Sales growth for wine in general was up 7.7% for table wine, but up more than 23% for wine from Oregon, according to a report by Danny Brager for the Oregon Wine Board.
For 12 months ending January 2022, one of the brightest spots was the higher priced wine between the $25 to $49 price per bottle segment, which is trending up 11.9%. The $50+ wines are trending up 45.8%. For Oregon, a winemaking region that sits comfortably at the table of higher priced wines, our largest share gains are in the $20-$25 table wine segment. Brager noted: “Oregon’s price tier trends tend to generally ‘mirror’ overall Table Wine trends – but unlike Oregon, total table wine trends are weighted heavily to the ‘bottom’ tiers.”
Pinor noir, which accounts for 58% of the acreage planted in Oregon, is head and shoulders above Cabernet Sauvignon, Zinfandel, Sauvignon Blanc, Chardonnay, Red Blends, Merlot, Rosé and Pinot gris in $15+ domestic table wine at a 32.8% volume share in the 12 months ending January 2022. Similarly, Pinot noir’s volume growth by variety in Oregon was up 18.3% in 2021, three times the growth of Pinot noir across the U.S. which came in at 6.1%.
Oregon continues to maintain its premium, higher than average retail price in stores, a key factor in insulating the wine business given broader wine premiumization price tier trends. A 750 ml bottle of Oregon table wine cost $17.10 in 2021, California’s was $10.46, and Washington’s $8.15. Total market overall price is $8.46 per bottle on average.
As for sparkling wine, Oregon showed enormous growth, up 62.5% total volume in 2021. Compare that to total volume for domestic Sparkling wine at 10.1%. Chardonnay is the second highest total volume growth, with a 42.8% increase, even more outstanding considering that Chardonnay across the U.S. was down -3.2%.
In wines shipped direct to consumers in 2021, Oregon averaged $42 for an average bottle, behind California at $43.94, with Napa specific wines at $72.41 per bottle, but over $6 higher per bottle than Washington as reported by SOVOS/ShipCompliant.
In summary, Brager notes the following growth points:
- The Oregon segment is growing faster than the table wine category, both in retail and DtC
- Oregon wine is a premium player as a key participant and driver of growth at the premium end of the overall wine market (higher price tiers)
- Oregon wine is a meaningful retail, three-tier, and DtC player, and DtC in general is commanding a larger OVERALL channel share within wine
- Oregon wine’s signature varietal Pinot noir is making further inroads nationally, with the share expanding both within and outside of Oregon.