DTC Australian wine sales up by 17 per cent

Wine Intelligence is reporting that Australian wine direct-to-consumer (DTC) sales in 2020–21 have grown by 17 per cent in value and 14 per cent in volume, compared with the previous financial year, outperforming other sales channels.

Wine Australia’s Wine Direct-to-Consumer Survey Report 2021 released today shows that across all DTC channels, the average retail sales value for survey respondents in 2020–21 was up 3 per cent to $239 per case.

Wine Australia General Manager, Corporate Affairs and Regulation, Rachel Triggs suggested that this was a positive response given the difficult conditions for businesses in 2020–21.

“Survey respondents reported that overall wine sales grew by just 1 per cent, so it was particularly pleasing to see a significant increase in DTC sales this year”, Ms Triggs said.

Online and cellar door sales were reported to have had the strongest value growth of the DTC channels in 2020–21. The survey showed cellar door sales revenue grew by 22 per cent, while online sales grew by 23 per cent. However, there was a drop in the average case value for online sales (down 14 per cent), whereas the average value per case for cellar door sales increased by 16 per cent.

“The report suggests that in regions not significantly impacted by COVID-19 restrictions, cellar doors performed well this year. Wineries reported adapting their business models to suit COVID-19 conditions, providing more tailored experiences for visitors that improved profitability,” Ms Triggs said.

Wineries increased revenue by charging for wine tastings. Last year, 54 per cent of the surveyed wineries charged for wine tasting whereas this year, 73 per cent of wineries are charging for the tastings and the value of tasting has increased by more than 30 per cent year to year.

For a full picture of the DTC performance, the full report can be downloaded from Wine Australia’s website.