Sales of wine directly to consumers in the United States increased 8.5% in 2015--four times the rate for sales in traditional retail wine outlets--confirming the desire of consumers to choose from a broad range of wines, and the desire of wineries (especially small ones) to broaden their consumer base.
The numbers were released in a report created by Wines & Vines magazine and ShipCompliant, an excellent company created years ago to help wineries comply with the myriad laws and regulations governing direct-to-consumer sales. Among the highlights:
-- Total volume reached 4.29 million cases (8.5% over 2014)
-- Total value increased 8.1%, totaling $1.97 Billion
-- In the past 5 years, the value of DtC shipping has grown by 66%.
-- Wines at $15 and under increased in volume by 27.7%, reaching 23.4% of total shipments
-- Very small wineries had their 5th year of growth, with a 13% increase in total value
-- 43 states now allow direct interstate shipment of wine, accounting for over 90% of the U.S. population
-- 56.2% of all shipments are sent to consumers in CA, TX, NY, FL, and IL
The increase in sales, and in the number of wineries in New York State and the country, is due largely to the freedom stimulated by a 2005 Supreme Court decision allowing direct interstate wine shipment, followed by a hard-fought legislative victory for the wine industry in New York State. Besides providing new sales opportunities, it meant unprecedented attention from national wine magazines that previously didn't cover New York wines because their readers couldn't get them through the traditional three-tier system. Now they can.
DtC wine shipments are still a small percentage of total sales, but by far the fastest growing segment. This is largely a reflection of the Information Age in which consumers have instant access to far more information and choices than ever before, somewhat similar to Uber (vs.taxis), Airbnb (vs hotels), and Amazon (vs Walmart). These new options don't replace the old, but rather just add another choice and give consumers more control over the decision-making, which is especially appealing to Millennials who are the largest segment of the American population as well as avid wine consumers. It's good for them, and it's good for the wine industry. (Oh, and let's not forget that increased sales also generate lots of new excise and sales taxes for the federal and state governments.)
But there's still more work to be done. Right now, for example, wineries may ship only the wines they produce themselves--not wines from their neighbors or wine trail colleagues--even though consumers would often like to buy mixed cases. In addition, New York farm wineries are allowed to have up to five "branch offices" (remote stores) where they may sell any New York labelled wine, and often do. If a visiting consumer finds a selection of wines she likes, why shouldn't a winery/branch office be able to ship it to her home instead of making her schlep it back?
Like many restrictive alcohol beverage laws, it just makes no sense in the 21st Century.
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