Wine DTC outpaces retail sales (BSPE)
Off-premise sales tracked by Nielsen were up 18% by value in January to more than $1B. Direct to consumer sales outpaced retail sales. Winery DTC shipment value grew 21% to $165M. DTC shipment volume grew by 26% to more than 417,000 9L cases, as seen in the following chart.
We are presenting our research roundup on Vintage Wine Estates tomorrow at 2 PM in our SPAC Research Roundup. The company is targeting a high rate of growth in the wine industry through organic growth and acquisitions. The company is on our Long Bias list.
Rising wages challenge farms (APPH)
Wages on farms have been increasing nationwide for several years. In the last five years, the average labor rate has increased by 20%. There are variances between the states, as the following map shows. Wages in Kentucky are lower than the average but are not the lowest in the U.S. It is not clear where the $15 federal minimum wage legislation stands after the Senate Parliamentarian ruled that it did not comply with the use of budget reconciliation. A proposal to tax large companies that did not pay the higher minimum championed by Senator Sanders appeared to be abandoned on Sunday night. Higher minimum wages in many rural areas would be particularly difficult for farms growing produce.
We are presenting our research roundup on AppHarvest tomorrow at 2 PM in our SPAC Research Roundup. The company targets a high rate of growth in the tomato industry through the organic rollout of greenhouses. AppHarvest has located its greenhouses in Appalachia to save on labor costs. The company is on our Short Bias list.
Catalina ranks the top CPG products over the past year (KR)
Catalina, the digital marketer, reported the top five CPG categories by dollar sales gains were coronavirus fighting tools. In the 52 weeks ended Feb. 13, 2021, the top sales gainers were home health testing kits (includes face masks) up 314%, liquid hand soap up 246%, disinfectant cleaners up 235%, personal moist towelettes up 155%, and household cleaner pre-moist wipes up 129%. Toilet paper’s sales increase was 33% for the premium brands and 30% for the value brands. Sales of refrigerated snacks and cakes were up 87%, followed by frozen drink smoothies up 85%, frozen breaded vegetables up 83%, powdered milk up 82%, camping accessories up 77%, and frozen seafood up 71%. In alcohol premixed cocktails had the strongest increase up 84%, followed by domestic beer up 31%, imported wine up 28%, domestic wine up 25%, spirits up 24%, and imported beer up 23%. Categories that saw declines include beauty and personal care products, school and office supplies. Catalina’s Buyer Intelligence Database tracks shopping behavior by capturing up to three years of purchase history and more than 2B UPCs.
