Imports and direct to consumer sales drive US wine sector

Imported bottled wine and direct to consumer sales were the key drivers behind growth in the US wine market, which overall remained largely stable, according to a recent report. 

Rosé wine sales outstripped other categories in the US last month, according to recent data from Wines Vines Analystics/ShipCompliant by Sovos report,    While growth in table wine sales softened, rosé growth surpassed the total category with sales soaring by over 50% in the past year.   Rosé priced between $11 and $14.99 accounted for the biggest sector of off premise rosé sales, with a value of around $100m.  

At the same time, burgeoning direct-to-consumer (Dtc) sales saw both rosé and sparkling wine, which are key varietals driving the growth of packaged imports, shifting in increasing volumes from US wineries to consumers.  

Total Dtc shipments were up by 28% on a year ago, to achieve a value of $290m, with case volumes also jumping by 23% to 603,232. Growth for the month overtook that of the past 12 months, and also saw the average bottle price increase to over $40, a 3% increase compared to April 2017. 

 Wineries increased the volume and value of direct shipments by 15.3% and 15.5% respectively over 2016, outpacing the six year average increases of 11% for volume and 12% for the value of shipments.

Cabernet Sauvignon has the lion’s share of the market, commanding 28% of the DtC sector, but that has slipped from $30 last year. At the same time Pinot Noir has seen its share jump to 16%, while red blends account for 16%, Chardonnay 8%, Zinfandel 5%,  and other varietals 27%.  

While all the key grape varieties enjoyed volume increases in the past year, sparkling wine shipments increased by nearly a third – 32% - to reach $69m, overtaking Syrah and Sauvignon Blanc in the process as the seventh most shipped varietal.

Rosé pipped Cabernet Franc at the post for 10th place with the strongest growth of any wine type with a 48% surge in sales, which totaled $48m.    

Within the retail sector, rosé sales in the US fared even better than in the Dtc category, soaring by 119% in the year ended April 22nd. The growth leapfrogged that of total wine sales via multiple outlet and convenience stores tracked  by IRI, which increased by only 3% over the last year to hit $686m.  

  Overall, Dtc sales have increased by 21% year on year, with sparkling rosé sales showing particularly healthy growth, and outstripping production levels.  

As for overall wine sales, these remain unchanged from the previous year at $2.9bn in April according to market researchers bw166. Domestic table wine sales were $8m lower than a year ago, offsetting increased sales of sparkling wine which were up by $3m, and imported bulk wine which jumped by $5m.  

However, bottled wine imports were a key driver of total US wine sales, with imported sparkling wine jumping by 10%, an increase of $368m, and imported table wines up by 6% or $866m. In total the wine category saw an additional $1.2bn in sales in the period, a 6% increase compared to the previous year.