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Sonoma Valley DTC Down -21% In July – Plagued By Visitation
In July 2020, Total DTC Sales in Sonoma shrunk -21.3% from July 2019.
Nearly all regions in California were down in July (except the Central Coast) resulting in a July year over year decline -8.6%.
The primary driver of the decline in was in the Tasting Room based on a steeper decline in Sonoma Valley Tasting Room sales being down -43% compared to -31% across other California regions.
The slightly unique Sonoma Valley Tasting Room decline was a result of a similarly unique decline in Tasting Room Visitation.
On the other hand, Sonoma Valley Tasting Rooms performed better with the Visitors they had improving conversion to purchase (+7% vs. +3% All) and keeping pace on industry average sale increases (+23% vs. +25% All)
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The digital shift is on!
Based on the lower starting point of last year’s “Digital Sales,” Sonoma had more room to grow and are rapidly closing the gap.
Below you can see that Sonoma Digital (Online + Phone) Sales grew significantly as 2019 percentage of Digital Sales was 16% which grew to 42% of Total DTC in July this year. The efforts to meet consumers where they are (typically at home or available virtually) was imperative to offset the losses in the Tasting Room.
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Proprietor, Kivelstadt Cellars
What is your favorite wine business metric and why?
Wine Club Retention
What is your favorite wine / food pairing?
Yuzu Chicken Wings and White Rhone
Quote of the month:
“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.”
What do you love about managing a wine business?
The people – this business attracts amazing people
What is a unique management challenge you’re facing right now and how are you dealing with it?
COVID – how do you reinvent your business over and over to adapt
Are there any unique ways your winery is using data? Or that you would love to be able to use data?
We look very closely at comps (both internal vs. goals and community vs. internal)
What is unique about your winery amongst other wineries in your region?
We are the only Wine Garden in CA