Total DTC Falls

Direct-to-consumer shipment value fell 8% in August, Wines Vines Analytics/Sovos ShipCompliant reported.  Compared to August of last year, volume fell 11% to 475,457 cases, the third-lowest volume this year.  

What's behind the decline?  One answer could be, of course, that with tasting rooms open, there was less need for consumers to order wines direct from wineries.  Another explanation, however, could be inflation.  With inflation in general driving up prices, we think it's likely that consumers might be looking for less expensive ways to acquire bev/al.  Add to that the fact that the average bottle price of shipments rose 3% in August from a year earlier – and was 14% above August 2019, and we think inflation may be taking a bit of DtC sales.  

Cabernet Sauvignon strengthened its position, with shipment value rising 20% and volume gaining 2%.  Average bottle price jumped 18% to $78.30.