Issue link: http://winesandvines.uberflip.com/i/804714
Direct to Consumer O ff-premise sales increased 2% in Feb- ruary 2017 versus the same month a year earlier, according to Chicago, Ill.-based market-research firm IRI. While February had one of the slowest monthly growth rates in more than a year, sales re- mained healthy at $669 million. This was well within the sales range of previous months. IRI reports 12-month sales through multiple- outlet and convenience stores for the period ending Feb. 19, 2017, totaled $8.7 billion, up 4% from a year ago. Consumers continued to show a willingness to trade up in February. A breakdown of 12- month sales revealed growth at the upper end of the market and shrinkage among bottles priced $7.99 and less. Wines priced $11 and up posted double-digit growth, led by $20- $24.99 bottles at 22% growth. Still, consumers love mid-priced wines: Almost all the growth in dollars was claimed by bottles in the $8-$14.99 bracket, which logged $4.3 billion in sales during the past year. The single biggest price category re- mained $4-$7.99 wines with $3 billion in annual sales. —Peter Mitham Off Premise Off-Premise Sales Rise 2% as Consumers Trade Up D irect-to-consumer (DtC) shipments in February 2017 posted 37% growth over February 2016. Wineries packed $239 million worth of busi- ness into the shortest month of the year, according to Wines Vines Analytics/ShipCompliant data, achieving the strongest monthly growth rate since August 2016. Twelve-month DtC shipments were 19% above the previous year at more than $2.4 billion. Volume posted strong growth, too, rising 28% to 475,601 cases i n Fe b r u a r y. Tw e l v e - m o n t h growth by volume was 18%, con- sistent with sales growth. DtC shipments have been popular with small and mid- sized wineries, which see a way to take matters into their own hands and avoid challenges posed by the consolidation of distributors. Sales stats by winery size show that DtC isn't just for mid- sized players, however. Wineries producing 500,000 cases and more represent just 5% of DtC activity but posted the biggest leap in market share over the past year. That group's DtC shipments rose 66% to $128 million. Despite the segment's growth, wineries producing less than 1,000 cases saw a one-point dip in market share. This translated to a 10% drop in sales to $73 million. —Peter Mitham METRICS April 2017 WINES&VINES 11 DtC Shipments Find Love with 37% Growth in February Source: , Wines Vines Analytics. Table wine sales in glass packaging in multiple-outlet and convenience stores; 52 weeks ending Feb. 19, 2017. OFF-PREMISE SALES $ Billions Bottle Price 0 $1 $2 $3 $4 $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 < $4 Source: , Wines Vines Analytics. Table wine sales in glass packaging in multiple-outlet and convenience stores; 52 weeks ending Feb. 19, 2017. OFF-PREMISE SALES GROWTH Percentage Bottle Price -10% 0 10% 20% 30% $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 <$4 Source: Wines Vines Analytics/ShipCompliant model; 12 months through February 2017. DTC SHIPMENT GROWTH Percentage Winery Size (cases) -25% 0 25% 50% 75% < 1,000 1,000-4,999 5,000-49,999 50,000-499,999 500,000+ Source: Wines Vines Analytics/ShipCompliant model; 12 months through February 2017. DTC SHIPMENTS $ Millions Winery Size (cases) 0 $250 $500 $750 $1,000 < 1,000 1,000-4,999 5,000-49,999 50,000-499,999 500,000+