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Wine Sales Spring Higher in April
May 15, 2016
(Wines&Vines) - Wine sales in all of the channels tracked by Wines Vines Analytics saw significant increases in April compared to the previous year, according to the latest Wine Industry Metrics report.
Total U.S. wine sales rose 6%; off-premise sales grew by 5%, and DtC shipments increased 9% over April 2015. The only key metric to decline was the Winery Job Index, though it should be noted that the index saw an abnormally high amount of activity last year in April.
Wines Vines Analytics data partner BW166 found total U.S. wine sales reached $3.4 billion in April, and the 12-month total grew by 4% to reach $38.3 billion. Consumer spending on all wines, including imports, came to around $55 million in April. “Table wine and sparkling wine growth is continuing to be driven by trading up,” said BW166 managing partner Jon Moramarco. “Dollar growth is in the mid-single digits, while volume growth only is in the low single digits.”
The off-premise sector as measured by Chicago-based market research firm IRI also enjoyed robust growth in April with monthly sales climbing 5% to $663 million and the 12-month total increasing 6% to $8.6 billion, in the multiple outlet and convenience stores monitored by IRI. Case volume rose to 8.6 million for domestic table and sparkling wine.
Chardonnay remains the most popular varietal on retail store shelves, and in the past 12 months through April 17, 2016, sales were highest in the $4 to $7.99 per bottle segment. While still the overwhelmingly largest sales category by volume, sales in this price segment declined by 2% from the same period a year ago.
The largest growth came at higher price points. Sales of bottles of Chardonnay priced $25 and up grew by 16%, and sales for those priced between $20 and $24.99 increased by 19% in the past 12 months.
Even with such robust growth, the two highest priced segments of Chardonnay sold in the IRI channels account for only about 5% of the total market.
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