Wines & Vines

March 2018 Vineyard Equipment & Technology Issue

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Off Premise Barefoot Is Top Brand as Off-Premise Sales Rise 3% METRICS March 2018 WINES&VINES 11 Direct to Consumer D irect-to-consumer (DtC) shipments rose 25% in January, Wines Vines Ana- l y t i c s / S h i p C o m p l i a n t d a t a showed, nearing $126 million. Case volumes rose just 16% to 309,352, however, indicating that shipments primarily included more expensive wines. Average price per bottle rose 5% over Jan- uary 2017 to reach $33.82. Regionally, Napa County dom- inated the DtC channel in the lat- e s t 1 2 m o n t h s , s h i p p i n g 1.7 million cases worth $1.3 bil- lion. These wines also led in aver- age bottle price at $62.98, a 2% increase from a year ago. However, the most significant DtC gains occurred in Oregon and Washington. Oregon increased shipments 36% to $157 million on 334,019 cases, while Washing- t o n s h i p m e n t s r o s e 3 5 % t o $106 million on 264,102 cases. Growth in value outstripped cases shipped, a fact reflected in strong per-bottle price increases. Oregon saw the average bottle price of its DtC shipments increase 4% to $39.25, while Washington had the third-highest average bottle price at $33.34. Washing- ton, however, saw the biggest growth in average bottle price of any region over the past year, gaining 5%. While regions of California outside Napa saw average bottle prices decline 1%, California as a whole saw the average bottle price of wines shipped DtC rise 8% to $41.76. This reflected the broader use of DtC sales within individual regions, and the use of the channel for shipping wines from a broader range of price segments (usually cheaper), but the overall dominance in the channel of Napa's more expen- sive wines. —Peter Mitham DtC Gains Continue as Shipment Value Rises 25% O ff-premise sales through multiple- outlet and convenience stores in the four weeks ended Jan. 28, increased 3% versus a year earlier to $657 million, market-research firm IRI reported. Case volume sales increased 2% to 8.3 million in the same period. Sales in January kept 52- week sales growth steady at 2%, totaling $8.9 billion. Domestic sparkling wine sales rose 26% in January versus a year earlier. Domestic table wine sales grew just 2%, but data for the 52 weeks pointed to table wines' fundamental position in off-premise sales. Domestic table wines added $205 million in sales, a 3% gain, while sparkling wine sales rose 4% but added just $18 million in sales. The top table wine brand sold through multiple-outlet and convenience stores tracked by IRI remains the same as last year: Barefoot by E. & J. Gallo Winery, with sales of $667 million. Sutter Home by Trinchero Family Estates held second place, while Wood- bridge by Robert Mondavi moved into third place. The fastest growing brand was Josh Cellars by Deutsch Family Wine & Spirits, which saw sales grow 46% to $145 million in the most recent 52 weeks. —Peter Mitham DTC SHIPMENT BOTTLE PRICE CHANGE BY REGION Percentage Change 6% 4% 2% 0 -2% -4% -6% Napa $62.98 $39.25 $20.66 $29.65 Rest of CA Oregon Washing- ton Rest of U.S. Sonoma $27.74 $33.34 Price reflects average bottle price. Source: Wines Vines Analytics/ShipCompliant model; 12 months through January 2018. OFF-PREMISE TOP 20 TABLE WINE BRANDS Rank Brand Parent/Importer 52-Week Sales (Millions) Sales Change Average Price (750ml) 1 Barefoot E. & J. Gallo Winery $667 0% $5.52 2 Sutter Home Trinchero Family Estates $374 2% $5.52 3 Woodbridge by Robert Mondavi Constellation Brands $347 3% $5.45 4 Franzia (box) The Wine Group $336 0% $2.29 5 Yellow Tail Deutsch Family Wine & Spirits $267 -2% $5.52 6 Black Box Wines Constellation Brands $210 28% $4.93 7 Apothic E. & J. Gallo Winery $193 8% $9.57 8 Kendall Jackson Vintner's Reserve Jackson Family Wines $192 -1% $12.07 9 Ménage à Trois Trinchero Family Estates $182 2% $9.65 10 Chateau Ste. Michelle Ste. Michelle Wine Estates $176 -1% $9.84 11 Cupcake Vineyards The Wine Group $151 -2% $8.93 12 Bota (box) Delicato Family Vineyards $146 25% $4.71 13 Beringer Main & Vine Treasury Wine Estates $146 -8% $4.64 14 Josh Cellars Deutsch Family Wine & Spirits $145 46% $12.55 15 Gallo Family Vineyards E. & J. Gallo Winery $138 -4% $4.08 16 Bogle Vineyards Bogle Vineyards $124 1% $9.43 17 Liberty Creek E. & J. Gallo Winery $120 9% $3.51 18 Clos du Bois Constellation Brands $119 -1% $9.12 19 Carlo Rossi E. & J. Gallo Winery $115 -4% $2.56 20 Robert Mondavi Private Selection Constellation Brands $114 15% $8.88 Source: . All table wine in multiple-outlet and convenience stores; 52 weeks ended Jan. 28, 2018.

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