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From: lewis.perdue@wineindustryinsight.com

Subject: Demand for high-end wines leaves room for the <$10 to inc. prices - $26M slated for farmworker housing - Obama to sign GMO labeling bill - Spanish wine passed off as French - Owner Speaks on Controversial Barolo Sale -- JULY 15, 2016 - WINE NEWS FETCH

Date: 2016-07-14 19:09:27

To: Emailing List Subscriber
Please use CMD+F (Mac) or CRTL+ F(Windows) to find your specific search term within this issue of NewsFetch. This "double search" is due to our links sourcing from websites not within WineIndustryInsight.
Wine Pricing...No Longer Sour Grapes? Scroll down to Daily Data and check out this hot new revealing chart from RBC Capital Markets.
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DAILY NEWS FETCH - July 15, 2016

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TODAY'S TOP NEWS

Wine Pricing...No Longer Sour Grapes? Scroll down to Daily Data and check out this hot new revealing chart from RBC Capital Markets.

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This sponsored feature is presented by WineryX Real Estate.
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Screen Shot 2016-07-07 at 9.09.31 AM

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  • SEC Filing Indicates $90 Million VMG Investment in Stone Brewing
  • Will Massachusetts Lawmakers Level The Playing Field Between Small Brewers And Distributors?
  • How will big investments in craft beer affect the industry?
  • How Next-Level Design Is Driving the Beer World
  • Adult soft drinks ‘increasingly important’
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GIVE US THIS DAY OUR DAILY DATA
 
Demand for high-end wines leaves room for under-$10 category to increase prices

Screen Shot 2016-07-15 at 5.14.17 AM Right-click chart to view a larger image.

Source: "Wine Pricing...No Longer Sour Grapes?" from RBC Capital Markets

  Quick takeaways (lots more in full analyst report):  
  • When a consumer chooses to purchase wine that retails for more than $40, they are no longer buying that product as a consumer staple but rather as a lifestyle choice—and the same consumer who is able to afford and willing to pay more than $40 for a product has shown willingness to pay as much as $100 and above given that dynamic.
  • Wine category dollar sales have grown 6.2% over the past year according to Nielsen (~300 bps faster than the average CPG category).
  • This big trade-up on the high-end has provided room for sub-$10 brands to begin increasing price. And ultimately, pricing will directly result in margin progression.
 
NEWS FETCH PLAYLIST:

While creating this issue:

Becca liked this song best: Breathe by Telepopmusik

Lew liked this song best: Evangeline by Los Lobos


TODAY'S FEATURED WINE


Big, bold rosè with forward citrus and raspberries wrapped around an iron fist of tannin & tart. $12 Safeway/6pak.

I tried out a new set of photo filters. Nice effects, but it's a real dbag because it defaces every image with their logo. I've since deleted the app.

This NewsFetch was hand-crafted for you by Editor Becca Yeamans-Irwin (The Academic Wino) and Publisher/Executive Editor, Lewis Perdue.


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================= CONTACT DATA ====================
Lewis Perdue
670 W. Napa St., Suite H, Sonoma, CA 95476
Phone: 707-326-4503, fax: 707-940-4146
Email: lewis.perdue@wineindustryinsight.com