IMPORTED WINES STRONGER IN 2007
In the 52 weeks ended January 12, 2008, table wine dollar sales rose 6.3%, with volume up 3%, according to a report by Nielsen. The blush wine segment continued to decline in 2007, with sales down -1.4% and volume down -2.7%. Red wine showed the highest rate of growth, up 8.2% by dollar sales and 5.4% by volume. White wine showed a slightly slower albeit strong growth, with dollar sales climbing 5.7% and volume rising 2.7%.
Imported and domestics wines were practically neck and neck in dollar sales, with domestics growing 6.1% in 2007 and imports taking a slight lead at 6.8%. Imports took a stronger lead in volume, growing 4.1%, while domestic rose a respectable 2.7%. The industry is predicting that imports will see a decline in growth this year as the depreciating dollar struggles to compete with the strong euro and Australian dollar.
Countries that contributed the most to import growth were South Africa, New Zealand and Argentina, with dollar sales up 37.4%, 34.4% and 29.7%, respectively. The big three importers also showed growth in 2007, with Italy up 7%, Australia up 2.2% and France up 3% in sales.
Varietal wines continue to exemplify the most dollar sales growth, increasing 7%, as compared to generic wines that grew only 2.2%. Volume of varietals rose 5.1% and generics declined -3.2%.
The fastest growing varietals in 2007 were Pinot Noir, Riesling, Cabernet Sauvignon, Pinot Grigio, Sauvignon Blanc and Zinfandel. Dollar sales of Riesling rose 23%, followed by Pinot Noir at 22.8%, Pinot Grigio (13%), Zinfandel (11.9%), Cabernet Sauvignon (11.1%) and Sauvignon Blanc (10%). Oh yeah, and Chardonnay grew 2.6% and Merlot was up 1.9%. White Zinfandel continues to lose momentum, declining -2.8%.
Pinot Noir showed the highest rate of volume growth, rising 25.4%, followed by Riesling at 22.6%. Next in line: Pinot Grigio (14.2%), Cabernet Sauvignon (10.3%), Zinfandel (8.5%), Sauvignon Blanc (5.1%), Merlot (3%) and Chardonnay (1.7%).
Trading up trends also boded well in 2007. Wines priced between $12 and $15 rose 16% in sales, followed by the $15 and above range, jumping 15%. Premium wines, $9-$12, rose 9.7%, says Nielsen, while the $6-$9 category grew 2.9% and $3-$6 rose 4.1%. The low-end segment ($0-$3) declined 0.6%. Volumes showed a similar pattern in terms of which category grew the most.
SWRA SUPPORTS SUPREME COURT DECISION
The Specialty Wine Retailers Association (SWRA) today expressed its support for the U.S. Supreme Court’s recent decision in Rowe v. New Hampshire Motor Transport, which says Maine cannot legally force truck drivers delivering tobacco products purchased online to check IDs. As we reported yesterday, the WSWA is against the Supreme Court ruling.
“Wine retailers are committed to verifying the age of recipients receiving wine via shipment by common carrier and welcome the fact that where shipping is allowed, it is the retailer’s responsibility - not the carrier's liability - for checking identification,” said Tom Wark, executive director of the SWRA. “For this reason retailers and wineries happily pay common carriers for special identification services at the point of delivery.”
“Undoubtedly the alcohol distributor cartel that wants to shut down any wine shipping that does not allow them to line their own pockets will try to use this decision to scare lawmakers and regulators,” said Wark.
“When distributors start talking about shutting down the channel of sales through which they profit, rather than the channel by which minors are least likely to obtain wine, we will start taking them seriously.”
SWRA and its members endorse age verification systems for assuring that those ordering wine via the Internet are 21 or older - as well as the implementation of permit laws that require wine retailers and wineries to contract with shipping companies to obtain signatures of adults when alcohol is delivered, and for the retailer to take responsibility for those sales and for the carriers they hire.
DIRECT SHIPPING UPDATES
Free The Grapes!, a grassroots coalition in favor of shipping wine direct to consumers, issued the following legislative updates yesterday. Most of the updates were provided courtesy of the Wine Institute. To view Free The Grapes! website, go to www.freethegrapes.org.
Maryland – Favorable Bill Heard Monday Could Fix Maryland
Maryland’s state legislators considered House Bill 1260 on February 18, and Free the Grapes! consumer members, retailers, industry representatives and others turned out to testify in favor. Wholesalers and some in-state retailers testified against the bill. Consumers using the Free the Grapes! website sent more than 900 letters to Maryland legislators within 72 hours of a Free the Grapes! email request last week.
New Mexico – Reciprocal Replacement Runs out of Time
On February 14, the last day of New Mexico’s 4-week legislative session, Senate Bill 59 ran out of time. The bill received widespread support and passed out of the Senate unanimously. It was endorsed by the New Mexico Wine Growers Association, and received favorable testimony by the New Mexico Retailers Association and the New Mexico Restaurant Association. The bill would have replaced NM’s reciprocal law.
Wisconsin – 2007 Reciprocal Replacement Bill Resurrected
Last October, the Governor struck language in the Budget Bill that would have replaced Wisconsin’s ‘reciprocal’ direct shipping law with a permit-style system. This year, with the support of the Governor and a broad coalition of interests, the WI legislature is considering Assembly Bill 795 and Senate Bill 485 that create the same type of permit system.
Indiana – Fix-it Bill Dies in Committee
Senate Bill 337 died in committee, and would have removed the face-to-face requirement in the existing law, and removed the prohibition on shipments for wineries with wholesaler representation in the state.
Pennsylvania – PLCB Drafting Delivery, Pick-up Bills
Several bills in drafting stage seek to amend PA’s restrictions but would require consumers to pick-up orders from PLCB stores, or allow only the PLCB to deliver wine to consumers’ homes.
Ohio – Amendments to Cap Sought
Industry representatives have been working with legislators to amend the state’s law that prohibits shipments from wineries or wine companies producing in excess of 150,000 gallons.
Massachusetts – Update on Lawsuit Challenging Cap
The Family Winemakers of California is the lead plaintiff in this lawsuit against the State of Massachusetts seeking to overturn the 30,000 gallon production cap. Summary judgment is expected in late March.
WSD BRIEFS:
DOS LUNAS TEQUILA is launching its full line of ultra-premium tequilas throughout Illinois this month. Dos Lunas is available in Texas, Florida, Arizona, Colorado, and New Mexico, and is also available in Wisconsin, Michigan, Connecticut, New Jersey and Alberta, Canada.
EDITOR'S NOTE: Our offices will be closed on Monday and Tuesday, Feb. 24-25, as our staff will be in San Diego working at the annual Beer Summit with Beer Business Daily. Please be patient with any customer service needs until we return.
Until Monday, Megan
“Reality is the leading cause of stress amongst those in touch with it.”
-Jane Wagner
--------- Sell Day Calendar ----------
Today’s Sell Day: 16
Sell days this month: 21
Sell days this month last year: 20
This month ends on a: Fri.
This month last year ended on a: Wed.
YTD sell days Over/Under: 0
Imported and domestics wines were practically neck and neck in dollar sales, with domestics growing 6.1% in 2007 and imports taking a slight lead at 6.8%. Imports took a stronger lead in volume, growing 4.1%, while domestic rose a respectable 2.7%. The industry is predicting that imports will see a decline in growth this year as the depreciating dollar struggles to compete with the strong euro and Australian dollar.
Countries that contributed the most to import growth were South Africa, New Zealand and Argentina, with dollar sales up 37.4%, 34.4% and 29.7%, respectively. The big three importers also showed growth in 2007, with Italy up 7%, Australia up 2.2% and France up 3% in sales.
Varietal wines continue to exemplify the most dollar sales growth, increasing 7%, as compared to generic wines that grew only 2.2%. Volume of varietals rose 5.1% and generics declined -3.2%.
The fastest growing varietals in 2007 were Pinot Noir, Riesling, Cabernet Sauvignon, Pinot Grigio, Sauvignon Blanc and Zinfandel. Dollar sales of Riesling rose 23%, followed by Pinot Noir at 22.8%, Pinot Grigio (13%), Zinfandel (11.9%), Cabernet Sauvignon (11.1%) and Sauvignon Blanc (10%). Oh yeah, and Chardonnay grew 2.6% and Merlot was up 1.9%. White Zinfandel continues to lose momentum, declining -2.8%.
Pinot Noir showed the highest rate of volume growth, rising 25.4%, followed by Riesling at 22.6%. Next in line: Pinot Grigio (14.2%), Cabernet Sauvignon (10.3%), Zinfandel (8.5%), Sauvignon Blanc (5.1%), Merlot (3%) and Chardonnay (1.7%).
Trading up trends also boded well in 2007. Wines priced between $12 and $15 rose 16% in sales, followed by the $15 and above range, jumping 15%. Premium wines, $9-$12, rose 9.7%, says Nielsen, while the $6-$9 category grew 2.9% and $3-$6 rose 4.1%. The low-end segment ($0-$3) declined 0.6%. Volumes showed a similar pattern in terms of which category grew the most.
SWRA SUPPORTS SUPREME COURT DECISION
The Specialty Wine Retailers Association (SWRA) today expressed its support for the U.S. Supreme Court’s recent decision in Rowe v. New Hampshire Motor Transport, which says Maine cannot legally force truck drivers delivering tobacco products purchased online to check IDs. As we reported yesterday, the WSWA is against the Supreme Court ruling.
“Wine retailers are committed to verifying the age of recipients receiving wine via shipment by common carrier and welcome the fact that where shipping is allowed, it is the retailer’s responsibility - not the carrier's liability - for checking identification,” said Tom Wark, executive director of the SWRA. “For this reason retailers and wineries happily pay common carriers for special identification services at the point of delivery.”
“Undoubtedly the alcohol distributor cartel that wants to shut down any wine shipping that does not allow them to line their own pockets will try to use this decision to scare lawmakers and regulators,” said Wark.
“When distributors start talking about shutting down the channel of sales through which they profit, rather than the channel by which minors are least likely to obtain wine, we will start taking them seriously.”
SWRA and its members endorse age verification systems for assuring that those ordering wine via the Internet are 21 or older - as well as the implementation of permit laws that require wine retailers and wineries to contract with shipping companies to obtain signatures of adults when alcohol is delivered, and for the retailer to take responsibility for those sales and for the carriers they hire.
DIRECT SHIPPING UPDATES
Free The Grapes!, a grassroots coalition in favor of shipping wine direct to consumers, issued the following legislative updates yesterday. Most of the updates were provided courtesy of the Wine Institute. To view Free The Grapes! website, go to www.freethegrapes.org.
Maryland – Favorable Bill Heard Monday Could Fix Maryland
Maryland’s state legislators considered House Bill 1260 on February 18, and Free the Grapes! consumer members, retailers, industry representatives and others turned out to testify in favor. Wholesalers and some in-state retailers testified against the bill. Consumers using the Free the Grapes! website sent more than 900 letters to Maryland legislators within 72 hours of a Free the Grapes! email request last week.
New Mexico – Reciprocal Replacement Runs out of Time
On February 14, the last day of New Mexico’s 4-week legislative session, Senate Bill 59 ran out of time. The bill received widespread support and passed out of the Senate unanimously. It was endorsed by the New Mexico Wine Growers Association, and received favorable testimony by the New Mexico Retailers Association and the New Mexico Restaurant Association. The bill would have replaced NM’s reciprocal law.
Wisconsin – 2007 Reciprocal Replacement Bill Resurrected
Last October, the Governor struck language in the Budget Bill that would have replaced Wisconsin’s ‘reciprocal’ direct shipping law with a permit-style system. This year, with the support of the Governor and a broad coalition of interests, the WI legislature is considering Assembly Bill 795 and Senate Bill 485 that create the same type of permit system.
Indiana – Fix-it Bill Dies in Committee
Senate Bill 337 died in committee, and would have removed the face-to-face requirement in the existing law, and removed the prohibition on shipments for wineries with wholesaler representation in the state.
Pennsylvania – PLCB Drafting Delivery, Pick-up Bills
Several bills in drafting stage seek to amend PA’s restrictions but would require consumers to pick-up orders from PLCB stores, or allow only the PLCB to deliver wine to consumers’ homes.
Ohio – Amendments to Cap Sought
Industry representatives have been working with legislators to amend the state’s law that prohibits shipments from wineries or wine companies producing in excess of 150,000 gallons.
Massachusetts – Update on Lawsuit Challenging Cap
The Family Winemakers of California is the lead plaintiff in this lawsuit against the State of Massachusetts seeking to overturn the 30,000 gallon production cap. Summary judgment is expected in late March.
WSD BRIEFS:
DOS LUNAS TEQUILA is launching its full line of ultra-premium tequilas throughout Illinois this month. Dos Lunas is available in Texas, Florida, Arizona, Colorado, and New Mexico, and is also available in Wisconsin, Michigan, Connecticut, New Jersey and Alberta, Canada.
EDITOR'S NOTE: Our offices will be closed on Monday and Tuesday, Feb. 24-25, as our staff will be in San Diego working at the annual Beer Summit with Beer Business Daily. Please be patient with any customer service needs until we return.
Until Monday, Megan
“Reality is the leading cause of stress amongst those in touch with it.”
-Jane Wagner
--------- Sell Day Calendar ----------
Today’s Sell Day: 16
Sell days this month: 21
Sell days this month last year: 20
This month ends on a: Fri.
This month last year ended on a: Wed.
YTD sell days Over/Under: 0
posted at 5:33 PM
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