Domestic Wine Sales
According to the Nielsen Marketing Research Company, which tracks wine sales nationally in large-volume supermarkets, the wine market continued to prosper in 1996, with table wine sales in dollars increasing 13.5%. As has been true for the past decade, this growth in sales was fueled largely by the ever-growing popularity of premium varietal wines - those named after their primary grape type and costing over $4 per 750 ml. bottle - which enjoyed a 17.5% sales gain.
Although white wines have outsold reds two to one in the U.S. over the past three decades, red wine sales in the past several years have grown at a far faster rate than white wine sales, mainly as a result of continuing publicity in the mainstream media linking moderate red wine consumption with a reduced risk of cardiovascular heart disease. Many Americans apparently have decided that a glass or two of red wine each day with meals may be an inexpensive - and enjoyable - way to become, or stay, heart healthy.
The biggest sales gainers by varietal type over the past year were red wines: Zinfandel (up 47%), Merlot (37%), Pinot Noir (29%), and Cabernet Sauvignon (20%). Chardonnay, the leading white varietal, was up 19%, with White Zinfandel and Sauvignon Blanc recording 12% and 10% increases, respectively.
Recent Nielsen data indicates the top-selling wines in supermarkets by varietal type are Chardonnay (approximately 31% of total dollar sales), White Zinfandel (18%), Cabernet Sauvignon (16%), and Merlot (9%).
Nielsen also tracks varietal sales by package size (e.g., 750 ml. bottles, 1.5 liter "magnums," 187 ml. single-serve bottles, etc.). Over the past year, the biggest dollar sales increases were for varietals bottled in the 1.5 liter (+20%) and 750 ml. (+18%) sizes. During the same period, 750 ml. wines accounted for roughly 50% of supermarket dollar sales, compared to 31% for 1.5 liter magnums.
Premium wineries enjoying the greatest percentage increases in supermarket sales over the past year were Sutter Home, up 23% in dollar sales, followed by Fetzer, up 18%, Robert Mondavi-Woodbridge, up 15%, and Beringer, up 12.5%.
Export Sales
According to the Wine Institute, the trade association representing over 400 California wineries, close to 10% of California's wine production is now being shipped abroad, with the volume of export shipments increasing over 600% during the past decade, from seven million gallons in 1986 to nearly 43 million gallons in 1996. Dollar value of 1996 shipments was $326 million, an increase of 35% over 1995.
U.S. wines are shipped to 164 countries throughout the world, with the United Kingdom being the number one customer, followed by Canada, Japan and Germany. The fastest-growing markets are the Scandanavian countries, with Pacific Rim nations also demonstrating an increasing thirst for California wine.
The growth of U.S. wine exports has dramatically reduced our wine trade imbalance. In 1986, the U.S. imported $35 worth of wine for every $1 of wine exported. By 1996, the ratio was less than $5 to $1.
Consumption
Total wine consumption in the U.S. reached approximately 200 million 9-liter cases in 1996, a small increase over 1995. Consumption peaked in 1986 at about 250 million cases and declined steadily until 1992, when it rose slightly. Per capita consumption, almost 2.5 gallons in 1986, was 1.8 gallons in 1996.
Although Americans are drinking less, they're drinking better. Sales of more expensive, vintage-dated, premium varietal wines have grown substantially in the '90s, primarily at the expenses of less expensive, lower-quality generic wines, which once dominated the U.S. wine business. Table wine accounts for over 80% of all wine consumed in the U.S. and, of that, 60% is higher-priced varietal wine, which just 10 years comprised only a tiny segment of the total wine market.
The typical American wine drinker is a woman over 30 from the western states who resides in a household with an income of over $60,000. Women account for almost 54% of the wine consumed in the U.S. (they're a minority of beer and spirits drinkers), while consumers in the west drink over 45% of all wine consumed in the country. And wine drinkers, overwhelmingly, are affluent, well-educated baby-boomers. Under-30 consumers drink only 11% of the wine consumed, while those in households averaging less than $25,00 in annual income consume less than 15%.
Overall, 16% of American adults between 21 and 59 drink 88% of the wine consumed in the United States, an average of approximately ten 750 ml. bottles a year. Infrequent consumers, about 40% of the population over 21, consume the remaining 12%.
According to the Nielsen Marketing Research Company, which tracks wine sales nationally in supermarkets (representing roughly 30% of total U.S. wine sales), the premium wine market continues to grow by leaps and bounds. While sales of domestic and imported table wine increased 12.6% in dollar sales in these venues during the year ending July 6, 1996 (compared to the previous 12-month period), premium varietal wines - I.e, those named after their primary grape type and costing over $3 per 750 ml. bottle - jumped 17.5%.
The biggest gainers by varietal type were red wines: Zinfandel (up 49%), Pinot Noir (44%), Merlot (42%) and Cabernet Sauvignon (20%). Chardonnay, the leading white varietal, was up 19%, with White Zinfandel recording a 10.5% increase.
Given that white wines still outsell reds in the U.S. by a 2-to-1 margin, these figures might seem surprising, were it not for the continuing publicity in the mainstream media linking moderate red wine consumption with a reduced risk of cardiovascular health disease. Many Americans apparently have decided that a glass or two of red wine each day with meals may be an inexpensive -- and enjoyable -- way to become, or stay, heart-healthy.
Recent Nielsen data indicates the top-selling wines in supermarkets by varietal type are Chardonnay (30.5% of total dollar sales), White Zinfandel (18.5%), and Cabernet Sauvignon (16.5%).
Nielsen also tracks varietal sales by package size (e.g., 750 ml. bottles, 1.5 liter "magnums", 187 ml. single-serve bottles and larger sizes such as 5-liter "bag-in-the-box" wines). Over the past year, the biggest dollar sales increases were for varietals bottled in the 1.5 liter size (up 19%), followed by 750 ml. wines (18%) and 3-liter bottles (9%). For the same period, 750 ml. varietals accounted for 59% of supermarket dollar sales, compared to 31% for 1.5 liter magnums and 4.3% for 5-liter containers.
Premium wineries enjoying the greatest percentage increases in supermarket sales over the past year are Sutter Home, up 33% in dollar sales, followed by Robert Mondavi-Woodbridge, up 25.5%, Kendall-Jackson, up 22%, and Fetzer, up 18.5%.
According to the Wine Institute, the trade association representing over 400 California wineries, close to 10% of California's wine production is now being shipped abroad, with the volume of export shipments increasing 700% during the past decade, from 7 million gallons in 1986 to 39 million gallons in 1995. Dollar value of 1995 shipments was $242 million, an increase of 23% over 1994.
U.S. wines are shipped to 164 countries throughout the world, with the United Kingdom being the number one customer, followed by Canada, Japan and Switzerland. The fastest-growing markets are in the Pacific Rim, with Taiwan, South Korea, Thailand, Singapore and China leading the way.
The growth of U.S. wine exports has dramatically reduced our wine trade imbalance. In 1986, the U.S. imported $35 worth of wine for every $1 of wine exported. By 1994, the ratio was $5 to $1.
