$10.99 Dollar Sales Growth Rate by Varietal 19% 27% 29% 25% 46% 13% 18% 4% 7% 6% -8% 1% 8% -17% 3% $20-Plus Dollar Sales Growth Rate by Varietal $8-$10.99 Dollar Sales Growth Rate by Varietal Domestic table wine, dollar sales growth rate in major U.S. food and drug stores, 52 weeks ending May 15, 2011. -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% $20-Plus Dollar Sales Growth Rate by Varietal Sparkling Wine Market Share by Price Segment 4% 27% 12% 46% 37% 13% 13% 4% 7% 13% 41% Total sparkling wine market share by dollar sales, major U.S. food and drug stores, 52 weeks ending May 15, 2011. Domestic table wine, dollar sales growth rate in major U.S. food and drug stores, 52 weeks ending May 15, 2011. -10% 0% 10% 20% 30% 40% 50% Sparkling Wine Market Share by Price Segment $8-$10.99 Dollar Sales Growth Rate by Varietal 13% 4% 12% 13% 17% 46% 41% Total sparkling wine market share by dollar sales, major U.S. food and drug stores, 52 weeks ending May 15, 2011. 18% 4% 7% 6% 8% Wines & Vines JULY 2011 -17% 3% 11 Under $5 $5-$7.99 $8-$12.99 $13-$17.99 $18-$34.99 $35 Plus 29% 18% 17%6% 8% 19% Under $5 $5-$7.99 $8-$12.99 $13-$17.99 $18-$34.99 $35 Plus -8% 1% 25% -17% 3% Sauvi Cab Chard Fumé/Sauv B Pino Red B Meri Cabernet Sauvignon Cabernet Sauvignon Chardonnay Chardonnay Fumé/Sauvignon Blanc Fumé/Sauvignon Blanc Pinot Noir Pinot Noir Red Blends/ Meritage Red Blends/ Meritage Cabernet Sauvignon Cabernet Sauvignon Chardonnay Chardonnay Fumé/Sauvignon Blanc Fumé/Sauvignon Blanc Pinot Noir Red Blends/ Meritage Riesling abernet vignon rdonnay uvignon Blanc not Noir Blends/ ritage Riesling Pinot Noir Red Blends/ Meritage Riesling Syrah/ Shiraz Zinfandel Riesling Riesling Riesling S Sh Zin Syrah/ Shiraz Zinfandel Syrah/ Shiraz Syrah/ Shiraz Zinfandel Zinfandel nfandel Growth Rates Growth Rates Growth Rates Growth Rates Growth Rates