US wine sales up by 3%, with Cabernet Sauvignon driving growth
US wine sales amounted to $3.6 billion in August, a 3% increase on a year earlier according to market researchers bw166.
And it was Cabernet Sauvignon that was leading the way in both off premise and direct to consumer channels, accounting for around $1.6bn of the $9bn in wine sold off premise in the past 52 weeks.
Consumers were not only spending more overall, but also showed a willingness to spend more per bottle, as case volumes in the period actually dropped 1% to 8.1 million as sales value rose.
A year ago, the average price for Cabernet Sauvignon at less than $25 a bottle fell. This year, all price segments of above $15 saw an increase in average bottle price. Wines at $25-plus gained $1.62 a bottle, those at $20-$24.99 gained 39 cents, and $15-$19.99 bottles gained two cents. The cheapest category of Cabernet Sauvignon — less than $4 a bottle — even gained three cents a bottle.
Nevertheless, the middle sectors — those where the majority of sales occur — face significant pressure on prices. Over half (approximately 56%) of the varietal’s off-premise sales occur at less than $11 bottle, while the single biggest portion of sales — $469 million in the latest 12 months — occur at between $8-$10.99, a segment where average bottle price fell by a penny.
The biggest drop, six cents, was in the $11-$14.99 range. A similar phenomenon was seen in DtC shipments, where Cabernet Sauvignon continues to lead the way, ahead of its nearest competitors, Pinot Noir and red blends.
Cabernet shipments represented 28% of the $2.9 billion worth of wine that Wines Vines Analytics/ShipCompliant by Sovos reported flowing DtC in the latest 12 months.
The varietal’s shipment value, $814 million, was up 9% versus a year ago. The wines being shipped reflected steady demand for expensive wines, with $100-plus bottles accounting for 54% of the value of Cabernet shipments.
Cabernet’s strongest growth occurred in the $20-$39.99 price band with shipments rising by nearly a quarter (24%) to $61 million. Exports of bottles priced at less than $20 also gained ground, rising 16% to $32 million and recording the largest volume of any price segment at 231,909 cases.