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Impact Databank: Spurred By Off-Premise Surge, U.S. Wine Market Rises By An Estimated 2% In 2020

January 12, 2021

The full effect of the Covid-19 pandemic on the off-premise wine sector in 2020 can now be fully ascertained, as total case volumes in IRI channels for the 52 weeks ending December 27 accelerated to a double-digit gain of 10.1%, while retail dollars rose even more, by 14%. That compares to an increase of just 2.1% in dollar terms for the prior 52 weeks in IRI channels, and a 0.7% decline by volume. Impact Databank estimates that the total U.S. wine market grew a modest 2% in volume terms in 2020, after eking out a 0.1% gain in the prior year.

Sparkling wines were the fastest-growing sector last year, as off-premise volumes rose 20.3%, according to IRI. Imports outperformed domestic sparkling brands and Champagne advanced 17.8% in volume terms, but the fastest-growing type was Prosecco, which surged by 25.5% off-premise. Imported sparklers were led by La Marca Prosecco, which is estimated to have reached 2 million cases in the U.S. last year, according to Impact Databank, to become the market’s largest-selling sparkling wine brand by volume, while Veuve Clicquot Champagne continues to lead in dollar terms.

Table wine also had a banner year in IRI channels, as volumes advanced by 11.3% the past 52 weeks, and dollars rose by 13.8%. In spite of tariffs, imports outperformed domestic brands last year, with French table wine increasing 13.4% by volume in the off-premise. New Zealand (+20.6%) and Italy (+17.7%) fared even better, while table wine from Oregon led all major domestic origins in percentage growth terms with a 16.8% gain last year. California (+8.1%) and Washington (+3.8%) wines also posted increases. Imports have gained 10 full share points from domestic wine in the past 30 years, according to Impact Databank.

Table wine priced at above $20 a 750-ml. was the fastest-growing segment in IRI channels, as volumes surged 26.2% the past 52 weeks, while table wine priced below $8 per bottle increased just 3.2% in volume. Drinkers apparently traded up off-premise during the pandemic, as wines priced between $15 and $20 also performed very well (+20%), while those priced between $8 and $15 registered a 12.5% gain in IRI channels. In dollar terms, table wines priced above $10 accounted for over half the U.S. market in 2020, according to Impact Databank, compared to under 40% share just 10 years ago.—Juan Banaag

The Top Six Wine Brands In The U.S. Off-Premise
(millions of dollars)
Brand Company 52 Weeks Ending
12/29/2019
52 Weeks Ending
12/27/2020
Percent
Change1
Barefoot Cellars E.&J. Gallo $668.3 $708.2 6.0%
Sutter Home Trinchero Family Estates $410.5 $427.8 4.2%
Franzia The Wine Group $361.6 $404.3 11.8%
Woodbridge by Robert Mondavi Constellation Brands $377.0 $395.8 5.0%
Josh Cellars Deutsch Family $267.1 $372.8 39.6%
Bota Box Delicato Family Wines $217.3 $325.6 49.8%
Total Top Six $2,301.7 $2,634.5 14.5%
Other Brands $11,027.5 $12,572.0 14.0%
Total Wine2 $13,329.3 $15,206.5 14.1%
1 Based on unrounded data.
2 Based on unrounded data.
Sources: IRI and IMPACT DATABANK © 2021
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