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12.17.2012  
 

Record DtC Sales Continue

November total hits $224 million; flash offers grew by 22%

 
by Andrew Adams
 
 
direct to consumer wine sales
 
San Rafael, Calif.—Nearing almost a quarter-billion dollars in total value, direct-to-consumer wine shipments stayed hot this fall.

October’s record sales of $222 million was topped by figures from November, which saw $224 million in sales, according to the Wines & Vines/ShipCompliant model. The $224 million mark is the highest for November DtC shipments since WinesVinesDATA began tracking them in 2010. The total is 12% higher in value and 13% larger by volume than November 2011.

The DtC figures are just one of several positive wine industry indicators for November that can be found in Wines & Vines’ latest update in the Wine Industry Metrics section.

By varietal, red blends continue to lead DtC value. For the past 12 months from November 2011 to November 2012, the per-bottle price for red blends, mainly Bordeaux style, grew by $9.14, or 23%. Merlot lost the most value, 10% or $3.41, in the same period, and Cabernet Sauvignon stayed the same.

Large increase in flash offers
The number of offers by flash resellers of domestic wines grew by 22% for November and was up by 51% for the 12-month period. Invino, which had 106 offers in November, is now the channel leader by domestic wine offers. The website offered 1,057 wines since January, accounting for almost a quarter of the 4,813 total offers in the same period.

The total number of domestic wine offers also represents a 42% increase over the total for 2011.

WinesVinesDATA found that flash resellers in the past two years have offered products from more than 1,300 of North America’s 7,435 wineries. In just the past year, flash resellers presented offers from 1,005 unique wineries.

The very largest wineries, those producing more than 500,000 cases per year, were most likely proportionally to have their products on the flash market, but medium (50,000 to 499,000 cases) and small (5,000 to 49,000) wineries accounted for a much larger number of offers. From 2011 to 2012, flash sites posted offers for wines from 442 small and 136 medium sized wineries.

Looking at winery involvement in the flash market by bottle price reveals more flash sites offered wines from wineries with a higher average bottle price.  Wineries with an average price of $30 and higher were more likely to have been offered online. WinesVinesDATA tracked 787 unique wineries with an average bottle price higher than $30. These wineries accounted for 58% of the total 1,352 wineries offered through flash sites in the past two years.

Winery job postings, off-premise sales
The 12-month total of job postings on winejobs.com was up 15% over 2011, although the number of postings in November of this year slipped by 19% against the November total in 2011.

Off-premise sales showed a steady growth rate of 6% for the past 52 weeks. Total volume was up by a modest 2%, but the average bottle price grew by 21 cents, according to the Chicago, Ill.-based Symphony IRI Group.

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Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
June 2014 $562 million
5%
$7,549 million
6%
June 2013 $535 million $7,094 million
     
Direct-to-Consumer Shipments » Month   12 Months  
June 2014 $87 million
17%
$1,669 million
11%
June 2013 $74 million $1,510 million
     
Winery Job Index » Month   12 Months  
June 2014 300
34%
220
21%
June 2013 224 182
     
 
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