US: Winery Jobs, Off-Premise Sales Lead Growth

Jun 16, 2015

(Wines&Vines) - The wine industry continues to grow in 2015 with all key metrics tracked by Wines Vines Analytics remaining positive through May.

According to the latest metrics report, off-premise sales, winery hiring activity and direct-to-consumer wine sales remain strong. Off-premise sales grew by 7% in May, while hiring activity by wineries increased by 15% in the past month compared to May 2014.

The 52-month total for off-premise sales was up 5%, according to Wines & Vines’ analysis of data from IRI, the Chicago, Ill.-based market research firm. In May alone, sales totaled $607 million, which is 7% more than in May 2014. The 12-month sales total came to more than $8 billion.

Sparkling wine increased by 8% in value, but since it accounts for only 5% of domestic wine sales, the growth in sparkling barely moved the needle for domestic wines overall. California table wine sales rose by 5%, while Washington state table wines increased by 10% and Oregon table wines by 14%, based on value. Imports, which accounted for 19% of the market share, grew in value by just 3%.

The rise of Pinot Gris
A trend that is lifting off-premise wine sales in general is the ongoing rise of Pinot Gris/Grigio. These varietal wines are made from the same grape variety but identified by the French name Gris and the Italian name Grigio, according to the style of winemaking and the perceived market preference.

Pinot Gris tends to be richer in flavor, smoother in texture and may even have a hint of rosé color, while Pinot Grigio tends to be more neutral in flavor and color, and crisper in texture. IRI combines the two into one category, and we will refer to the category as Pinot Gris for simplicity.

Pinot Gris from all sources passed Merlot in off-premise sales in 2013 to become the third-largest varietal wine category in value after No. 1 Chardonnay and No. 2 Cabernet Sauvignon. Its rapid growth has continued. The 52-week growth rate for the varietal was 9%, including both domestic and imported brands.

Other winners in terms of growth by varietal include Pinot Noir, which grew by 9% during 52 weeks, Cabernet Sauvignon by 8% and the leader Chardonnay, which grew by 3%. The latest data show that Merlot sales decreased by 4%, Syrah/Shiraz by 13% and white Zinfandel by 7%.

DtC Shipments, flash offers higher
The start of summer means DtC shipments slipped compared to previous months due to warm temperatures deterring wine shipments, but they were still 4% higher by dollar value compared to last year, increasing to $141 million. The 12-month total value of $1.9 billion is 14% higher than the previous year. The total cases shipped in May grew 3% over the previous year to 347,440. Total shipments have been higher in every month of 2015 compared to last year, and the five-month total is 1.7 million, 10% more than in 2014.

This month Wines Vines Analytics focused on Napa County wines for additional metrics analysis. DtC shipments from Napa County wineries in the past 12 months totaled $948 million. Cabernet Sauvignon accounted for 48% (or $174 million) of total shipments, followed by red blends at 17% (or $164 million) of the total. Sauvignon/Fumé Blanc had the largest share of the “others” category with $25.2 million, just topping Zinfandel’s $25 million.

Napa County wines have always been popular offerings by flash websites, which sell wines online at a discount for a limited amount of time. In the past 12 months, the websites made 2,366 offers for Napa wines that also accounted for 37% of all offers in the same period. Offers from Napa County in the past 12 months also increased by 37% (or 636) compared to the 12 months ending in May 2014.


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