Tom's blog

On line wine sales soaring faster than infections

New Nielsen figures show a continued rise in online and direct-to-consumer wine sales. Alcohol sales were up 25 percent in the week ending April 4 in off-premise sales. Specifically, wine sales were up 32 percent.

In a report on WineBusiness.com, Danny Brager, Nielsen’s senior vice president, said, “No one has ever seen the kind of channel shifting we’re seeing now. It’s totally unprecedented.”

The good news is that these sales are enough to offset on-premise declines. Restaurants and retail stores are still struggling but consumers are still drinking. The question is are they hoarding or are they drinking more? Time will tell. However, many consumers may stick with their direct-to-consumer ordering on line.

In the direct-to-consumer market, the average price of a bottle dropped to $42 in March, perhaps because more average consumers used the DTC method to buy their wine. Many consumers were already ordering wine through wine clubs and their favorite West Coast producers.

Washington state led sales growth, maybe because they’ve been embroiled in this outbreak longer.