Issue link: http://winesandvines.uberflip.com/i/853816
O ff-premise sales through multiple-outlet and con- venience stores tracked by Chicago, Ill.-based market-re- search firm IRI topped $640 mil- lion in June 2017, up 3% from June 2016. Sales for the 52 weeks ended June 11 maintained steady growth versus the previous year, rising 4% to $8.7 billion. Domestic sparkling wines, which represent just 5% of tracked sales, remained a bright spot with 9% growth in June 2017 versus June 2016, and 6% in the latest 52 weeks. Domestic table wines posted 3% growth in June 2017 and 4% growth in the 52 weeks ended June 11. The low rate of growth reflected the segment's large base, including a 95% share of the off-premise market. The most dynamic areas in terms of packaging were boxes and cans. Growth in bottled wines—both table and spar- kling—were in line with industry trends at 3% and 6%, respectively. Boxed wine sales increased 10%, however, which is significant growth for a packaging type that represents 11% of off-premise sales of domestic wines. Mean- while, sparkling wine sold in cans fell 10% on a very small base. The good news is that the av- erage price per 750 ml increased across all packaging types, re- flecting the well-documented willingness of consumers to trade up. Sparkling wines sold in cans were the prime benefi- ciary. Claiming just $2.6 million in sales in the 52 weeks ended June 11, the average price per 750 ml increased 35% versus a year ago. More established packaging types saw less movement in aver- age bottle price. Bottles of table and sparkling wines each in- creased in value by just 2%. Boxes, which continue to expand their hold in the market, saw prices in- crease 4% per 750 ml. —Peter Mitham Off Premise Off-Premise Sales Rise 3%; Boxed Table Wines Surge 10% Source: , Wines Vines Analytics. Table and sparkling wine sales in multiple-outlet and convenience stores; 52 weeks ended June 11, 2017. OFF-PREMISE SALES BY PACKAGE TYPE $ Millions 0 $200 $400 $600 $800 $1,000 $1,200 Table Wine (bottles) Table Wine (boxes) Sparkling Wine (bottles) Sparkling Wine (cans) n 2017 n 2016 $7,207,378,414 $7,017,243,464 Source: Wines Vines Analytics/ShipCompliant; 12 months through June 2017. DTC SHIPMENTS FROM SONOMA COUNTY WINERIES $ Millions 0 $50 $100 $150 $200 Pinot Noir Cabernet Sauvignon Chardonnay Zinfandel Red Blends Sparkling All Others Source: Wines Vines Analytics/ShipCompliant; 12 months through June 2017. DTC SHIPMENTS FROM SONOMA COUNTY WINERIES, AVERAGE BOTTLE PRICE 0 $10 $20 $30 $40 $50 Pinot Noir Cabernet Sauvignon Chardonnay Zinfandel Red Blends Sparkling All Others METRICS August 2017 WINES&VINES 11 Direct to Consumer D irect-to-consumer (DtC) shipments typically cool as summer begins, but June 2017 data from Wines Vines Analytics/ShipCompliant re- ported an 18% increase compared to June 2016. Shipments totaled $118 million, the lowest tally since January, but growth re- mained exceptional for the month. Case volumes totaled 340,560, 17% above June 2016. Growth for the 12 months through June was 18%, with 5.4 million cases worth $2.5 billion shipped. California represents 85% of national DtC shipments, led by Napa. Sonoma County wineries represent 19% of DtC shipments nationwide, and those orders are primarily Pinot Noir. Nearly $151 million worth of Sonoma County Pinot Noir shipped in the 12 months through June, more than twice as much as any other single varietal, with an average bottle price of $47.95. Pinot Noir isn't the fastest growing varietal for Sonoma County wineries shipping DtC, however. Other wines coming on strong include Cabernet Sauvi- gnon at 49%, red blends at 47% and Chardonnay at 34%. Pinot Noir, by contrast, saw sales in- crease just 19%—though at $25 million, it still added more dollars than any other varietal. Cabernet Sauvignon shipments also saw the greatest increase in average bottle price, rising 5% to $31.28. Chardonnay was runner- up with 4% growth to $28.48 per bottle. Red blends shipped to a more cost-conscious consumer, however, with the average price slipping 12% to $27.69 per bot- tle—the greatest shift of any So- noma varietal. While the average price of red blends slipped 12% to $27.69 per bottle, wineries shipped an addi- tional 55,792 cases of red blends in the past 12 months, up 68% from a year earlier. The increase reflected the broadening of the DtC channel beyond hard-to-get wines to a mainstream delivery channel for consumers. —Peter Mitham DtC Growth Heats to 18% as Summer Arrives