Wines & Vines

June 2016 Enology & Viticulture Issue

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Direct to Consumer O ff-premise sales in IRI channels grew 5% in April and 6% for 12 months compared to a year ago. The monthly increase was 1% higher than the past two months. The data include domestic table wine and sparkling wine from the multiple outlet and convenience store report by IRI, the mar- ket-research firm based in Chicago, Ill. Chardonnay remained the top-selling varietal or type, and IRI data showed that Chardonnay continued to generate its highest sales total in the $4-$7.99 per bottle segment even while this segment shrank by 2% in the most recent 12 months. All price segments bottled in glass from $8 up saw sales growth, but box wines at $4.50 and higher per 750ml were clearly the fastest growing component of Chardonnay sales. —Jim Gordon Off Premise Sales of Domestic Wine Grow 5% in IRI Channels Source: , Wines & Vines Analytics. All table wine, 52 weeks through April 17, 2016, multiple outlet and convenience stores. OFF-PREMISE CHARDONNAY GROWTH RATE BY PRICE SEGMENT Percentage -10% 0 10% 20% 30% Source: , Wines & Vines Analytics. All table wine, 52 weeks through April 17, 2016, multiple outlet and convenience stores. OFF-PREMISE CHARDONNAY SALES BY PRICE SEGMENT $ Millions Bottle Price 0 $150 $300 $450 $600 $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 <$4 Box $4.50+ Box<$4.50 Bottle Price $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 <$4 Box $4.50+ Box<$4.50 D irect-to-consumer (DtC) shipments by U.S. winer- ies grew 9% in value in April compared to a year ago. While the fast rate of growth outpaces U.S. wine sales in gen- eral, it was the smallest monthly increase since December. The growth rate for the past 12 months was also 9%. April sales totaled $202 mil- lion, according to the Wines Vines Analytics/ShipCompliant model. The volume of DtC ship- ments was 434,800 cases. Despite buzz to the contrary, domestic Chardonnay remains very popular with consumers who buy direct from wineries and are willing to pay high prices to get the wines they love. Chardonnay was by far the fa- vorite white wine during the most recent 12 months. It had triple the market share of Sau- vignon Blanc in the DtC ship- ment channel. Chardonnay sales by price segment in the DtC shipment channel vary drastically from off-premise sales (see the article above). The majority of DtC Chardonnay shipments involve wines priced at $20 to $60 per bottle, while in IRI's off-premise c h a n n e l i t i s $ 4 t o $ 1 1 p e r bottle. METRICS June 2016 WINES&VINES 11 DtC Shipments Up 9%; Chardonnay Remains Popular Source: Wines Vines Analytics/ShipCompliant. 12 months through April 2016. DTC SHIPMENT VALUE SHARE Sauvignon Blanc Pinot Gris White Blends Riesling Chardonnay Source: Wines Vines Analytics/ShipCompliant. 12 months through April 2016. DTC CHARDONNAY SALES BY PRICE SEGMENT $ Millions Bottle Price 0 $5 $15 $25 $25 $35 $45 $55 $65 $100+ $80-$99.99 $60-$79.99 $40-$59.99 $20-$39.99 <$20

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