Sovos Announces 2018 Mid-Year Direct-to-Consumer Channel Data

September 6, 2018

Notable trends: Oregon wines surging while Napa sales stagnate, Rosé on the rise and Pennsylvania as a leading shipment destination

Sovos today revealed data on the performance of the direct-to-consumer (DtC) winery shipping market through the first six months of 2018. Among the notable trends in the report were Napa County wine sales slowing but remaining steady while sales of Oregon wines rise, and Rosé continuing to build momentum after strong gains last year.

The annual DtC report is a cooperative effort between ShipCompliant by Sovos and Wines & Vines. The full version of the report is released each January. To create this report, Wines Vines Analytics created an algorithm that uses its database of U.S. wineries to extrapolate all direct-to-consumer shipments from millions of anonymized direct shipping transactions filtered through Sovos’ ShipCompliant platform.

The following results compare the first six months of 2018 to the first six months of 2017. Overall, the DtC channel showed strength. The total value of shipments rose 13 percent, above the 12.5 percent 7-year average increase. Total volume of shipments rose 12.29 percent, above the 11.5 percent 7-year average increase.

Oregon surges while Napa sees more modest growth

Among winery locations, Oregon showed 26 percent growth in cases shipped, surpassed only by Sonoma County at 29 percent. Napa County wines, meanwhile, only saw an increase in cases shipped by 0.4 percent. However, this can be attributed to a rise in the value of products shipped. While the number of cases shipped from Napa wineries did not grow significantly over 2017, the average bottle price (ABP) jumped an impressive 5 percent compared to the first six months of last year.

The year-to-date numbers for volume of cases shipped:

  • Sonoma County +29%
  • Oregon +26%
  • Washington +18%
  • Rest of US +8%
  • Rest of California +7%
  • Napa County +0.4%

Rosé builds on momentum

In terms of varietals, Rosé continued to produce strong results after making large gains in 2017. Cabernet Franc was also a big riser, and traditionally dominant Cabernet Sauvignon maintained relatively steady growth despite Napa’s less impressive performance. The final numbers for varietals:

Top performers:

  • Cabernet Franc +37%
  • Rosé +33% (continued its strong growth even after last year’s great gains)
  • Sangiovese +26%
  • Petite Sirah +19%
  • Sparkling +18%
  • Cabernet Sauvignon +9%
  • Red Blend +7%
  • Moscato +2%

Weaker performers:

  • Syrah -6%
  • Riesling -2%

Pennsylvania shows thirst for wine

Pennsylvania remained a top destination for wine, with shipments up 44 percent on volume and 40 percent by value. Pennsylvania had a breakout year in 2017 and should also be a top gainer in 2018.


Limited-production wineries show pockets of strength

Smaller wineries experienced large price increases. Most notably, Napa Red Blends saw an unprecedented increase in average bottle prices (ABP), skyrocketing 110% from $74 per bottle to $156 per bottle. This would seem to be result of club shipments to members at a handful of high-end wineries, lifting the ABP significantly in this segment.

Overall, ABP at limited-production wineries – which produce fewer than 1000 cases per year – increased by 10 percent.

Other highlights in the limited-production category include:

  • Napa ABP increased 15%
  • ABP in Oregon increased 19%
  • Combined, Napa and Oregon shipped 52% of all cases

As a result of price increases, limited-production wineries saw the largest increase in value of any category except the largest, which includes wineries that produce 500,000 or more cases per year. The difference between the increases in value and volume among limited-production wineries is uncommon.

Final numbers by winery size included:

  • Fewer than 1,000 cases per year: +38% Value, +8% Volume
  • 1,000 – 4,999: +12% Value, +10% Volume
  • 5,000 -49,999: +14% Value, +13% Volume
  • 50,000 – 499,000: +4% Value, +4% Volume
  • 500,000+: +42% Value, +32% Volume

The 50K-49,999K wineries have underperformed thus far after having a banner 2017. However, autumn has historically been a healthy season in the DtC wine shipping channel, so there remains plenty of time for wineries in this category to gain ground.


About ShipCompliant by Sovos

Sovos offers a nimble software solution tailored to the unique compliance obligations faced by beverage alcohol businesses. As part of the Sovos suite of solutions, ShipCompliant users have access to constantly updated, accurate regulatory information for each of the jurisdictions in which they have compliance obligations.

Sovos’ ShipCompliant platform is the leading compliance and technology platform, automating registrations, tax calculations and reporting in the heavily regulated beverage alcohol industry. With ShipCompliant by Sovos, wineries, breweries, distilleries and other beverage alcohol companies can stay ahead of the latest regulatory changes impacting their business models. Learn more at https://sovos.com/shipcompliant.


About Wines & Vines

Wines & Vines offers a comprehensive collection of products to provide a wide range of information solutions for the wine and grape industry. Its magazine, Directory/Buyer’s Guide, Online Marketing System and soon to launch Wine Analytics Report provide news, information, marketing and research capabilities to help our clients grow and manage their businesses. For more information visit http://www.winesandvines.com.

The post Sovos Announces 2018 Mid-Year Direct-to-Consumer Channel Data appeared first on Sovos.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Additional Press Releases

February 6, 2025
Chris Clinton of Sovos Recognized on the Prestigious 2025 CRN® Channel Chiefs List

ATLANTA, GA, February 6, 2025 – Sovos, the always-on compliance company, today announced that CRN®, a brand of The Channel Company, has named Chris Clinton, Chief Partner Officer, to the prestigious 2025 CRN® Channel Chiefs list, which recognizes the IT vendor and distribution executives who are driving strategy and setting the channel agenda for their […]

Read more
ship alcohol
North America ShipCompliant
January 23, 2025
DtC Wine Shipping Declines in the Face of Industry Headwinds

Sovos and WineBusiness Analytics annual Direct-to-Consumer Wine Shipping Report shows drop as overall wine market downturns  ATLANTA – JANUARY 23, 2025 – With declining trends across the wine and overall beverage alcohol markets, the direct-to-consumer wine shipping channel faced a challenging year in 2024, according to the latest Direct-to-Consumer Wine Shipping Report from Sovos ShipCompliant and WineBusiness Analytics. The […]

Read more
SAP Clean Core implementation
North America VAT & Fiscal Reporting
January 14, 2025
Sovos Named a Leader in 2024 IDC MarketScape for Worldwide Value-Added Tax Management

ATLANTA – January 14, 2025 – Sovos, the always-on compliance company, has been named a Leader in the IDC MarketScape for Worldwide Value-Added Tax Management 2024 Vendor Assessment (Doc # US52732824, December 2024). The report noted, “Sovos VAT compliance solutions and services include full coverage for VAT reporting, continuous transaction control compliance, e-invoicing clearance, post-audit einvoicing, and […]

Read more
webianr - FR Nouvelle ere facturation electronique
North America
December 10, 2024
Sovos Names New Executive Leadership for Global Finance and Product Strategy Functions

David Woodworth and Swati Garodia selected to build and transform critical operation areas for global platform company ATLANTA, DECEMBER 10, 2024 – Sovos, the always-on compliance company, today announced the appointment of two executive leaders. David Woodworth joins Sovos as its chief financial officer (CFO), where he will lead all finance, accounting, tax and treasury […]

Read more
North America Sales & Use Tax
December 5, 2024
Sovos’ Global Tax Determination Processes Taxes on Nearly 300 Million Transactions Over Black Friday and Cyber Monday, Achieves 92% Growth and 100% Uptime

ATLANTA – December 5, 2024 –Sovos, the always-on compliance company, today announced record-breaking performance during this year’s Black Friday and Cyber Monday shopping events. The company processed taxes on nearly 300 million items on these two days alone – of the 16+ Billion processed annually – showcasing the scalability and reliability of its global tax […]

Read more