I found some interesting data about the U.S. wine market in a recent report published by the consulting firm, LEK. The report showed that consumption is expected to increase at a 6% CAGR over the next 5 years, bringing the market for wine to $43B in 2022. When you look at the forecasted consumption by price tier, all of the categories are expected to grow more in the next 5 years than they have in the previous 5 years. The cheapest category, <$10, has grown the most slowly (1%) and is expected to grow at just 2% per year. Premium ($10-$20) and fine ($20+) are expected to grow at an annual rate of 10% and 8% respectively. Direct to consumer, is a small part of the market at just 10% in 2017, but it is expected to grow at an 11% CAGR over the next 5 years.
3 Bar Charts
I created 3 simple bar charts to make it very easy to see this data on a single slide. Note the different uses of CAGRs in the 3 charts. In the first chart, I used a CAGR growth line because there was a single series. Mekko Graphics automatically calculates the CAGR based on the dates from the bars. In the second chart, I used 2 CAGR columns to highlight the differences for each series between the 2 time periods—actual 2012-2017 and forecasted 2017-2022. In the third chart, a single CAGR column makes it easy to compare forecasted growth for each series. To learn more about how to use CAGRs in your charts, read the It's All About the CAGR post or check out this CAGR video.
How I Created These Bar Charts
- First, I selected Insert Multiple Charts from the Mekko Graphics ribbon and chose Three Charts.
- I opened the first chart and typed in the data into the chart data sheet.
- Using Format Chart, I formatted the bar totals to show as $B.
- By selecting Axes, I added a Y axis title and hid the X and Y axis on the chart.
- I added a growth line to the chart under Insert in the Mekko Graphics ribbon. To make it a CAGR growth line, I double clicked on the line and chose CAGR under Calculation in the Format Growth Line task pane.
- Next, I deleted the 2 other charts on the slide. Then, I copied the first chart and pasted it into the middle chart slot on the slide.
- I opened the data sheet and entered the data for the second chart, including 2 columns for the CAGRs for the two time periods, 2012-17 and 2017-22. To calculate the CAGRS in the data sheet, I used this formula =CAGR(first bar, last bar, # of periods).
- In the Bars and Series, Bars tab, I selected CAGR column for the last 2 bars in the data sheet. I formatted these columns to show as a percentage in the dropdown menu.
- In the Series, Style tab under Bars and Series, I recolored the 3 series in the chart.
- Under Show Labels, I selected Last Bar Only.
- By right clicking on the Y axis title, I replaced the previous title with the title for the second chart.
- Then, I copied the second chart and pasted it into the slot for the third chart on the slide.
- I double clicked on the third chart and replaced the data in the chart data sheet.
- In the Series, Style tab under Bars and Series, I recolored the 2 series in the chart.
- Under Show Labels, I chose Show All and Show Values, Calculated Percentage Only.
- I inserted a Legend and chose Align to CAGR for its placement.
- By right clicking on the Y axis title, I replaced the text with the title for the third chart.