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Domestic Wine Sales Up 9%

September 2011
 
by Jim Gordon
 
 
Domestic wine sales in July grew nearly as fast as the economy of China, reaching $347 million, according to check stand scan data from major U.S. food and drug stores. The four-week growth rate for wine was 9.1% higher than the same period last year, nearly matching China’s 9.5% growth in GDP for the second quarter.

Every four-week period in the 17 months since Wines & Vines began analyzing sales data from the Symphony IRI Group, a Chicago-based market research firm, has shown positive growth in domestic wine sales.

wine industry data center SIRI
 

The pace ticked along at about 6% every month from early 2010 until early this year. But March hit 8% growth, May hit 10%, and now the 12-week growth rate has reached 9% over last year with rounding.

wine industry data center SIRI
 

Phenomenal rate
Growth has remained fastest in the highest priced category that SIRI measures—wines priced at $20 and higher. Sales in that category reached $14 million for the four weeks ending July 10, representing 32% growth in dollars over the same four weeks in 2010. The 52-week growth for these high-ticket wines was 22%.

The largest dollar category of domestic table wines includes those retailing for $5-$7.99 per 750ml bottle. This category sold $1.1 billion in 52-week sales, representing a more modest but healthy 5% growth rate.

Imported table wines are in a different boat. If retailers aren’t seeing their overall revenues rise by 9%, it may be because imports are stuck at 1% growth year on year, both in the recent four-week window and over 52 weeks, according to SIRI’s data.

 
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Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
August 2014 $558 million
5%
$7,613 million
6%
August 2013 $531 million $7,167 million
     
Direct-to-Consumer Shipments » Month   12 Months  
August 2014 $78 million
17%
$1,686 million
10%
August 2013 $67 million $1,530 million
     
Winery Job Index » Month   12 Months  
August 2014 218
12%
224
19%
August 2013 194 189
     
 
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