Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
10.09.2009  
 

Bright Spots for Domestic Wine Sales

Surveys look positive for tasting room sales and regions of Lodi, Paso Robles, Sonoma

 
by Wines & Vines staff
 
 
Wine Opinions
 
Source: Wine Opinions
 

Napa Valley, Calif. -- A new report by the firm Wine Opinions fills in the outline of the consumer and trade wine buyer after a prolonged period of recession. It's not a pretty picture for many vintners, but it does contain bright spots for North American wineries, including rising sales at winery tasting rooms and an improved image of California wine regions such as Lodi, Paso Robles and Sonoma County.

More than half of regular wine drinkers surveyed say their financial situation has gotten worse or much worse in the past 12 months, and many of them have traded down in wine purchases. This verifies the assumptions of many in the wine industry.

But even the minority of consumers who say their financial situations have improved are cutting back on high-end purchases and on-premise buying, while not necessarily trading down when they do buy. "The recession is psychographic as well as income or wealth-driven," the report states.

The 75-page report, titled “Market Track Volume 1”, is based on surveys of high-frequency wine drinkers and members of all three tiers of the wine business. One finding that bucks conventional wisdom is that no evidence surfaced to show that consumers are retreating to the “tried and true” or traditional brands or types of wine. John Gillespie, one of the principals of Napa Valley-based Wine Opinions, indicated that open-ended questions revealed almost no citations of such a trend either by the trade or consumers. Seven of the top 10 wine types cited as gaining share by the trade were new or rediscovered wines.

Looking at survey respondents attitudes toward California wine, Paso Robles and Sonoma County have gained the most consumer support over the past twelve months, while Napa and Monterey were weakest, the report states. Among the trade, Napa sales were reported as negative, Paso Robles and Lodi were strongest, and most other regions were positive.

One of the most noteworthy findings, Gillespie said, was an uptick in the amount of wine California residents are purchasing from the Lodi region. In-state sales to California residents grew “more so than you might expect, with more weakness on the Napa Valley side, because of price points” traditionally associated with the area’s wine products.

Gillespie said that from the trade’s perspective, Argentina, Chile, and Spain are the import countries that have benefited most from the consumer trade-down trend.  Past-twelve-month net sales increases of wines priced under $20 were significantly higher for these countries than for others.

The most positive changes by sales channel were seen in tasting room and direct sales, thought the survey sample was small in this category. More trade respondents reported an increase in tasting room/direct sales (38%) than experienced a decrease (27%) over the past year (a net shift of +11 points).

The Wine Opinions’ consumer panel sample used for the firm’s most recent study was comprised predominantly of consumers who drink wine several times per week and gravitate toward high-end wines and wine retailers.

In findings that Gillespie and Wine Opinions colleague Christian Miller previewed at the recent Wine Industry Financial Symposium, few members of the trade regard Napa Valley Cabernet Sauvignons priced over $50 as irreplaceable.  About 1 in 4 said that Napa Valley Cabernet Sauvignon wines under $50 are the best alternative (22%), but a near equal proportion favor Cabernet Sauvignon wines from Washington State (24%).  There were also significant numbers who believe that comparable wines from Sonoma County (16%) or Bordeaux (14%) are the best alternatives. 

A PDF of Wine Opinions’ Market Track Volume 1 report is available for $395 at wineopinions.com
 

SHARE »
Close
LATEST READER COMMENTS
 
 
Posted on 10.12.2009 - 08:10:28 PST
 
This article points out some facts. DTC (direct to client) is the future. Despite the larger wineries purchasing power, economy of scale and political strength, it's the smaller, family owned and operated wineries which are the future.

Moreover, wineries spouting silly scores or medals are also slowly losing ground since consumers are realizing the silliness in this old fashioned marketing concept.
 
who me?
 
Sonoma, CA USA
 
 
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  
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
     
 
MORE » Released on 07.15.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Wines & Vines
Packaging Conference
 
Learn More »
 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • July 24
     
    Fresno Food Expo
     
  • July 24-27
     
    Taste our Terroir
     
  • July 25-27
     
    International Pinot Noir Celebration
     
  • July 26
     
    Introduction to Wine Analysis
     
  • MORE »
 

READER COMMENTS
 
Article: Wineries May Lose Internet Domain Dispute »
 
All these arguments could be levied by any industry associated with any gTLD, new or...
Reader: Doug Barnett
 
Article: Wineries May Lose Internet Domain Dispute »
 
Do brands get hijacked now? Even though .wine does not yet exist, are there false...
Reader: Larry Chandler
 
Article: Resistant Weeds Threaten Vineyards »
 
Roundup is not benign. It does not always break down in a day or two...
Reader: Robert Rex
 
Article: Resistant Weeds Threaten Vineyards »
 
Mitigating water use in the vineyard in the first place is also an applicable tactic....
Reader: Guest
 
Article: Resistant Weeds Threaten Vineyards »
 
Having managed vineyards that have used both approaches, I would say that a diverse approach...
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 »
2014 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
 Harvest Help
 Napa, CA
Winemaking and Production
 Metro Ny Area Manager
 New York, NY
Sales and Marketing
 On-Premise Sales Reps
 All Territories In Ohio, OH
Sales and Marketing
 Wine Educator
 Glen Ellen, CA
DTC, Tasting Room and Retai
 Pacific Northwest Sale...
 Seattle, WA
Sales and Marketing
 Harvest Help Willamett...
 Sherwood, OR
Winemaking and Production
 Supply Chain Customer ...
 Toronto, ON
General Administration and
 Staff Accountant
 Napa, CA
Finance
 Southern California Sa...
 Southern Ca, CA
Sales and Marketing
 Finance Manager, Repor...
 Napa, CA
Finance
 
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.