Below is a brief excerpt from a complementary research note written by our Consumer Staples analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more.
Consumer spending on domestic wine, including bulk imports, fell 7% in the year ended September.
Including imports, wine sales decreased by 9%. Sales in September decreased by 2.5%, as seen in the following chart on the left.
Off-premise (which has been the strongest channel throughout the pandemic) wine sales were up 11% YOY in September, as seen in the following chart on the right.
Sales of domestic wines through Nielsen measured off-premise outlets (which represent 45% of the volume and 23% of the dollars of the total U.S. wine market) grew 16% in the four weeks ended September 5.
The $11-14.99 price points had the strongest growth rate, but greater than $20 grew more than 30%. The strength at the higher price points is one of the top reasons Constellation Brands is selling its lower-priced brands to E&J Gallo.
Restaurant wine sales in the 52 weeks ended August 8th decreased 31%. Direct to consumer shipments of wine increased 17% in September, decelerating as more restaurants have reopened.