Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
02.27.2014  
 

Oregon Pulls Ahead With DtC Sales

Willamette Valley Pinot Noir gains in popularity as distribution improves

 
by Kate Lavin
 
 
“oregon
 
Source: Silicon Valley Bank Wine Division
Portland, Ore.—Oregon wines have made headway with consumers during the past five years, but there is still room for improvement, according to experts speaking at the Oregon Wine Industry Symposium held this week at the Oregon Convention Center in Portland.

“One of Oregon’s barriers has been distribution in the marketplace,” said Christian Miller, proprietor of Full Glass Research and research director of Wine Opinions. Luckily, consumer perception of this problem is on the upswing.

According to Wine Opinions’ survey of perceived marketing conditions, 52% of respondents said retailers carry many wines from Oregon and can recommend them, a 19% increase since 2009. Additionally, the number of respondents who found Oregon wines difficult to find on the shelves fell to 24% from 32% in 2009.

Buying more Oregon wine
According to a survey Wine Opinions conducted of regular wine drinkers in January 2014, 31% of respondents report that they’re buying more wine from the Willamette Valley, while just 7% say they’re buying less. Eleven percent of respondents say they’re buying more wine from non-specified Oregon locations, while just 6% say they’re buying less.

Looking at Pinot Noir specifically, 44% of respondents reported buying more Willamette Valley Pinot Noir, while 6% reported buying less. Sixteen percent of those surveyed are buying more Pinot Noir from the Oregon appellation (compared to 7% buying less).

Among self-identified Pinot Noir fans, 55% said they drink Oregon Pinot frequently; 41% of high-end wine consumers report the same. In spite of these glowing numbers from Wine Opinions, the statistics lag behind California Pinot Noir figures, for which 86% of Pinot Noir fans reported drinking the variety from that state and 51% of high-end consumers reported the same.

Retail sales
For the 52 weeks ending Jan. 5, 2013, Oregon wine sales grew 6.5% by value and 5.2% by volume, comprising nearly 1% of all table wine sold in outlets tracked by Nielsen Co. With an average bottle price of $15.39 during the same time period, Oregon wines net prices higher than California, Washington or imported wines.

While Oregon wines account for just 0.4% of wine volume sold at retail outlets tracked by Nielsen Co., they account for 3.6% of the domestic wine shipped direct to consumers, according to the model developed by ShipCompliant and Wines Vines Analytics, the data arm of Wines & Vines. Fifty-four percent of the Oregon wine volume shipped direct to consumer is Pinot Noir, with Chardonnay and red blends ranking second and third.

“You’re much more important in the market than your production would indicate,” he told the audience at the event sponsored by the Oregon Wine Board/Oregon Winegrowers Association.

More than 15% of the Pinot Gris/Pinot Grigio direct shipped by wineries comes from Oregon, according to the model. Direct-to-consumer shipments originate with orders placed through wine clubs, by mail, via websites or visits to tasting rooms. He noted that 13.8% of all domestic Pinot Noir sold through this channel comes from Oregon. Oregon also has an 11.3% share in the Riesling sold in this manner.

While Oregon Chardonnay is popular among direct-to-consumer shoppers buying Oregon wine, 12% of regular wine drinkers surveyed by Wine Opinions were unaware that Oregon produced Chardonnay, and 22% said they had “heard about it but never tried it.” Results were similar for Pinot Gris, which some wineries and associations are trying to make the state’s flagship white wine variety.

The winery perspective
Mark Freund, managing director of Silicon Valley Bank’s Wine Division, also spoke during the State of the Industry session Tuesday, when he discussed the results of SVB’s 2013 Wine Conditions Survey.

Forty-two percent of survey respondents from Oregon said 2013 was a good year, while the national average was 33%. However, 23% of Oregon respondents reported that it was “a year of treading water.”

Respondents estimated that in 2013 sales grew 10% over the previous year, while volume grew 9.4%. More than 75% of Oregon’s survey respondents rated their financial health between “good” and “rock solid.”

Regarding the three-tier distribution system, “Oregon finished ahead of all other geographies in terms of how well they think they are being represented by distribution,” Freund said.

Plans for 2014
Nearly 61% of Oregon wineries responding to SVB’s survey said they plan to raise prices during 2014. Thirty-six percent of Oregon wineries plan to hold prices steady, and 3.3% plan to lower prices.

Thirty-six percent of Oregon winery respondents admitted to a “possible” sale looming, 4.75% more than the national average.

 

SHARE »
Close
 
Currently no comments posted for this article.
 
CURRENT NEWS INDEX »


 
Wines & Vines Home
 
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
65 Mitchell Blvd., Ste. A San Rafael, CA 94903
info@winesandvines.com
Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
September 2014 $575 million
5%
$7,743 million
6%
September 2013 $550 million $7,311 million
     
Direct-to-Consumer Shipments » Month   12 Months  
September 2014 $163 million
16%
$1,708 million
11%
September 2013 $141 million $1,538 million
     
Winery Job Index » Month   12 Months  
September 2014 166
14%
226
18%
September 2013 145 192
     
 
MORE » Released on 10.15.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • October 26
     
    Pinot on the River
     
  • November 1-2
     
    A Wine & Food Affair
     
  • November 1-2
     
    Temecula Harvest Celebration Barrel Tasting
     
  • November 5
     
    Single Vineyard Night
     
  • MORE »
 

READER COMMENTS
 
Article: Tasting Wine From PD-Resistant Grapes »
 
Congratulations Andy! Lots of grapebreeders and southern growers will be looking through the catalogs. i...
Reader: Guest
 
Article: The 'Sideways' Effect »
 
Thank you for this research that confirms what many thought about the pinot noir effect....
Reader: Guest
 
Article: Fine for Volunteer Labor Makes Wineries Wary »
 
This is so incredibly asinine. And my taxes go to help fund these over-reaches? No...
Reader: Philburtonj
 
Article: Paso Winegrowers Back on TTB Track »
 
Unfortunately, they will be named Drought sinkhole #1, #2, #3, etc. Really, 11 different flavor profiles...
Reader: Donn Rutkoff
 
Article: Optimization of limited water resources in irrigated vineyards »
 
Very interesting article! Sap flow monitoring was in the past mostly used for research but...
Reader: Virginie Scoarnec
 
 


Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
2015 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
 
 
EXPANDED ONLINE SEARCH INCLUDED WITH PURCHASE
 
ORDER NOW »
 
LEARN MORE »
 
 
Wines & Vines Magazine
 
 
LEARN MORE »
 
SUBSCRIBE »
 
Digital Edition Now Available!
Wines & Vines Digital Edition Now Available
 
LEARN MORE »
 
ORDER NOW »
 
 
The Wines & Vines Online Marketing System
 
The Industry Standard winery marketing application
 
FREE LIVE DEMO »
 
VIEW VIDEO »
 
 
 
 
Latest Job Listings
 Hospitality Assistant
 Sonoma, CA
DTC, Tasting Room and Retai
 Retail Wine Mgmt & Ful...
 Baltimore County, MD
Sales and Marketing
 Fine Wine Sales
 Ny, NY
Sales and Marketing
 It/Operations Manager
 Napa, CA
General Administration and
 It Assistant
 Napa, CA
General Administration and
 Shipping & Receiving C...
 Napa, CA
DTC, Tasting Room and Retai
 Consumer Sales Coordin...
 Healdsburg, CA
DTC, Tasting Room and Retai
 Tasting Room Lead
 Hendersonville, NC
DTC, Tasting Room and Retai
 Bottling Supervisor - ...
 Woodinville, WA
Winemaking and Production
 Team Member
 Healdsburg, CA
Sales and Marketing
 
More Job Listings >>
Follow Us On:
 
 





Home  |  About Us  |  Editors  |  Subscribe  |  Print Edition  |  Digital Edition

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2014 by Wine Communications Group, Inc. All Rights Reserved.
No material may be reproduced without written permission of the Publisher.
Wines&Vines does not assume any responsibility for any unsolicited manuscripts or materials.