ANOTHER PROFITABLE MONTH FOR WINE
For the 4-week period ending September 10, IRI reported that table wine sales were up 10.6% and 9.8% YTD, moderating slightly from 11.1% in August. Volume rose 4.5% in September, surpassing last September’s 1.9% rise, but similar to August’s growth of 5%.
The table wine category enjoyed a favorable pricing mix with a 5.9% gain to $5.35/bottle, up $0.03 over August. Low-end brands continue to benefit from trading up from jugs to bottles, while mid-tier brand pricing is flat and super-premium pricing is up slightly. Volumes rose in September for wines priced over $15/bottle by 21.7%, along with a 21.5% increase in the $12-$14.99 segment and a 15.7% gain in the $9-$11.99 segment. Thanks to brands like Woodbridge and Mondavi, Volumes for the $5.50-$8.99 segment rose by 11.2%, while volumes in the $3.00-$5.49 and <$2.99 segments continue to dwindle by 0.2% and 4.3% respectively.
LOW END HURTING THE BIG THREE. Like in other alcohol beverage categories, the big guys are lagging a bit. Gallo, Constellation and the Wine Group experienced September volume growth of 0.4%, 0.8% and 0.2% respectively, trailing the category growth of 4.5%. Including Vincor, STZ's volumes fell by a lesser 0.5%. YTD volumes for Gallo, STZ and the Wine Group rose by 1.7%, 4.8% and 6.1% respectively.
You can chalk up the big boys’ dwindling volume to cheaper pricing, since the company’s average prices are below the rest of the industry where low-end wines are flat or down. Price mix for Gallo, STZ and the Wine Group rose by 4.3%, 8.1% and 2.2% respectively.
The fine wine category, however, was a different story. Constellation’s fine wine portfolio was up 23.7% in volume which exceeded the rest of the category at 18.3%. Woodbridge’s volume was up 9.2% and Robert Mondavi brands grew 9.8% respectively.
Imported wines volumes were up 7%, outpacing domestic brand growth of 3.9% in September.
The table wine category enjoyed a favorable pricing mix with a 5.9% gain to $5.35/bottle, up $0.03 over August. Low-end brands continue to benefit from trading up from jugs to bottles, while mid-tier brand pricing is flat and super-premium pricing is up slightly. Volumes rose in September for wines priced over $15/bottle by 21.7%, along with a 21.5% increase in the $12-$14.99 segment and a 15.7% gain in the $9-$11.99 segment. Thanks to brands like Woodbridge and Mondavi, Volumes for the $5.50-$8.99 segment rose by 11.2%, while volumes in the $3.00-$5.49 and <$2.99 segments continue to dwindle by 0.2% and 4.3% respectively.
LOW END HURTING THE BIG THREE. Like in other alcohol beverage categories, the big guys are lagging a bit. Gallo, Constellation and the Wine Group experienced September volume growth of 0.4%, 0.8% and 0.2% respectively, trailing the category growth of 4.5%. Including Vincor, STZ's volumes fell by a lesser 0.5%. YTD volumes for Gallo, STZ and the Wine Group rose by 1.7%, 4.8% and 6.1% respectively.
You can chalk up the big boys’ dwindling volume to cheaper pricing, since the company’s average prices are below the rest of the industry where low-end wines are flat or down. Price mix for Gallo, STZ and the Wine Group rose by 4.3%, 8.1% and 2.2% respectively.
The fine wine category, however, was a different story. Constellation’s fine wine portfolio was up 23.7% in volume which exceeded the rest of the category at 18.3%. Woodbridge’s volume was up 9.2% and Robert Mondavi brands grew 9.8% respectively.
Imported wines volumes were up 7%, outpacing domestic brand growth of 3.9% in September.
posted at 12:37 PM
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