Issue link: http://winesandvines.uberflip.com/i/892087
O ff-premise sales through multiple-outlet and con- venience stores in the four weeks ended Sept. 10 rose 5% to $663 million versus a year ago, reported market-research firm IRI. Off-premise sales in- creased 3% in the previous 52 weeks, totaling $8.8 billion. Growth in domestic table wine sales was even with that of spar- kling wine in the latest four weeks at 5%. Sparkling continued to lead 52-week sales with 5% growth versus 3% growth in table wine sales. Table wines represent the largest part of the off-premise market, however, meaning growth in the category set the pace for overall growth in the channel. A look at table wines sold in bottles indicates that domestic wines are holding their own with 81% market share versus packaged imports. Domestic table wines have a lower average price at $6.41 per bottle versus $8.11 for imports. The higher average price stems from imports' stronger perfor- mance in two key price bands: $11- $14.99 and $15-$19.99. Imports' growth of 22% in the $15-$19.99 price segment is nearly twice that of domestic wines at 12% in the latest 52 weeks. Similarly, imported table wines priced at $11-$14.99 climbed 14% versus 7% for do- mestic product. Imports grabbed market share from domestic wines at each price level, gaining 2% in the $11-$14.99 tier and 1% at the $15-$19.99 tier. Together, the tiers represent the third-biggest seg- ment of off-premise sales, with a combined value of $2.4 billion in the most recent 52 weeks. —Peter Mitham Off Premise Off-Premise Wine Sales Rise 5%; Domestic Wines Hold Off Competitors METRICS November 2017 WINES&VINES 11 Direct to Consumer D irect-to-consumer (DtC) shipments totaled $222 million in September, ac- cording to Wines Vines Analytics/ ShipCompliant, up 12% from Sep- tember 2016. Wineries shipped 493,999 cases, 13% more than last September. Shipments typi- cally increase as fall begins, thanks to the arrival of cooler weather. Both value and volume for the 12 months through Sep- tember increased 17%. California accounted for 85% of total DtC activity in the 12- month period. Nationally, Napa claimed 49% of all shipments. Yet the rise of DtC shipments across the country meant that Napa, like California as a whole, ceded ground to other regions. Califor- nia shed a percentage point of market share, with wineries out- side Napa and Sonoma losing 2% to other regions even as shipment values increased. Napa lost 1% in market share. Sonoma, by contrast, bar- relled forward, boosting its share of the channel from 18% to 20%. This meant an extra $105 million i n s h i p m e n t s , t h e s t r o n g e s t growth in absolute terms of any region and enough to make So- noma a more significant player in the channel. Washington, the only other region to boost its share of the DtC channel, rose from 3% to 4%. This translated to an additional value of $24 mil- lion—strong growth for a state where DtC shipments now total $97 million. —Peter Mitham Fall Ushers in 12% Growth for DtC Shipments Source: , Wines Vines Analytics. Table wines sold in bottles through multiple-outlet and convenience stores; 52 weeks ended Sept. 10, 2017. OFF-PREMISE TABLE WINES BY ORIGIN $ Millions 0 $500 $1,000 $1,500 $2,000 $2,500 $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 <$4 n Domestic n Imported Other CA Washington Other U.S. Sonoma Napa DTC SHIPMENTS BY WINERY REGION Source: Wines Vines Analytics/ShipCompliant for 12 months ended September 2017. Oregon Source: Wines Vines Analytics/ShipCompliant; 12 months through September 2017. DTC SHIPMENTS BY WINERY REGION Cases 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 n 12 months ending September 2016 n 12 months ending September 2017 Napa Sonoma Other CA Oregon Washington Other U.S.