Scattered Consumption Pattern for June 2009 Could Indicate Transition To Higher-Priced Sales

The June 2009 scanner data from Information Resources Inc. shows that consumers continued the inconsistencies from May. While lower price-points dominated as expected, some pricey wine segments substantially out-performed more value-priced bottles. The good news could be that the  scattered consumption pattern may indicate a transition period as consumers see better times and are willing to pay more for quality.

OVERALL, VALUE WINES MOSTLY OUTSOLD BY HIGHER-PRICE SEGMENTS

While it was no surprise that wines costing $4.02 per average per 750ml bottle topped the price segment sales chart, wines selling for an average price of $24.59 experienced greater sales increases than three less-expensive categories. Value wines averaging $6.30 per bottle came in dead last.

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BIGGEST PRICE SEGMENT (BY OVERALL DOLLAR SIZE) GAINED LEAST, LOSES MARKET SHARE

Segment 3 tables wines — those costing $5 to $7.99 per bottle — constitute the largest single category by dollar volume: $123,940,000 for the four-week period ending June 14. But that segment  scraped out a paltry 0.9 percent dollar gain while losing 0.9 percent of the overall share of revenues. (See raw data, sheet 3 of spreadsheet for this and more.)

CONSUMERS GOING FOR QUALITY, NOT ALWAYS PRICE?

The almost 26 percent gain by segment 2 box wines continues their dominance, followed by segment 2 table and segment 1 box. However, the presence of higher priced segments over lower ones may indicate that quality can trump price, even during a recession.

A MICRO-LOOK AT VARIETALS AND PRICE CATEGORIES SHOWS SAME CONSUMER INCONSISTENCIES

A look at ten popular varietals segmented in nine price categories from box to luxury shows the same lack of a priced-based pattern shown by the price-segment-only look.

As the chart, above, indicates higher- and lower-priced wines are scattered through the continuum with the best-performing price/varietals at the left and worst to the right.

PINOT NOIR JUNE’S BESTSELLER, SYRAH AGAIN AMONG BEST/WORST PERFORMING

Segment 2 Pinot Noirs selling for an average of $4.57 per bottle topped June’s price/varietal analysis, followed by Segment 6 Syrah and Segment 1 Syrah.  Segment 3 Syrahs — like most other wines in the $5 to $7.99 range — fell near the bottom.