Issue link: http://winesandvines.uberflip.com/i/907666
O ff-premise sales through multiple-outlet and con- venience stores in the four weeks ended Oct. 8 were un- changed from a year earlier, mar- ket research firm IRI reported. Sales totaled $637 million, a smidgen above the $635 million sold a year ago. The lower gear hinted at moderating growth as direct-to-consumer (DtC) ship- ments strengthen. Nil growth in both domestic table and sparkling wine sales did little to hurt 52- week sales, which increased 3% to $8.8 billion. For the first time in several months, however, case volume de- clined. While the shift was a mere 44,000 cases lower, it lifted the average bottle price through off-premise channels 5 cents to $6.47. Zinfandel was a key bene- ficiary, with its average price rising 34 cents to $11.12 per 750 ml. Pinot Noir gained 18 cents to $9.83. Red blends saw their average price drop 12 cents to $9.01 per 750 ml, even as sales of the wine type rose 6%. Red blends are the second-largest red wine after Cabernet Sauvignon, representing 11% of off-premise table wine sales. Pinot Noir follows in third place with 10%. Cabernet Sauvignon holds 25% of table wine sales in off-premise channels that IRI tracks. —Peter Mitham Off Premise Off-Premise Sales Flat; Red Blends Gain Market Share OFF-PREMISE RELATIVE MARKET SHARE Red Blends $739 million Pinot Noir $721 million Merlot $590 million Cabernet Sauvignon $1,696 million Top-Selling Red Varietals $3,898 million Zinfandel $153 million Source: , Wines Vines Analytics. Table wines sold in bottles through multiple-outlet and convenience stores; 52 weeks ended Oct. 8, 2017. METRICS December 2017 WINES&VINES 11 Direct to Consumer D irect-to-consumer (DtC) shipments approached $395 million in October, reported Wines Vines Analytics/ ShipCompliant, rising 1% from O c t o b e r 2 0 1 6 t o s e t a n e w benchmark for the channel. The growth rate was marginal after last year's increase of 35%, but pointed to the ongoing strength of the channel. The average bot- tle price fell 6% to $46.36, how- ever, as case volumes rose 8% to 709,693, pointing to rising ship- ments of lower priced wines to consumers. The shift appeared in growth rates for value and v o l u m e i n t h e 1 2 m o n t h s through October, which stood at 12% and 15%, respectively. Cabernet Sauvignon continues to lead DtC shipments, accounting for 39% of the top red varietals shipped, down a percentage point from last year. Pinot Noir ship- ments increased by $51 million over the past year to become the second most-shipped red varietal, while red blends are now in third place. Yet the two varietals remain neck-and-neck, with each holding 22% of the channel. Syrah ship- ments showed stronger growth than Merlot over the past year, but the two varietals each claim 3% among major reds shipped. All major red varietals saw DtC shipments increase. However, the shift toward shipments of more affordable wines is undeniable. Shipments of wines priced be- tween $15 and $19.99 per bottle increased 21%, the greatest growth rate of any price segment, and now total $18 million. Ship- ments of bottles priced $20-29.99 increased 18% to total $45 mil- lion. Overall, more than $1.9 bil- lion worth of red wines shipped DtC in the 12 months ended Oc- tober 2017. —Peter Mitham DtC Shipments Set Benchmark in October; Pinot Noir Gains DTC SHIPMENTS OF RED BLENDS BY BOTTLE PRICE $ Millions 0 $25 $50 $75 $100 $125 $150 $100+ $60-$99.99 $30-$59.99 $20-$29.99 $15-$19.99 <$15 DTC SHIPMENTS BY RELATIVE MARKET SHARE Pinot Noir $419 million Red Blends $412 million Zinfandel $117 million Cabernet Sauvignon $742 million Top-Selling Red Varietals $1,911 million Merlot $66 million Source: Wines Vines Analytics/ShipCompliant model; 12 months through October 2017. Other Red $90 million Syrah $66 million Source: Wines Vines Analytics/ShipCompliant model; 12 months through October 2017.