Much better than some might think!
Wineries selling in the premium and direct to consumer sector have experienced positive outcomes. Looking back over the past three years:
- 2020 was the toughest year for direct sales in the last ten years due to the COVID-19 pandemic. The closure of tasting rooms and restaurants made it difficult to sell premium wine. I'm glad we're past that whole mess!
- 2021 was a huge rebound year for wineries selling direct. The rollout of vaccinations, reopening, and the early stages of travel normalization improved the market opportunity. Hospitality as a whole had a very good 2021 as you probably noticed with hotel prices soaring during the year.
- Compared to the best year of the decade, 2022 may not have been as good, but for those who sell DTC, business was still quite successful. By the end of 2022, the Peer Group Financial Database of Silicon Valley Bank reported that the premium segment had a sales growth of 13.8%, and three-quarters of wineries in that segment saw an increase in revenue.
- Narrowing down to the DTC channel, tasting room purchases increased in most wine regions. The wine club also accounted for a larger portion of sales for the average winery. Additionally, wineries producing under 5,000 cases reported that their direct-to-consumer sales continued to grow and now make up 81% of total sales. The average bottle price also saw growth, and most regions reported an increase in volume. This is especially noteworthy for the west coast, which experienced three consecutive years of light red wine yields.
There is More to Discuss
Silicon Valley Bank will be releasing it's 12th Annual DTC Survey Results: Report, and Benchmarks on Wednesday, August 16th at 9:00AM PDT. That report release will take place live via a Zoom webcast.
RSVP today to receive priority access to the links to the live event, the 2023 Direct-to-Consumer Wine Survey Report, and the on-demand event replay.
This year's panel will feature:
- Rob McMillan – EVP & Founder, Silicon Valley Bank Wine Division
- Jessica Kogan – Chief Growth and Experience Officer at Vintage Wine Estates
- Andrew Walleck – Chief Operating Officer at Wine Access, Inc.
- Susan DeMatei – President/Founder of WineGlass Marketing
REGISTER TODAY to join us for this highly anticipated virtual gathering.
