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10.31.2013  
 

U.S. Wines Grow 6% Off-Premise in October

Convenience store sales up 25%; Chardonnay and Pinot Grigio lead

 
by Jim Gordon
 
 
“off-premise
 
San Rafael, Calif.—Off-premise sales of domestic wines this month dipped from their September level but surpassed October 2012 by 6%, according to IRI, the Chicago-based market research firm. Sales during the 52 weeks ending in October rose 7% compared to a year earlier.

Domestic table wine and sparkling wine grew at virtually the same rate, although table wine was 22 times larger in value. Table wine totaled $504 million in October, compared to sparkling wine at $23 million in the U.S. food, drug, liquor and convenience stores tallied by IRI.

Convenience sales fastest
Convenience stores were the fastest growing channel for off-premise wine sales, accounting for $44 million in domestic table wine in October. This number grew 25% compared to October 2012, and was faster than the 52-week growth rate of 21%.

The most popular varietal or wine type in convenience stores during the past year was the same as in other stores: Chardonnay, with a 26% share of sales. However, Pinot Grigio/Gris was second in value with a 13% share, while it is third in other stores. Cabernet Sauvignon is No. 3 in convenience stores, but No. 2 in other off-premise outlets.

Barefoot, Sutter Home and Yellow Tail rank first, second and third in sales by brand at convenience stores. Kendall-Jackson Vintners Reserve is the highest-priced brand—averaging $14.36 per bottle—among the top 20.

Glass bottles in the 750ml size account for 62% of convenience store sales by package type, 1.5-liter glass bottles account for 19%, and 187ml bottles (including plastic ones) account for 13%.

Aussie wines drop 6%
Imported wine sales grew by an average of 1% in all stores during the past year, compared to 7% for domestic wines. Washington state at 9% and Oregon at 10% outpaced California’s 7% growth rate. Australian wines lost 6% in value, while New Zealand wines rose 21%.

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Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
March 2013 $546 million
5%
$6,988 million
7%
March 2014 $572 million $7,451 million
     
Direct-to-Consumer Shipments » Month   12 Months  
March 2013 $177 million
20%
$1,483 million
10%
March 2014 $213 million $1,634 million
     
Winery Job Index » Month   12 Months  
March 2013 253
15%
166
27%
March 2014 292 210
     
 
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