National Wine Trends Show Oregon Sales Outperforming the Category – Wine Industry Advisor

Oregon wine continues to develop sooner than desk wine general, each in retail and DtC channels, and in 2021 the state was the motive force of progress at premium larger value tiers

PORTLAND, OR, June 1, 2022 – It’s been a turbulent few years for Oregon agriculture, particularly Oregon growers and winemakers who’ve needed to adapt to a brand new world of laws and security protocols on account of COVID-19. To not point out wineries quickly having to shut tasting rooms, excessive warmth and chilly, wildfires and wildfire smoke in Oregon. Regardless of these threats to enterprise as common, Oregon Wine Board (OWB) commissioned veteran wine trade professional Danny Brager to investigate market information for 2021. Brager discovered quite a lot of shiny spots exhibiting Oregon wine continues to make strides by main the class of desk wine at retail throughout premium value segments in U.S. markets, for each on and off-premise and DtC gross sales.

For his report, right here on the OWB trade web site, Brager carried out his personal analysis and consulted quite a lot of analysis reviews, together with Nielsen, SipSource, Sovos ShipCompliant and Wine Vines Analytics.

When trying throughout the wine panorama, Brager discovered that gross sales progress, each on and off premise, have been up 7.7% (within the chart at left) for desk wine, but for Oregon was up over 23% in greenback progress. For 12 months ending January 2022, one of many brightest spots was the upper priced wine between the $25 to $49 value per bottle phase, which is trending up 11.9%. The $50+ wines are trending up 45.8%. For Oregon, a winemaking area that sits comfortably on the desk of upper priced wines, our largest share positive factors are within the $20-$25 desk wine phase. Brager famous: “Oregon’s value tier traits are inclined to usually ‘mirror’ general Desk Wine traits – however in contrast to Oregon, whole desk wine traits are weighted closely to the ‘backside’ tiers.”

It goes with out saying that Pinot noir, making up 58% of the planted acreage in Oregon, is the dominant selection right here. Nonetheless, what many might not know is that, when in comparison with Cabernet Sauvignon, Zinfandel, Sauvignon Blanc, Chardonnay, Crimson Blends, Merlot, Rosé and Pinot gris in $15+ home desk wine, Pinot noir is head and shoulders above the remainder at a 32.8% quantity share the 12 months ending January 2022. Equally, Pinot noir’s quantity progress by selection in Oregon was up 18.3% in 2021, 3 times the expansion of Pinot noir throughout the U.S. which got here in at 6.1%.

Oregon progress leads, with the value/combine nonetheless transferring upward (greenback progress>quantity progress) at 23.1% in greenback worth in comparison with quantity at 18.8%. What this implies is that the wine has elevated in worth extra quickly than quantity, exhibiting that demand for Oregon wine, even when priced on common larger than different areas per bottle, continues to develop. That is in comparison with California at 7.9% in greenback worth and Washington with a -4.9% lower in {dollars}.

Oregon continues to take care of its premium, larger than common retail value in shops, a key consider insulating the wine enterprise given broader wine premiumization value tier traits. A 750 ml bottle of Oregon desk wine value $17.10 in 2021, California’s was $10.46, and Washington’s $8.15. Whole market general value is $8.46 per bottle on common.

As for glowing wine, Oregon confirmed monumental progress, up 62.5% whole quantity in 2021. Evaluate that to whole quantity for home Glowing wine at 10.1%. Chardonnay is the second highest whole quantity progress, with a 42.8% improve, much more excellent contemplating that Chardonnay throughout the U.S. was down -3.2%.

In wines shipped direct to shoppers in 2021, Oregon averaged $42 for a mean bottle, behind California at $43.94, with Napa particular wines at $72.41 per bottle, however over $6 larger per bottle than Washington as reported by SOVOS/ShipCompliant.

In abstract, Brager notes the next progress factors:

• The Oregon phase is rising sooner than the desk wine class, each in retail and DtC
• Oregon wine is a premium participant as a key participant and driver of progress on the premium finish of the general wine market (larger value tiers)
• Oregon wine is a significant retail, three-tier, and DtC participant, and DtC normally is commanding a bigger OVERALL channel share inside wine
• Oregon wine’s signature varietal Pinot noir is making additional inroads nationally, with the share increasing each inside and outdoors of Oregon.

Concerning the Oregon Wine Board

The Oregon Wine Board is a semi-independent Oregon state company managing advertising, analysis and schooling initiatives that help and advance the Oregon wine and wine grape trade. The Board works on behalf of all Oregon wineries and impartial growers all through the state’s various winegrowing areas. Go to oregonwine.org.

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