Wines & Vines

December 2016 Unified Symposium Preview Sessions Issue

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34 WINES&VINES December 2016 THE BEST OF 2O1 Providing leading wine makers with stainless steel barrels of high quality, durability, and design. phone: 773.735.0700 • toll free: 800.441.8780 www.skolnikwine.com • email: sales@skolnik.com DTC SALES Fastest Growing DtC Varietal CABERNET FRANC Wineries direct-shipped 32% more cases of Cabernet Franc worth 35% more in the most recent 12 months than they did a year earlier, earning this Bordeaux varietal wine the No. 1 spot in terms of growth rate. With $33.7 million in sales, according to the Wines & Vines/ShipCompliant model, Cabernet Franc was still far behind its offspring variety Cabernet Sauvignon as the sales leader, however. Fastest Growing DtC Market PENNSYLVANIA With legislation now in place to modify its control-state status, Pennsylvania was the fastest growing destination state for direct-to-consumer (DtC) ship- ments in 2016. Pennsylvanians received 31,160 cases of wine worth $9.1 million, which consti- tuted a 117% increase over the previous year. And that growth was during its first partial year of newly opened borders. Pennsylva- nia is an important region for pro- ducers across the country because it is the 12th largest wine-consuming state in the coun- try and by far the largest state that had effectively banned DtC sales. Fastest Growing DtC Price Segment $50-$59.99 Direct-to-consumer shipments in the $50-$59.99 price band grew by 29% in value, making this the hot- test price segment of any signifi- cant size during the most recent 12 months. Total sales were $182 mil- lion, and volume was 279,722 cases. Not far behind was the $100-$149.99 price band, which grew by 23% in value. Best DtC Shipping Month NOVEMBER The best month for direct shipping out of the most recent 12 months was November 2015, when winer- ies sold more than $310 million worth of wine. Both wine club fall releases and pre-holiday shopping account for the timing. The November total was a 13% improvement from the previous November, and consisted of 558,199 cases. October had been the highest sales month in the previous year. DTC SHIPMENT SALES GROWTH Source: Wines Vines Analytics/ShipCompliant model, 12 months through September 2016. 0 5 10 15 20 25 30 35 40 Cabernet Franc Red Blends Sparkling Chardonnay Merlot Cabernet Sauvignon Pinot Noir Sauvignon Blanc Percent

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