Wines & Vines

July 2017 Technology Issue

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METRICS 12 WINES&VINES July 2017 QST offers its clients……. Professionally fabricated stainless tanks 35 years of tank fabrication experience Performance & reliability guarantees Custom designs & modern features Quick & competitive tank project pricing On site tank repairs & modifications Special application tanks of all sizes "In stock tanks" from 500 to 10,000 gallons 510 Caletti Ave. Windsor, Ca. 95492 Phone 707-837-2721 or Toll-Free 877-598-0672 www.qualitystainless.com Company Website winetanks@aol.com email contact/sales info Custom Fabricated Tanks for the perfect size & fit… or Ready to Ship "Stock Tanks" Either way QST is ready to assist our clients! Call QST today for information or pricing! QUALITY STAINLESS TANKS Direct to Consumer T he direct-to-consumer (DtC) sector con- tinues to post strong growth this year. DtC shipments rose 16% in May 2017 compared to May 2016, according to Wines Vines Analytics/ShipCompliant. Many winer- ies ship on Mondays, and with five of them in May, that month saw DtC shipments total $213 million. Case volumes totaled 498,848, 15% above May 2016, and the second-highest tally this year. The slightly stronger growth in value over case shipments pointed to in- creased shipments of premium wines. California accounts for more than 85% of DtC shipments, led by Napa with 49% of the national total. California is the single-biggest destination state for DtC shipments from Napa wineries at 32%, a marginal increase from 31% a year ago. The other states rounding out the top five destinations remain un- changed from a year ago and include Texas, Florida, New York and Illinois. Beyond this, there is significant movement. Colorado and Georgia swapped spots for sixth and seventh place, and Washington—home of its own healthy industry—jumped into the ninth spot with an additional $4 million worth of deliver- ies from Napa (Washington represents 2% of the value of DtC shipments from Napa). The opening of states such as Massachu- setts and Pennsylvania, which began allow- ing DtC shipments in June 2016, also has broadened the reach of Napa wineries. Pennsylvania, for example, received $19 million (1.6%) worth of wine from Napa wineries via the channel in the 12 months ended May 2017. Massachusetts, for its part, echoed the growth seen in Washing- ton, adding $4 million in DtC deliveries from Napa to claim $23 million (2%) of the region's DtC shipments. —Peter Mitham DtC Grows 16% as More States Open to Shipments DTC SHIPMENTS FROM NAPA COUNTY BY DESTINATION STATE Georgia 3% Source: WinesVines Analytics/ShipCompliant; 12 months through May 2017. California 32% 7% Texas 5% 11% 34% Other Colorado 3% New York 6% Florida Illinois Source: Wines Vines Analytics/ShipCompliant Cases (Thousands) 700 600 500 400 300 200 100 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2017 2016 DIRECT-TO-CONSUMER SHIPMENT VOLUME

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