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Direct to Consumer D omestic wine sales in off- premise locations rose 5% in August versus the same month a year earlier. The figures from Chicago, Ill.-based market- research firm IRI reported that 12-month growth was even stron- ger, at 6%, while sparkling wine remained robust with 8% growth. Cabernet Sauvignon sales posted exceptional growth. Sales in the 12 months ended August 2016 rose in six out of seven price segments. Sales totaled $410 mil- lion for wines in the $8-$10.99 category, making them the vari- ety's largest single sales segment. Yet the most robust growth in the period remained in the $11- $14.99 category, with sales rising 18% to $367 million. "There's quite a few younger customers looking in that $10-$20 price point," said Curtis Mann, wine buyer for Raley's Family of Fine Stores. "They're willing to spend the money, but they're not going over and beyond." Despite strong sales growth, average per-bottle pricing for va- rieties such as Cabernet Sauvi- gnon edged down in some price segments. The opposite was true at $4 and less, where average Cab- ernet pricing inched up 1%. —Peter Mitham Off Premise Off-premise Sales Growth Remains Strong; Sparkling Shines D irect-to-consumer (DtC) shipments rose 39% in August 2016 versus the same month a year earlier, ac- cording to Wines Vines Analytics/ ShipCompliant. This was the largest year-over-year gain in any month since 2012, and the third month this year that DtC sales growth exceeded 30%. The gain was partly due to the month having five Mondays, a popular shipping day. Even so, shipment values totaled $112 million on 291,944 cases, well s h o r t o f t h e 5 0 9 , 6 2 2 c a s e s shipped in March, largely be- cause wineries avoid shipping during the hottest months. Top-tier price categories under- pinned sales growth during the past 12 months. Cabernet Sauvi- gnon, for example, saw shipments of bottles priced $20 and less post the strongest increase, rising 29% to $22 million. Yet this was off a low base. Shipments of bottles worth $100 and more posted less substantial growth of 19% but increased $55 million to nearly $339 million. Similarly, sales of wines priced at $80-$99 per bottle and $60-$79 per bottle increased 11% and 7%, respectively, while mid-tier cat- egories declined by more than 8%. "Demand is strong across the board," said Beth Milliken, pres- ident and CEO of Spottswoode Estate Vineyard & Winery in St. Helena. "DtC sales of our Estate Cabernet Sauvignon have been very strong." The current release of the Spottswoode Estate Cab- ernet Sauvignon is $1,998 per case, while single bottles retail for $185. "Our sense is that there is a strong demographic of consum- ers who are comfortable spending at this higher price point for wines they deem exceptional," Milliken said. "This is a luxury market, and this group is willing to pay for quality." Quality lends such wines not only cachet but longevity, with Cabernet Sauvignon often being cellared. Since expensive wines are seldom available on store shelves, direct-to-consumer sales allow wineries to serve loyal cus- tomers and cultivate new ones. —Peter Mitham OFF-PREMISE CABERNET SAUVIGNON SALES BY PRICE Source: . Wines Vines Analytics. Domestic table and sparkling wine sales in multiple-outlet and convenience stores; 52 weeks from Aug. 9, 2015, to Aug. 7, 2016. $ Millions $450 $400 $350 $300 $250 $200 $150 $100 $50 0 <$4 $4-$7.99 $8-$10.99 $11-$14.99 $15-$19.99 $20-$24.99 $25-plus Source: Wines Vines Analytics/ShipCompliant model. 12 months through August 2015 and August 2016. DTC CABERNET SAUVIGNON SALES BY PRICE $ Millions $350 $300 $250 $200 $150 $100 $50 0 <$20 $20-$39.99 $40-$59.99 $60-$79.99 $80-$99.99 $100-plus n 12 months ending August 2015 n 12 months ending August 2016 OFF-PREMISE CABERNET SAUVIGNON BOTTLE PRICE CHANGE 2015 2016 $ Change <$4 $3.31 $3.34 $0.03 $4-$7.99 $5.62 $5.60 -$0.02 $8-$10.99 $9.97 $9.96 -$0.01 $11-$14.99 $13.97 $13.77 -$0.20 $15-$19.99 $18.91 $18.87 -$0.04 $20-$24.99 $23.32 $22.72 -$0.60 $25 plus $44.36 $44.15 -$0.21 Source: . Wines Vines Analytics. Domestic table and sparkling wine sales in multiple-outlet and convenience stores; 52 weeks from Aug. 9, 2015, to Aug. 7, 2016. n 12 months ending August 2015 n 12 months ending August 2016 METRICS October 2016 WINES&VINES 11 DtC Shipments Up 39% as Cabernet Demand Grows