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From: lewis.perdue@wineindustryinsight.com

Subject: Wine Sales Up 3.5%, Bankruptcy Update - WINE INDUSTRY INSIGHT

Date: 2009-11-04 23:15:43

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WINE INDUSTRY INSIGHT

EMAIL EDITION - VOLUME I, NUMBER 131 - November 4, 2009

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IN THIS ISSUE:


Sponsored By:  Hinman & Carmichael,Alcoholic Beverage Law

 


On-Premise Recession = Wine Depression

 While off-premise wine sales have suffered from the recession, on-premise consumption has ben hammered by a full-blown depression.

This is likely to continue for another year, according to data from Nielsen, along with two, on-premise data specialists: Technomics and GuestMetrics

Nielsen believes that this means the upcoming holiday season will see a surge in at-home entertaining and a continued sag in bar and restaurant celebrations.

According to Nielsen, on-premise wine sales account for just 25 percent of the volume but 52 percent of the value.

BARS, RESTAURANTS AN EASY TARGET FOR SAVINGS

With the consumer need to save money, the relatively high cost of on-premise food and wine is an easy target for cost savings.

Nielsen’s Homescan Consumer Panel Survey shows that:

  • 68% of consumers have cut back on fine dining

  • 57% have cut back on casual dining

  • 59% go to bars less often

  • 33% drink an alcoholic beverage less often when they do go out.

Nielsen’s Homescan Consumer Panel consists of 100,000 households selected to be statistically representative — both geographically and demographically — of the American market as a whole.

WINE IS HARDEST HIT ALC BEV ON-PREMISE

While it’s well-known that off-premise wine sales have been battered by consumers “trading down” in price points, bars and restaurants have been all but abandoned by many consumers.

In a survey of six major metro areas by Guest Metrics, the data indicates that, on average, wine consumption was hit almost twice as hard as spirits and more than three times as hard as beer. The data, looking at January to June 2009 versus the same period in 2008 showed wine as the biggest loser by far:

2009, First Half Growth/Decline

  • Wine, -26%

  • Spirits, -14%

  • Beer, -8%

According to data from Technomics’ partnership with GrestMetrics, overall on-premise alcohol sales are expected to decline 4.9 percent for all of 2009.

According to the Nielsen Economic Advisor - Beverage Alcohol, the dollar-share of on-premise sales began to decline in 2008 after six years of steady growth:

2008 Growth/Decline

  • Wine, -3.3%

  • Spirits, -3%

  • Beer, -1.3%

TECHNOMICS: NO ON-PREMISE WINE GROWTH UNTIL 2011

Food service consultancy Technomics believes that total alcohol sales in all away-from-home venues will decline 2.5 percent in 2010. The biggest declines will be seen in casual full-service restaurants and high-end white tablecloth restaurants.

2010 Projected Growth/Decline

  • Wine, -6.7%

  • Spirits, -2,1%

  • Beer, -1.8%

“Our outlook for alcohol sales is based upon continued weakness in restaurant traffic and further consumer frugality,” stated David Henkes, Vice President at Technomic and the director of the firm’s on-premise practice.

“The overall share of visits that include alcohol has been on a downward slide for several quarters. While next year won’t be quite as bad, we don’t think we’ll begin to see real growth in consumer spending on alcohol again until 2011,” Henkes said.

Technomics

2010 Forecast for Overall On-Premise Alcohol Growth

 

 

 

 

 

 

 

By On-Premise Segment

 

 

2010 Growth/Decline

 

 

 

 

 

 

Fine Dining

 

 

-10.4

%

 

 

 

 

 

 

 

Casual Dining

 

 

-6.8

 

 

 

 

 

 

 

 

Bars/Nightclubs

 

 

0.6

 

 

 

 

 

 

 

 

Lodging

 

 

-6.1

 

 

 

 

 

 

 

 

Casinos

 

 

-5.0

 

 

 

 

 

 

 

Concessions

 

 

-2.0

 

 

 

 

 

 

 

Other Recreation

 

 

-4.2

 

 

 

 

 

 

 

Overall On-Premise

 

 

-2.5

%

 

 

 

 

 

 

 

 

 


Sponsored By:
 The Nielsen Company

Imports Lag, But Wine Sales Climb 3.5% On Strong Domestic Sales

Total wine sales in the United States rose 3.5 percent for the 52-week period ending Oct. 17, according to data from The Nielsen Company. The increase was more modest for the four-week period ending Oct. 17, with an overall gain of 2.3 percent.

nielsen-sales-pricesegmentsandimportcomparisons-101709-400px1

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DOMESTIC WINES SURGE, IMPORTS STUMBLE

Domestic table wines led the increase with a 4.9 percent gain while imports eked out a 0.1 percent increase for the 52-weeks. Imports, however, dropped 1.2 percent for the four-week period ending Oct. 17 while domestic wines gained 3.8 percent.

VIP Subscribers click here to read the complete, un-redacted article.

Also In This Article:

The full text of the following sections is available to VIP Premium Subscribers).

  • IMPORT PRICE ADVANTAGE DROPPING
  • SOME VALUE WINES PREVAIL, OVER $20 RECOVERING
  • MALBEC MANIA, PLUS: KIWIS TAKING OVER FROM AUSSIES?
  • RIESLING, ZIN, SAUV BLANC AND PINOT ALL PERFORM

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Sponsored by
ZoneAlarm 2010 - On Sale Now!


Bankruptcy Update - Conti, Stevenot, Mobius

VIP Subscribers click here to read the complete, un-redacted article.

In This Article:

The full text of the following sections is available to VIP Premium Subscribers.

  • WINERY DISPOSITION/MOBIUS PAINTER: KEN WILSON OUT, NEW BUYER IN
  • CONTI: HEARING SCHEDULED ON LIQUIDATION
  • STEVENOT/GOLDEN EAGLE ESTATES: REORG PLAN DISCLOSURE STATEMENT HEARING SET


NEWS FETCH

November 04, 2009
  • Restaurants look for ways to spike bar sales
  • Recession forces farmers and wine marketers to adjust
  • Parker and Agostini stop suing each other
  • State Overturns Gallo Efforts to oust UFW
  • 7-Eleven stores take a Big Gulp... of wine
  • 7-Eleven Launches In-store TV Network
  • New king of corks?
  • American belief in great en primeur 'shaken and probably destroyed'
  • Calif. Capitol labors long on water, produces a drop in the bucket
  • Calif lawmakers approve $11B water bill
  • Wine consumption continues to climb
  • Peter Lehmann Wine Glass Saving a Smashing Success!
  • Strengthening El Niño triggers cautious optimism for a wetter winter
  • Wine: Missouri River Valley Rivals Napa Valley?
  • New Book About the History of the Pennsylvania Grape Industry
  • More wineries focus on going green
  • Great wines come from great soils
  • Wino Macgyver
  • November 03, 2009
  • CIT Chapt 11 To Further Depress On-Premise Sales
  • 'Burgers And More by Emeril' Will Offer Wine By Glass and Bottle
  • Harvest ends badly for some growers
  • Winery waste makes fuel
  • CHILE BULK WINE EXPORTS UP, JACK DANIELS SALES ALSO INCREASE
  • California vineyards: Swirl, sip, solar
  • Australian Wine Makers Push to Renew Sales in US
  • An Honest Day's Work From Vienna
  • Fermat's Last Theorem in Russian
  • Author toasts wine visionaries
  • Hong Kong: Welcome to wine country?
  • Court hears appeal on Mass. wine shipment law
  • Kosovo winery caters to foreigners for survival
  • Australian Vintage and Constellation Brands in merger talks
  • Constellation eyes stake in Australian Vintage
  • October 30, 2009
  • Amazon Recorks Wine Plans
  • Diageo May Raise Dividend If M&A Proves Too Dear
  • Scheid Vineyards Inc. Reports 2nd Quarter Results
  • Certified sustainable also means Farmworkers with 401Ks
  • Illustrious Parisian restaurant puts cellar up for auction
  • Korbel family's heated battle settled in secret
  • WA: Boutique wineries, giant tanks
  • Copia settlement likely next week or earlier
  • Why Are America's Wine Wholesalers Giggling?
  • Fighting Mental Health Stigmas
  • Less Demand For Wine Storage RoomsMakes Contractors Creative
  • How Consumers Choose Wines
  • Magrez declares Bordeaux vintage "mythical"
  • Calif lawmakers propose $9 billion for water supply
  • Grape insurance extended to 7 Wash. counties
  • Fine wine unites vintage golfers
  • New Wine Businesses Bloom
  • Tanzer, Gilman and Meadows Unite on CellarTracker
  • Hawke's Bay vintners celebrating thirty years
  • St. Helena tasting rooms must pour Napa Valley wines
  • Constellation's Aussie Accounting still broken
  • Napa Valley Cycling & Harvest Extravaganza, Nov. 7
  • UK: First Quench goes into administration
  • $250000 Grape Sorter Makes Napa Men Big in Valley
  • 'St. Helena is Good for Your Health'
  • Napa Grapes are all crushed
  • Sassicaia: misunderstood Supertuscan
  • One Happy Hour for the Alcohol Makers
  • Critic's mettle tested at 'wine boot camp'
  • Tennessee's wine laws aren't likely to change soon
  • Israeli winery chooses Cert Octavian for end to end logistics
  • Frontiers of wine

  • ================= CONTACT DATA ====================
    Lewis Perdue
    670 W. Napa St., Suite H, Sonoma, CA 95476
    Phone: 707-326-4503, fax: 707-940-4146
    Email: lewis.perdue@wineindustryinsight.com