insights for successful consumer wine sales – part i and ii · 1,000. 1,500. 2,000. 2,500. 3,000....

WINE BUSINESS MONTHLY

Molly Stichter Jerusha Frost Jonathan Williams Rob McMillan

Survey analysis prepared by:

Insights for Successful Consumer Wine Sales – Part I and II


Winery and Tasting Room Openings

2

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Before 1982 1983-1987 1988-1992 1993-1997 1998-2002 2003-2007 2008-2012 2013-2017

Num

ber o

f Ope

ning

s

Winery Tasting Room

Silicon Valley Bank and Wine Business Monthly 2019 Insights to Successful Consumer Wines Sales Survey

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Five Year Trend of Average Retail Bottle Price by Region

3

*British Columbia, figures are represented in Canadian dollars (CAD).

New York BritishColumbia Virginia Sierra

FoothillsRest of

CaliforniaWashingt

onSanta

Cruz andMonterey

Oregon SantaBarbara

PasoRobles

SonomaCounty Average Napa

County

2015 $19.00 $26.00 $22.80 $25.11 $26.89 $29.79 $35.44 $38.67 $38.44 $34.93 $41.05 $37.58 $63.772016 $16.55 $24.82 $25.08 $25.45 $30.35 $32.11 $36.16 $37.04 $37.42 $34.29 $43.00 $39.10 $70.742017 $17.66 $23.28 $28.01 $25.65 $30.14 $32.27 $35.21 $35.18 $39.22 $41.44 $46.14 $44.33 $83.802018 $17.92 $25.16 $26.52 $29.35 $32.18 $33.74 $36.08 $39.46 $40.93 $44.40 $45.14 $49.77 $94.262019 $19.29 $25.86 $27.69 $24.67 $33.94 $34.51 $35.63 $38.81 $37.24 $45.93 $49.48 $49.13 $95.53

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00


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Dependence on DtC by Region (% Revenue from DtC)

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33%51%

59%62%62%63%

65%65%66%

69%70%71%

73%73%

76%79%

88%92%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

InternationalBritish Columbia

OregonMidwest

Napa CountySanta Barbara2019 Average

Sonoma CountyWashington

Rest of CaliforniaSierra Foothills

Santa Cruz and MontereyNew York

Lodi/Clarksburg, CAMid-Atlantic & New England

Paso RoblesRest of West US

Virginia


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Average Winery’s Composition of DtC Sales

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Wine Club37%

Tasting Room42%

Internet/Web8%

Phone3%

Offsite Events3%

Onsite Events5% Other

2%

DTC, 59%

Wholesale, 34%

Exports, 3%

Other, 3%

Sales Channels


8


Average Tasting Fee by Region

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$5 $7 $7 $7 $8 $8 $9 $11 $11 $12 $12$16 $16 $16

$24

$43

$12 $10$15

$18 $18$13 $15 $17

$22 $21$17

$32 $30

$21

$40

$64

$-

$10

$20

$30

$40

$50

$60

$70

Standard Reserve


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Four Year Trend of Tasting Fees

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$14.68 $16.71 $19.82 $20.01

$29.70 $34.33

$38.69 $38.27

$- $5

$10 $15 $20 $25 $30 $35 $40 $45 $50

2016 2017 2018 2019

Standard Reserve


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Standard Tasting Fee as a Percent of Median Bottle Price

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39.1% 39.5%38.2%

41.4%

47.9%43.6%

50.6%

58.1%

46.1%

56.8%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$13 $17 $25 $35 $45 $56 $66 $76 $86 $96 $114

Avg Standard Tasting Fee Percent of Bottle Price Linear (Percent of Bottle Price)


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Proportion of Appointment: Only vs. Public Wineries

9

Appointment only21%

Both23%

Open to the public56%

2018

Appointment only17%

Both, 27%

Open to the public, 56%

2019


12


Tasting Room Style: Casual vs. Formal by Year

10

5%

15%

2%

69%

8%2019

Primarily Casual TastingsPrimarily Private Tastings

3%12%

1%

73%

11%2018

Half Casual/Half FormalMostly Casual/Some Private TastingsMostly Private/Some Casual


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Average Monthly Visitors per Winery by Region

11

278523

781800

942953

1,0271,0791,098

1,3721,402

1,4641,520

1,8152,208

2,6112,6942,729

4,4554,504

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

Mendocino CountyRest of West US

Santa BarbaraSierra Foothills

WashingtonSanta Cruz and Monterey

Lodi/Clarksburg, CAOregon

Sonoma CountyNapa CountyPaso Robles

VirginiaAverage

British ColumbiaInternational

MidwestRest of California

New YorkMid-Atlantic & New England

Ontario


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Trend of Average Monthly Visitors by Region

12

*Only three years worth of information for British Columbia.*2017 New York did not have a significant number of responses to calculate average in 2018

Average BritishColumbia Napa County New York Oregon Sonoma

County Virginia Washington

2015 1237 1644 2507 527 1288 1096 7892016 1297 1369 2776 587 1099 1644 6562017 1114 1159 1497 2051 716 1039 2075 6182018 1160 1261 1453 712 1004 1482 8082019 1520 1815 1372 2729 1079 1098 1464 942

0

500

1000

1500

2000

2500

3000

2015 2016 2017 2018 2019


15


Average Tasting Room Wine Purchase

13

$42.48 $47.19 $48.37

$56.50 $64.45 $64.46 $65.28 $67.23

$73.27 $73.71 $74.29 $76.28

$85.83 $88.98

$101.41 $109.18

$142.69 $194.55

$315.77

$- $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00

MidwestNew York

Mid-Atlantic & New EnglandVirginia

Livermore, Lodi, & Delta, CABritish Columbia

Santa Cruz and MontereyRest of West USRest of California

Sierra FoothillsMendocino County

WashingtonOregon

InternationalSanta Barbara

Paso Robles2019 Average

Sonoma CountyNapa County


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WINE BUSINESS MONTHLY 14

Trend of Average Tasting Room Wine Purchases

British Columbia, figures are represented in Canadian dollars (CAD).

New York VirginiaSanta

Cruz andMonterey

BritishColumbia

Washington

SierraFoothills

SantaBarbara Oregon Paso

RoblesSonomaCounty Average Napa

County

2015 $45.20 $47.90 $65.19 $46.50 $69.53 $86.25 $69.06 $91.18 $72.92 $119.43 $99.18 $213.872016 $37.59 $59.27 $60.51 $44.93 $61.89 $60.56 $69.87 $77.52 $82.04 $121.16 $102.26 $246.372017 $32.88 $51.64 $68.05 $54.48 $69.04 $74.15 $74.83 $77.80 $84.36 $140.40 $119.63 $301.782018 $48.25 $51.69 $55.49 $61.25 $67.93 $74.97 $75.25 $94.90 $96.68 $151.02 $159.96 $388.982019 $47.19 $56.50 $65.28 $64.46 $76.28 $73.71 $101.41 $85.83 $109.18 $194.55 $142.69 $315.77

$-

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00


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Wine Club Member Growth Rate* and Attrition Rate**

*New Wine Club Member Growth Rate = New wine club members acquired in 2018, divided by starting number of wine club members in 2018.**Attrition Rate = Number of wine club members lost during 2018, divided by Number of wine club members at the beginning of 2018

14%24%

27%32%33%34%36%

39%41%42%44%

46%48%49%

52%57%

0% 10% 20% 30% 40% 50% 60%

Mendocino CountyPaso RoblesNapa County

VirginiaLodi/Clarksburg, CA

Santa Cruz and MontereyWashington

Sonoma CountySanta Barbara2019 Average

Rest of CaliforniaOregon

Mid-Atlantic & New EnglandMidwest

British ColumbiaRest of West US

Wine Club Member Growth Rate*

15%16%16%

19%20%20%20%20%21%22%22%22%22%23%24%24%

31%

0% 20% 40%

WashingtonInternational

British ColumbiaVirginia

Lodi/Clarksburg, CASanta Cruz and Monterey

Oregon2019 AveragePaso Robles

Sonoma CountyNapa County

Mid-Atlantic & New EnglandRest of California

MidwestSanta Barbara

Mendocino CountyRest of West US

Wine Club Attrition Rate**


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Net Wine Club Member Growth Rate*

* Net Wine Club Growth Rate = New club members acquired in 2018, less lost club members in 2018, divided by base membership level at the beginning of 2018.

4%7%

9%13%13%13%

14%15%

17%19%

19%21%

26%29%29%

32%

0% 5% 10% 15% 20% 25% 30% 35%

Paso RoblesNapa County

Rest of CaliforniaSierra Foothills

VirginiaMid-Atlantic & New England

Santa Cruz and Monterey2019 Average

Sonoma CountyOregon

Santa BarbaraWashington

Rest of West USBritish Columbia

New YorkMidwest


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Four Year Trend - Net Wine Club Member Growth Rate*(Excludes wineries <5 years old)

* Net Wine Club Growth Rate = New club members acquired in 2018, less lost club members in 2018, divided by base membership level at the beginning of 2018.

15%

12%

15% 16%

13%11%

13% 14%

11%

14%15%

12%

7%

19%17%

21%

0%

5%

10%

15%

20%

25%

Napa County Oregon Sonoma County Washington

2016201720182019


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Average Wine Club Size by Region(Excludes wineries <5 years old)

355815

923992

1,0561,065

1,2671,455

1,5091,549

1,6841,790

1,9412,299

2,3663,255

3,555

0 500 1000 1500 2000 2500 3000 3500 4000

Rest of West USMidwest

New YorkVirginia

Santa Cruz and MontereyOregon

British ColumbiaSierra FoothillsSanta Barbara

Washington2019 Average

Mid-Atlantic & New EnglandLodi/Clarksburg, CA

Paso RoblesSonoma County

Napa CountyRest of California


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Members Who Live Close By*Dependence on Tourism or Locale

21%

34% 35%

44% 45% 45% 47%52%

56% 56%62% 63%

66% 67% 70% 72% 74% 74% 75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

*Close by is defined as a member would could visit the winery and drive home within the same day


22


Annual Trend of Membership Length in Months by Region

Average British Columbia Napa County Oregon Sonoma County Washington2015 29 24 26 26 28 362016 28 23 27 27 29 322017 29 24 32 30 29 332018 30 28 31 29 30 352019 30 27 33 29 31 32

0

5

10

15

20

25

30

35

40


23


Four Year Trend of Wine Club Shipment Options

21

2.0%

19.0%

44.0%

35.0%

4.0%

19.0%

41.0%

36.0%

4.0%

21.0%

42.0%

33.0%

5.5%

26.1%

44.3%

24.1%

5.8%

29.7%

41.3%

23.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Fully Allocated Complete Choice Some Choice No Choice

2015 2016 2017 2018 2019


24


Percent of Respondents that Have an Urban/City Tasting Room

22

6%8%

9%18%

20%20%20%

25%25%

29%38%38%

50%53%

57%58%

69%

0% 10% 20% 30% 40% 50% 60% 70% 80%

New YorkBritish Columbia

VirginiaLodi/Clarksburg, CA

Paso RoblesRest of California

Napa CountyMidwest

Mid-Atlantic & New EnglandOregon

Sonoma CountySanta Cruz and Monterey

Mendocino CountySierra Foothills

WashingtonRest of West US

Santa Barbara


26


Average Purchase and Tasting Fee by Tasting Room Location

$106

$423

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

Urban Area Winery/Vineyard

Average Purchase by Tasting Room Location

$16.24

$19.72

$26.73

$33.47

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00


Avg. Tasting Fee by Tasting Room Location

Average of Standard Tasting Fee Average of Reserve Tasting Fee


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Average Monthly Visitors and Conversion Rate* to Wine Club by Tasting Room Location

768

1670

0

200

400

600

800

1000

1200

1400

1600

1800


Average Monthly Visitors by tasting room Location

5.23%

6.69%

0%

1%

2%

3%

4%

5%

6%

7%

8%


Conversion Rate by Tasting Room Location


*Conversion Rate = Number of new wine club members in 2018 divided by the number of total visitors in 2018.

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insights for successful consumer wine sales – part i and ii · 1,000. 1,500. 2,000. 2,500. 3,000....

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