Tom's blog

Direct to consumer sales drop

The rapid rise of direct-to-consumer wine sales took a downturn that may be related to consumers no longer being confined to their homes because of the covid pandemic.

According to Sovos ShipCompliant and Wines Vines Analytics, the volume of DtC shipments decreased by 10.3 percent (876,848 cases) in 2022. While the return to normalcy drove consumers back to their local stores, higher costs also contributed to the decline.

Equally notable was what the consumers were willing to spend on their wine. The average price of a DtC wine increased nearly 10 percent in 2022. Those who spent $50 or less on a bottle of shipped wine ordered less. But those who spent more than $100 did not change from 2021.

DtC sales represent only 12 percent of off-premise sales, but over the years the number has increased as states dismantled their bans on out-of-state shipments of alcoholic beverages.

By grape variety, the shipment of cabernet sauvignon faired better than other grape varieties.