Nova 7 sellout in 2014 causes dip in NSLC wine sales in 2015
N.S. wines made with local grapes were down by 6.5 per cent after a 4.7 per cent growth from 2014
The NSLC is reporting that in its first quarter, the entire category of Nova Scotia-produced wine sales are down because stores sold out of Nova 7 last year.
According to the corporation's results from April, May, and June, wines made in Nova Scotia with local grapes were down by 6.5 per cent after a 4.7 per cent growth from last year.
"Any way you slice it, sales are still down because of Nova 7," said NSLC's Mike Maloney.
All other Nova Scotia sales categories increased — including craft beer, spirits, and wine made locally but with imported grapes. Maloney said despite the categorical decline in local wine sales, Nova 7 still tops that category.
This past quarter's results were caused two years ago when the NSLC ran out of Nova 7, Maloney explained. A pent-up demand caused a surge in sales in 2014 and led to a sellout, he said, even though Benjamin Bridge was in the midst of expanding its production of Nova 7.
"People came in, bought it by the caseload," he said. "You can't go from an artisanal-type winery to a mega-winery overnight. It doesn't happen like that."
Seasonal effects
Benjamin Bridge's founder Gerry McConnell said wineries in the local category are all trying to grow the province's wine reputation while adapting to whatever challenge Mother Nature gives them.
"There is a decline in the sales, overall, up to this point in time, but internally, it's been the very bad spring and a long time getting into warm summer weather, because Nova 7 is your perfect summer sipper."
"Additionally, we see that there's competition for this style of wine that has been introduced. It's a Moscato-style of wine and there are more products — foreign products — that are present here in the NSLC, so it's a combination of factors."
Maloney says the NSLC hasn't run out of Nova 7 since last year, and attributes the first-quarter results as sales normalizing.
By the end of the year, Benjamin Bridge is confident that Nova 7 will hit all of its targets, McConnell said.
"We've seen an increase in our weekly sales in almost the last month, and we attribute that to finally Nova Scotia experiencing a little bit of summer here."
"We're not concerned about future sales of Nova 7," he said.