US wineries see big jump in direct sales

Feb 8, 2017

(Decanter) - More premium wine lovers in the US are going straight to the winery to buy their top bottles than ever before, says a new report showing record-breaking direct shipments in 2016.

US wineries sent 17% more wine direct to drinkers in 2016 versus 2015, topping the five million-case barrier for the first time.

Shipment value rose faster, by 18.5%, to $2.33 billion. It’s the first time direct-to-consumer sales have exceeded $2bn, said the report, compiled by trade publication Wines & Vines together with Sovos ShipCompliant.

Most US states now allow some level of direct shipping, allowing wineries and drinkers to cut out the traditional three-tier model of distributors and retailers.

 But, direct-to-consumer sales were still only 8.6% of the total US retail market for wine last year – and that doesn’t include restaurant or bar sales.

Small wineries selling wines at $20 and above were instrumental in driving growth in 2016, according to the Wine & Vines report.

It drew a link with tourism, suggesting that tasting room visitors were ordering wines to drink at home. It also said that social media and online ordering had helped to make this easier.

Large wineries also enjoyed strong growth, especially in volume, but the report said that this was partly due to some estates being re-categorised from ‘medium’ to ‘large’ after expanding their output.

 

 


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