Sovos ShipCompliant and Wines Vines Analytics recently released the 2020 Direct-to-Consumer Wine Shipping Report and we asked Tom Wark of Wark Communications, a company specializing in beverage industry communications, to give us some of his insights and takeaways from this year’s report. Tom has been involved in the creation of the DtC report for many years, and offers a unique and seasoned perspective.
What statistic or data point did you find most surprising from this year’s report?
TW: I thought the slower growth in the Napa County region was particularly interesting. Napa dominates DtC Shipping. I see its slower growth as a combination of factors including a maturing region, there being no new states to open in the previous 12 months to drive growth, and also a general slowdown in purchasing from Napa wineries. If I were other regions that have matured in their direct sales, I’d want to watch how Napa handles their situation.
What other observations come to mind?
TW: For me some of the most revealing information in the report is the destination of shipments as well as the “bottles shipped per capita.” I think there is a lot of market intelligence to be taken from these numbers.
Where do you see the channel in five years in terms of growth and percentage of all wine sales?
TW: I expect growth to continue over the next five years, however that growth will be smaller than the average growth rate for the past decade. Much slower, in fact. I would not be surprised to see a negative growth rate in 2021. However, the DtC channel is still developing and has more room overall to grow.
Using these insights
The 2020 Direct-to-Consumer Wine Shipping Report is full of information from across the DtC channel. Harnessing these observations can help you plan and execute strategic business decisions that expand your DtC operations. Data on variables like the average price-per-bottle, most popular varietals shipped, and the top ship-to destination states can help you plan your marketing and operational efforts to best take advantage of these channel trends.
Download your free copy of the report here.