Oregon Wines To Surpass $1 Billion In Value This Year

After weathering the effects of wildfires and the pandemic, wines from Oregon rose a solid 8% by volume last year to 5.7 million cases, according to the Oregon Wine Board. Dollar sales grew even faster, increasing 13.3% to a value of $956.4 million. Oregon has easily outperformed the total industry, which has seen two straight annual declines by volume and value, according to The U.S. Wine Market: Shanken’s Impact Databank Review & Forecast, 2023 Edition. Oregon wines are fully expected to surpass $1 billion in value terms by year-end.

Wines from Oregon boasted an average retail price of $17.77 a 750-ml. in Nielsen/NIQ channels in the 52-week period ending September 9—more than twice the national off-premise average of $8.87 (including imports). And even though wine in general has been losing share to spirits and RTDs, Oregon table wine priced between $15 and $24 a 750-ml. increased 1% in the year-to-date period ending September 10 in Circana/IRI channels, compared to a 1% decline for California and an 11% drop for Washington, at the same price points.

Pinot Noir remains the dominant grape variety, accounting for nearly 65% of Oregon’s wine grape production value last year, on less than 60% of the tonnage. The north Willamette Valley region accounts for roughly 60% of the state’s vineyards, grape acreage, and wine production. Grape acreage continues to increase throughout the state, which bodes well for the future of the Oregon wine industry.

Ste. Michelle Wine Estates, Washington’s largest wine player, doubled down on the Oregon category by purchasing A to Z Wineworks last year. The acquisition of the A to Z and Rex Hill brands, when combined with SMWE’s existing Oregon winery, third-ranked Erath, brings the company’s total annual production in Oregon to approximately 700,000 cases, according to Impact Databank.

Another leading brand, Elouan, from Copper Cane, has seen solid growth so far this year in Circana/IRI channels, after reaching 140,000 cases in 2022, according to Impact Databank. Meanwhile, in the first half of 2023, Willamette Valley Vineyards sold nearly 100,000 cases, an increase of 13% against the prior year—primarily due to higher direct-to-consumer sales resulting from more tasting room locations, combined with strong off-premise growth.

Below 100,000 cases, other Oregon labels growing at double-digit rates include Foley Family’s The Four Graces, Wine Hooligans’ Portlandia, and Banfi Vintners’ Rainstorm, according to Impact Databank. For more information regarding The U.S. Wine Market: Shanken’s Impact Databank Review & Forecast, 2023 Edition as well as other exclusive Shanken reports and publications, visit impactdatabank.com.

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