Issue link: http://winesandvines.uberflip.com/i/90739
Headlines J ANU AR Y NEWS NO VEMBER NEWS NEWS BY TE S A Volume and Value of Shipments by Winery Annual Case Production Annual Case Production* Under 1,000 1,000-4,999 5,000-49,999 50,000-499,999 500,000+ * Based on 9-liter cases DtC Shipments Reach $1.4 Billion by ShipCompliant and Wines & Vines. U.S. wineries producing less than 50,000 cases per year collected 74% of the $1.4 billion 12-month total for DtC shipments through July 2012. Shipments by wineries in all size categories except one grew in val- ue, for a total growth rate of 10%, which beat the 7% growth rate at retail stores. Wineries making 5,000-49,999 cases S winesandvines.com Learn more: Search keywords "direct shipments." per year dominated the DtC sector, compris- ing 51% of sales value and 47% of volume shipped. They grew at 6% in value over the previous 12 months. Wineries in the 1,000- 4,999 cases per year bracket represented 18% of total DtC value, while these wineries' shipments increased 12% in dollars. Winer- ies producing less than 1,000 cases account- ed for 5% of the sector's total value. Medium and large wineries accounted for only 26% of DtC shipments by dollars, but their sales were growing. Those producing 50,000- 499,999 cases increased sales by 27%, and DtC at the biggest wineries (producing 500,000-plus cases per year) grew by 6%. 14 WINES & VINES NOVEMBER 2012 an Rafael, Calif.—Small wineries dominated the fast-growing mar- ket for direct-to-consumer wine shipments, according to a report Percent of Volume 4% 15% 47% 29% 5% Volume Change -1% -2% 4% 18% 22% Percent of Value 5% 18% 51% 23% 3% Value Change -9% 12% 6% 27% 6% Small wineries responsible for 74% of the market share The two smallest winery size categories— less than 1,000 cases and 1,000-4,999 cases per year—were the only ones to see DtC sales shrink in volume. The good news for those smallest wineries, however, was that consumers paid an average of $51 per bottle for their wines. The report calculated that DtC shipments accounted for 9% of the total retail wine market. The average price of all wines shipped DtC increased by $1.11 to $37.69 per bot- tle. Wines priced at $100-plus grew 15% in sales, making them the hottest price cat- egory, but not the biggest: The most profit- able category was $50-$99 wines, which brought in $405 million. Cabernet Sauvignon, Pinot Noir and Chardonnay held places No. 1, 2 and 3 in percent of value and claimed 59% of volume. Cabernet Sauvignon brought in $414 million. Pinot Noir grew at the fast- est rate of the top three varietals, climb- ing 19% in value. Zinfandel, in the No. 4 spot, grew by 16%. Syrah, which has slumped in retail store sales, grew by 13% in DtC shipments. Napa Valley led all re- gions in value of wine shipped, with sales of $670 million representing 49% of the DtC market. —Jim Gordon B.C. STALLS PRIVATIZATION AGAIN bid to privatize liquor distribution services in British Columbia has been nixed, ensuring the Canadian prov- ince remains in the liquor whole- saling business winesandvines.com Learn more: Search keywords "British distribution." for the foreseeable future. British Co- lumbia premier Christy Clark, who has made much of her government's com- mitment to free enterprise, announced in late September that privatization of liquor distribution in the province would not go ahead. The decision is part of a tentative agreement between the pro- vincial officials and the B.C. Govern- ment Employees Union, which repre- sents 25,000 government employees. FLASH COMES TO NORTH COAST T wo new flash extraction units opened for business on California's North Coast in time for the 2012 vintage. Rudy Zuidema opened Flash Wine Tech- nologies at Kunde winesandvines.com Learn more: Search keywords "flash extraction." Family Estate winery in Kenwood, Calif., and the Vintners Group installed a unit at its custom crush winery at Carneros Vintners near Sonoma, Calif. The Italian company Della Toffola made both units. IRRIGATION PROJECT CONTINUES esearchers at the University of Cali- fornia, Davis, and other schools in the western states are more than halfway through a project to create and evaluate a system of inter- connected sen- sors that could R winesandvines.com Learn more: Search keywords "precision sensors." be used to help monitor and control ir- rigation for winegrapes and other crops. The three-year study of precision canopy and water management is being funded through a $2.5 million grant by the U.S. Department of Agriculture.