Wines & Vines

July 2016 Technology Issue

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Direct to Consumer D omestic wine sales for May in the off-prem- ise channel rose 5% higher than May 2015, ac- cording to Chicago, Ill.-based market-research firm IRI; the 52-week growth rate was 6%. The off-premise sales trend since February has closely tracked 2015 sales but at 4%-5% higher each month. Off-premise data include table wine and sparkling wine, and the difference in their growth rates was dramatic. Sparkling wine grew 10% in May and 9% during the past 52 weeks, while table wine grew at virtually the same rates as the averages since it dominates wine sales. Sauvignon Blanc is one of the fastest growing varietals (see chart). Sauvignon Blanc and Fumé Blanc wines from all countries grew 14% in value in U.S. retail stores since May 2015. Sauvignon Blanc bottles priced from $20 to $24.99 and premium box wines at $4.50 and higher per 750ml were the hottest price segments. —Jim Gordon Off Premise Domestic Wines Continue Growth; Sauvignon Blanc Is Hot Category Source: , Wines & Vines Analytics. All table wine, 52 weeks through May 15, 2016, multiple outlet and convenience stores. OFF-PREMISE SAUVIGNON BLANC GROWTH RATE BY PRICE SEGMENT Percentage -20% 0 20% 40% 60% 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 Direct-to-consumer (DtC) shipments in May brought in 30% more dollars than in May 2015, helping to boost the 12- month performance to 11%, according to the Wines & Vines/ShipCompliant model. The big gain was at least partly due to the calendar, and that shippers like to send their packages early in the week. May wrapped into a fifth week that included Me- morial Day and the day after, so the reporting period had one more peak shipping pe- riod than most months. Large wineries also are becoming active in DtC ship- ments, swelling the sales total with increasingly large vol- umes of lower priced wines. The value of DtC ship- ments in May was $182.97 million, and the volume to- taled 432,006 9-liter cases. Californians buy the larg- est percentage of wines di- r e c t - s h i p p e d f r o m N a p a County wineries (see chart), followed by Texans and citi- zens of several other states with large populations. —Jim Gordon Texas California DTC SHIPMENTS FROM NAPA COUNTY BY STATE Source: Wines Vines Analytics/ShipCompliant. 12 months through May 2016. Other Illinois Florida New York Georgia Colorado July 2016 WINES&VINES 11 METRICS DtC Shipment Value Grows 30% in May; Californians Prefer Napa TTB LABEL APPROVALS Low per-label costs Gov't. Liaison Negotiations or Footwork Reasonable Hourly Rates TRADEMARK SEARCHES As Low as $185 Your trade names or designs are searched at the U.S. Patent Office to help establish valuable ownership or avoid costly legal liability. Over 100 years' total staff experience handling every government liaison need for industry. Phone or write for details. 200 N. Glebe Rd., Suite 321 Arlington, Virginia 22203 Phone: (703) 524-8200 Fax: 525-8451 TOLL-FREE 1-800-642-6564 Major Credit Cards Accepted www.trademarkinfo.com Since 1957 GovtLiaison_Dir08 11/29/07 2:00 PM Pag

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