Cabernet is king; Resilient Sauvignon Blanc sales show markets embrace “lighter, brighter wines”

In the latest data released by NIQ on US retail wine sales for the month of April 2023, off-premise table wines fell by 2.9% YoY, primarily fuelled by a 3.6% decline in the ‘wines in glass’ category.

Off-premise table wine sales refer to sales through many different retailing channels including groceries, drugstores, mass merchandisers, and a selection of warehouse clubs among others.

April 2023 refers to the data collected for the four weeks leading up to April 22^nd, 2023.

The latest data showed that sales fell across all price ranges except for the $15 – $19.99 price tier, which was virtually unchanged compared to April 2022.

The overall decline was cushioned by the rise in box wine sales which increased by 3.6% in dollar terms.

In particular, box wines priced above $4 per 750ml were robust improving by 5%.

Volumes

In terms of volume, off-premise table wine sales were down 5.9% YoY ending the month at 11.2mn 9L cases.

$4-plus per 750 ml box wines were the only segment to see an increase, rising 2.2% during both the month YoY and the full year.

Wines priced under $4 and over $25 per bottle, both declined by approximately 11% in volumetric terms.

The $15-$19.99 category held its ground, relatively speaking, witnessing a shift lower by 2.2% against April 2022.

52-week basis

On a full-year basis, cumulative retail sales fell by 2.7% to $15.7 bn while wines priced between $4-$10.99 and above $25 declined by approximately 5% and 7.5%, respectively.

The $15-$19.99 category remained the standout performer rising 1.3% through the year.

In volume terms, full-year retail sales were lower by 6% settling at 149.2 mn 9L cases.

White versus red

As per a report by Wine Business Analytics published in the Wine Business Monthly’s July 2023 edition, red wines continued to far outsell white wines, while the red Cabernet Sauvignon remained,

…the top wine sold through off-premise outlets…

However, they noted,

…as consumer spending adjusts post-pandemic…white wines are proving resilient.

In April 2023, red wine sales were down 4.7% compared to the corresponding month last year, while white wine sales were essentially unchanged.

For the 52-week period ending April 22^nd, cumulative white wine sales were level at $6.5bn.

This was a strong showing compared to the 6% decline in the previous year.

White wines also recorded an impressive performance against aggregate red wine sales which fell 4.1% over the last 52 weeks and saw a decline of 8% in the previous interval.

The report added that this is,

…pointing to consumers’ growing embrace of lighter, brighter wines.

April 2023

The following graph charts sales activity for various wines in April 2023, showing both retail sales and year-on-year growth for the month.

Cabernet Sauvignon remained the market leader, while Chardonnay dominated the white wine category.

Sauvignon Blanc experienced the highest year-on-year growth for the month with retail sales rising by 5.3%.

The white Pinot Grigio/Pinot Gris was the only other category to see an improvement, rising 2.2% compared to April 2022 sales.

White wines’ full-year outperformance

The relative success of white wines during this past year can be attributed to a 4.8% expansion in Sauvignon Blanc sales and a 1.3% growth in Pinot Grigio/Pinot Gris.

The Cabernet Sauvignon declined by 1.9% for the year, while Chardonnay’s cumulative sales slipped by 1.1%.

The decline in cumulative 52-week sales of Rosé wines moderated from a drop of 13% to 6.7%.

During the full year, all other major varietals witnessed declines in retail sales with Shiraz/Syrah, Zinfandel, and White Zinfandel recording the largest falls of 12.2%, 8.9% and 8.9%, respectively.

Imports versus domestic sales

Total wine imports for the latest 52-week period and for April 2023 were recorded at $4.3bn and $327.8 mn, respectively.

April 2023 imports fell 3.0% by value on an annual basis, while cumulative 52-week imports were down by 2.9%.

Italian imports

For the full-year period, Italian wines accounted for 32.3% of total imports.

Italian imports came in at $102.8 mn for the month of April 2023 and $1.39 bn for the 52-week period ending April 22^nd.

On an annual basis, they both declined by 4.6% and 4.2%, respectively.

Chile, New Zealand, and Portugal saw their imports rise during April 2023 compared to last year, recording a growth of 1.3%, 4.4% and 1.4%, respectively.

For the full year, cumulative imports from New Zealand, South Africa, and Portugal showed positive growth coming in at 3.8%, 1.9% and 0.7%, respectively.

Argentina’s growth over the past 52 weeks was virtually the same as the April 2023 rate, and thus, not clearly visible in the graph.

Domestically-produced retail sales

The total domestic market for April 2023 was recorded at $853.2 mn, while for the latest 52-week period this came in at $11.3 bn.

Domestic wine sales dwarfed imports by 2.6 times in both cases.

For April 2023 and the full-year, domestic sales were down 2.9% and 2.6%, respectively.  

California wine

For the month of April 2023, the Golden State made up 90.5% of domestic sales activity at $772.1 mn.

Compared to April 2022, total wine sales for the month fell by 2.4%.

Cumulative sales over the past 52 weeks were $10.27 bn, declining by 2.2% since the previous interval.

As a point of comparison, the Golden State’s retail sales were 2.4 times total imports and 7.4 times full-year Italian imports.

All other major state producers fell on both an April-only and full-year basis.

Texas’s growth in annual sales declined by 10.4% for both the latest 52-week period and April 2023 YoY, which is why the data point is not visible in the graph above.

Recent market update

With overcast conditions persisting in planting regions, the growing season is expected to remain slightly behind schedule.

In the post-pandemic era, particularly in Napa Valley, there has been an explosion of e-commerce enabled wineries hosting virtual tasting sessions to attract customer interest.