New York Wine & GrapeNews

23

May

The Press Deck - May 23rd 2018

Valerie Ross

Category: Industry

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Field Notes...
From Sam Filler, Executive Director
Dear Friends,
Finally some great news out of Washington D.C. on an issue we've all been paying close attention to. WineAmerica’spersistent lobbying over the past five months paid off on Friday when the TTB announced that the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) that it is extending an “alternate procedure” through December 31, 2019. This extension allows wine stored at a bonded wine cellar to be eligible for the new tax credits established by the Craft Beverage Modernization and Tax Reform Act. I applaud Jim Trezise, Michael Kaiser, Tara Good and Meyers & Associates for their dedicated focus on working with the TTB and Federal Legislators to ensure that this valued tax reform is properly implemented. I encourage all New York Wineries to consider membership with WineAmericaas they are our national trade association working to improve our federal legislative, regulatory and funding environment.
The 2018 Farm Bill (H.R. 2) also made headlines in DC last week as the full House voted on it and the bill failed to pass by a vote of 198-213. The Farm Bill is a $867 billion piece of legislation that includes conservation programs, nutrition assistance, global trade and crop insurance. NYWGF annually receives funding from the USDA Market Access Program to run our wine export program. We are keenly interested in seeing the bill pass as it would have authorized funding of $255 million annually over the next five years (through FY 23) for the new International Market Development Program (IMDP). Under the new framework, MAP and FMD would continue to be funded at no less than $200 million and $34.5 million annually and continue to operate in their regular, distinct and separate forms. If a final version of the Farm Bill is not passed by September 30, the House and Senate will be required to agree on an extension. You can help support the Farm Bill by urging members of our New York congressional delegate to maintain no less than $200 million for MAP and $34.5 million for FMD, as authorized under the current Farm Bill.
This week, the Wine Market Council released an update to their “2017 High Frequency Wine Consumer Survey.” The report provides updated information on high frequency wine consumer purchase behavior measures based on the results of the Wine Market Council High Frequency Wine Consumer Survey conducted in the fall of 2017. Wine Market Council reports are available for review in our Canandaigua office. Below are some highlights:
  • High frequency wine drinkers buy wine in 750ml bottles most often, while 1.5L bottles and bag-in-box lead alternative packaging purchases. Nonetheless, between 15% - 25% reported buying wine in other bottle sizes, cans, and Tetra Pak packages at least monthly.
  • $10 - $15 continues to be the sweet spot, as high frequency drinkers indicated they buy wine in this price range most often. A noticeable dip in purchase frequency occurs at $20, and the majority of respondents "never" buy wine in the $50+ categories.
  • Rates of purchase in the past three months among domestic wine showed that approximately one-third indicated they purchased a wine from Washington, New York, and/or Oregon.
  • 18% reported buying wine online in the past three months compared to 97% who bought wine in person.
  • Nearly all reported off-premise purchases in the past three months (98%), close to twice as many respondents as ordered wine on-premise (52%). One in three bought wine either at or through a winery website in the past three months.
  • Facebook is used most often for wine-related communications, but YouTube, Instagram, and Twitter form a second tier.
I think that I am one of those wine drinkers who is helping to push up the on-premise order percentage. Whenever I eat out with my wife Maura in New York City, I always make sure to make my first drink a New York wine by the glass. I do plan to celebrate Memorial Day weekend by hosting a tasting of New York wines for my family, which means that off-premise purchase percentage probably will get an extra 5% boost!
Cheers!
Sam Filler, Executive Director