DTC: Wineries Do More With Less, Paso Robles Wineries Lead DTC Growth in September
November 02, 2020
While tasting room visitation in the region was down 45 percent, California’s Central Coast wineries, primarily from Paso Robles, saw direct to consumer revenues grow 34 percent in September, according to Community Benchmark.
Overall tasting room traffic in four key regions was down 38 percent year-over-year in September, an improvement compared to a 48 percent loss in traffic recorded for August and even higher percentage declines seen earlier this year. Visitation to tasting rooms remains down but the extent of the decline in visitation wineries are experiencing in 2020 seems to be leveling off.
Napa wineries saw DTC revenues grow 14 percent in September with increased revenue in Napa and along the Central Coast attributed to strong wine club shipments. September is traditionally a big month for club shipments.
Visitation numbers were lower in Napa and Sonoma Valley than in Amador and the Central Coast, which may be partly related to wildfires during September keeping people away.
Doing More with Less
The Community Benchmark data indicates wineries are being more aggressive in engaging and upselling club members - getting more revenue per club member. With 3 percent fewer club members, wineries are getting 22 percent more per club member.
It also suggests digital sales may be starting to plateau, but on a more encouraging note, visitation appears to be making a comeback.
Visitation drives new wine club and mailing list signups, Community Benchmark founder John Keleher noted. “Visitation is what replenishes our asset base for digital sales.”
Community Benchmark uses algorithms to measure the relative success of tasting rooms within a geographic area, anonymously sharing personalized metrics with each participating winery.