Impact Databank: U.S. Table Wine Market Remains Sluggish, But Above $15 Brands ThriveAugust 17, 2022
As the on-premise sector continues its slow but steady recovery from the pandemic, the U.S. wine market is expected to eke out another gain in dollar terms in 2022, but volumes will fall for the second consecutive year, according to The U.S. Wine Market: Shanken’s Impact Databank Review & Forecast, 2022 Edition. While the overall industry has been sluggish the past few years—in part due to competition from spirits, particularly Tequila, whiskies, and especially low-proof RTDs—table wine brands priced above $15 a 750-ml. have been bucking the trend, and these premium labels rose at near double-digit rates again in 2021.
New Zealand’s Kim Crawford from Constellation Brands is the largest-selling table wine by volume in this higher price tier, while second overall is California’s Meiomi, also from Constellation. Both registered double-digit gains last year, as did such labels as La Crema, Decoy by Duckhorn, and Bread & Butter—according to 247-page Impact report, released last month.
Below a million cases in the above-$15 sector, strong performances were posted in 2021 by California labels Justin Vineyards, Sonoma-Cutrer, and Daou Vineyards, as well as by Italy’s Santa Margherita and France’s Chateau d’Esclans. The resilience of premium brands has continued into this year—while total table wines have fallen 9% by volume year-to-date ending July 10 in IRI channels, labels priced over $15 have registered solid growth of 3%.
One tier below at between $10 and $15 a 750-ml., results were mixed last year among California table wines, but solid gains were registered by Josh Cellars and Kendall-Jackson. In 2021, Josh became one of the wine market’s five largest labels overall in dollar terms, according to the Shanken report, even though it was not among the top 10 by volume. Kendall-Jackson’s Vintners Reserve remains the market’s largest-selling Chardonnay, as it has for the past 30 years. Among all wines in 2021, Italy’s Stella Rosa was the fastest-growing label priced above $10 a 750-ml. Last year, Stella Rosa became the market’s largest-selling import, surpassing Australia’s Yellow Tail, which had held that spot since 2003.
Gallo’s Barefoot brand is the number-one wine in the U.S. by retail value, but Stella Rosa ($13 a 750-ml.) leads all imports and was number-two overall in dollar terms last year. At above $20 a 750-ml., Meiomi is the largest-selling upscale wine in the U.S. by retail dollars, according to Impact Databank, followed by two Champagne labels from Moët Hennessy USA, Veuve Clicquot and Moët & Chandon.
For more information regarding The U.S. Wine Market: Impact Databank Review & Forecast, 2022 Edition, as well as other exclusive Shanken reports and publications, visit impactdatabank.com.—Juan Banaag
|U.S. Table Wine Market By Price Segment
(millions of 9-liter case depletions)
|Total Table Wine2||290.6||286.1||-1.5%|
|1 average price per 750-ml.
2 addition of columns may not agree due to rounding.
Source: IMPACT DATABANK © 2022