MAY WINE SALES DOWN -5.3% FROM APRIL
Wine sales rose by 8.2% in May as compared to a 13.5% growth in April, according to Merrill Lynch supermarket scanner data. Volume increased a modest 1.5%.
Average table wine prices jumped 6.6% to $5.27 per bottle, similar to the 6.5% rise in April.
May showed that consumers are still trading up with volumes rising 18.8% for wines priced at $12-$15. The $15 per bottle segment rose by 17.2% followed by a 9% gain in the $9-$12 sector.
Volumes for the low-end segment costing $3.00-$5.49 and less than $2.99 fell by -1.1% and -7.8%.
Merrill Lynch reported that major wine-producers “continue to trail the category.” Gallo, Constellation and the Wine Group experienced May declines of -0.2%, -5.2% and -8.8%, falling behind the category's growth of 1.5%.
Since low end brands are declining, Constellation felt some pain in May. While Constellation’s fine wine portfolio grew 26.4% and beat all fine wine growth in the industry, Woodbridge reported a volume drop of -0.9% in May. ML predicts that the addition of Vincor brands will help boost Constellation’s portfolio.
And not surprisingly, imported wines are gaining more share. Imported wine volume grew 5.8% in May, driven by Italy, Germany and Argentina. California wine shipments rose by 0.3% and lost share, fueled by stronger low-end brand pricing, growth in imports and strong growth from Oregon and Washington wines which were up 7.2%.
Average table wine prices jumped 6.6% to $5.27 per bottle, similar to the 6.5% rise in April.
May showed that consumers are still trading up with volumes rising 18.8% for wines priced at $12-$15. The $15 per bottle segment rose by 17.2% followed by a 9% gain in the $9-$12 sector.
Volumes for the low-end segment costing $3.00-$5.49 and less than $2.99 fell by -1.1% and -7.8%.
Merrill Lynch reported that major wine-producers “continue to trail the category.” Gallo, Constellation and the Wine Group experienced May declines of -0.2%, -5.2% and -8.8%, falling behind the category's growth of 1.5%.
Since low end brands are declining, Constellation felt some pain in May. While Constellation’s fine wine portfolio grew 26.4% and beat all fine wine growth in the industry, Woodbridge reported a volume drop of -0.9% in May. ML predicts that the addition of Vincor brands will help boost Constellation’s portfolio.
And not surprisingly, imported wines are gaining more share. Imported wine volume grew 5.8% in May, driven by Italy, Germany and Argentina. California wine shipments rose by 0.3% and lost share, fueled by stronger low-end brand pricing, growth in imports and strong growth from Oregon and Washington wines which were up 7.2%.
posted at 12:12 PM
<< Home