Issue link: http://winesandvines.uberflip.com/i/929459
Off Premise 2017 Off-Premise Sales Beat Previous Year by 2% METRICS February 2018 WINES&VINES 11 Direct to Consumer D irect-to-consumer (DtC) s h i p m e n t s f r o m U . S . wineries exceeded $219 million in December 2017, ac- cording to data from Wines Vines Analytics and ShipCom- pliant, 18% more than a year earlier. Strong ongoing activity put the channel 16% ahead of the previous year with $2.7 bil- lion shipped. December case v o l u m e s i n c r e a s e d 1 6 % t o 537,979 cases, pushing the tally for the year to 5,788,490 cases, a 15% gain versus 2016. The increases helped 2017 set a new benchmark for ship- ments. While a shift to more expensive bottles took place during the latter half of the year, the year as a whole saw ship- ment value and case volume advance largely in step. Wineries producing 5,000- 49,999 cases accounted for 46% of all DtC shipments in 2017. The very largest wineries (those pro- ducing 500,000 cases and up) and those producing less than 1,000 cases dispatched 5% and 3% of shipments, respectively. While wineries across the board use the channel, wineries producing less than 50,000 cases account for 73% of all shipments. —Peter Mitham Steady Growth Boosts DtC Shipments 16% in 2017 DTC SHIPMENTS BY WINERY SIZE Winery Case Range DtC Cases Shipped DtC Value Shipped 500,000+ 684,225 $132,552,837 50,000-499,999 1,556,818 $606,309,377 5,000-49,999 2,489,669 $1,248,867,502 1,000-4,999 953,678 $623,576,372 <1,000 104,099 $80,410,651 2017 Total 5,788,489 $2,691,716,739 Source: Wines Vines Analytics/ShipCompliant. 12 months through December 2017. Source: Wines Vines Analytics/ShipCompliant, 12 months ending December 2017. ANNUAL DTC SHIPMENTS 2013 2014 2015 2016 2017 $ Millions $3,000 $2,500 $2,000 $1,500 $1,000 $500 0 OFF-PREMISE SALES BY VARIETAL Chardonnay Cabernet Sauvignon Sparkling Pinot Gris Red Blends Pinot Noir Merlot Sauvignon Blanc 0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $ Millions n 2017 n 2016 n 2015 Source: , Wines Vines Analytics. Domestic and imported wine sales through multiple-outlet and convenience stores; 52 weeks through Dec. 27, 2015, Dec. 25, 2016, and Dec. 31, 2017. O ff-premise sales through multiple-out- let and convenience stores in the four weeks ended Dec. 31 increased 1% to $894 million versus a year earlier, market-re- search firm IRI reported. A strong economy and willingness to spend on more expensive bottles combined to fuel steady growth that boosted sales in the channel to $8.8 billion for the year, 2% higher than in 2016. Domestic table wines outperformed spar- kling wines in December, rising 2% versus a 6% drop for bubbly compared to the previous month. Nevertheless, sparkling sales rose 3% versus a year ago, a point above table wine's more modest growth of 2%. Still, the domi- nance of table wines made them a larger con- tributor to off-premise sales growth. With respect to specific varietals sold through multiple-outlet and convenience stores tracked by IRI, 12-month sales of spar- kling wine outperformed the major table wine varietals, with sales growing 6% in 2017 versus the previous year. Cabernet Sauvignon led table wine sales with 4% growth to $1.7 billion, while the channel leader, Chardonnay, held the course with $1.9 billion in sales. Merlot lost ground, dropping 2% to $608 million. —Peter Mitham