US: DtC Sales Surge in November

Dec 16, 2015

(Wines&Vines) - Direct-to-consumer (DtC) wine sales increased 13% over the previous year this November to reach $310 million, bringing the 12-month total to $1.96 billion, according to the latest Wine Industry Metrics report based on data collected by Wines Vines Analytics. 

Since Wines Vines Analytics began tracking shipments with partner ShipCompliant, November has typically seen a drop in DtC activity, while October and September have historically been the busiest months of the year.

This year’s growth of only 4% in September and 2% in October, however, may have just been an indicator that sales would increase in November to more normal levels. DtC sales are now set to surpass $2 billion this month. Since 2010, the total DtC market has grown by around $800 million at the rate of about $200 million per year. Read complete metrics report can be found here.

Off-premise, winery hiring strong

All of the other key industry metrics stayed positive in November as well. Aside from just a slight slip in DtC shipments in January, every metric has remained positive in every month of 2015.

Off-premise sales increased 7% to $759 million in November, and the 12-month total grew by 6% to $8.4 billion, as measured by Chicago, Ill.-based market-research group IRI. November’s sales total was the highest in 2015.

Winery hiring activity rose 20% in November and 21% for the past year, according to the Winery Job Index based on postings to winejobs.com. The increased hiring was led by postings in the sales and marketing category that grew by 76% over the previous November, when it had reached the low point of an eight-month decline. Hospitality jobs, which follow a relatively predictable, seasonable pattern, also dropped compared to previous months but remained 3% hiring than in November 2014.

Focus on high-priced wines

Wines Vines Analytics focused on high-priced wine sales in the off-premise and DtC segments as part of the latest metrics report. Nearly half of all wines sold direct to consumer are priced $60 or more per bottle, and most of these are Cabernet Sauvignon. The varietal accounted for the largest share of all sales in the past 12 months at more than $450 million. Chardonnay had the second-largest share of $60-plus wine sales at around $170 million.

In off-premise sales, the highest price tracked by IRI is $20-plus, where Cabernet Sauvignon also leads Chardonnay but by less of a margin. Sales of $20-plus Cab reached nearly $120 million this past year, while Chardonnay sales totaled around $90 million.

Flash reseller websites are known for their bargains, but the sites occasionally offer some high-priced wines. In the past 12 months, flash websites made 391 offers for wines with flash prices between $50 and $99 and 152 offers for wines priced more than $100.


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