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Wine sales fell 8% through August 2024, according to data from the Wine & Spirits Wholesalers of America (WSWA). This is because changing consumer trends have made spelling of the category difficult.
Dale Stratton, an industry veteran, told WSWA that the decline in sales in the category was the result of “larger systemic issues” related to buying patterns. Premium wines priced over $100 have plummeted 12.5% over the past year.
The holiday season is typically associated with increased wine consumption, with retailers reporting their highest sales during this time. This year’s wine selling season is critical for the category due to the challenges producers face in this category throughout 2024.
Danny Brager, an analyst at SipSource cited by WSWA, said there are signs of optimism for some products within the wine category. Prosecco sales increased by 2%, and domestic low- to mid-priced wines priced over $50 also increased by 3%.
“This is a promising sign heading into the critical period (October-November-December) and provides hope that consumers in the higher price ranges are still willing and able to spend,” Brager said.
As casual drinkers choose ready-to-drink spirits or limit alcohol consumption altogether, producers are exploring a new future for wine that feels less certain.
Several large beverage companies facing losses in the wine business have turned to premium products, targeting more niche markets willing to pay more. Constellation Brands acquired Pinot Noir and Chardonnay producer Sea Smoke earlier this year as part of its fine wine business. Other brands are also being integrated, such as Duckhorn Portfolio, which was sold to private equity firm Butterfly earlier this month.
Other producers are reimagining their wine lineups with products that contain no alcohol. Luxury beverage giant Moët Hennessy this month invested in French Bloom, a non-alcoholic sparkling wine brand that aims to provide a more premium alternative to consumers who control their drinking.
