Wines & Vines

May 2017 Packaging Issue

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O ff-premise sales increased 2% in March 2017 versus the same month a year earlier, Chicago, Ill.-based market- research firm IRI reported. Sales totaled $654 million in stores tracked by IRI, an increase of $15 million from March 2016. IRI reported that 12-month sales through multiple-outlet and conve- nience stores for the period ending March 19, 2017, totaled $8.7 bil- lion, up 4% from a year ago. Table wine sales increased 4%, while sparkling wines grew at 6%. Growth in California table wine sales reflected the national average—no surprise given the state represents 90% of domestic table wine sales. Oregon, how- ever, logged a 10% gain in off- premise sales from a year ago, the strongest of the three West Coast wine-producing states. Oregon sales totaled $108 mil- lion, up $10 million. Washington, by contrast, gained just $6 million in sales, a mere 1% increase to $490 million. Pinot Noir, which continues to attract interest from a consumer keen to trade up with- out sacrificing value, is largely responsible for growth in Oregon off-premise sales, which account for just 1% of the U.S. total. —Peter Mitham Direct to Consumer Off Premise Oregon Stands Out as Total Off-Premise Sales Grow 2% T he value of direct-to-con- sumer (DtC) shipments in- creased 10% in March 2017 versus a year earlier, according to Wines Vines Analytics/ShipCom- pliant data. Sales totaled $311 mil- lion, with 575,661 cases shipped. Sales for the most recent 12 months exceeded $2.4 billion, up 19% from a year ago. Ship- ment volume in March increased 13%, pointing to greater move- ment of lower priced bottles. While shipments from Califor- nia set the pace for the channel, Washington and Oregon have joined the action. Oregon wineries in particular have taken to the chan- nel, moving 265,017 cases in the 12 months through March 2017, or a fifth more than Washington's 218,043 cases. Oregon shipments were worth 44% more than Wash- ington, at $121 million versus Wash- ington's tally of $84 million. This translates into an average bottle price for Oregon of $38.07 versus $32.27 per bottle for Washington. Washington wineries are com- ing on strong, however. The past 12 months saw DtC sales rise 28% in Washington compared to j u s t 1 8 % i n O r e g o n . C a s e s shipped increased 33%, outstrip- ping the 22% gain in Oregon. —Peter Mitham OFF-PREMISE SALES SHARE BY WINERY STATE Oregon 1% All Others 3% Source: , Wines & Vines Analytics. Table wine sales in multiple-outlet and convenience stores; 52 weeks ended March 19, 2017. California 90% 6% Washington OFF-PREMISE SALES, CALIFORNIA AND THE NORTHWEST Winery State Sales Change vs. Year Ago Volume (9-liter cases) Change vs. Year Ago Average Bottle Price Change vs. Year Ago California $7,360,713,832 4% 99,801,725 2% $6.15 1.7% Washington $490,017,468 1% 4,166,460 0% $9.80 1.7% Oregon $107,920,100 10% 598,934 8% $15.02 1.6% Idaho $5,083,666 7% 53,426 3% $7.93 3.3% U.S. Total $8,185,676,968 4% 107,009,745 2% 6.37 1.7% Source: , Wines & Vines Analytics. Table wine sales in multiple-outlet and convenience stores; 52 weeks ended March 19, 2017. Source: Wines Vines Analytics/ShipCompliant; 12 months through March 2017. DTC SHIPMENT VALUE $ Millions $140 $120 $100 $80 $60 $40 $20 $0 2013 2014 2015 2016 2017 n Oregon n Washington Source: Wines Vines Analytics/ShipCompliant; 12 months through March 2017. DTC SHIPMENT AVERAGE BOTTLE PRICE $40 $35 $30 $25 $20 $15 $10 $5 $0 2013 2014 2015 2016 2017 n Oregon n Washington METRICS May 2017 WINES&VINES 11 Washington DtC Sales Up 28% as U.S. Growth Continues

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