Vino Cammino Pty Ltd’s Post

Among the report’s other findings: - Price discounting is still not common in direct sales. More often, incentives center around discounted shipping; free shipping has lost popularity among producers. (Everyone I know is discounting, so?) - Internet and web sales, after peaking at 16% of sales during the Pandemic, have retreated to 8%, more or less what they were in 2016.  - Wineries are lagging behind their customers in social media use. Just three-quarters use Facebook and Instagram, and the figures are barely into double digits for Twitter/X, YouTube, and the like.  - Lifetime wine club membership value, which rose almost two-thirds from 2014 to 2021, has flattened. Meanwhile, wine club churn rates remain high, with some as much as 25%, and conversion rates fall within a narrow band of 8% to 10%. - DtC prices have increased slightly since 2017, around 2% per year, with a drop in 2020 during the Pandemic and an almost 5% increase the following year. - In 2023, DtC case sales growth generally remained smaller than dollar growth, even in some of the regions where case sales declined. The average for the nine regions in the study was a 0.7% dollar boost and a 1.48% decline in cases sold. Sonoma and Virginia were the two regions with the highest reported DtC sales growth rates. https://lnkd.in/gHumZvM4

Check out this A+ article on the challenges of online wine sales and brand building in the industry as a whole. #winelovers #onlinesales #brandbuilding https://lnkd.in/eG_haNVy

Wholesalers Struggle as U.S. Spirits Sales Plummet Amid Economic Shifts. Wine & Spirits Wholesalers of America, Dale Stratton #USSpiritsMarket #SalesDecline #WholesalersChallenges #WineAndSpiritsTrends #MarketAdjustments

What are the trends in wine? There are signs of a return to positive shipment numbers in the U.S. wine market, Gomberg, Fredrikson Report editor Jon Moramarco said in his regular quarterly webinar this week, but positive messaging needs to win hearts and not just palates to the category. “Ideally, by the end of the year retailers [that] have been destocking will have gotten to a point where they can’t reduce inventories anymore,” Moramarco said in his review of wine entering the market, including wholesaler inventory levels. “We will hopefully at least see this start to flatten out if not start to recover a bit in terms of growth.” Cash flow issues mean all levels of the three-tier market have been limiting inventories, and pursuing strategies designed to keep expenses in line with revenues in a shifting market. Wholesalers continue to grapple with carrying costs approximately four times what they were pre-pandemic.  “Carrying costs were running at 4% or 5%,” Moramarco said. “When COVID hit and supply chains were disrupted, distributors were actually short in inventory but they adjusted for that, and now with higher inventory levels they have been seeing about 18% of their operating profit eaten up by carrying costs.” The Fed’s half-point cut to its policy rate on Sept. 18 will see wholesalers recover 1.5% of their operating profit, Moramarco said. “But wholesalers are going to need to see a 2% to 3% drop in interest rates for their carrying costs to come down materially,” he added. “Until then, we see wholesalers are going to continue to try to reduce inventories where they’re long, and they’ll continue to minimize inventories.” This means less product flowing to market from wineries. Slower demand in the market means wineries, especially smaller ones, are placing product under bond, allowing them to avoid paying tax at bottling and instead defer taxes till the wine leaves the warehouse and generates revenue. “With the high interest rates, slowing market, probably tighter cash flow, more are deciding to bottle in bond, and this is distorting the tax-paid numbers,” Moramarco said. The phenomenon is being seen across the country, but it’s especially pronounced in California. Tax-paid shipments from California wineries into California are down 30% in the latest 12 months, Moramarco said, but scan data shows that California sales through food, drug and mass merchandisers is down just 8% versus 4% nationwide. “California is showing some weakness, more so than the rest of the country, but it’s nowhere near 30%, and so the weakness of 8% in key markets doesn’t justify the 30% decline in tax-paid shipments,” he explained. Comparables should be more normal, and even positive this fall and heading into 2025. Valiant glass have bottles in every size and shape. From Green and Clear Claret wine bottles, to the Amber or brilliant Blue wine bottles. [email protected] whatsapp+8618963053908 #wine #valiantglass #winebottles

U.S. Wholesale Wine Distribution Today and What Does the Future Promises: From Distribution Dilemmas to Market Opportunities: The Future of U.S. Wine The wholesale wine market lies amidst a huge transformation. Consolidation among distributors, the rise of private-label brands, and shifting consumer preferences have reshaped how wine producers, both domestic and international, bring products to the American market. While large producers may have the resources to navigate these changes, small and medium-sized wineries face mounting challenges as they struggle to compete for distribution and shelf space. This situation also affects independent wine retailers.  

Here are China's top 50 Wine Importers operating today, based on assessment of import value, volume, sales revenue, marekt reputation, portfolio, and corporate activity. #news #china #wine #wineimports #top50 #ranking #wineimporter #merchant #trade #importer #business #market #revenue

There's a lot of wine out there. I 100% agree with Mario Zepponi when it comes to the limited options for distributors in the US....five years ago. LibDib, LLC is now available in 15 markets, including the top 5 (CA, NY, FL, IL, TX) in the US. Wineries need to commit to doing the work to sell their wine. Being in the market, tastings, events, meeting Buyers (vs. distributor management and reps) and consumers alike. Selling. Relationship building. We can provide an efficient distribution route to market for everyone. However, there is more work to be done than just posting on a web site or selling a pallet to a traditional distributor. Wine is one of the most crowded CPG categories out there. Convincing a Buyer to bring on your brand is hard work. And there is no better sales person than someone from the winery themselves. Spending time and resources doing that.... hopefully wineries will find success. https://lnkd.in/gsnzY7ra

In this insightful explanation of the challenges to online wine retailers, Paul Mabray brings up the curtain on the nature of online wine retailing. Paul gets it all right from the information limitations faced by retailers to the structural deficiencies of state alcohol laws that inhibit online wine retailing. But what must also be said is that with just a few structural changes to the alcohol sales laws (allowing producer direct wine purchases by retailers and allowing interstate shipment of alcohol by retailers) would completely revitalize wine retailing and ensure that smaller, independent retailers can better survive in an age where multi-national retailers seek to dominate as well as finally giving consumers REAL access to the diversity of wines available in the U.S. (Well Done, Paul Mabray)

U.S. Wholesale Wine Distribution Today and What Does the Future Promises. Our editor covers the current state of distribution in the US market on USA Wine Ratings USA Ratings. So what is the state of wholesale wine distribution in the U.S. today? The wholesale wine market lies amidst a huge transformation. Consolidation among distributors, the rise of private-label brands, and shifting consumer preferences have reshaped how wine producers, both domestic and international, bring products to the American market. While large producers may have the resources to navigate these changes, small and medium-sized wineries face mounting challenges as they struggle to compete for distribution and shelf space. This situation also affects independent wine retailers. The Shrinking Wholesale Tier and the Concentrated Power of Large Distributors At the heart of any issue facing winemakers is the vastly decreasing number of U.S. distributors. Today, three major players—Southern Glazer's Wine & Spirits, Republic National Distributing Company, and Breakthru Beverage Group—dominate the landscape, limiting opportunities for smaller wineries. The annual Impact Databank Report from Shanken (which includes spirits sales) showed that Southern Glazer’s and RNDC together will control a projected 53% of the market in 2024. If we expand that to the top 10 companies, they will control a projected 81.5%. Barry Herbst, Wine Director at independent retailer Bottle Barn in Sonoma, summarizes that distribution is “greatly consolidated now. Fewer companies carrying more products in their books.” But there are many “products and services the big guys don't want to bother with.” Southern Glazer’s, for example, represents more than 1,700 beverage suppliers, including more than 7,000 individual brands. There are, however, about 12,000 wineries in the US, many with multiple brands. Wine in Warehouses Rob McMillan of Silicon Valley Bank’s wine division explains the current situation: “Wine distribution continues to be stacked up in the warehouses.” This is affecting everyone involved, but not equally. “Larger premium wineries with good brands are getting their wine through to retailers and consumers while other wine inventory continues to linger.” McMillan is not convinced that this situation will be resolved quickly. “There are occasional speeches that are made by the senior people in larger wholesalers and those in a few larger wineries as well, that they think the backlog will start to abate next year, or that we are on the precipice now. But thus far, the data aren’t supporting that.” He points to the graph pictured above. “At the peak, the backup in inventories was 1.67x sales in May 2023. Inventories have dropped through July 1st to 1.59x sales. That’s about a 5% drop in a little over a year. It’s progress, but that’s still a long way from historical averages.” Read the full story here.

📉The U.S. wine and spirits market is facing challenges as sales fell by 6.0% in the 12 months leading up to August 2024, according to Wine & Spirits Wholesalers of America’s SipSource data. The decline is notable in both on- and off-premise channels, with premium products hit hardest. Mid-range tiers also experienced pressure. Analysts expect the upcoming holiday season to present further difficulties, with reduced product assortments across retailers. 📊 Read more in The Spirits Business https://lnkd.in/eRgTeb_d #data #trends #wine #spirits #BusinessNews