Wines & Vines

March 2017 Vineyard Equipment & Technology Issue

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Direct to Consumer O ff-premise wine sales increased 2% in January 2017 versus the same month a year earlier, Chicago, Ill.-based mar- ket-research firm IRI reported. Sales for the month totaled $690 million, maintaining the monthly growth seen over the past year. Sales in each of the past three months exceeded all other months in the year ended January 2017. IRI said 12-month sales through its multi- ple-outlet and convenience store channel for the period ending Jan. 22 topped $8.3 billion, up 4% from a year earlier. Trends among the top 20 table wine brands during the same 12 months reflected consum- ers' willingness to spend. Barefoot topped the chart, followed by Sutter Home, Franzia and Woodbridge. Yellow Tail held steady in fifth position despite sales falling 3% and a lower average bottle price. Robert Mondavi Private Selection dropped to 20th place, even as sales gained 1% and bottle price increased. The big winners were Apothic, with 29% growth that buoyed it to 7th place overall versus 12th last year. Black Box Wines claimed the No. 10 spot, up from 13 last year, on 30% growth. Delicato Family Vineyards' Bota brand joined the list in 17th place, thanks to 31% growth, while Livingston Cellars disappeared from the top 20 as sales dropped 6%. —Peter Mitham Off Premise Off-Premise Sales Rise 2%; Black Box Leads Brand Growth D irect-to-consumer (DtC) shipments started 2017 with January sales up 16% above January 2016. More than $100 million worth of wine shipped direct to consumers in January, according to data from Wines Vines Analytics and Ship- Compliant. The gain ensured that 12-month DtC sales remained 18% above the previous year at more than $2.3 billion. Volume posted even stronger growth, in- creasing 19% to 266,572 cases. January is often slower than the cooler fall months leading into the holidays, but the growth under- scores both the resilience and strength of the channel. The trend to less expensive bottles continued. While wines from large wineries posted the biggest drop in per-bottle prices, there were also significant re- gional variations. A year ago, ship- ments from California (excluding Napa) were logging lower average bottle prices. This year, California bottle prices have strengthened while Oregon and Washington saw bottle prices creep down. DtC bottles from Oregon dropped 6% to $37.88, giving up the gains logged last year. In Washington, the average bottle price fell 7% to $31.63, thanks largely to greater volumes shipped from small wineries. Buck- ing the national trend, Washing- ton's largest wineries saw their average DtC bottle price rise 7%. All other wineries in the state saw their average DtC bottle price de- cline. This was the second year that Washington, with the second-larg- est wine industry in the country, saw its average bottle price fall, suggesting that room exists to cap- ture value as DtC sales increase. —Peter Mitham OFF-PREMISE TOP 20 TABLE WINE BRANDS Rank Brand Parent/Importer 52-Week Sales (Millions) Sales Change Average Price (750ml) 1 Barefoot E. & J. Gallo Winery $670 4% $5.58 2 Sutter Home Trinchero Family Estates $368 3% $5.45 3 Franzia (box) The Wine Group $340 2% $2.29 4 Woodbridge by Robert Mondavi Constellation Brands $338 4% $5.52 5 Yellow Tail Deutsch Family Wine & Spirits $269 -3% $5.59 6 Kendall Jackson Vintner's Reserve Jackson Family Wines $197 -2% $12.10 7 Apothic E. & J. Gallo Winery $181 29% $9.55 8 Chateau Ste. Michelle Ste. Michelle Wine Estates $178 5% $9.92 9 Ménage à Trois Trinchero Family Estates $177 9% $9.79 10 Black Box Wines Constellation Brands $165 30% $5.02 11 Beringer Treasury Wine Estates $161 -4% $4.97 12 Cupcake Vineyards The Wine Group $156 -2% $8.97 13 Gallo Family Vineyards E. & J. Gallo Winery $146 -4% $4.12 14 Bogle Vineyards Bogle Vineyards $125 4% $9.50 15 Clos du Bois Constellation Brands $122 9% $9.42 16 Carlo Rossi E. & J. Gallo Winery $119 -4% $2.54 17 Bota (box) Delicato Family Vineyards $117 31% $4.78 18 Liberty Creek E. & J. Gallo Winery $111 14% $3.49 19 14 Hands Ste. Michelle Wine Estates $101 1% $9.81 20 Robert Mondavi Private Selection Constellation Brands $101 1% $8.53 Source: . All table wine in multiple outlet and convenience stores, 52 weeks through Jan. 22, 2017. DTC SHIPMENT BOTTLE PRICE CHANGE BY REGION Percentage Change 8% 6% 4% 2% 0 -2% -4% -6% -8% Napa $61.61 $37.88 $20.84 $30.03 Rest of CA Oregon Washing- ton Rest of U.S. Sonoma $28.05 $31.63 Price reflects average bottle price. Source: Wines Vines Analytics/ShipCompliant model. 12 months through January 2017. METRICS March 2017 WINES&VINES 11 DtC Shipments Rise 16% in January

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