Vineyard & Winery Management

November/December 2014

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he year 2014 turned out to be a very impor- tant one for direct shippers of wine, primarily due to one long-anticipated event: The passage in July of a direct-shipping law in Massachusetts. Continued growth in the direct-shipping channel has led to both increased visibility and scrutiny. Many states were more active this year in enforc- ing their rules and auditing sales tax records. From a bird's eye view, the direct-shipping channel continues to be the most dynamic sales distribution avenue for wineries. The 2014 Direct Wine Shipping Report compiled by ShipCompliant revealed that the volume of wine being shipped direct to the consumer increased a whopping 9.3% from the previous year – a rate of growth that significantly outpaced the 1.3% increase in wine volume in the traditional off-premise marketplace. On the other hand, the growth in the dollar value of wine shipped in 2013 was 7.7% over the previous year. This continues a downward trend in the growth rate of the value of the direct-shipping market. In fact, the report showed the average price per bottle of wine shipped dipped for the first time ever to $37.78. Still, this 7.7% growth in value was 70% higher than the growth in value of the off-premise wine channel. This decrease in the average price per bottle of wine shipped has some asking what the potential is for continued growth of the winery-to-consum- The State of Direct-to-Consumer Wine Shipping 2014 brought important changes and challenges for wineries BY J E F F C ARR O L L 1 1 0

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