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Direct to Consumer D irect-to-consumer (DtC) ship- ments increased 13% in April 2017 versus a year earlier, Wines Vines Analytics/ShipCompliant reported. Sales topped $227 million. While April is traditionally a slower shipping month, activity remained ro- bust for the first half of the year, with 491,291 cases shipped. Case volume was also 13% above a year ago, reflect- ing a stable relationship between the value and volume of shipments. Drilling into what was actually moving, Cabernet Sauvignon, Pinot Noir and red blends led DtC shipments in the 12 months ended April 2017, followed by Chardonnay and Zinfan- del. Cabernet Sauvignon, with ship- ments worth $729 million, claimed a 30% share of DtC volume. Pinot Noir edged out red blends for second place with $404 million versus $399 million; each varietal claimed a 16% share of shipments. Per-bottle pricing told a similar story, with Cabernet Sauvignon averaging $70, Pinot Noir $45 and red blends $42. However, Cabernet Franc and Syrah claimed the fourth and fifth spots at $40 and $33, respectively, despite repre- senting just a fraction of the value of DtC shipments. Chardonnay shipments, at $190 million, were nearly three times that of Syrah, but the average bottle price was $2 less. Similarly, Zinfandel, at $103 million, saw volumes thrice that of Cabernet Franc, but averaged $28 per bottle versus $40. Of the top varietals, red blends saw the biggest decline in average pricing, falling 5% from $44 a year ago. With red blend case volumes up 20% during the period, the price decline is consis- tent with reductions seen across DtC shipments in recent months as consum- ers take delivery of more than just pre- mium brands. —Peter Mitham DtC Growth Remains Strong at 13%; Cabernet Sauvignon Leads DTC SHIPMENT SHARE BY VARIETAL Zinfandel 4% Source: Wines Vines Analytics/ShipCompliant; 12 months through April 2017. Cabernet Sauvignon 30% 16% Pinot Noir 16% 26% 8% All others Chardonnay Red blends Source: Wines Vines Analytics/ShipCompliant; 12 months through April 2017. DTC SHIPMENT VALUE BY VARIETAL $ Millions 0 $200 $400 $600 $800 Cabernet Sauvignon Pinot Noir Red blends Chardonnay Zinfandel Merlot Syrah Sauvignon Blanc Cabernet Franc Rosé METRICS 12 WINES&VINES June 2017 Gomberg, Fredrikson & Associates Market Intelligence for the Wine Industry · The Gomberg-Fredrikson Report: Put your business in context with wine industry market trends. · WineData Wine Pricing Report: Make competitive price positioning comparisons. · Distributor Market Service: Gain a competitive advantage by analyzing the wholesale market. www.gfawine.com • 707.940.3922 • inquiry@gfawine.com We perform extensive market research and data collection to create the wine industry's leading databases and reports. Our reports reflect real-world factors and provide business leaders consistent information on which to base decisions.