Issue link: http://winesandvines.uberflip.com/i/754815
Direct to Consumer O ff-premise sales growth continued in October, ac- cording to Chicago, Ill.- based market-research firm IRI, increasing 5% from the same month in 2015 to $626 million for domestic wines. Similarly, IRI's 12-month sales figures showed steady growth of 6% versus the same period a year earlier. Total off-premise sales of do- mestic wines through multiple outlet and convenience stores topped $8.6 billion, a $454 mil- lion increase from 2015. Sparkling wine sales increased 9% in Octo- ber 2016 on both monthly sales and 12-month sales. Red blends performed excep- tionally well, with sales of $15- $19.99 wines up 42% in the 52 weeks ending Oct. 2, 2016. Cab- ernet Sauvignon led off-premise sales of red wines at $1.6 billion. Red blends were second with $695 million in sales. Pinot Noir was just short of red blends, however, with $690 mil- lion in sales. The heartbreak grape jumped to third place as sales rose 11% versus a year ago and passed Merlot, which took a sideways turn, softening 4% to $627 million for the period. Ron Mertz, president of na- tional sales with A to Z Wineworks in Newberg, Ore., attributes Pinot Noir's ascendance to its versatility and a general upward shift among consumers. "The growth of the sector is clearly that $15 to $20 (price point), among all varieties but particularly Pinot Noir; that's the sweet spot," he said. "People are generally more easily embrac- ing the fine wine story." A to Z targets off-premise sales with a Pinot Noir sourced from vineyards around the state, and sales have grown 16% during the past year. —Peter Mitham Off Premise Off-Premise Sales Growth Steady at 5% in October S trong growth in direct-to- consumer (DtC) shipments increased sharply in Octo- ber as cooler weather and wine club shipments saw sales soar, ac- cording to Wines Vines Analytics/ ShipCompliant. Sales totaled $391 million on 659,615 cases, a 36% increase from October 2015 and among the strongest growth spurts this year. O ct o b e r w a s o n e o f f o u r months this year that DtC ship- ments rose more than 30% from a year earlier. Growth was second only to August, a month when five Mondays (a standard shipping day) offset a seasonal lull. Sales for the 12 months ending October 2016 rose 20% to $2.3 billion. Red blends stood out with 27% growth over the period, up to $384 million from $304 million in the 12 months ended October 2015. Red blends leapt over Pinot Noir to rank second among red wine shipments after Cabernet Sauvignon, which enjoys a 42% share. The blends represent 23% of activity. While case shipments are greatest for red blends under $15, they represent just 6% of sales. Two-thirds of shipments are priced at $30-$59.99 and $100-plus. With an average DtC shipment at $49.36 per bottle, favor lies at the lower end of that price range. Wines at $200-plus grew 32% to top $72 million over the past year, underscoring the importance of high-end bottles. —Peter Mitham OFF-PREMISE RELATIVE MARKET SHARE Red Blends $695 million Pinot Noir $690 million Merlot $627 million Cabernet Sauvignon $1,620 million Top-Selling Red Varietals $3,794 million Zinfandel $161 million Source: , Wines & Vines Analytics. Table wine sales in multiple-outlet and convenience stores; 52 weeks ending Oct. 2, 2016. METRICS December 2016 WINES&VINES 11 DtC Sales Soar With Fall Club Shipments Source: Wines Vines Analytics/ShipCompliant model. 12 months through October 2016. DTC SHIPMENTS OF RED BLENDS BY BOTTLE PRICE $ Millions $160 $140 $120 $100 $80 $60 $40 $20 0 <$15 <$15-$19.99 $20-$29.99 $30-$59.99 $60-$99.99 $100+ Source: Wines Vines Analytics/ShipCompliant model. 12 months through October 2016. DTC SHIPMENTS RELATIVE MARKET SHARE Red Blends $384 million Pinot Noir $368 million Syrah $60 million Zinfandel $89 million Cabernet Sauvignon $687 million Top-Selling Red Varietals $1,651 million Merlot $64 million