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Off Premise Top-priced Wines Boost 52-week Off-Premise Sales 2% Source: , Wines Vines Analytics. Domestic table wine sales in glass packaging in multiple- outlet and convenience stores; 52 weeks ended Feb. 25, 2018. OFF-PREMISE SALES GROWTH Percentage Bottle Price -5% 0 5% 10% 15% $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 <$4 Source: , Wines Vines Analytics. Domestic table wine sales in glass packaging in multiple- outlet and convenience stores; 52 weeks ended Feb. 25, 2018. OFF-PREMISE SALES $ Billions Bottle Price 0 $.5 $1 $1.5 $2 $2.5 $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 < $4 Source: Wines Vines Analytics/ShipCompliant by Sovos; 12 months ended February 2018. DTC SHIPMENTS $ Millions Winery Size (cases) 0 $250 $500 $750 $1,000 $1,250 $1,500 < 1000 1,000-4,999 5,000-49,999 50,000-499,999 500,000+ Source: Wines Vines Analytics/ShipCompliant by Sovos; 12 months ended February 2018. DTC SHIPMENT GROWTH Percentage Winery Size (cases) 0 5% 10% 15% 20% 25% < 1000 1,000-4,999 5,000-49,999 50,000-499,999 500,000+ METRICS April 2018 WINES&VINES 11 Direct to Consumer Growth Rate of Direct Shipments Eases With 4% Gain O ff-premise sales through multiple- outlet and convenience stores in the four weeks ended Feb. 25 increased 1% versus a year earlier to $682 million, market research firm IRI reported. Case volumes fell imperceptibly, virtually un- changed at 8,541,294. The activity kept 52-week sales growth steady at 2%, totaling $8.9 billion. Domestic sparkling wine sales returned to a more normal growth rate in February after bub- bling over in January. They rose 1% versus a year earlier in step with domestic table wine sales. Sales in the 52 weeks ended Feb. 25 saw sparkling wines increase 4%, twice the rate of table wines. Reflecting the strong economy, growth in off- premise sales came largely from higher price segments. Bottles priced $25 and up saw 14% growth, while sales between $15 and $24.99 increased 10%. Conversely, sales of wines priced $7.99 and less declined 3%. Nevertheless, this is the same price range with the single biggest tally of sales, followed by wines priced between $8 and $10.99. Collectively, the three price segments in this lower range claim $5 billion in sales, or 68% of domestic wine sales in glass packaging. —Peter Mitham D irect-to-consumer (DtC) shipments caught their breath in February. Shipments rose 4% to $249 million, Wines Vines Analyt- ics/ShipCompliant by Sovos reported. Case vol- ume rose 7% to 510,644, the greater growth rate relative to sales pointing to the movement of more affordable wines. The average bottle price was a respectable $40.58, however, well above the aver- age for the latest 12 months of $38.73. Small wineries – those producing 5,000 to 49,999 cases – continue to dominate the channel, accounting for $1.3 billion or 46% of shipments. The biggest growth in ship- ments during the latest 12 months was among wineries producing 50,000 to 499,999 cases. These wineries shipped $602 million DtC in the 12 months ended February, 21% more than a year earlier. Close behind in growth rate were limited production wineries (less than 1,000 cases made), which repre- sent just 3% of the channel but increased shipments by 18%. These producers also boasted the highest average bottle price for shipments, at $66.69 – more than twice that of the $32.21 per bottle shipped by the fast- growing mid-sized wineries. —Peter Mitham