Wine Growth Slowing
How is wine performing during the weak economic climate? Are consumers still trading up? According to Nielsen’s food, drug and liquor scan data, wine and even high-end wine is still growing but at a much slower rate. To get an idea of the difference, we took a look at Nielsen data in the period to April 5, 2008 and April 7, 2007.
OVERALL TABLE WINE. Table wine continued to post growth in the four weeks to April 5 but at a slower rate than the 52 week period to April 5. Table wine dollar sales grew 4.7% in the four weeks, but were up 5.4% for the year.
In terms of volume, the four week period saw growth of 1.5% while volume jumped 2.2% in the 52 weeks. It takes longer for trends to show up in 52-week data, while four-week numbers tend to reflect current trends. Case in point? Growth of wine in the U.S. is stalling and isn’t showing signs of turning around (yet).
Let’s take a look at the same period last year. In the four weeks to April 7, 2007, dollar sales jumped 11.1%. In the 52 weeks to April 7, 2007, dollar sales grew 6.9%. Volume increased a whopping 7% for the month and 2.9% for the year to April 2007. Volume growth of table wine in 2007 was almost five times more than in 2008.
TRADING UP. High-end wines reached a new record of growth in 2007. Since then, the rate of growth has slowed. It turns out that consumers are still trading up, just not as much as they were last year.
Higher-priced wines continued to post growth in April 2008, but at a much slower rate than in April 2007. In the four weeks to April 2008, dollar sales and volume of wines priced $15 and above rose 8.1%. Wines priced $12-14.99 saw sales climb 7.8% and volume rise 5.5%. Meanwhile, wines in the $9-11.99 range increased 7.5% in dollar sales and 5.3% in volume.
Dollar sales of wines prices $6-8.99 grew 1.9%, followed by $3-5.99 (3.7%) and $0-2.99 (1.2%). Volume of wines prices $6-8.99 grew 0.6%, followed by $3-5.99 (1.5%) and $0-2.99 (-0.6%).
The difference between 2008 and 2007 is vast. In the four weeks to April 2007, the $15 and up category grew 26.9% in value and 26.3% in volume. Dollar sales of wines prices $12-14.99 grew 20.3%, while volume jumped 20.1%. Wines in the $9-11.99 range rose 15.1% in value and 14.4% in volume.
All of the lower priced wines grew faster in 2007 as well, aside from the $0-2.99 price segment. Dollar sales of the $6-8.99 category rose 8%, followed by $3-5.99 (7.8%) and $0-2.99 (0.3%). Volume of wines priced $6-8.99 grew 9.2%, followed by $3-5.99 (7.3%) and $0-2.99 (0.2%).
Stay tuned for more Nielsen wine data tomorrow...
ARIZONA CHANGES DIRECT SHIPPING LAW
Arizona made a small change to its direct-to-consumer wine shipping regulation, effective immediately, according to ShipCompliant. Under the original law, Arizona residents could not receive direct-to-consumer wine shipments unless they purchased the wine on-site, and shipments did not exceed 2 cases per consumer per year.
The new law allows wineries to ship to Arizona consumers, as long as the consumer has physically visited the winery at anytime during the calendar year prior to placing the order. Arizona consumers who have visited the winery may place off-site orders and have shipments sent to them as long as they do not exceed the 2 case limit. If Arizona consumers wish to have additional wine shipped to themselves in subsequent years, they will need to physically visit the winery each year.
CALIFORNIA GRAPE GROWERS EXPECT LOWER HARVEST
April was a tough month for California winemakers, who were faced with a series of unusually late frosts. The damage is still being assessed but most growers expect a smaller-than-average harvest this year. It could be June before growers know the full extent.
SACRAMENTO VALLEY FARM CREDIT has merged with Farm Credit West, an agricultural lending cooperative almost five times its size, creating a company that spans 15 California counties and has assets of more than $4.6 billion. The new operation carries Farm Credit West's name and plans to move its headquarters to Roseville.
Until tomorrow, Megan
“Punctuality is the virtue of the bored.”
Evelyn Waugh
--------- Sell Day Calendar ----------
Today's Sell Day: 4
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
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.
OVERALL TABLE WINE. Table wine continued to post growth in the four weeks to April 5 but at a slower rate than the 52 week period to April 5. Table wine dollar sales grew 4.7% in the four weeks, but were up 5.4% for the year.
In terms of volume, the four week period saw growth of 1.5% while volume jumped 2.2% in the 52 weeks. It takes longer for trends to show up in 52-week data, while four-week numbers tend to reflect current trends. Case in point? Growth of wine in the U.S. is stalling and isn’t showing signs of turning around (yet).
Let’s take a look at the same period last year. In the four weeks to April 7, 2007, dollar sales jumped 11.1%. In the 52 weeks to April 7, 2007, dollar sales grew 6.9%. Volume increased a whopping 7% for the month and 2.9% for the year to April 2007. Volume growth of table wine in 2007 was almost five times more than in 2008.
TRADING UP. High-end wines reached a new record of growth in 2007. Since then, the rate of growth has slowed. It turns out that consumers are still trading up, just not as much as they were last year.
Higher-priced wines continued to post growth in April 2008, but at a much slower rate than in April 2007. In the four weeks to April 2008, dollar sales and volume of wines priced $15 and above rose 8.1%. Wines priced $12-14.99 saw sales climb 7.8% and volume rise 5.5%. Meanwhile, wines in the $9-11.99 range increased 7.5% in dollar sales and 5.3% in volume.
Dollar sales of wines prices $6-8.99 grew 1.9%, followed by $3-5.99 (3.7%) and $0-2.99 (1.2%). Volume of wines prices $6-8.99 grew 0.6%, followed by $3-5.99 (1.5%) and $0-2.99 (-0.6%).
The difference between 2008 and 2007 is vast. In the four weeks to April 2007, the $15 and up category grew 26.9% in value and 26.3% in volume. Dollar sales of wines prices $12-14.99 grew 20.3%, while volume jumped 20.1%. Wines in the $9-11.99 range rose 15.1% in value and 14.4% in volume.
All of the lower priced wines grew faster in 2007 as well, aside from the $0-2.99 price segment. Dollar sales of the $6-8.99 category rose 8%, followed by $3-5.99 (7.8%) and $0-2.99 (0.3%). Volume of wines priced $6-8.99 grew 9.2%, followed by $3-5.99 (7.3%) and $0-2.99 (0.2%).
Stay tuned for more Nielsen wine data tomorrow...
ARIZONA CHANGES DIRECT SHIPPING LAW
Arizona made a small change to its direct-to-consumer wine shipping regulation, effective immediately, according to ShipCompliant. Under the original law, Arizona residents could not receive direct-to-consumer wine shipments unless they purchased the wine on-site, and shipments did not exceed 2 cases per consumer per year.
The new law allows wineries to ship to Arizona consumers, as long as the consumer has physically visited the winery at anytime during the calendar year prior to placing the order. Arizona consumers who have visited the winery may place off-site orders and have shipments sent to them as long as they do not exceed the 2 case limit. If Arizona consumers wish to have additional wine shipped to themselves in subsequent years, they will need to physically visit the winery each year.
CALIFORNIA GRAPE GROWERS EXPECT LOWER HARVEST
April was a tough month for California winemakers, who were faced with a series of unusually late frosts. The damage is still being assessed but most growers expect a smaller-than-average harvest this year. It could be June before growers know the full extent.
SACRAMENTO VALLEY FARM CREDIT has merged with Farm Credit West, an agricultural lending cooperative almost five times its size, creating a company that spans 15 California counties and has assets of more than $4.6 billion. The new operation carries Farm Credit West's name and plans to move its headquarters to Roseville.
Until tomorrow, Megan
“Punctuality is the virtue of the bored.”
Evelyn Waugh
--------- Sell Day Calendar ----------
Today's Sell Day: 4
Sell days this month: 22
Sell days this month last year: 23
This month ends on a: Fri.
This month last year ended on a: Thurs.
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 12:34 PM
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