Napa California Hotels

Direct-to-consumer wine sales growing more than twice as fast as industry

The ShipCompliant Direct Shipping Seminar at the Napa Valley Marriott last Tuesday provided a wealth of information about direct-to-consumer sales and shipping — from advice on how to improve customer relations from Barbara Talbott, former head of marketing at Four Seasons Hotels and Neel Grover, CEO of Internet shopping powerhouse Buy.com , to an update on state wine regulations from Alcoholic Beverage Control and Tax and Trade Bureau spokespersons.

One interesting talk by researcher Marc Engel reported the results of a study done by WinesVinesDATA, the research arm of Wines & Vines industry magazine, and ShipCompliant.

Engel reported that direct sales to consumers from May 2010 to April 2011 totaled 7 million cases, amounting to 3 percent of the total wine sales by U.S. wineries to U.S. consumers — 253 million cases.

Of that, 40 percent (2.75 million cases) were sold through phone, Internet, clubs and at the tasting room for delivery. The rest was carry-out from wineries.

Though only 1 percent of total wine sales, these direct-to-consumer sales are a large percentage of sales and larger source of profits to many small wineries like most in Napa Valley.

And they were up 11.6 percent from last year, more than twice the growth rate of the general market, itself a healthy 4.5 percent.

Those 2.75 million cases represent $1.21 billion, an average price per bottle of $36.64, even though a third of the sales by volume were under $20.

Almost half of the wine value was from Napa Valley, with an average price of $51.94 per bottle, but the rest of California (not Napa or Sonoma) was up 43 percent and Napa only 19 percent by volume.

Not surprisingly, 43 percent of the direct shipments from Napa were cabernet.

Overall, 27 percent of the wines shipped were cabernet sauvignon, 18 percent pinot noir and 14 percent chardonnay. 

Half the sales came from small wineries producing 5,000 to 50,000 cases per year, but the highest growth (168 percent) was at big wineries, those selling more than 500,000 cases per year. Tiny wineries (fewer than 1,000 cases) were down 41 percent.

Almost a third of the shipments were to California, with 9 percent to Texas, 8 percent to New York and  6 percent to Florida.

Meanwhile, Steve Gross, director of state relations at the Wine Institute, reported on changes in state laws, with a number of states opening the doors to direct shipping, including Maryland, starting today.

Chef's Market Recipe - Spicy Knife and Fork Chorizo Burger - Napa ...

6 hand-formed chorizo patties, sausage preferably from Caggiano Company* (8 ounces each), firmly pressed to minimize crumbling during cooking

6 Model Bakery Pan de Mie burger buns, sliced in half (or substitute with preferred hamburger bun)

2 bunches watercress, cleaned and dried

6 slices sharp cheddar cheese

6 large eggs

4 ounces sweet butter, room temperature

1 recipe of Chipotle Aioli (recipe follows)

1 recipe of Citrus Vinaigrette (recipe follows)

In a heated heavy-bottom skillet, oil lightly and cook the chorizo patties for three minutes on one side. Turn over and place a slice of sharp cheddar on each patty and cook for 4 more minutes or until meat reaches 145 degrees.

Lightly butter the buns and toast until golden brown.

Start cooking sunny-side-up eggs.

In a salad bowl, toss the watercress with about 2 ounces of the Citrus Vinaigrette and set aside.

Explorer's Guide Napa & Sonoma, A Great Destination

Frommer's California 2011

Runner's World

Frommer's Portable California Wine Country

The Napa Valley Book, The Insider's Guide for Visitors and Residents