Direct-to-Consumer Wine Sales See a Spike

Shutterstock

Shutterstock

Although we recently reported that millennials are drinking less wine than the baby boomer generation, direct-to-consumer (DtC) wine sales have increased by 12 percent in 2018.

According to the 2019 Direct to Consumer Wine Shipping Report by Sovos and Wines Vines Analytics, consumers are also willing to buy more expensive wines directly. The average shipped wine bottle price spiked by 2.4 percent.

So why the rise in these sales? Well, thanks to e-commerce giants, buyers now expect direct shipping on most products. So why not from their favorite winery too?

“The direct-shipping channel has matured into a mainstream option for wineries to meet growing consumer demand,” said Larry Cormier, general manager of ShipCompliant by Sovos, in a press release. “As buyers continue to prefer direct shipping of all the products they buy, this channel must rely on organic growth, not new states opening for shipments. As a result, we anticipate strong but slower growth in the years to come.”

Most of today's wine sales are on-premise, but of the $30 billion in sales made from off-premise wine sales, DtC accounted for 10 percent.

Back in 2012, DtC wine sales were $1.5 billion. Fast forward to today and the sales have more than doubled.

Napa County wineries are shipping the most wine in the country with 45 percent of shipments coming from this region. The average price of wine from this region spiked by 7.1 percent last year, which means wine prices are expected to decrease come 2019, especially as the market becomes more saturated with more affordable wine options.

“This may be an early indicator of what’s to come for the whole channel in 2019, as price increases have historically been followed by flat or declining prices the following year,” said Klingensmith, publisher and president at Wines Vines Analytics.

Learn more about the 2018 DtC wine trends at "Wine Business" now.

Want to know what 2019 will bring when it comes to wine? Listen to this recent episode of The Barron Report below where Host Paul Barron talks with Emily Wines, master sommelier & vice president of wine and beverage experiences at Cooper’s Hawk Winery & Restaurants about the new era of wine drinkers.

How FoodLogiQ Had a Role In Helping Small Businesses Through the Romaine Lettuce Scare

In this episode of On Foodable, Paul Barron sits down with Bryan Cohn, Food Safety Solution Engineer at FoodLogiQ, at the Winter Fancy Food Show in San Francisco. The two chat about food safety compliance, whole chain traceability, and supply chain transparency solutions.

Cohn does a good job at explaining how FoodLogiQ works with businesses to accomplish its mission of mapping out the world’s supply chain to promote food safety and traceability.

“What FoodLogiQ is able to do is... automate their work flows, meaning being able to get documentation of suppliers, ingredients, products into a cloud system so they can be shared across organizations and then decisions can be made,” says Cohn.

One of the most recent food safety issues that FoodLogiQ had a role to play in had to do the with the recent Romaine Lettuce scare.

“Some of our clients leveraged our technology to understand where Romaine was within their respective supply chains,” Cohn shared with Paul. Thanks to FoodLogiQ, its clients were able to “justify their supply chain and their product path and journey.”

Companies like Tyson Foods and Subway have invested in the software firm hoping that more suppliers jump on board and begin to digitize their paperwork in order to have everything organized in one cloud.

To learn more about FoodLogiQ it’s processes and what challenges they face, check out the video above!

Video Produced by:

Vanessa Rodriguez

Vanessa Rodriguez

Writer & Producer


VIEW BIO

Starbucks is Opening More Reserve Bars in Canada

The Seattle-based coffee chain Starbucks has quickly conquered the market with over 28,000 stores across the globe.

In February of 2017, the chain opened its first Starbuck Reserve, a luxury coffee store that takes the cafe experience to the next level, while serving rare and unique coffees.

After rolling out the first few stores, the coffee chain also said that it has plans to expand with over 1,000 Reserve stores.

"While our Roasteries are designed to be bold, educational environments, our Reserve store takes the best of coffee craft as well as artisan baking and layers in a marketplace-style customer experience creating a space that has both energy and moments of intimacy," Liz Muller, Starbucks senior vice president of Creative, Global Design and Innovation, in a press release.

Apparently, these Reserve stores are doing especially well in the Canadian market. There are already three Reserve Bars in Canada, two in Ontario and one in North York. These Reserve Bars usually feature elaborate decor and store designs. The newest Reserve in North York has a wraparound bar.

But coffee isn't the only thing on the menu. These bars feature much more food options than the traditional Starbucks chain like menu items chorizo mac and cheese and the pear and brie flatbread.

The company is planning to open more of these elevated coffee chains and they will be bigger than the first three Canadian stores. According to "Retail Insider," sources are saying that a large downtown Toronto location could be in the works, which would span more than one level and be more in line with big stores such as a new Reserve/Roastery location in Shanghai."

The biggest store will be opening this year and will have 43,000-square-feet and four floors. This massive Reserve store will be on Michigan Avenue in Chicago and will take up a whole acre of prime city real estate.

Learn more about the Starbucks Reserve stores and the new stores opening in Canada at "Narcity" now.

It makes sense that Starbuck Reserve Bars are taking off because the artisan coffee and tea market is booming. Consumers want beverages with unique origins. Check out the video below where Michael Sheridan, the director of Sourcing and Shared Value at Intelligentsia Coffee and Allen Wang, founder & partner of Kung Fu Tea talk about consumer beverage trends and how their brands are thriving in this saturated artisan drink market.

Dominique Crenn Speaks Out About the Challenges Plaguing Chefs Today

Dominique Crenn is one of the world's greatest culinary masterminds. She has repeatedly landed on in the top five of our Top 100 chefs list and is the top woman chef on this coveted list.

She is also the only female chef in the U.S. to have earned three Michelin stars for her renowned restaurant Atelier Crenn in San Francisco, CA.

And her list of achievements just goes on.

She has appeared in the popular Netflix documentary series Chef's Table, was named Esquire’s “Chef of the Year” in 2008, Eater's chef of the year in 2015, won the Iron Chef America competition in 2012, and was given a James Beard Award for Best Chef just this year.

Like most female chefs in this male-dominated industry, there have been challenges.

"When I started to work in the kitchen, there's not a lot of women that were working and I didn't try to pay attention to that," said Crenn to "NPR." "I had to work harder than others and I was a bit picked on sometimes. But I'm a very strong person. Nobody touched me."

Although she is deemed one of the greatest chefs today, Crenn still is treated differently because she is a woman.

"She has been successful because she does have talent and she has worked hard. But let's be honest, also because she has enormous charisma. She's beautiful and has that French accent," said Michael Buer, San Francisco restaurant critic to "The New York Times" who also said, "she cooks the way men are cooking."

Crenn, rightfully so, saw these comments as "degrading."

"I think he never should have said that. ... Saying that about me is a little bit degrading. Beauty is in the eye of the beholder, but that should not be a factor in anything. And yes, charisma — what is charisma? I'm trying to be genuine every time I speak or every time I'm out there. Maybe you call it charisma, but this is who I am," said Crenn to "NPR."

But thanks to the #MeToo movement and strong leaders like Crenn, the industry is changing for the better. Crenn humbly recognizes that she is making a difference.

"I am just a little fish in the sea. But I do understand that everything that I do could have a little impact," said Crenn.

Read Crenn's full interview at "NPR" now.

We recently interviewed another chef and restaurant operator Jennifer Kim making a name for herself as a female leader in the industry. Her restaurant in Chicago named Passerotto opened last year with the goal of serving a modern take on traditional Korean food. Watch the video below to learn more about her journey in the restaurant industry.

Cooper’s Hawk Partners with the SAG Awards To Increase Brand Awareness

Listen on: iTunes | Google Play | tunein | iHeartRADIO | Spotify

On this episode of The Barron Report, Paul Barron speaks with Emily Wines, master sommelier & vice president of wine and beverage experiences at Cooper’s Hawk Winery & Restaurants. In this Skype interview, the two discuss the latest feat for the winery, partnering with the Screen Actors Guild Awards®, and how to utilize partnerships to increase brand awareness.

In November, Cooper’s Hawk announced that they are the Official Wine of the Screen Actors Guild Awards® 25th Annual SAG Awards. To salute the silver anniversary, the winery has created a special wine named the “Artist’s Red Blend.” The wine is a limited-edition, with a commemorative label, and will be served during the Awards ceremony on Sunday, Jan. 27, 2019. Furthering this special partnership, Cooper’s Hawk will be hosting an exclusive event for it’s Wine Club Members.

When discussing methods of how to increase a wine brand’s awareness, Wines details how previous partnerships with celebrity chefs, like Tyler Florence, and other wineries for Cooper’s Hawk have proven to be successful.

Watch this video above for more marketing tips like virtual wine tastings, and how to educate your clients.


SHOW NOTES

  • 7:33 - Wine Marketing Tips for 2019

  • 9:52 - Wine List Tips

  • 12:41 - Virtual Wine Tastings

  • 14:31 - What’s New for Cooper’s Hawk


  • 0:11 - Cooper’s Hawk Partners with SAG Awards

  • 2:32 - Artist’s Red Blend and How Brands Align

  • 6:03 - Breaking Down the Blend

 
 

Produced by:

Rachel Brill

Rachel Brill

Social Producer


VIEW BIO