Issue link: http://winesandvines.uberflip.com/i/877508
O ff-premise sales through multiple-outlet and con- venience stores in the four weeks ended Aug. 13 in- creased 2% to $630 million, ac- cording to Chicago, Ill.-based market research firm IRI. With off-premise sales growth deceler- ating over the summer, 52-week sales also saw weaker growth than last month in IRI channels. Off- premise sales for the 52 weeks totaled $8.7 billion, up just 3% versus a year ago. Domestic spar- kling wine sales increased 3% in the four weeks ended Aug. 13 versus a year ago, and 5% in the latest 52 weeks. Growth in sparkling wine was double that of domestic table wine in August, but table wines retain a 95% share of the market. Cabernet Sauvignon, the most popular red varietal through off-premise chan- nels, saw 52-week sales increase 5% versus the previous year to $1.7 bil- lion. Bottles priced $20-$24.99 and $25-plus saw the strongest growth, at 16% and 15%, respectively. Most price segments saw average bottle prices decline by a few pennies. The exception was the $25-plus segment, where the average bottle sold for $1.16 more than a year ago. The shift in pricing reflects, in part, strong competition among brands. The biggest hits, by price and per- centage, took place in the $8-$10.99 and $11-$14.99 segments. —Peter Mitham Off Premise Off-Premise Sales Rise 2%; Cabernet Sauvignon Gains 5% METRICS October 2017 WINES&VINES 11 Direct to Consumer D irect-to-consumer (DtC) s h i p m e n t a c t i v i t y i n - creased 16% in August versus August 2016, Wines Vines Analytics/ShipCompliant re- ported, increasing to $130 mil- lion. Shipments totaled 320,754 cases, up 10% compared to Au- gust 2016. While growth in case shipments lagged behind value for the month, value and volume both increased by 17% in the 12 months ended August 2017. The top DtC shipment varietal, Cabernet Sauvignon, saw $748 million move in the 12 months through August, up 17% from a year earlier. All price bands saw shipments rise except $80-$99.99, which fell 5% to $80 million. The fastest-growing price seg- ments were spread across the cat- egory. Wines priced $60-79.99 a bottle saw 38% growth to $107 million while those fetching $20 and less a bottle gained 22% to achieve more than $27 million in shipments. Cabernet at $100 and more increased 20%. This price seg- ment also accounted for more than 54% of the varietal's DtC shipments, which totaled $407 million. "We're seeing a tremendous amount of growth. It's such a popular varietal," said Emilie Elia- son, vice-president of marketing with Crimson Wine Group, which owns Pine Ridge Vineyards in Napa and Double Canyon in Washington. Fortis, a top-end brand from Pine Ridge, sells for $225 a bottle and Eliason said shipments have been hitting re- cords thanks to a 98-point score from Robert Parker. Similarly, Marty Taucher, man- aging partner at Avennia in Wash- ington, said a 97-point score helped sell out his 2014 Red Wil- low Cab to informed customers seeking something different. "Scarcity breeds demand," he said. "Wineries realize DTC is the highest margin business and create compelling programs, such as wine clubs, to encourage direct sales." Consumer acceptance of on- line ordering and more power- f u l s o f t w a r e m e a n s s m a l l e r wineries with boutique offerings are better able to establish and manage clubs and tailor selec- tions to members. —Peter Mitham DtC Shipments Strengthen 16% in August Source: Wines Vines Analytics/Ship Compliant; 12 months through August 2017. DTC CABERNET SAUVIGNON SHIPMENT $ Millions 0 $100 $200 $300 $400 $500 $100+ $80-$99.99 $60-$79.99 $40-$59.99 $20-$39.99 <$20 n = 2017 n = 2016 Source: , Wines Vines Analytics. Domestic table wine sales in multiple-outlet and convenience stores; 52 weeks ended Aug. 13, 2017. OFF-PREMISE CABERNET SAUVIGNON SALES $ Millions 0 $100 $200 $300 $400 $500 $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 <$4 n = 2017 n = 2016 OFF-PREMISE CABERNET SAUVIGNON BOTTLE PRICE CHANGE 2016 2017 $ Change <$4 $3.32 $3.31 -$0.01 $4-$7.99 $5.57 $5.52 -$0.06 $8-$10.99 $9.91 $9.83 -$0.08 $11-$14.99 $13.69 $13.64 -$0.05 $15-$19.99 $18.45 $18.39 -$0.06 $20-$24.99 $22.70 $22.63 -$0.07 $25+ $43.95 $45.11 $1.16 Source: , Wines Vines Analytics. Domestic table wine sales in multiple-outlet and convenience stores; 52 weeks ended Aug. 13, 2017.