SMOOTH SAILING PREMIUM WINES
Premium and super-premium brands continued to carry the wine sector into the four-week period ending November 5, according to IRI supermarket scanner data covered by Merrill Lynch’s Christine Farkas.
Table wine category dollar sales rose 10.5%, similar to an 11.5% jump in September and 10% YTD, despite tough comps (9.5%). Table wine volumes rose 5.2% during the same period, accelerating slightly from last month's increase of 5%, thanks to growth in premium and super-premium brands. The growth was, however, partially offset by declines in low-end brands as consumers continue to trade up.
The table wine category enjoyed a 5% price/mix gain to $5.35 per bottle but was down a slight $0.03/bottle as compared to September. Sub-premium pricing continue to benefit from a trade up from jugs to bottles, while mid-tier pricing remains modest and super-premium pricing is up (likely because of mix). Volumes of wines priced >$15 /bottle rose by 26.2% in Oct., along with a 16.7% gain in the $12-$15 segment and a 10.7% rise in the $9-$12 segment. Volumes in the $5.50-$9 segment grew by 10.2% (boosted by Woodbridge & imports); while volumes in the $3-$5.49 and <$3 segments rose by 2.3% & (2.2%) respectively.
The big three continue trailing category growth. While category volume was up 5.2%, Gallo, Constellation and the Wine Group experienced volume increases of 1.3%, 2.4% and 6.1% respectively. (Including Vincor, Constellation’s pro forma volumes fell by 2%.) Their declining growth is a result of the companies’ average prices falling below the rest of the industry, reflecting the sliding trends of sub-premium brands which are flat and/or down. Price/mix for Gallo, Constellation and the Wine Group rose by 4.6%, 6.4% and (0.5%) respectively.
As far as Constellation is concerned, Woodbridge’s favorable volume trends helped boost the company’s “somewhat overweight low-end and declining brands in supermarkets,” according to Merrill Lynch. While total company volumes declined 2%, which was below September (-0.5%), Woodbridge enjoyed a good volume growth of 8.4%.
Volume declines were notable in low-end Almaden (-14.3%) and Inglenook (-12.9%) which hurt overall growth. STZ's fine wine portfolio grew 18.4% in volume, moderating from September but importantly lapping a large 36.8% rise in October '05. Vincor's brands rose by 32.4% in October, led by strong gains for Kim Crawford (+85%) and Hogue Cellars (+17.7%). Vincor's higher price point YTD ($8.08/bottle) versus STZ's pre-Vincor average of $4.60/bottle should continue to favorably impact the company's overall mix.
Table wine category dollar sales rose 10.5%, similar to an 11.5% jump in September and 10% YTD, despite tough comps (9.5%). Table wine volumes rose 5.2% during the same period, accelerating slightly from last month's increase of 5%, thanks to growth in premium and super-premium brands. The growth was, however, partially offset by declines in low-end brands as consumers continue to trade up.
The table wine category enjoyed a 5% price/mix gain to $5.35 per bottle but was down a slight $0.03/bottle as compared to September. Sub-premium pricing continue to benefit from a trade up from jugs to bottles, while mid-tier pricing remains modest and super-premium pricing is up (likely because of mix). Volumes of wines priced >$15 /bottle rose by 26.2% in Oct., along with a 16.7% gain in the $12-$15 segment and a 10.7% rise in the $9-$12 segment. Volumes in the $5.50-$9 segment grew by 10.2% (boosted by Woodbridge & imports); while volumes in the $3-$5.49 and <$3 segments rose by 2.3% & (2.2%) respectively.
The big three continue trailing category growth. While category volume was up 5.2%, Gallo, Constellation and the Wine Group experienced volume increases of 1.3%, 2.4% and 6.1% respectively. (Including Vincor, Constellation’s pro forma volumes fell by 2%.) Their declining growth is a result of the companies’ average prices falling below the rest of the industry, reflecting the sliding trends of sub-premium brands which are flat and/or down. Price/mix for Gallo, Constellation and the Wine Group rose by 4.6%, 6.4% and (0.5%) respectively.
As far as Constellation is concerned, Woodbridge’s favorable volume trends helped boost the company’s “somewhat overweight low-end and declining brands in supermarkets,” according to Merrill Lynch. While total company volumes declined 2%, which was below September (-0.5%), Woodbridge enjoyed a good volume growth of 8.4%.
Volume declines were notable in low-end Almaden (-14.3%) and Inglenook (-12.9%) which hurt overall growth. STZ's fine wine portfolio grew 18.4% in volume, moderating from September but importantly lapping a large 36.8% rise in October '05. Vincor's brands rose by 32.4% in October, led by strong gains for Kim Crawford (+85%) and Hogue Cellars (+17.7%). Vincor's higher price point YTD ($8.08/bottle) versus STZ's pre-Vincor average of $4.60/bottle should continue to favorably impact the company's overall mix.
posted at 1:47 PM
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