Luxury wine consumers are different (NAPA)
Wine DTC shipments increased 7% YOY in November, with volumes declining 4%. The average price of a bottle increased by 11% to 58.16.
Wine DTC shipments skew to the luxury end due to the high cost of shipping. Luxury wine consumers are not feeling the same household budget pressures as the other income groups. That is why so many wineries are pursuing the premium segment of the market.
Off-premise wine sales in the four weeks ended November 4 decreased 2% YOY, while volumes decreased 5%. Table wine sales fell more than 2%, and sparkling wine sales fell 3%. Volumes for both fell by 5%. In the latest 52 weeks, wine sales have fallen 2%.
On-premise wine sales for the 52-week period were flat YOY. White wine sales increased by 2%, sparkling wine sales increased by 8%, while all other types declined. Volumes for all beverage alcohol have declined in 2023, with price increases accelerating. 2024 will see prices disinflate or possibly deflate for lower-priced wine.
Tater surplus (LW)
Potato inventories on December 1 in the U.S. were up 10.4% YOY to 285 million cwt. Early season consumption increased by 8.7 million cwt to 150 million cwt. Potato processors consumed 89.6 million cwt, mostly for French fry production, between June 1 and November 30, up by 5.1 million cwt. In Idaho, the June-November period processed 22.4% more than the prior year. Consumption of chip potatoes has been relatively flat compared to the prior year. Fresh potato supplies are plentiful, with surplus potatoes grown for the frozen market potentially flooding retailers. French fry producers are limited by plant utilization. There is only so much of the large crop that will become fries.
Potatoes when times are tight (LW)
According to the Packer’s Fresh Trends 2024 survey, potatoes were the produce item the second largest number of respondents said they would purchase more of due to inflation. 30% of respondents said they would purchase more potatoes in times of inflation, just behind the 32% that said they would purchase more bananas. For income levels below 50,000, a third of households said they would purchase more potatoes. For households with children, 38% said they would purchase more potatoes. The potato is nutrient-dense and very affordable. They will be plentiful and cheaper in 2024. They can also be consumed in a myriad of ways, but French fried is particularly appealing!
