Consumer Wine Shipments Reach Record $4.2 Billion in 2021 | News
BOSTON, January 20, 2022 /PRNewswire-PRWeb/ — On the heels of 2020, a year of record growth in direct-to-consumer (DtC) wine shipping volume and extraordinary drops in bottle prices, 2021 represents a return to relative normality, according to the latest direct-to-consumer wine shipping report from Sovos Ship Compliant and Wines Vines Analytics.. With total shipments exceeding the $4 billion brand for the first time, and the relatively small increase in volume shipped during the year, coupled with an unprecedented 11.8% increase in the price per bottle, the results resemble what one might have s wait if the pandemic had never happened.
Although the 1.4% increase in volume from 2020 to 8.5 million cases represents the smallest year-over-year volume change in the history of the report, the growth is still impressive compared to the huge gains seen in 2020. Additionally, a record year-over-year jump in the average price per bottle to $41.16 – its highest rating since the report was first published more than a decade ago – ultimately resulted in a 13.4% increase in the shipping value of DtC wine.
“In a reversal of trends from 2020, fewer consumers have chosen to ship less expensive wines to drink at home and have instead returned to purchasing these wines while eating and drinking out,” said Larry Cormier, Vice President, General Manager, Sovos ShipCompliant. “And just as these shoppers resumed what more closely resembled their pre-pandemic DtC buying habits, early 2020 buyers who remained in the channel also adjusted their buying habits upward.”
In terms of value by region, it was the Napa stronghold that led DtC shipping trends back to normal. Napa shipments accounted for 45% of the value of the entire DtC shipping channel last year, and the region $299 million the increase in value of shipments compared to 2020 accounted for 60.3% of the total increase in overall channel value in 2021.
“While many areas have seen some level of growth in 2021, none have been as impressive as Napa. $300 million increased value of DtC shipments,” said Andrew Adams, Wine Analytics Report editor at Wines Vines Analytics. “The price increases per bottle shipped helped offset the volume declines some regions experienced, creating an overall increase in value for the West Coast.”
Other notable findings and trends outlined in the 2022 Direct Shipment of Wine to Consumer report include:
- from oregon the multi-year shipping boom continues in 2021: Oregon wineries, with their 12.9% year-over-year increase in volume and 18.7% increase in value of shipments, outperformed all other regions tracked in 2021.
- Kentucky erupted in 2021 following a new DtC navigation law: with a new law coming into force in December 2020, Kentucky residents enjoyed a full 12 months of newfound freedom by increasing in-state shipment volume by 244.8% over the month of sales in 2020.
- Larger wineries with lower prices saw smaller value gains: After dropping 17.3% in the average price per bottle shipped in 2020, larger wineries were unable to recoup most of that drop , with only a 4.5% price increase in 2021. However, now accounting for 18.7% of total DtC shipment volume, these largest wineries have increased their DtC shipment volume by over 1,000% over the past decade.
- Top varietals remain: In 2021, the same five wines that shipped most often over the past decade remained in these top slots: Cabernet Sauvignon, Chardonnay, Pinot Noir, Red Blends and Zinfandel. Together, they accounted for 58.9% of all wine shipped and 71.8% of the value of the DtC 2021 shipping channel.
“As the world began to reopen, American wine drinkers became much more comfortable visiting wineries in person, returning to buying wine in store and drinking at restaurants rather than only at home. “said an alcoholic beverage consultant. Danny Brager. “Yet even while this was happening, DtC shipments remained exceptionally strong in 2021. Now that the impact of COVID-19 on travel and tourism is waning, there is every reason to believe that DtC shipments based on winery tours and new club memberships will be strong in 2022.”
The Direct-to-Consumer Wine Shipping Report is an annual collaboration between Sovos ShipCompliant and Wines Vines Analytics, examining shipping trends from wineries to US consumers. Proprietary data included is compiled from an algorithm measuring total DtC shipments based on millions of anonymous direct ship transactions filtered through the ShipCompliant system and combined with Wines Vines Analytics comprehensive data on US wineries, which gives the most accurate representation of DtC wine shipping. Marlet.
To download the full direct-to-consumer wine shipping report, check out citrus north.
About Sovos
Sovos was designed to solve the complexities of tax digital transformation, with comprehensive, connected offerings for tax determination, ongoing transaction checks, tax reporting and more. Sovos customers include half of the Fortune 500, as well as companies of all sizes operating in more than 70 countries. The company’s SaaS products and proprietary Sovos S1 platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees across the Americas and Europe, and owned by Hg and TA Associates. For more information, visit http://www.sovos.com and follow us on LinkedIn and Twitter.
About Sovos Ship Compliant
Sovos ShipCompliant has been the leader in automated liquor compliance tools for over 15 years, providing a full suite of cloud-based solutions to wineries, breweries, distilleries, importers, distributors and retailers to ensure they comply all federal and state direct consumer regulations. -to the consumer and distribution at three levels. ShipCompliant’s solutions reduce risk, ease the burden of compliance, get products to market faster and enable revenue growth. With over 60 partner integrations, Sovos ShipCompliant leads a strong ecosystem of technology partnerships, enabling powerful complementary solutions. For more information, visit https://www.sovos.com/shipcompliant/ and follow us on LinkedIn and Twitter.
About Wines Vines Analytics
The Wines Vines Analytics team maintains the most accurate databases in the wine industry and provides data-driven analysis, data, insights and reports to help clients grow and manage their businesses. For more information, visit http://www.winesvinesanalytics.com.
Media Contact
Amelie Wright, ARPR on behalf of ShipCompliant, 855-300-8209, [email protected]
SOURCE Ship Compliant
