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Small Wineries Bearing the Brunt of Industry Pivot
Pandemic is creating a more competitive market December 11, 2020
Sonoma, Calif. – While top-line numbers paint a picture of an industry that’s weathering the COVID-19 pandemic, the latest update from Gomberg, Frederikson & Associates indicates that smaller labels face tough times.
“Some reports say that e-commerce has made up for direct tasting room sales,” said GFA editor Jon Moramarco during a webinar on December 9. “I think that’s true for some wineries, but not all of the 10,000-plus wineries in the country.”
Data for the first nine months of the year indicate that smaller wineries have been especially affected.
You ve seen a significant reduction in the collectible high-end Bordeaux and Burgundy, which significantly reduces the average price of wines imported from France, Moramarco said. In fact, the average import wholesale price of a 750ml bottle of wine equivalent (the figures include bulk wine) dropped from $4.57 to $3.87.
Moramarco said California wineries are shipping 14.4 percent less wine this year to their largest market: California consumers. But California wineries shipments to other states are up 2 percent. Moramarco posited that the on-and-off closures of tasting rooms have hurt in-state sales.
Washington wineries are having an off year, with shipments down 8.7 percent nationwide. As for Oregon, it s hard to say: on the surface, wineries are apparently having a big year, with shipments up 21.5 percent. But the state of Oregon classifies Full Sail Brewing s hard kombucha and hard ginger ale as wine and – this will be humbling for Oregon Pinot Noir lovers – Full Sail mak