The wine segment's 2012 fourth-quarter and full-year net revenues increased 7.8% and 8.7%, respectively, primarily due to higher shipment volume, higher pricing and improved premium mix. Revenues net of excise taxes for the fourth quarter and full year of 2012 grew 8.1% and 8.9%, respectively.
The wine segment's 2012 fourth-quarter and full-year reported OCI increased 10.8% and 14.3%, respectively, primarily due to higher pricing, improved premium mix and higher shipment volume, partially offset by costs related to Ste. Michelle's sales force expansion. Comparisons of full-year reported OCI results were also impacted by higher costs for select vintages incurred in 2012, partially offset by UST acquisition-related costs incurred in 2011. Adjusted OCI, which is calculated excluding UST acquisition-related costs, increased 10.8% for the fourth quarter of 2012 and 9.5% for the full year.
Adjusted OCI margins increased 0.6 percentage points to 23.7% for the fourth quarter of 2012 and increased 0.1 percentage point to 19.3% for the full year of 2012. Revenues and OCI for the wine segment are summarized in Table 10.
|Table 10 -Wine: Revenues and OCI ($ in millions)|
|Fourth Quarter||Full Year|
|Revenues net of excise taxes||$||173||$||160||8.1||%||$||540||$||496||8.9||%|
|UST acquisition-related costs||—||—||—||4|
|Adjusted OCI margins*||23.7||%||23.1||%||0.6 pp||19.3||%||19.2||%||0.1 pp|
*Adjusted OCI margins are calculated as adjusted OCI divided by revenues net of excise taxes.Ste. Michelle's 2012 fourth-quarter and full-year reported wine shipment volume increased 2.9% and 3.7%, respectively, primarily due to the national expansion of select wines into off-premise channels. Ste. Michelle's reported shipment volume performance for wine is summarized in Table 11.
|Table 11 - Wine: Shipment Volume (cases in thousands)|
|Fourth Quarter||Full Year|
|Chateau Ste. Michelle||920||804||14.5||%||2,780||2,522||10.3||%|
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