With the first month of OND complete, DTC shipping volumes among small and medium wineries are up sharply and are on track to exceed 2015 levels by 23%.
These findings are based on WineDirect data from hundreds of small and medium wineries (defined as those with production of less than 500,000 cases) across California. In September and October 2016, small and medium winery shipping volumes were up 23% versus the same period last year and show no signs of abating. The OND season marks a critical inflection point for many US wineries and is by far the busiest time of year for DTC wine shipping.
Where is the growth coming from?
Although we have seen many wineries take advantage of newly opened DTC states such as Massachusetts, this made up for less than 3% of total volume in 2016 so far. In fact, traditionally strong states such as California, New York and New Jersey accounted for far more volume increases than new states.
What about wine clubs and bottles per shipment?
Although some have heralded the death of the wine club, recent data tells a very different story. Wine club shipments accounted for 56% of overall volume so far in 2016 and are growing at similar rate to non-club orders.
Bottles per shipment remained steady at about 6 bottles across small and medium wineries. Very small wineries with production less than 5,000 cases see averages closer to 7 bottles, also unchanged year on year.
WineDirect maintains service excellence during periods of high growth
In the face of this marked volume increase, WineDirect has been able to deliver winery client shipments with 99.98% order accuracy so far this year. Unlike many of our competitors, we maintain our strict service standards throughout the busy OND season. This includes our 1PM same-day shipping cutoff, the latest in the industry.
In addition, our new facility in Santa Maria began shipping in early October, and we expect volumes there to ramp up steadily there throughout the end of the year.
WineDirect’s ability to execute at such a high standard is a product of both our investment in technology as well as our excellent team of people. Across our four fulfillment centers, our teams work tirelessly to ensure that our clients’ wine ships correctly and punctually. We take tremendous pride in shipping clean every day, and on the rare occasion that something goes wrong, we are quick to address it.