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From: lewis.perdue@wineindustryinsight.com

Subject: Wine Sales Skyrocket! Is it Obama & Optimism? - WINE INDUSTRY INSIGHT

Date: 2009-02-06 12:54:09

To: Emailing List Subscriber
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A note from the editor:

When I was at the Wine Industry Symposium in Sacramento recently, your name was passed along to me as someone in the wine industry who might be interested in my new publication: Wine Industry Insight.

And while my publication is a newcomer, I've been involved with the industry since 1991 when I founded Wine Business Insider and Wine Business Monthly. I'm proud that those two publications remain the dominant trade publications.  So, rather than competing with them,I see  Wine Industry Insight as a complementary information source which relies on my particular skill-set and experience.

My goal is to be a tool for you to manage your business. I've been covering many areas including new custom-crush facilities, innovative financing, market data, mergers, acquisitions, sales and other news to help you understand the environment you're working in. How are banks changing financial ratios and underwriting criteria? How far are vineyard sale prices dropping? Which wine categories are selling and which ones are in the tank (and likely to stay there as bulk market orphans)?

One of my very recent articles is below. There are many other articles at the web site, so be sure to check those out too at http://wineindustryinsight.com.

Cordially,

Lewis Perdue
Editor and Publisher

Wine Industry Insight

Wine Sales Skyrocket! Is it Obama & Optimism? - Part 1

In the midst of a global recession with one gloomy report after another, wine sales for the four-week-period ending January 25 have shot through the roof. According to data from Information Resources, Inc. (IRI), table wines sold through U.S. food and drug stores increased 6.4 percent overall  and sparking/Champagne soaring with a 39.5 percent increase.

The data reverses a series of steady bad news delivered in previous reporting periods.

OBAMA + GLOOM FATIGUE = BIG SALE INCREASES

Celebrations of the election of Barack Obama probably accounted for a big increase in the consumption. In addition, IRI Vice President Doug Goodwin said, “people realized that despite all the gloom news in the media, the sky han’t fallen in. I think consumers decided they needed to kick back and enjoy themselves.”

GREAT NEWS ACROSS THE BOARD

IRI’s numbers showed many varietals and price categories — especially value brands — displaying double-digit dollar volume increases.

Click image to enlarge

Click image to enlarge

VALUE AND ULTRA-PREMIUM RACE NECK-AND-NECK

Not surprisingly, value brands led the way with box wines costing more than $2 per 750ml equivalent posting a 40.5 percent gain. But even more significantly, every other price category also showed substantial increases. As the enlarged version of the table, below, shows, 750ml wines costing more that $20 and box wines under $2/750ml both increased 9.2 percent.

Click to enlarge

Click to enlarge

IRI PRICE POINT SEGMENTS

Key to IRI Price Points

Key to IRI Price Points

Non-varietal domestic table wines in 1.5 liter bottles increased almost 16% while every other category showed increases except 1.5-liter imports.

ARGENTINA, WASHINGTON LEAD INCREASES

While California posted a respectable 7.4 percent increase, Argentina topped the chart with a 44.4 percent increase. Washington state wines showed the greatest domestic growth, with dollar volume climbing 13.5 percent.

Click to enlarge.

Click to enlarge.

MORE MICRO-ANALYSIS OF DATA IN NEXT INSTALLMENT

The next installment of this multi-part series will take a more micro-look at the data by varietal, price-point and size category.


================= 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