Wine Sales Eke Out Gains, But Trouble May Be On The Horizon

Total off-premise wine sales rose 2.7%  for the four-week period ending Aug. 20,  according to The Nielsen Company. Domestic wines showed a 4.6% increase and imports dropped 1.9%. And while any growth is positive, a closer look at data shows that sales have been trending lower this summer in direct opposition to last summer’s month-to-month upticks. (Please see: Summer 2011 Sales Trend May Indicate Double-Dip Wine Recession for more.)

The rosy growth numbers that have recently been reported are 52-week, year-over-year data whose broad scope has obscured the downtrend. Indeed, the numbers reported elsewhere indicated a growth almost twice as good as the four-week numbers: 4.7% growth overall with domestic wines posting a 6.2% increase and imports gaining 0.9%.

IMPORTS SUFFER, BUT KIWIS & ARGENTINES SURGE

Despite New Zealand’s expensive currency versus the dollar, Kiwi wines posted a 21.6% increase in dollar sales and 26.2 % in volume.

EXPENSIVE WINES NO LONGER ON TOP

Wines selling for more than $20/750ml bottle rose to the top in 2010, consistently posting the largest gains of all price categories. And while they posted a strong 18.5% gain in June, they were eclipsed by the $12-$14.99 category last month and the $9-$11.99 category this four-week period.