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February 2014 Data Released on 03.13.2014Flash Offers for Wine StableWith just 23 more offers this February than in 2013, total offers for domestic wines remained steady. Wines Til Sold Out (WTSO) had the highest average discount of 52% for its 61 offers from 40 different wineries. Invino posted the most offers with 83, but had one of the lower average discounts of 40%.
Flash Reseller Offers » Month 12 Months February 2014 408 6% 5,585 4% February 2013 385 5,366
Winery Participation Through Flash Sites
Although the number of wineries with flash offers each month has steadily increased since Wines Vines Analytics starting tracking flash offers it appears the total number of wineries participating in the channel is on the decrease.
Generally the number of unique wineries making an offer has increased each month, yet a detailed look at the offers reveals they’re often from the same wineries. Based on data for the past 12 months through February, the total number of wineries with a flash offer was 1,041 or 13% of all U.S. wineries. For the 12 months ending in November 2012, 1,352 wineries, or 18% of all wineries made a flash offer. The rate of participation fell for wineries of all sizes except for the 56 largest that produce more than 500,000 cases of wine.
Of the 1,041 total wineries with an offer, most of them are small wineries making between 5,000 to 49,000 cases a year. These wineries accounted for 373, or 36%, of the wineries with an offer. Small wineries, or those making 1,000 to 4,999 cases, had the next highest share of 30% or 313 offers.
Wineries with an average bottle price above $50 had the highest level of participation in flash offers, 26%, and the lowest was for wineries with an average bottle price of $1 to $19.99. Most offers came from wineries with an average bottle price of $30 to $49.99. This category accounted for 438 wineries with an offer in the past 12 months or 42%.
Who’s Typically Making an Offer?
Based on previous metrics reports on the location of wineries using flash sites and the types of wines being offered — as well as this data from the Wines Vines Analytics winery database — one can put together a rough portrait of the typical domestic winery using a flash site. This would be a winery in California, most likely in Napa or Sonoma county, making 5,000 to 49,000 total cases and selling Cabernet Sauvignon at around $40 a bottle.
Wines Vines Analytics’ research team captures flash offer details for hundreds of domestic wine offers each week. The team monitors offers presented through 17 flash reseller sites every day of the year. Each offer is reviewed and tied to the source winery, and the specific details are recorded in a database of flash offers.
When flash websites hold special events with a high number of offers, Wines Vines Analytics monitors the site closely, often capturing a new offer every few minutes. At the close of each month, the offers are reviewed for accuracy, and the findings are reported by Wines & Vines’ editorial staff for the current month along with time-series comparisons of pricing, winery size and wine types.
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