Posted: Jan 23, 2020
Wineries shipped more than $3.2 billion worth of wine directly to consumers in 2019, according to the latest Direct-to-Consumer (DtC) Wine Shipping Report from Sovos ShipCompliant and Wines Vines Analytics. With the largest increase in average price per bottle shipped in nearly a decade, wineries grew the value of the channel by 7.4% and volume by 4.7%.
This represents a slowdown from past years that saw regular double-digit growth fueled by new states opening their borders to winery direct shipments. Forty-five states and the District of Columbia now allow DtC shipping, leaving only a handful of states as potential new markets as the channel continues to mature.
"The days of annual 13% to 18% increases in the DtC channel are likely over for the wine industry," said Larry Cormier, vice president and general manager, Sovos ShipCompliant. "Moving forward, we expect expansion in DtC wine shipping to be driven by similar conditions as other luxury goods: the state of the economy, demographic trends, sales and marketing innovation, and continued consumer migration from brick-and-mortar to online purchases."
The largest DtC region - Napa County - saw only modest growth for the fourth year in a row, lagging behind the rest of the DtC channel with a 2.8% increase in volume compared to 2018. The $1.5 billion in wine Napa County wineries shipped directly to consumers in 2019 represented just under half the total value of the DtC shipping channel at an average price per bottle shipped of $69.39, a 3.4% increase over 2018. Meanwhile, neighboring Sonoma County wineries had a relatively good year with a 5.8% increase in the volume of wine shipments and 6.6% increase in the value of those shipments.
"Despite some signs of maturation, the DtC channel remains the most dynamic and promising sector of the wine business," said Andrew Adams, editor of the Wine Analytics Report, which is published by Wines Vines Analytics. "Total shipment value increased 12% in December compared to the previous year, and the 12-month total was also much higher than in 2018."
By Sovos ShipCompliant and Wines Vines Analytics
January 22, 2020
Source and Image: Sovos.com
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