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05.15.2014  
 

New York Ranks Third in Wine Production

East Coast state accounts for 3% of total U.S. case production

 
by Andrew Adams
 
 
“wine
 
U.S. wineries produce more than 350 million cases per year.
San Rafael, Calif.—Wineries in New York produce 12 million cases of wine, making the Empire State the third-largest wine producer in the United States, accounting for 3% of the 350 million-plus cases of American wine released annually.

While California still dominates the U.S. industry, accounting for about half of all American wineries and 89% of total production, the share held by other U.S. states is steadily growing. In the most recent update of the Wines Vines Analytics winery database, the top five wine-producing states in order are: California, Washington, New York, Oregon and Texas.

The updated winery database figures are part of the regular monthly release of all key industry metrics tracked by Wines Vines Analytics. All other metrics remained positive in April. Direct-to-consumer shipments led the way with 11% growth over last year.

Total production vs. more wineries
While New York may produce more wine than Oregon (12 million cases to 3.3 million), Oregon is home to nearly twice as many wineries, 566 compared to 320 in New York.  The same situation exists between North Carolina, which produces more wine than Virginia, but only has 130 wineries compared to Virginia’s 223.

The 3,674 wineries in California comprise about half of all U.S. wineries. Washington has the second-highest number of wineries, 689, making up 9% of the U.S. total. The state also has the second-highest case production at 13 million, which is 4% of the U.S. total. Since April 2013, the total number of wineries grew 4% to 7,866.

The Wines Vines Analytics winery database includes all wine produced at a wineries including custom crush and exports. State production totals can include wine made with grapes from out of state. Production figures are consistent with TTB annual totals.

Sales and wine shipments strong
Off-premise wine sales grew by 6% in April compared to the previous year. Total monthly sales reached $584 million, and the 12-month total grew by 7% to just under $7.5 billion.

Chardonnay accounts for more than half of all white wine sales in the off-premise channel, but Sauvignon Blanc sales grew the fastest of any major white wine type. The varietal posted a 13% sales increase in value during the past 12 months. California wineries produce the most popular brands, as measured by Chicago, Ill.-based marketing group IRI, followed by New Zealand wineries. 

DtC shipments remained strong through April, growing 11% during the month as well as the past 12 months compared to the previous year. Total volume rose 13% in April, reaching 353,000 9-liter case equivalents.

Chardonnay dominates DtC white wine shipments to an even greater extent than in off-premise sales. The varietal accounts for $139 million in total value and nearly three-fourths of all white wine shipments.

Hiring activity slows slightly
The overall wine industry job index rose 10% compared to April 2013, yet the index dipped 2% below 2013 levels in the sales and marketing segment. The hospitality job index grew by 4% compared to April 2013, though the rate of growth slowed from the previous month.

Winemaking jobs grew by 10%, with the growth potentially related to wineries beginning to advertise for harvest help. The 12-month total for the jobs index is still 22% higher than the same time period one year earlier.

Most flash offers less than $20
The flash wine sales market is still dominated by offers for wines with flash prices of less than $20. From May 2013 through April 2014, 60% of the 5,708 offers for domestic wines had flash prices of less than $20. Of the offers for less than $20, about eight out of every 10 wines was offered between $11 and $19.99.

The breakdown of offers for less than $20 also stayed relatively the same in the past 12 months compared to the same period a year earlier. About half of the offers for less than $20 are for wines with flash prices of $15 to $19.99, and roughly 35% are for wines with flash prices of $11 to $14.99.

In April, all flash websites tracked by Wines Vines Analytics made 459 offers, which is 4% more than in April 2013, bringing the 12-month total to 5,706.

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Posted on 05.16.2014 - 08:24:50 PST
 
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Wine Industry Metrics
 
Off-Premise Sales » Month   12 Months  
July 2014 $557 million
5%
$7,577 million
6%
July 2013 $533 million $7,128 million
     
Direct-to-Consumer Shipments » Month   12 Months  
July 2014 $61 million
9%
$1,674 million
10%
July 2013 $56 million $1,517 million
     
Winery Job Index » Month   12 Months  
July 2014 312
10%
222
19%
July 2013 283 187
     
 
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