Issue link: http://winesandvines.uberflip.com/i/742839
Direct to Consumer O ff-premise sales of do- mestic wine continued to grow in September 2016, according to Chicago, Ill.- based market-research firm IRI, increasing 4% from September 2015. While that growth rate slowed relative to the previous month, IRI's 12-month sales fig- ures showed steady growth of 6% versus the same period a year earlier. Sparkling wine, with sales of $7 million, logged 9% growth in September 2016 compared to September 2015. S a l e s o f i m p o r t e d w i n e s strengthened their hold on the market, increasing 7% in sales versus a year ago. Yet the greater value of domestic wine meant that U.S. wineries held their own against imports, retaining 80% market share. Wines priced between $11 and $14.99 per bottle posted the biggest leap in actual dol- lars. Based on 52-week sales for the price segment, imports rose 19% to $412 million, while do- mestic wines rose 13% to $1.2 billion. Chardonnay and Caber- n e t S a u v i g n o n l e d c a t e g o r y sales, followed by Sauvignon Blanc, Pinot Noir and all other red blends. —Peter Mitham Off Premise Domestic Wines Hold Market Share with 5% Growth D irect-to-consumer (DtC) shipments increased 17% in September 2016, ac- cording to data from Wines Vines Analytics and ShipCompliant. With cooler temperatures allow- ing shipments of wine, shipment values totaled an impressive $198 million on movement of 435,955 cases, up from shipment values of $169 million during the same month a year earlier. Shipments from Washington, which ranks third among states for DtC shipments, saw sales rise 19% in the 12 months ended Sep- tember 2016. Michelle Marsh, who oversees the wine club at Fidelitas Wines on Red Mountain near Benton City, attributed the increase to greater awareness of the state's wines. Fidelitas has welcomed a greater number of winery visitors, which translates into greater wine club member- ship and sales. Washington winer- ies shipped 185,028 cases worth $72 million in September 2016. Sonoma's growth ranked sec- ond, with shipment value rising 18% to $397 million on volume of 1.1 million cases. Napa claims the lion's share of shipments, account- ing for half the value of domestic DtC shipments at $1 billion. —Peter Mitham METRICS November 2016 WINES&VINES 11 Double-Digit Growth Propels DtC Shipments Higher Source: Wines Vines Analytics/ShipCompliant model. 12 months through September 2015 and September 2016. DTC SHIPMENTS BY WINERY REGION Cases (Thousands) 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 n 12 months ending September 2015 n 12 months ending September 2016 Napa Sonoma Other CA Oregon Washington Other U.S. Other CA Washington Other U.S. Sonoma Napa DTC SHIPMENTS BY WINERY REGION Source: Wines Vines Analytics/ShipCompliant model. Oregon OFF-PREMISE VARIETAL SALES $11-$14.99 52-Week Sales Sales Change Volume (9-liter cases) Volume Change Chardonnay $374,217,114 8% 2,663,217 9% Cabernet Sauvignon $370,976,239 18% 2,245,737 20% Sauvignon Blanc $160,851,502 23% 1,118,182 22% Pinot Noir $135,705,003 21% 810,123 23% Red Blends $88,968,022 18% 597,294 18% Merlot $60,441,475 4% 380,027 5% Zinfandel $58,303,766 1% 370,324 0% Pinot Gris $51,588,213 25% 362,386 26% Source: , Wines & Vines Analytics. Domestic table and sparkling wine sales in multiple-outlet and convenience stores; 52 weeks ending Sept. 4, 2016. Chardonnay OFF-PREMISE VARIETAL SHARE $11-$14.99 All Other Varieties Pinot Noir Sauvignon Blanc Source: , Wines & Vines Analytics. Domestic table and sparkling wine sales in multiple-outlet and convenience stores; 52 weeks ending Sept. 4, 2016. Cabernet Sauvignon 10% 23% 23% 20% 8% 5% Red Blends Merlot 4% Zinfandel 4% Pinot Gris 3%