Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
08.15.2014  
 

Wine Industry Metrics Show Steady Growth

DtC shipments stay strong despite onset of summer; flash offers up

 
by Andrew Adams
 
 
“winejobs.com
 
The Winery Job Index grew by 10% from July 2013, and the 12-month growth rate for winery job activity measured 19%.
San Rafael, Calif.—Another month brought another round of steady growth across all of the key wine industry metrics tracked by Wines & Vines.

Off-premise sales continued a pace of steady growth; the direct-to-consumer channel reached $61 million despite it being one of the slowest times of the year for wine shipping, and winery hiring remained bullish in July. For the complete metrics report including more data and analysis, visit the Wine Industry Metrics page.

The overall Winery Job Index grew 10% above July 2013, with strong growth in both the winemaking and hospitality fields. Winemaking grew by 15%, which is not uncommon for July as winemakers hire additional staff for the coming harvest. The hospitality index, however, was 21% higher than July 2013. A 22% decline in the sales and marketing index was not enough of a drop to crimp overall job index growth.

Off-premise sales steady
According to Wines & Vines’ analysis of data collected by Chicago, Ill.-based market-research firm IRI, the rate of off-premise sales of domestic wine stayed the same in July as in May and June. Total sales from the most recent four weeks tallied $557 million, a 5% increase from the same period a year ago. The 52-week total reached $7.6 billion, which is 6% more than a year ago.

Chardonnay still holds the largest share of the off-premise market at 19% and accounted for $1.8 billion in sales, according to IRI’s data from multi-outlet and convenience stores. While Cabernet Sauvignon is in second place by market share, this varietal wine’s sales growth rose from 7% to 10% among all domestic and imported Cabernets. The fastest growth for a major varietal or wine type was for red blends, which grew 16%. Merlot slipped by 3%, and white Zinfandel sales dropped by 8%.

Flash offers remain strong
Flash websites, which sell wines at steep discounts for a limited amount of time during what’s known as “flash sales,” made about 100 more wine offers per month during the first seven months of 2014 than during the same period in 2013. There were 483 flash offers in July, up from 402 in July 2013.

The total number of offers for the 12 months ending in July was also up by more than 17%. Flash websites offered 6,073 wines during the 12 months ending this July (up from 5,162 wines during the 12 months ending in July 2013).

The largest growth in number of offers between the two 12-month periods was for white wines. Offers for white wine blends grew by 24%; Chardonnay increased by 36%, and Sauvignon Blanc enjoyed the largest increase of 54%. Flash websites offered 208 Sauvignon Blanc wines during the 12 months ending in July 2013 and 320 during the same period ending this July. However, Sauvignon Blanc accounted for less than 5% of all offers during the entire 24-month period.

The number of offers for Syrah dropped by 2% (from 256 to 250) between 2013 and 2014, and Merlot saw a slight increase from 191 to 201 offers.

Big discounts for Syrah
The most heavily discounted wine varietals on flash sites are Syrah and Chardonnay. Syrah, with an average winery retail price of $40 and an average flash price of $23, had the largest average discount at 44%, followed by Chardonnay’s average discount of 43% during the 12 months ending in July.

Syrah also had one of the highest average discounts, which is understandable given the grape’s long struggle in the U.S. market. Steve Dorfman, a broker and partner with The Ciatti Co. based in San Rafael, Calif., said it’s not surprising to see the biggest discounts on Syrah, which has not been able to resonate with consumers. “I can understand that there would be some deeper discounts for that,” he said.

DtC Shipments Grow Despite Heat
Direct-to-consumer shipments continued to grow faster than off-premise sales in July. The value of shipments increased 9% over July 2013 and 10% compared to the previous 12-month period, according to the Wines & Vines/ShipCompliant Model. It meant that the usual low point of the year, due to hot weather that can damage wine shipments in transit, was almost $5 million higher than in 2013. 

 

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  
May 2015 $607 million
7%
$8,068 million
5%
May 2014 $569 million $7,651 million
     
Direct-to-Consumer Shipments » Month   12 Months  
May 2015 $141 million
4%
$1,896 million
14%
May 2014 $135 million $1,657 million
     
Winery Job Index » Month   12 Months  
May 2015 355
15%
256
20%
May 2014 308 213
     
 
MORE » Released on 06.15.2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

Direct To Consumer
Wine Shipping Report
2015
 
Download full report »
 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

CALENDAR
  • July 1
     
    Ag Labor Relations and Pre-Harvest Briefing
     
  • July 9-10
     
    Wineries, Breweries and Distilleries
     
  • July 18
     
    Oakland Wine Festival
     
  • July 19-22
     
    Steamboat Pinot Noir Conference
     
  • MORE »
 

READER COMMENTS
 
Article: New York Wineries Going Green »
 
Bravo to Lakewood for being an early solar adopter in the Finger Lakes wine industry!...
Reader: Suzanne Hunt
 
Article: New York Wineries Going Green »
 
Lakewood Vineyards completed work on their 47 kW (80 panel) solar array in 2012. It...
Reader: Benjamin Stamp
 
Article: New York Wineries Going Green »
 
I am wondering how substantial the electric bill is for wineries in the Finger Lakes...
Reader: Guest
 
Article: Tasting Room Rewards »
 
I have worked in a tasting room (3) for over 8 years. It is a...
Reader: Guest
 
Article: Norton to retire from UCCE »
 
Well done, Max!
Reader: Guest
 
 


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
 Server
 Healdsburg, CA
DTC, Tasting Room and Retai
 Seasonal Viticulture T...
 Amity, OR
Vineyards
 Compliance And Account...
 Fairfield, CA
General Administration and
 Filling Line Maintenan...
 Fairfield, CA
Cellar, Lab and Production
 Wine Bar/Retail Sales
 Toluca Lake, CA
Sales and Marketing
 Sales Consultant
 Milwaukee, WI
Sales and Marketing
 2015 Harvest Interns
 Walla Walla, WA
Cellar, Lab and Production
 Sales Consultant
 Madison, WI
Sales and Marketing
 Seeking Winery Control...
 Sherwood, OR
Finance
 2015 Harvest Cellar In...
 Rutherford, CA
Cellar, Lab and Production
 
More Job Listings >>
Follow Us On:
 
 





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

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2015 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.