US sees wine shipments plateau, though DtC sales shows strong growth
US wine sales remain unchanged from a year ago, plateauing at $3.3 billion in June, with direct to consumer sales (DtC) and alternative packaging experiencing the strongest sales.
DtC shipments increased 12% compared to the same time frame a year earlier to $132 million, and wines sold in boxes and cans were up by 7% and 43% respectively, according to market analysts bw166. By comparison overall wine sales increased by a mere 1% to $650m during the same period.
Napa as ever is leading the charge, shipping 1.7 million cases of wine worth $1.3bn, with an average value per bottle of over $64 in the past year, while Sonoma exported the same volume, but with an average price per bottle half that of Napa at $30, totalling $611m.
Meanwhile, the average price of the bottles Sonoma wineries shipped DtC inched down since last year as growth in case volumes (26%) outstripped that of shipment value (25%). This was true for each of the region’s top varietals, except Zinfandel, which saw its average bottle price rise 4% to $27.67, just short of the regional average.
The expansion of the market is also evident in the rise of alternatives to glass packaging, which remain a small but dynamic segment of the market. Off-premise sales of domestic box wines, driven by the more expensive brands priced at $4.50 per 750ml and up, increased 7% in the 52 weeks ended June 17, according to IRI. This translated into an additional $68 million worth of wine sales over the past year, and pushed box wines to nearly 15% of domestic table wine sales.
Sales of domestic sparkling wine in cans increased by a hefty 43% and while cans account for less than 1% of the domestic sparkling wine sales in the latest 52 weeks, at less than $3 million they experienced strong growth. And 295 ml cans followed by four-packs of 250 ml cans put in the best performance, with sales up by over 1,000%.
On the other hand, sales of single 250 ml cans dropped by a third in the latest 52 weeks, the only category of canned domestic sparkling wine to decline. While bw166 data indicate that the value of packaged imports rose 8% in the latest 12 months, volumes rose just 3%.
Managing partner Jon Moramarco believes shifting exchange rates may be crediting the segment with greater value, a point underscored by the lower growth in actual volumes.