Next week, our team will be in Napa to celebrate our 8th annual DIRECT Conference. If you’ll be in the area on June 13th, we’d love for you to attend!
It’s easy to see why hundreds of brands in the Pac Northwest have begun to use ShipCompliant in the past few years; the region is now a formidable force in direct-to-consumer sales. When we compiled our 2013 Direct Shipping Report, we saw growth across the entire market, but Oregon and Washington stood out as outperformers. Though their direct wine sales are about one fifth of Napa’s, the upward trend is hard to ignore.
Let’s take a closer look at Washington.
According to our 2013 Direct Shipping Report, the Evergreen State has seen monumental growth in its wine industry, with year over year volume growth of more than 18% in 2012.Not only that, but the average price of a bottle from Washington has risen 19%. This has pushed the market past the $50 million mark for the first time last year, and is showing no signs of slowing down.
It also seems that the best food pairing for a glass of Washington Cabernet Sauvignon, is, in fact, another glass of Washington Cabernet Sauvignon. Sales of the varietal have shot up over 69% in the past year. Cabernets, Syrahs, and blends now represent 70% of the state’s market for wine by volume.
Heading south a bit, our friends in Oregon have also enjoyed huge success in recent years. The state boasted a 10% gain in direct shipping sales last year, and its average price per bottle has risen to over $37, slightly above that of both Washington and Sonoma.
The 2004 Paul Giamatti film “Sideways” was set in Santa Barbara, where the actor’s character was obsessed with Pinot Noir. Based on our data, the film could have easily been set in Oregon, where the varietal represents 60% of total shipping volume, as well as the highest average bottle price at $47. No other region is more dominated by a single type of wine than the Beaver State.
The source of Oregon’s rise in direct shipping, however, is not forged by Pinot alone. Now that Oregon has established itself as a haven for aspiring grapes, more varietals have stepped up to the plate, as Pinot Noir’s annual volume remains flat. Syrah/Shiraz, Sauvignon Blanc, and Cabernet Franc have all exploded in 2012 with growth of over 100% each. Meanwhile, Cabernet Sauvignon’s average price per bottle has risen 30%, to $35. Though these varietals have a long way to go to catch up to Pinot Noir, it’s this diversity that is truly fueling the state’s rapid ascent.
We welcome this growth, and we love to see it. In fact, we’re hosting two events in the Pacific Northwest this month, along with our sponsors, Moss Adams LLP. We call it “Step-by-Step,” and we’ve designed these seminars to help wineries finance, account for, and act compliantly through the rapid positive changes happening in their businesses.
To sign up for our June 18th seminar in Oregon, click here!
To sign up foro ur June 20th seminar in Washington, click here!