Trendier Varietals Outpace the Trusty Three
Dollar sales growth of table wine slowed slightly in January (+4.9%) from December (+6.9%), as white wine and imports took the lead in dollar sales. According to Nielsen scan data, value of red wine in the four weeks to February 9 increased 4.3% and volume grew 1.3%. Red wine lost -0.3% of dollar share and -0.2% of volume share. White wine, meanwhile, grew 6.8% in dollar sales and 3.9% in volume. It gained almost a point in dollar share (0.7%) and volume (0.8%) since the same period last year.
Import value grew a little faster then domestic in January. Dollar sales of imports were up 5.3%, while domestics jumped 4.8%. Volume was a different story, however, with domestics increasing 1.8% and imports slightly behind with 1.4% growth. The weaker dollar has driven up prices of some imports in the U.S., particularly smaller brands from Europe and even Australia. With that said, value of Australian wine declined -1.5% in January and volume was down -1.2%. Australia lost -0.6% of dollar share and -0.3% of volume in January. French imports grew an impressive 8.5% in dollar sales and 5% in volume, gaining slight share in both (0.1%). Value of Italian imports grew 4.4% but lost -0.7% in volume. Dollar shares were flat, while volume share was down slightly (-2%). Argentina, South Africa and New Zealand showed the highest rate of growth in dollar sales and volume.
As far as varietals go, Riesling saw the biggest leap in dollar sales, up 20%, while Pinot Noir grew 13.7%. Volume of Pinot Noir, however, increased 18.3% and Riesling rose 18.8%. Dollar sales of Pinot Grigio, Sauvignon Blanc and Zinfandel were not far behind, rising 13%, 11.8%, 9.8%, respectfully. The trusty varietals Chardonnay, Merlot and Cabernet Sauvignon did not see the same rate of growth. Dollar sales of Chardonnay rose 4% and Cabernet grew 6.6%, but Merlot declined -2.1%. Chardonnay volumes were up 3.4%, Cabernet grew 5.5% and Merlot was down -1.6%.
Higher end wines continued to gain share in January, while wine prices $9 and below lost dollar share. Wines in the $12-$15 category saw dollar sales rise 16%. Wines priced beyond $15 grew 9%, along with wines prices $9-$11. The $3-$5.99 category grew 3% in dollar value, while $6-$9 rose only 1.5%. Wines prices $0 to $2.99 declined -0.5%.
SCOTCH DISTILLERS OUTRAGED
The Scotch whisky distillers are reportedly outraged at the new tax hike in the UK, says the Daily Telegraph. As you’ll recall, Chancellor Alistair Darling announced a rise in duty of 6% above inflation, with more tax rises over the next four years.
“The Scotch whisky industry, one of our premium industries now faces savage increases in duty. This runs the risk of encouraging international competitors to introduce punitive tariffs, and threatens our ability to export as well as the jobs this industry sustains," said Mr. Swinney, the Scottish finance minister.
Recall that Scotch producers have battled high tariffs in India in recent years which have made competition there nearly impossible. A Treasury spokesman pointed out that up to 90% of Scotch whisky is exported abroad, however, and won’t be affected by the tax increase.
FORMER DIAGEO EXEC JOINS FOSTER’S BOARD
Paul Clinton is joining the Foster’s Group board as an independent director, effective March 25. He was president and CEO of Diageo North America from 2000 until his retirement in 2003, and also held a position on the board of the Distilled Spirits Council of the US.
VODKA PRODUCERS TAKE ALTERNATIVE ROUTE
An interesting article in the WSJ explores the “new twists on vodka” that distillers are experimenting with to get consumers’ attention. Since smaller producers have a hard time competing with brands like Absolut and Smirnoff, they have to make their product stand out with innovative recipes that include flavors, caffeine and bubbles. To read the article, click here.
WSD BRIEFS:
SAN FRANCISCO may be the next city to approve a law that would require some chain restaurants to post nutrition information on their menu boards and menus. The Board of Supervisors unanimously gave initial approval earlier this week. If the requirement is passed, it could go into effect in about 6 months.
GEORGIA RESIDENTS may soon have the chance to vote on a bill that would allow Sunday sales. The bill unanimously passed the House Regulated Industries Committee and now moves to the House Rules Committee. Georgia is one of only three states in the entire country that prohibits Sunday alcohol sales of beer, wine and spirits
Until tomorrow, Megan
“Keeping score of old scores and scars, getting even and one-upping, always make you less than you are.”
-Malcolm Forbes
--------- Sell Day Calendar ----------
Today's Sell Day: 9
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
Import value grew a little faster then domestic in January. Dollar sales of imports were up 5.3%, while domestics jumped 4.8%. Volume was a different story, however, with domestics increasing 1.8% and imports slightly behind with 1.4% growth. The weaker dollar has driven up prices of some imports in the U.S., particularly smaller brands from Europe and even Australia. With that said, value of Australian wine declined -1.5% in January and volume was down -1.2%. Australia lost -0.6% of dollar share and -0.3% of volume in January. French imports grew an impressive 8.5% in dollar sales and 5% in volume, gaining slight share in both (0.1%). Value of Italian imports grew 4.4% but lost -0.7% in volume. Dollar shares were flat, while volume share was down slightly (-2%). Argentina, South Africa and New Zealand showed the highest rate of growth in dollar sales and volume.
As far as varietals go, Riesling saw the biggest leap in dollar sales, up 20%, while Pinot Noir grew 13.7%. Volume of Pinot Noir, however, increased 18.3% and Riesling rose 18.8%. Dollar sales of Pinot Grigio, Sauvignon Blanc and Zinfandel were not far behind, rising 13%, 11.8%, 9.8%, respectfully. The trusty varietals Chardonnay, Merlot and Cabernet Sauvignon did not see the same rate of growth. Dollar sales of Chardonnay rose 4% and Cabernet grew 6.6%, but Merlot declined -2.1%. Chardonnay volumes were up 3.4%, Cabernet grew 5.5% and Merlot was down -1.6%.
Higher end wines continued to gain share in January, while wine prices $9 and below lost dollar share. Wines in the $12-$15 category saw dollar sales rise 16%. Wines priced beyond $15 grew 9%, along with wines prices $9-$11. The $3-$5.99 category grew 3% in dollar value, while $6-$9 rose only 1.5%. Wines prices $0 to $2.99 declined -0.5%.
SCOTCH DISTILLERS OUTRAGED
The Scotch whisky distillers are reportedly outraged at the new tax hike in the UK, says the Daily Telegraph. As you’ll recall, Chancellor Alistair Darling announced a rise in duty of 6% above inflation, with more tax rises over the next four years.
“The Scotch whisky industry, one of our premium industries now faces savage increases in duty. This runs the risk of encouraging international competitors to introduce punitive tariffs, and threatens our ability to export as well as the jobs this industry sustains," said Mr. Swinney, the Scottish finance minister.
Recall that Scotch producers have battled high tariffs in India in recent years which have made competition there nearly impossible. A Treasury spokesman pointed out that up to 90% of Scotch whisky is exported abroad, however, and won’t be affected by the tax increase.
FORMER DIAGEO EXEC JOINS FOSTER’S BOARD
Paul Clinton is joining the Foster’s Group board as an independent director, effective March 25. He was president and CEO of Diageo North America from 2000 until his retirement in 2003, and also held a position on the board of the Distilled Spirits Council of the US.
VODKA PRODUCERS TAKE ALTERNATIVE ROUTE
An interesting article in the WSJ explores the “new twists on vodka” that distillers are experimenting with to get consumers’ attention. Since smaller producers have a hard time competing with brands like Absolut and Smirnoff, they have to make their product stand out with innovative recipes that include flavors, caffeine and bubbles. To read the article, click here.
WSD BRIEFS:
SAN FRANCISCO may be the next city to approve a law that would require some chain restaurants to post nutrition information on their menu boards and menus. The Board of Supervisors unanimously gave initial approval earlier this week. If the requirement is passed, it could go into effect in about 6 months.
GEORGIA RESIDENTS may soon have the chance to vote on a bill that would allow Sunday sales. The bill unanimously passed the House Regulated Industries Committee and now moves to the House Rules Committee. Georgia is one of only three states in the entire country that prohibits Sunday alcohol sales of beer, wine and spirits
Until tomorrow, Megan
“Keeping score of old scores and scars, getting even and one-upping, always make you less than you are.”
-Malcolm Forbes
--------- Sell Day Calendar ----------
Today's Sell Day: 9
Sell days this month: 21
Sell days this month last year: 22
This month ends on a: Mon.
This month last year ended on a: Fri.
YTD sell days Over/Under: +1
posted at 1:10 PM
<< Home