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Off Premise Oregon, Washington Strong as Off-Premise Sales Rise 3% DtC Growth Marches Forward with 10% Gain Source: Wines Vines Analytics/ShipCompliant by Sovos; 12 months ended March 2018. Source: Wines Vines Analytics/ShipCompliant by Sovos; 12 months ended March 2018. METRICS May 2018 WINES&VINES 11 Direct to Consumer O ff-premise sales through multiple-out- let and convenience stores in the four weeks ended March 25, increased 4% versus a year earlier to $680 million, market research firm IRI reported. Case volumes in- D irect-to-consumer (DtC) shipments rose 10% in March versus a year earlier to exceed $342 million, Wines Vines Ana- lytics/ShipCompliant by Sovos reported. Case volumes increased 12% to 642,516, slightly less than the 12-month increase of 13%. The average bottle shipped had a value of $44.38, a healthy premium to the 12-month average of $37.25. Northwest wineries continued to increase utilization of the channel, with volume gains outstripping the national average. Oregon, al- ready enjoying the Northwest's largest DtC volumes, saw shipments rise another 35% to top $163 million in the latest 12 months. Ore- gon's case volume was 345,654, up 30% from a year earlier. Washington was close behind with shipments growing 28% to near $108 million. Case volume rose 23% to 267,958 cases. The greater growth in value relative to case volumes pointed to wineries using the channel to ship more expensive wines. Oregon lead the region in terms of average bottle price, at $39.37, a 3% gain from last year. Washington's average was $33.57 a bottle, an even stronger gain from last year at 4%. —Peter Mitham DTC SHIPMENT VALUE DTC SHIPMENT AVERAGE BOTTLE PRICE $40 $35 $30 $25 $20 $15 $10 $5 $0 2014 2015 2016 2017 2018 n Oregon n Washington OFF-PREMISE SALES GROWTH BY WINERY STATE $25+ $20-$24.99 $15-$19.99 $11-$14.99 $8-$10.99 $4-$7.99 -20% 0 20% 40% 60% Percentage n California n Oregon n Washington Source: , Wines Vines Analytics. Domestic table wine sales in glass packaging in multiple-outlet and convenience stores; 52 weeks ended Mar. 25, 2018. Bottle Price Oregon Data N/A OFF-PREMISE SALES SHARE BY WINERY STATE Source: , Wines Vines Analytics. Domestic table wine sales in glass packaging in multiple-outlet and convenience stores; 52 weeks ended Mar. 25, 2018. Oregon - 2% All Others - 3% California Washington 88% 7% creased 2% to 8,576,040. The activity lifted 52-week sales 3% to $8.9 billion. While sparkling wines rose 5% in the four weeks ended March 25, growth in table wines for the period was notable. With an additional $25 million in sales for the period, March saw table wines garner more than 10% of the sales increase logged in the previous year. Sparkling wine sales lagged annual growth trends despite more consistent performance. Drilling down into West Coast winery sales, Northwest producers showed strong growth in the latest 52 weeks. Oregon wines did espe- cially well, with off-premise sales rising 11%. Washington wines rose 3%, with sales of cheaper wines dragging down exceptional per- formance in the higher price segments. Indeed, Washington logged 40% growth in the prime $15-$19.99 price segment, and averaged 25% for bottles $20 and up. Oregon posted double- digit gains at $11 and up, led by 19% growth of $25-plus wines. —Peter Mitham $ Millions $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 2014 2015 2016 2017 2018 n Oregon n Washington