Issue link: http://read.dmtmag.com/i/402796
w w w. v w m m e d i a . c o m N o v - D e c 2 014 | V I N E YA R D & W I N E RY M A N A G E M E N T 1 1 1 er shipping channel. We think the decrease in average price per bottle primarily reflects the beginning of a maturation of the sales channel indicated by larger wineries now adopting direct-to-consumer (DTC) shipments for wines that are less expensive than those normally flow- ing through the shipping channel. Since 2010, wineries annually producing 50,000-500,000 cases of wine have increased their ship- ments by 36%. Wineries produc- ing 500,000 cases or more have increased their DTC volume by 76%. There is no reason to believe these larger wineries will slow down their commitment to the higher-margin shipping channel that can be used to incubate new and higher-end brands and build con- sumer loyalty. A preliminary look at total ship- ments in the first half of 2014 suggests that it could turn out to be a very impressive year, not only for total volume of shipments but possibly a recovery in average price per bottle. With the economy on a slow but upward trend and with an increase in travel to wine regions, ShipCompliant hopes to announce impressive sales and volume numbers for 2014 when t h e a n n u a l s h i p p i n g r e p o r t i s issued in January 2015. + This year saw a number of changes in direct-to- consumer wine shipping legislation. + The passage of a direct- shipping law in Massachu- setts was a major victory. + The volume of wine shipped direct to the consumer increased 9.3% in 2014. + Direct-shipping legislation in Delaware and South Dakota failed to pass. AT A GLANCE Most states now allow some level of direct-to-consumer wine shipping. Hands-on interim management and advisory services Operating assessments Strategic planning & financial forecasts Brand marketing Sales and distribution management Organizational planning TTurn-around and performance improvement Expert witness HOULIHAN & JONES Sonoma County, CA 707-843-3536 www.houlihan&jones.com MICHAEL HOULIHAN and MARTIN JONES have been building successful wine brands for over thirty years SOLUTIONS WE DELIVER