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Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more. |
Off-premise wine sales continue to decline compared to 2020 but are up compared to 2019, as seen in the charts below.
According to NielsenIQ, the total value of wine sold over the two weeks ended June 5 (Memorial Day period) was down 11% compared to 2020, but 14% higher than 2019.
In March and April 2021, the total sales of spirits were down 5% YOY, while beer was down 6% and wine was down 11%.
Compared to 2019, spirits sales were up more than 30%, while beer and wine were about 17.5% higher.
DTC wine shipments fell 13% in May, but the value of shipments was 4% higher, boosted by higher-priced wine club shipments.
In the DTC channel, shipments are up by more than 25% in value and volume compared to 2019. Bottles priced at $20 and below are down YOY, while bottles over $50 are up double digits.
Delicato Family Wines has agreed to acquire Francis Ford Coppola Winery at an estimated $500M to $1B range.
The acquisition will add 1.1 million cases of volume above the $10 per bottle price range.
Delicato is the fifth-largest wine supplier in the U.S. at roughly 17 million cases before the acquisition.
Robert Nicholson of International Wine Associates has represented sellers of West Coast wine brands for decades, said, “It’s a transformational deal, and there will be more of these similar-type larger deals coming.”
We expect Vintage Wine Estates to be active in M&A in the sector, but Francis Ford Coppola Winery was too big of a target.