Wines & Vines Home
   
 
Welcome Guest
LOGIN |  CREATE ACCOUNT
 
ADVERTISEMENT
 
 
 
06.09.2010  
 

Retail Wine Sales Grew Faster in May

U.S. wines up 7.1% over last year; top Washington brands ranked

 
by Jim Gordon
 
 
Domestic Table Wines Off-Premise
 
 
San Rafael, Calif. -- The pace of domestic wine sales accelerated even faster in May than in April, marking the fifth month in a row that off-premise sales beat last year’s results for the same months. Retail scan data as reported by the SymphonyIRI Group showed four-week sales ending May 16 up by 7.1% in dollars, totaling more than $320 million.

Even though that total for monthly sales ending in May was lower than the total for April, the Wines & Vines monthly chart for domestic wines sales looks very positive. California, as the dominant wine-producing state, had the same sales rate as overall domestic sales. Washington, the second-biggest producer, moved ahead too, but at a slower rate -- just 3.8% higher than the same four weeks last year. Later in this article and in the accompanying table, Wines & Vines presents a closer look at Washington’s top 20 brands based on IRI data.

Contrary to the prevalent story about consumers trading down in the recession, evidence is building that consumers are trading back up, according to IRI’s Doug Goodwin, vice president of client insights for beer, wine and spirits.

All price-points up to and including the $20-plus range for 750ml bottles showed higher sales in May 2010 than in May 2009, except for one: wines under $3. The highest priced wines showed the fastest growth rate of 23.1%. “Looking at those numbers, I think people went down, and now they are migrating back up,” Goodwin said.

Syrah and Sauvignon hottest

Even the biggest category, with the most inertia—wines from $5 to $7.99—still grew 3.5%. Varietals in 750 ml sizes were up 9.7%, while 1.5-liter sizes were up only 2.9%. Non-varietal 750s were the package type that had the overall highest growth rate for the four-week period, at 11.7%.

U.S. wineries haven’t yet seen any big invasion from Europe caused by the sinking euro. Imported table wines mostly sucked air in May, staying flat or dipping, with the notable exception of Argentina, which remained on a tear, posting 39.2% growth over last year. Domestic wines’ share of the U.S. off-premise market remained just under 79%.

Looking at overall varietal sales, including both domestic and imported, all varietals in the $20-and-up category showed double-digit growth. The hottest of all were Syrah/Shiraz at 39.9% up over last year, which must be good news for vintners who’ve been hearing that Syrah’s day is over. Fumé/Sauvignon Blanc showed almost as good a rate, 35.1% growth.

It was a rather broad expansion of higher priced red varietals, as red Zinfandel, Pinot Noir and Red Blends/Meritage all grew by double digits at all four price points from $8 up over the four weeks.

Top 20 Washington Wine Brands
 
 
Washington merchandising
The sibling brands of Chateau Ste. Michelle, Columbia Crest and Red Diamond, are Nos. 1, 2 and 3 in dollar sales for Washington wines, with more than $85 million, nearly $61 million and more than $21 million for the 52 weeks measured..

In fourth place was Hogue Cellars, and in the fifth spot another Ste. Michelle brand, Columbia Crest Estate.

Our zoom-in on Washington’s top wine brands (see the accompanying table) shows that consumers didn’t boost sales all by themselves. Wineries are using various forms of merchandising to lower prices and get sales going. The state’s big Chateau Ste. Michelle brand used merchandising to lower its prices by 51 cents per bottle, and consumers apparently noticed, boosting sales by 8.9% in dollars over the same 52-week period a year ago.

Hogue Cellars, on the other hand, put fewer dollars into merchandising this year than last. Hogue’s 31-cent reduction per bottle may not have been enough, since its sales for the period dipped more than 4%.

“Merchandising is clearly driving volume right now,” Goodwin said. “Loyalty is lacking for consumers. What they are looking for is not the brand, but the price. They are not always going for the lowest price-points, but they are looking for a value, no matter what category they are looking in. I am seeing this all across the price spectrum.”

Figures quoted in this article come from the Chicago-based SymphonyIRI Group, which uses check stand scan data to provide market information and services to industries including consumer packaged goods, retail and health care. Wines & Vines provides further analysis and reporting on the results.

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  
October 2014 $570 million
6%
$7,775 million
6%
October 2013 $539 million $7,342 million
     
Direct-to-Consumer Shipments » Month   12 Months  
October 2014 $284 million
18%
$1,751 million
13%
October 2013 $240 million $1,556 million
     
Winery Job Index » Month   12 Months  
October 2014 139
6%
226
18%
October 2013 131 192
     
 
MORE » Released on 11.13.2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Practical Winery & Vineyard Library
 
Search the PWV archive »
 
 

Direct To Consumer
Wine Shipping Report
2014
 
Download full report »
 
 

CALENDAR
  • December 2-4
     
    Vinitech Sifel in Bordeaux
     
  • December 3
     
    Sustainable/Organic Wine Production Seminar
     
  • December 4
     
    North Coast Wine Industry Expo
     
  • December 6-7
     
    Wine Chemistry Workshop in Oregon
     
  • MORE »
 

READER COMMENTS
 
Article: Kluge Saga Continues in Virginia »
 
Not everybody likes Pat Kluge, but she and Moses built a first class winery /...
Reader: Josh Moser
 
Article: Canada Adapts to Kegged Wines »
 
I am a wine agent in Manitoba & there certainly are kegs of cider here....
Reader: Guest
 
Article: What's Your Winery's IP Worth? »
 
If you would like more information on this seminar please visit The Seminar Group's website....
Reader: Danielle Bingham
 
Article: DtC Is Lifeblood of Wineries, Banker Says »
 
Seems like another locical option would be to have more small niche distrbutors. Consolidation of...
Reader: Guest
 
Article: Tasting Wine From PD-Resistant Grapes »
 
Congratulations Andy! Lots of grapebreeders and southern growers will be looking through the catalogs. i...
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
 Brand Director, Austra...
 Napa, CA
Sales and Marketing
 Sales Representative O...
 Sacramento, CA
Sales and Marketing
 Production Forklift Op...
 Yountville, CA
Winemaking and Production
 Project Manager
 Santa Maria, CA
Sales and Marketing
 Wine Salesperon
 Bay Head, NJ
Sales and Marketing
 Communications Special...
 St. Helena, CA
Sales and Marketing
 Regional Account Manag...
 Northern California, CA
Sales and Marketing
 Tasting Room Position
 Sonoma, CA
DTC, Tasting Room and Retai
 Texas Area Manager
 Dallas, TX
Sales and Marketing
 Domaine Chandon On Cal...
 Yountville, CA
DTC, Tasting Room and Retai
 
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.