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.
Winery DTC shipments grew 21% to $165M in January. Off-premise sales tracked by Nielsen grew 19% to $1.111B.
Wine bottles priced between $11 and $30 saw the strongest growth during January, with large wineries up 41% in sales.
“All price tiers again north of $11 continued to grow at a rapid pace,” according to Sovos ShipCompliant. The standouts for the month were Napa and Oregon wines. Retail sales growth slowed in November and December, but January returned to the levels of June through October.
In the DTC channel, the average bottle price of shipments fell $1.33 compared with the previous year. Total U.S. wine sales fell 9% to $3.615M in January and decreased 9% on a trailing 12-month basis due to the weakness in the on-premise channel.
Total U.S. wine sales can be seen in the following chart below.
Constellation Brands sold its portfolio of brands below $11 per bottle, and Vintage Wine Estates (BSPE) focuses on the fastest-growing segment of wine, $10-20 per bottle. Vintage Wine Estates also has a greater mix of retail and DTC than the industry.