Oregon Wines Reach New Record High

Led by Pinot Noir, Oregon wines continue to outperform the overall wine industry. Last year volume increased an estimated 3% to 5.3 million cases—an all-time high—according to Impact Databank, continuing a long stream of gains as Oregon wines broaden their appeal to U.S. consumers. Total value reached nearly $900 million in 2022, almost doubling from $471 million in 2015.

Leading Oregon wine brand A to Z was acquired by Ste. Michelle Wine Estates last year, and grew 1.5% to 380,000 cases. Erath, another member of the Ste. Michelle range, slipped 1.5% to 320,000 cases in 2022. “There are two pieces of integration going on,” says Amy Prosenjak, president of Oregon business for Ste. Michelle Wine Estates. “We’re rolling A to Z and its sister brand, Rex Hill, up to the Ste. Michelle company, then we’re also creating this infrastructure where Erath, A to Z, and Rex Hill will all reside. We believe that strength is in the numbers. As we look at this as a whole, we feel we have a lot of value to add.”

Acrobat, from Foley Family Wines, rose 2.8% to 158,000 cases in 2022, according to Impact Databank. Foley president Shawn Schiffer says both Acrobat and sister brand Four Graces have been challenged by supply issues. “The fires in 2020 essentially knocked out an entire vintage of Four Graces Pinot Noir for us, and then Acrobat Pinot Gris,” he says, noting that Four Graces is back to full supply, but the loss really slowed down the trajectory of Acrobat. “We’ve been trying to get a production facility up in Oregon as well, but we’ve run into some issues. But outside of the manufacturing efficiency perspective, things couldn’t be going better for us in Oregon.”

Elouan, from Copper Cane Wines & Provisions, also continues to expand. Owner Joe Wagner says Elouan has come back strong in the on-premise, which is contributing to the positive momentum. “We have a very healthy on-premise business,” Wagner says. “We invest a lot into our by-the-glass program; we’re running somewhere between a 40% and 45% on-premise share throughout the year, and that’s predominantly by the glass. There’s a lot of exposure to the wine,” driving consumer trial.

King Estate is also regaining its footing in restaurants. “Our on-premise business has grown by 8% over the past year,” says COO and winemaker Brent Stone. “That’s consumers continuing to return to pre-pandemic behavior. Over the next year we’re anticipating on-premise growth, getting closer to 35%, which is closer to where King Estate has historically been in the on-premise.”

Pinot Noir remains Oregon’s superstar varietal, accounting for more than 60% of the annual grape crush and an even higher percentage of volume in some of the state’s most prominent brands. While Oregon Pinot Noir is world-renowned, other grape varietals are making headway from a much lower base. “We’re noticing a sharp interest in white wines from Oregon,” says Jim Bernau, founder and CEO of Willamette Valley Vineyards. “There’s a higher interest in Chardonnay from the Willamette Valley, and keen interest in Sauvignon Blanc. The problem is supply.”

Prosenjak also points to growing Chardonnay demand. While Pinot Noir might be growing at a 7%-10% rate, she says, Chardonnay is growing at 20%-30%. “People are realizing that Chardonnay grown in Oregon is actually really good,” she adds.

Tagged : A to Z Wineworks, Acrobat, Elouan, Erath, Oregon wine

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