Wednesday, February 07, 2007

OVERALL WINE SALES UP 6% IN JANUARY

We’ve got a lot of numbers headed your way thanks to the good folks at ACNielsen, so for those of you who don’t like math (like your dear editor), here’s a brief summary: Dollar wine sales are growing at a higher rate than case volume; domestics continue to outpace imports in terms of growth, although not by much in volume; Chardonnay is the still most popular varietal and sales of Merlot continue to grow. Phew. As for everyone else, please continue reading.

In the four weeks ending January 13, 2007, sales of table wine grew 6% from the same period in 2006, while case volume was up 2.6% on the year. Dollar sales are continuing to outpace case sales, meaning consumers are buying more wine at higher prices than in 2006.

As compared to the same four week period a year ago, sales of blush wine were down 5.3%, while red wine and white wine were up 8.1% and 5.8%, respectively. In volume terms, blush was down 6%, while red wine grew 5.5% and white wine increased 3%.

Sales for domestic wine grew 6.7% to $507 million and sales for imported wine increased 4.2% to $221 million. In terms of volume, domestic wine grew only 2.8% from the same period last year with a share of 75% for the four-week period, while imported wine was up 2.1%. Domestic wine’s share stood at 70%, up 0.5% from the previous year, while imports remained at 30%, down 0.5% from 2006.

New Zealand wine was the fastest growing import by sales, up 30.5%, with Portuguese and Argentinean wine not too far behind. Italian wine continues to hold the largest share of imported wines in value at 10.6%, while Australia was a close second at 9.8%. France made a distant third at 3.5%, and Chilean wine comes in fourth at 2%.

New Zealand, followed by Portugal and Argentina also grew the most in volume from the same period a year ago. Australia, however, held the highest imported share by volume at 9.1%, followed by Italy at 8.2% and France at 2.3%.

Sales of red wine continue to hold the majority share at 53.2%, followed by white wine at 38.8%.

In terms of sales, Reisling was the fastest growing varietal with an increase of 24.7% from the same period the previous year, with Pinot Noir following close behind with a growth of 22%. Pinot Grigio came in third at 14.2% and Red Zinfandel at 13.5%.

Chardonnay claimed 20.3% of the market in terms of sales, while Cabernet came at a far second (15%), followed by Merlot (12.7%). Pinot Grigio, White Zinfandel and Pinot Noir lingered behind at 6.8%, 5.2% and 5% respectively. Chardonnay held the highest share by case volume at 18.6%, followed by Merlot at 11.8% and Cabernet at 11%.

Merlot sales continue to rise, which is welcome news after months of media speculation about the fall in popularity of the varietal. The fourth-largest selling varietal, White Zinfandel, however, continues to drop

The premium and super-premium categories grew the most in both case volume and sales. Wine bottles that fall in the price range of $12-$14.99 grew the most in terms of sales, increasing 13.3% from the previous year. The $9-$11.99 price category increased 10.3%, following by the over $15 group, up 9.3%. Nevertheless, the category with the highest share belongs to the $6-$8.99 range, followed by the economical $3-$5.99 (22.8%) and $9-$11.99 (20.7%).

By volume, the $12-$14.99 price per bottle category grew at 12.4%, followed by $9-$11.99 at 9.4%. The two lowest priced ranges brought in the highest share by volume with $3-$5.99 at 30.3% and $0-$2.99 at 28.5%.