The Chief Procurement Officer may not be the first employee that comes to mind when the acronym CPO is used, yet over 100 of them joined Ardent Partners in Boston a few months ago at the CPO Rising 2018 Summit to exchange and improve the procurement function through innovation and thoughts around P2P, accounts payable […]
Wine Shipments to Consumers Hit Record $3 Billion in 2018
2019 Direct-to-Consumer Wine Shipping Report highlights historic growth in prices, leading to 50% growth in value in three years
(BOSTON) January 23, 2019 – Wineries shipped a record $3 billion worth of wine directly to consumers in 2018, according to the 2019 Direct-to-Consumer (DtC) Wine Shipping Report from Sovos and Wines Vines Analytics. The annual report analyzes shipment trends from wineries to consumers in the United States. Fueling this growth, the average price per bottle increased 2.4 percent, the most significant one-year price spike since 2011.
Despite these healthy increases, the growth of the direct-to-consumer channel was slower than seven-year averages. In previous years, states have loosened their restrictions allowing wine shipments to drive growth. However, Oklahoma was the only new shipping destination for wine in 2018, leaving few states remaining yet to open for winery-to-consumer shipments.
“The direct shipping channel has matured into a mainstream option for wineries to meet growing consumer demand,” said Larry Cormier, general manager, ShipCompliant by Sovos. “As buyers continue to prefer direct shipping of all the products they buy, this channel must rely on organic growth, not new states opening for shipments. As a result, we anticipate strong but slower growth in the years to come.”
Sonoma County was the standout among regions analyzed, propelling ahead of Napa County, the historic leader in the DtC channel. Sonoma’s total volume of shipments increased by 19 percent and the value of shipments by 18 percent, marking a 200 percent increase since 2011.
On the other hand, both the volume and value of shipments from Napa County wineries lagged considerably behind other regions. Napa County’s wine shipments increased a mere 1.6 percent, a response to the 7.1 percent increase in average price-per-bottle shipped.
“Napa County seemingly priced itself out of the market in 2018,” said Chet Klingensmith, publisher and president at Wines Vines Analytics. “This may be an early indicator of what’s to come for the whole channel in 2019, as price increases have historically been followed by flat or declining prices the following year. With competition from independent wine clubs and online liquor stores increasing, wineries must stay cognizant of how pricing affects consumer demand.”
Other notable trends in the 2019 Direct-to-Consumer Wine Shipping Report include:
- Oregon outpaced the DtC channel. For the seventh consecutive year, Oregon wineries outpaced the overall market. Despite a 1.4 percent increase in the average price per bottle, wine shipments from Oregon increased 19 percent in volume.
- Rosé shipments continued to skyrocket. Rosé is now the eighth most commonly shipped wine by American wineries, moving up from the bottom of the list less than a decade ago.
- The Moscato fad faded. Moscato shipments plummeted in 2018, with the average price of a bottle at $7.30, down 50 percent from its high in 2016.
- Consumers opened their wallets. Shipments of wines priced at $100 or more increased by 18 percent in volume compared to the previous year.
The Direct-to-Consumer Wine Shipping Report is an annual collaboration between Sovos and Wines Vines Analytics, examining shipment trends from wineries to U.S. consumers. The proprietary data included is comprised from an algorithm measuring total DtC shipments based on millions of anonymous direct shipping transactions filtered through the ShipCompliant by Sovos system and paired with Wines Vines Analytics’ comprehensive data on U.S. wineries.
To download the full 2019 Direct-to-Consumer Wine Shipping Report and to see more insights and DtC trends, visit http://www.shipcompliant.com/dtcreport19/.
Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit www.sovos.com and follow us on LinkedIn and Twitter.
About Wines Vines Analytics
The Wines Vines Analytics team maintains the wine industry’s most accurate databases and provides data-driven analysis, data, insights and reports to help our clients grow and manage their businesses. For more information visit www.winesvinesanalytics.com.
Most enterprises already have one or several solutions for storing electronic data and documents. However, those systems might not meet compliance requirements for storing original electronic invoices and similar legally critical documents. Here is a brief guide to some of the prominent international requirements for acquiring a compliant e-archiving system. The full guide is available […]
The Supreme Court’s decision in South Dakota v Wayfair no longer limits states to the “physical presence” standard previously required to impose tax collection and remittance responsibility on a business. The new state nexus standards now look to criteria other than physical presence in evaluating a seller’s connection to that state. For example, South Dakota’s […]
It shouldn’t come as a surprise that the volume of returns received and processed by the IRS is down this filing season compared to last year. The question is why, and the answer likely has more to do with the government shutdown and new tax law than with filers missing deadlines. Although it is early […]
The rise of the so-called “gig economy” in the US has exploded in the last few years – last year, the Bureau of Labor & Statistics reported that 55 million people in the US are “gig workers” which represents about 35 percent of the US workforce — and it is supposed to rise to an […]