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Domestic Wine Sales Steadily Up

November 2011
 
by Jim Gordon
 
 
SIRI Symphony IRI
 
San Rafael, Calif.—Domestic wine sales at major U.S. food and drug retailers remained steadily up for the most recent period measured by the Symphony IRI Group. Four-week dollar sales ending Sept. 4 hit $351 million and grew 7% over the same period last year. The year-to-date growth rate was also 7%. Volume sales of domestic table wine grew a bit more slowly, at 5%, as prices edged up 8 cents per 750ml.

The news was even brighter in the narrower category of domestic varietal table wine packaged in 750ml bottles. This segment grew by nearly 9% in the recent four weeks. In contrast, varietals in 1.5L packages grew at 5%; non-varietals in 1.5L format actually dropped by 1% compared to the same period a year earlier.

Imported table wines were essentially flat in off-premise dollar sales for the year to date, showing just 1% growth. Tremendous increases of 32% by Argentina and 19% by New Zealand barely balanced hefty losses by two countries that export more to the U.S. France was down by 7% and Australia by 8%.

Oregon up 14%

Symphony IRI, the Chicago-based market research firm, measured Oregon table wine as being up 14% year to date with $38 million in dollar sales. This put Oregon in the same neighborhood as Spain and Germany in total sales, but each only holds about 1% market share in dollars. Sales of Washington wines so far this year grew 5% in dollars. Washington holds 5% of market share.

Speaking of Oregon and other Pinot Noir-producing regions, sales of Pinot Noir were among the fastest growing of the varietal types. Pinot Noir from all sources grew 12% year to date. However, the real champions of growth were red blends and Meritage wines, which increased sales by 28% year to date.

Chardonnay is king
Despite the long-running Anything But Chardonnay argument by some wine critics and trade members, Chardonnay is still the top-selling varietal, SIRI’s data show. Sales of Chardonnay—domestic and import combined—topped $1.3 billion in the most recent 52 weeks. No. 2 Cabernet Sauvignon sold a mere $897 million.

A look at sales of Chardonnay, Cabernet and Merlot by price-point shows that Chardonnay dominates those two reds and every other varietal category in five out of seven segments. Only in the mid-range of $8-$10.99 and in the highest-priced segment of $20-plus did Cabernet outsell Chardonnay in dollars.

 
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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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