Wine Imports Lag in February
Domestic table wine faired far better then imports in the four weeks to February 24, according to IRI supermarket food and drug scan data. Dollar sales of domestic table wine rose 4.7%, while imports declined -1.1%. Volume of domestic wine grew 1.2%, while imports decreased nearly -5%. Overall, table wine increased 3.3% by value and volume was flat.
There are several possible factors at play. One, the diminishing dollar and sturdy euro may have already taken a toll on imports, particularly those from Europe. Two, Australian imports are expected to take a price increase after a recent drought dramatically reduced grapes supplies. Three, it could always have something to do with mix and comps.
The rate of growth for white wine continues to surpass red wine, according to IRI data. Red table wine grew almost 3% in value and declined -0.1% in volume. Meanwhile, dollar sales of white wine grew 4.8%, while volume was up 1.8%.
Merlot and Syrah/Shiraz showed the great weakness in February. Dollar sales of Merlot declined -3.8%, while volume was down 3%. We thought the “Sideways effect” was over, but perhaps not. Syrah/Shiraz, meanwhile, showed an even slower rate of growth. Value and volume both declined -6.1%. Some say Australia is experiencing a backlash in the U.S., with a mix of rising prices and a perceived “cheap” image among consumers. Perhaps Shiraz sales are hurting as a result – of course, we’re only speculating and it could simply be a result of mix/shift.
Cabernet, Pinor Noir and Zinfandel all exemplified growth in February. Cabernet Sauvignon dollar sales grew 5.3% and volume was up 3.5%. Pinot Noir showed the highest rate of growth yet again among the reds, with value growing 15.5% and volume increasing 17%. Lastly, Zinfandel grew 13.4% in value and 12.1% in volume.
The varietals most responsible for growth among white wines were Sauvignon Blanc/Fume Blanc, Pinot Grigio/Gris and trusty Chardonnay. Dollar sales of Sauvignon Blanc rose 12.4% and volume grew 8.9%. Pinot Grigio’s value and volume increased 9% and 6.6%, respectively. Chardonnay saw dollar sales grow 3.2% and volume jump 2.3%.
Australia, France and Italy showed the biggest decline in growth rate, while South Africa, Argentina and New Zealand were on the up and up. Dollar sales of Australia declined -3.4%, while France and Italy were down -4.5% and -5.5%, respectively. Volumes of Australia decreased 3%, followed by France (-6.5%) and Italy (-12.2%). The poor U.S. economy negatively impacted Australia, France and Italy, as you can see. Australia has been successful, however, with getting consumers to trade up to more expensive wines from the land down under.
Meanwhile, dollar sales of South Africa surged 44.2%, followed by Argentina (37%) and New Zealand (23.7%).
Out of the domestic wines, Oregon showed the most growth with dollar sales up 23.5% and volume up 17.1%. Washington wines rose almost 11% in value and 7% in volume. Lastly, California saw dollar sales gain 4.2% in February and volume rise 1%.
Overall, wines priced in premium ($11-$14.99) and super-premium ($15-$19.99) categories posted the highest rate of growth. Premium wines grew 12.4% in value and 12.3% in volume, while super-premium wines grew 17.2% in dollar sales and 18.7% in case sales. Growth rates for wines priced $8.99 and below were all in decline.
The top five wine brands by dollar sales all posted growth. Dollar sales rose the following amount, starting with the number one brand: Yellow Tail (2.4%), Sutter Home (4%), Franzia (2.6%), Woodbridge (0.6%) and K-J Vintners Reserve (4.3%).
NEW WSWA BOARD OFFICERS
The WSWA announced its new board officers this week at the trade group’s annual convention. The new board roster includes: Chairman Jack Goldenberg of Quality Wine & Spirits; Vice Chairman W. Rockwell Wirtz of Wirtz Beverage Group; Senior Vice President John Baker of National Wine & Spirits; Vice President Robert Harmelin of Allied Beverage Group; Secretary Charles Merinoff of Charmer Sunbelt Group; and Treasurer Douglas Hertz of United Distributors.
Todd Epsten of Major Brands Premium Beverage Distributors was named a board representative from the association’s Large Member Caucus, joining Vern Underwood of Young’s Market Company in that role.
UNITED SPIRITS DENIES BACARDI TALK
United Spirits (USL), owned by Vijay Mallaya, denied media reports that Bacardi is in talks with USL to acquire a stake.
"The company is not in conversation with anyone in this regard. The published news item is purely speculative,'' United Spirits said in a filing to the Bombay Stock Exchange yesterday.
The Economic Times reported last week that Bacardi’s ceo Andreas Gembler had indicated the company was interested in USL's potential move for private placement of treasury stocks with a strategic partner.
WSD BRIEF:
SHIPCOMPLIANT AND THE WINE INSTITUTE jointly launched a new version of the direct shipping portal within the Wine Institute website (wineinstitute.shipcompliant.com). The portal provides state by state shipping rules, carrier shipping policy table, direct shipping permit applications, state contact information, and a volume conversion tool for use in reporting, all available to the public.
Until tomorrow, Megan
“Reprove thy friend privately; commend him publicly.”
Solon
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
There are several possible factors at play. One, the diminishing dollar and sturdy euro may have already taken a toll on imports, particularly those from Europe. Two, Australian imports are expected to take a price increase after a recent drought dramatically reduced grapes supplies. Three, it could always have something to do with mix and comps.
The rate of growth for white wine continues to surpass red wine, according to IRI data. Red table wine grew almost 3% in value and declined -0.1% in volume. Meanwhile, dollar sales of white wine grew 4.8%, while volume was up 1.8%.
Merlot and Syrah/Shiraz showed the great weakness in February. Dollar sales of Merlot declined -3.8%, while volume was down 3%. We thought the “Sideways effect” was over, but perhaps not. Syrah/Shiraz, meanwhile, showed an even slower rate of growth. Value and volume both declined -6.1%. Some say Australia is experiencing a backlash in the U.S., with a mix of rising prices and a perceived “cheap” image among consumers. Perhaps Shiraz sales are hurting as a result – of course, we’re only speculating and it could simply be a result of mix/shift.
Cabernet, Pinor Noir and Zinfandel all exemplified growth in February. Cabernet Sauvignon dollar sales grew 5.3% and volume was up 3.5%. Pinot Noir showed the highest rate of growth yet again among the reds, with value growing 15.5% and volume increasing 17%. Lastly, Zinfandel grew 13.4% in value and 12.1% in volume.
The varietals most responsible for growth among white wines were Sauvignon Blanc/Fume Blanc, Pinot Grigio/Gris and trusty Chardonnay. Dollar sales of Sauvignon Blanc rose 12.4% and volume grew 8.9%. Pinot Grigio’s value and volume increased 9% and 6.6%, respectively. Chardonnay saw dollar sales grow 3.2% and volume jump 2.3%.
Australia, France and Italy showed the biggest decline in growth rate, while South Africa, Argentina and New Zealand were on the up and up. Dollar sales of Australia declined -3.4%, while France and Italy were down -4.5% and -5.5%, respectively. Volumes of Australia decreased 3%, followed by France (-6.5%) and Italy (-12.2%). The poor U.S. economy negatively impacted Australia, France and Italy, as you can see. Australia has been successful, however, with getting consumers to trade up to more expensive wines from the land down under.
Meanwhile, dollar sales of South Africa surged 44.2%, followed by Argentina (37%) and New Zealand (23.7%).
Out of the domestic wines, Oregon showed the most growth with dollar sales up 23.5% and volume up 17.1%. Washington wines rose almost 11% in value and 7% in volume. Lastly, California saw dollar sales gain 4.2% in February and volume rise 1%.
Overall, wines priced in premium ($11-$14.99) and super-premium ($15-$19.99) categories posted the highest rate of growth. Premium wines grew 12.4% in value and 12.3% in volume, while super-premium wines grew 17.2% in dollar sales and 18.7% in case sales. Growth rates for wines priced $8.99 and below were all in decline.
The top five wine brands by dollar sales all posted growth. Dollar sales rose the following amount, starting with the number one brand: Yellow Tail (2.4%), Sutter Home (4%), Franzia (2.6%), Woodbridge (0.6%) and K-J Vintners Reserve (4.3%).
NEW WSWA BOARD OFFICERS
The WSWA announced its new board officers this week at the trade group’s annual convention. The new board roster includes: Chairman Jack Goldenberg of Quality Wine & Spirits; Vice Chairman W. Rockwell Wirtz of Wirtz Beverage Group; Senior Vice President John Baker of National Wine & Spirits; Vice President Robert Harmelin of Allied Beverage Group; Secretary Charles Merinoff of Charmer Sunbelt Group; and Treasurer Douglas Hertz of United Distributors.
Todd Epsten of Major Brands Premium Beverage Distributors was named a board representative from the association’s Large Member Caucus, joining Vern Underwood of Young’s Market Company in that role.
UNITED SPIRITS DENIES BACARDI TALK
United Spirits (USL), owned by Vijay Mallaya, denied media reports that Bacardi is in talks with USL to acquire a stake.
"The company is not in conversation with anyone in this regard. The published news item is purely speculative,'' United Spirits said in a filing to the Bombay Stock Exchange yesterday.
The Economic Times reported last week that Bacardi’s ceo Andreas Gembler had indicated the company was interested in USL's potential move for private placement of treasury stocks with a strategic partner.
WSD BRIEF:
SHIPCOMPLIANT AND THE WINE INSTITUTE jointly launched a new version of the direct shipping portal within the Wine Institute website (wineinstitute.shipcompliant.com). The portal provides state by state shipping rules, carrier shipping policy table, direct shipping permit applications, state contact information, and a volume conversion tool for use in reporting, all available to the public.
Until tomorrow, Megan
“Reprove thy friend privately; commend him publicly.”
Solon
--------- Sell Day Calendar ----------
Today's Sell Day: 7
Sell days this month: 22
Sell days this month last year: 21
This month ends on a: Wed.
This month last year ended on a: Mon.
YTD sell days Over/Under: 0
WINE & SPIRITS DAILY
Subscribe or check back issues at: www.winespiritsdaily.com
Send news and comments in confidence to: megan@winespiritsdaily.com
© 2008 Wine & Spirits Daily, all rights reserved. May quote with attribution.
posted at 12:40 PM
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