WINE CATEGORY GROWING STRONG, BIG THREE TRAILING
IRI numbers indicate that the table wine category rose by 10% in the 4-week period ending December 3, according to Merrill Lynch’s Christine Farkas.
Table wine category dollar sales rose 9.8% (similar to 10.7% in October and 10.1% YTD) despite a tough comp (10.5%).
Table wine volumes rose 5.5% in November, accelerating slightly from last month's growth of 5.3%. As was expected, volumes showed the most growth in premium and super-premium brands, partially offset by low-end brand declines.
By contrast, favorable mix growth slowed due to tough comparisons, but the table wine category enjoyed a good 4.1% price/mix gain to $5.47/bottle (higher than in Oct. but growth rate slowed).
Low-end brands continue to benefit from trading up from jugs to bottles, while mid-tier brand pricing is modest and super-premium pricing is up, likely from mix.
Volumes of wines priced below $15 /bottle rose by 20.5% in November, along with an 18.1% gain in the $12-$15 segment and a 7.8% rise in the $9-$12 segment. Volumes in the $5.50-$9 segment grew by 10.5% while volumes in the $3-$5.49 and below $3 segments rose by 3.4% and 2%.
The major wine companies are still trailing category growth, however, comparable to domestic brewers. With the entire category up 5.5%, Gallo Family Vineyards, Constellation Brands and the Wine Group experienced November volume growth of 0.7%, 1.7% and 7.5% respectively.
Table wine category dollar sales rose 9.8% (similar to 10.7% in October and 10.1% YTD) despite a tough comp (10.5%).
Table wine volumes rose 5.5% in November, accelerating slightly from last month's growth of 5.3%. As was expected, volumes showed the most growth in premium and super-premium brands, partially offset by low-end brand declines.
By contrast, favorable mix growth slowed due to tough comparisons, but the table wine category enjoyed a good 4.1% price/mix gain to $5.47/bottle (higher than in Oct. but growth rate slowed).
Low-end brands continue to benefit from trading up from jugs to bottles, while mid-tier brand pricing is modest and super-premium pricing is up, likely from mix.
Volumes of wines priced below $15 /bottle rose by 20.5% in November, along with an 18.1% gain in the $12-$15 segment and a 7.8% rise in the $9-$12 segment. Volumes in the $5.50-$9 segment grew by 10.5% while volumes in the $3-$5.49 and below $3 segments rose by 3.4% and 2%.
The major wine companies are still trailing category growth, however, comparable to domestic brewers. With the entire category up 5.5%, Gallo Family Vineyards, Constellation Brands and the Wine Group experienced November volume growth of 0.7%, 1.7% and 7.5% respectively.
posted at 1:20 PM
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