Cabernet Shipments Over $200 Surge 14% as U.S. Wine Market Sees Overall Decline

Cabernet Sauvignon shipments in the United States reached a total value of $916 million over the 12 months through November, according to recent data from WineBusiness Analytics and Sovos ShipCompliant. Despite this growth in value, the overall direct-to-consumer (DTC) wine shipment market showed signs of contraction. In November, total DTC shipment value fell by 5% to $522 million compared to the same month last year, while shipment volume dropped 17% to 618,317 nine-liter cases.

The first two months of the OND (October-November-December) period this year saw DTC shipments totaling $1.1 billion, which is nearly 3% lower than the same period last year. Volume for these two months also declined more than 15% to 1.3 million cases. Year-to-date figures show a similar trend: shipment value is down more than 6% to $3.4 billion, and volume has fallen nearly 15% to 4.9 million cases.

One notable development is the rise in average bottle prices. In November, the average price per bottle for all DTC shipments reached $70.38, an increase of nearly 15% from last year and a new record for the month. Cabernet Sauvignon remains a key driver in this segment, accounting for about 32% of total DTC shipment value over the past year. Napa Valley continues to be the leading source for Cabernet Sauvignon, with Napa County wineries representing 76% of sales value and 52% of sales volume for all Cabernet shipments.

The average bottle price for all Cabernet Sauvignon shipments was $104.38 during this period, with bottles from Napa County averaging more than $150 each. While shipment value for Cabernet Sauvignon grew by 2%, reaching $916 million, volume slipped by 5% to 496,477 cases.

Lower-priced Cabernet wines faced significant declines. Shipments of Cabernet priced under $20 per bottle dropped by 26% in volume to 139,367 cases and by 24% in value to $20.2 million. Even higher-priced Cabernets saw decreases in most price tiers except for bottles priced above $200. Shipments of these ultra-premium wines increased by 14% in value to $516 million and by 10% in volume to 130,549 cases.

These gains at the top end helped offset losses among other price categories, resulting in a net gain of $13 million in shipment value for Cabernet Sauvignon overall. However, total Cabernet shipment volume still declined by nearly 93,000 cases compared to last year.

The data on winery DTC shipments is part of ongoing industry metrics reported monthly in the Wine Analytics Report. A comprehensive annual report on the DTC channel is scheduled for release by WineBusiness Analytics and Sovos ShipCompliant in late January. This report will provide further insights into trends affecting wineries and consumers across the country as they navigate changing market conditions and consumer preferences.