Insights for Successful Consumer Wine Sales Part I and II Survey - - PowerPoint PPT Presentation

▶

Oct 01, 2023 43 likes •284 views

WINE BUSINE SS MONTHL Y Insights for Successful Consumer Wine Sales Part I and II Survey analysis prepared by: Molly Stichter Jerusha Frost Jonathan Williams Rob McMillan 5 Winery and Tasting Room Openings Winery Tasting Room

SLIDE 1

WINE BUSINE SS MONTHL Y

Molly Stichter Jerusha Frost Jonathan Williams Rob McMillan Survey analysis prepared by:

Insights for Successful Consumer Wine Sales – Part I and II

SLIDE 2

WINE BUSINE SS MONTHL Y

Winery and Tasting Room Openings

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 Number of Openings Winery Tasting Room

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

5

SLIDE 3

WINE BUSINE SS MONTHL Y

Five Year Trend of Average Retail Bottle Price by Region

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

New York British Columbia Virginia Sierra Foothills Rest of California Washingt

Santa Cruz and Monterey Oregon Santa Barbara Paso Robles Sonoma County 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 $63.77 2016 $16.55 $24.82 $25.08 $25.45 $30.35 $32.11 $36.16 $37.04 $37.42 $34.29 $43.00 $39.10 $70.74 2017 $17.66 $23.28 $28.01 $25.65 $30.14 $32.27 $35.21 $35.18 $39.22 $41.44 $46.14 $44.33 $83.80 2018 $17.92 $25.16 $26.52 $29.35 $32.18 $33.74 $36.08 $39.46 $40.93 $44.40 $45.14 $49.77 $94.26 2019 $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

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

6

SLIDE 4

WINE BUSINE SS MONTHL Y

Dependence on DtC by Region

(% Revenue from DtC)

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% International British Columbia Oregon Midwest Napa County Santa Barbara 2019 Average Sonoma County Washington Rest of California Sierra Foothills Santa Cruz and Monterey New York Lodi/Clarksburg, CA Mid-Atlantic & New England Paso Robles Rest of West US Virginia

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

7

SLIDE 5

WINE BUSINE SS MONTHL Y

Average Winery’s Composition of DtC Sales

Wine Club 37% Tasting Room 42% Internet/Web 8% Phone 3% Offsite Events 3% Onsite Events 5% Other 2% DTC, 59% Wholesale, 34% Exports, 3% Other, 3%

Sales Channels

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

8

SLIDE 6

WINE BUSINE SS MONTHL Y

Average Tasting Fee by Region

$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

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

9

SLIDE 7

WINE BUSINE SS MONTHL Y

Four Year Trend of Tasting Fees

$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

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

10

SLIDE 8

WINE BUSINE SS MONTHL Y

Standard Tasting Fee as a Percent of Median Bottle Price

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)

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

11

SLIDE 9

WINE BUSINE SS MONTHL Y

Proportion of Appointment: Only vs. Public Wineries

Appointment

21% Both 23% Open to the public 56%

2018

Appointment only 17% Both, 27% Open to the public, 56%

2019

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

12

SLIDE 10

WINE BUSINE SS MONTHL Y

Tasting Room Style: Casual vs. Formal by Year

5% 15% 2% 69% 8%

2019

Primarily Casual Tastings Primarily Private Tastings

3% 12% 1% 73% 11%

2018

Half Casual/Half Formal Mostly Casual/Some Private Tastings Mostly Private/Some Casual

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

13

SLIDE 11

WINE BUSINE SS MONTHL Y

Average Monthly Visitors per Winery by Region

278 523 781 800 942 953 1,027 1,079 1,098 1,372 1,402 1,464 1,520 1,815 2,208 2,611 2,694 2,729 4,455 4,504 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Mendocino County Rest of West US Santa Barbara Sierra Foothills Washington Santa Cruz and Monterey Lodi/Clarksburg, CA Oregon Sonoma County Napa County Paso Robles Virginia Average British Columbia International Midwest Rest of California New York Mid-Atlantic & New England Ontario

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

14

SLIDE 12

WINE BUSINE SS MONTHL Y

Trend of Average Monthly Visitors by Region

*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 British Columbia Napa County New York Oregon Sonoma County Virginia Washington 2015 1237 1644 2507 527 1288 1096 789 2016 1297 1369 2776 587 1099 1644 656 2017 1114 1159 1497 2051 716 1039 2075 618 2018 1160 1261 1453 712 1004 1482 808 2019 1520 1815 1372 2729 1079 1098 1464 942 500 1000 1500 2000 2500 3000

2015 2016 2017 2018 2019

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

15

SLIDE 13

WINE BUSINE SS MONTHL Y

Average Tasting Room Wine Purchase

$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 Midwest New York Mid-Atlantic & New England Virginia Livermore, Lodi, & Delta, CA British Columbia Santa Cruz and Monterey Rest of West US Rest of California Sierra Foothills Mendocino County Washington Oregon International Santa Barbara Paso Robles 2019 Average Sonoma County Napa County

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

16

SLIDE 14

WINE BUSINE SS MONTHL Y

Trend of Average Tasting Room Wine Purchases

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

New York Virginia Santa Cruz and Monterey British Columbia Washingt

Sierra Foothills Santa Barbara Oregon Paso Robles Sonoma County 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 $213.87 2016 $37.59 $59.27 $60.51 $44.93 $61.89 $60.56 $69.87 $77.52 $82.04 $121.16 $102.26 $246.37 2017 $32.88 $51.64 $68.05 $54.48 $69.04 $74.15 $74.83 $77.80 $84.36 $140.40 $119.63 $301.78 2018 $48.25 $51.69 $55.49 $61.25 $67.93 $74.97 $75.25 $94.90 $96.68 $151.02 $159.96 $388.98 2019 $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

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

17

SLIDE 15

WINE BUSINE SS MONTHL Y

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 County Paso Robles Napa County Virginia Lodi/Clarksburg, CA Santa Cruz and Monterey Washington Sonoma County Santa Barbara 2019 Average Rest of California Oregon Mid-Atlantic & New England Midwest British Columbia Rest 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% Washington International British Columbia Virginia Lodi/Clarksburg, CA Santa Cruz and Monterey Oregon 2019 Average Paso Robles Sonoma County Napa County Mid-Atlantic & New England Rest of California Midwest Santa Barbara Mendocino County Rest of West US

Wine Club Attrition Rate**

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

18

SLIDE 16

WINE BUSINE SS MONTHL Y

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 Robles Napa County Rest of California Sierra Foothills Virginia Mid-Atlantic & New England Santa Cruz and Monterey 2019 Average Sonoma County Oregon Santa Barbara Washington Rest of West US British Columbia New York Midwest

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

19

SLIDE 17

WINE BUSINE SS MONTHL Y

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 2016 2017 2018 2019

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

20

SLIDE 18

WINE BUSINE SS MONTHL Y

Average Wine Club Size by Region

(Excludes wineries <5 years old) 355 815 923 992 1,056 1,065 1,267 1,455 1,509 1,549 1,684 1,790 1,941 2,299 2,366 3,255 3,555 500 1000 1500 2000 2500 3000 3500 4000 Rest of West US Midwest New York Virginia Santa Cruz and Monterey Oregon British Columbia Sierra Foothills Santa Barbara Washington 2019 Average Mid-Atlantic & New England Lodi/Clarksburg, CA Paso Robles Sonoma County Napa County Rest of California

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

21

SLIDE 19

WINE BUSINE SS MONTHL Y

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

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

22

SLIDE 20

WINE BUSINE SS MONTHL Y

Annual Trend of Membership Length in Months by Region

Average British Columbia Napa County Oregon Sonoma County Washington 2015 29 24 26 26 28 36 2016 28 23 27 27 29 32 2017 29 24 32 30 29 33 2018 30 28 31 29 30 35 2019 30 27 33 29 31 32 5 10 15 20 25 30 35 40

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

23

SLIDE 21

WINE BUSINE SS MONTHL Y

Four Year Trend of Wine Club Shipment Options

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

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

24

SLIDE 22

WINE BUSINE SS MONTHL Y

Percent of Respondents that Have an Urban/City Tasting Room

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 York British Columbia Virginia Lodi/Clarksburg, CA Paso Robles Rest of California Napa County Midwest Mid-Atlantic & New England Oregon Sonoma County Santa Cruz and Monterey Mendocino County Sierra Foothills Washington Rest of West US Santa Barbara

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

26

SLIDE 23

WINE BUSINE SS MONTHL Y

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 Urban Area Winery/Vineyard

Avg. Tasting Fee by Tasting Room Location

Average of Standard Tasting Fee Average of Reserve Tasting Fee

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

27

SLIDE 24

WINE BUSINE SS MONTHL Y

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

768 1670 200 400 600 800 1000 1200 1400 1600 1800 Urban Area Winery/Vineyard

Average Monthly Visitors by tasting room Location

5.23% 6.69% 0% 1% 2% 3% 4% 5% 6% 7% 8% Urban Area Winery/Vineyard

Conversion Rate by Tasting Room Location

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

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