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The U.S. wine market saw a 2% volume decrease in 2023 but experienced its first dollar value increase since 2020, driven by higher pricing and strong performances in certain premium and mid-range categories. The market also observed a rise in zero-alcohol sparkling wines, appealing to health-conscious consumers and various occasions. For 2024, trends predict a shift towards alternative bubbles, South American wines, and exploration of new regions and wine styles, amidst economic challenges. Wine Enthusiast Companies has introduced new reviewers for Napa Valley and Sonoma County, part of its ongoing expansion. Legally, a California law restricting out-of-state wine sales is being challenged for its constitutionality, and Treasury Wine Estates faces a lawsuit over its Dracula-themed wine. On TikTok, influencers are significantly impacting wine choices, particularly among younger consumers. Lastly, ancient Roman wine production techniques are being revisited for potential adaptation to modern climate challenges, demonstrating the relevance of historical practices in sustainable viticulture.
The U.S. wine market faced a 2% volume decrease in 2023, hitting 322 million 9-liter cases due to economic uncertainty and competition from other beverages. However, there was a slight year-over-year increase in dollar terms, the first since 2020, mainly from higher pricing. Premium wines above $15 like Kim Crawford and Decoy by Duckhorn saw gains, but others like Meiomi declined. In the $10-$15 range, Josh Cellars and Kendall-Jackson performed well, leveraging consumer trust. Despite slight declines in some categories, the $15-$25 range showed growth, signaling value for consumers and a stabilizing market. Red wines dipped except for Bordeaux, and affordable 3-liter box wines saw an uptick, reflecting their status as a pantry staple. Both lower and higher-priced wine segments showed declines, while the mid-range maintained revenue growth and steadier volume.
The remarkable rise of zero-alcohol fizz
The surge of zero-alcohol sparkling wine is reshaping the market, appealing not only to teetotalers but also to those seeking healthier options or special occasions sans alcohol. This emerging trend, with a remarkable 32% value increase in the last year, intersects the popular realms of sparkling wine and non-alcoholic beverages. Brands worldwide, from Kylie Minogue’s 0% Sparkling Rosé to Zonin’s Cuvée Zero, are capitalizing on this trend, targeting diverse demographics across age groups. The appeal spans various situations, whether it’s for health, lifestyle preferences, or social events like baby showers. The U.S. and UK emerge as major markets for this fizz evolution, with notable growth projections for the near future. Retailers like Morrisons and Majestic are embracing this trend by expanding their alcohol-free wine offerings, signaling a broader shift in consumer preferences towards lower or zero-alcohol alternatives. Overall, this rising demand for non-alcoholic bubbly reflects a larger societal shift towards moderation, health consciousness, and inclusive beverage choices.
What will wine lovers drink in 2024?
In 2024, the wine market faces challenges with an 8.4% decline in volume and soaring prices, nudging buyers towards strategic choices. Alternative bubbles like English sparkling wine gain favor amidst a 20% dip in Champagne sales. High-end non-alcoholic wines witness steady sales, while South American regions, especially Uruguay, see growth. Hyper-local wines from emerging regions like Virginia gain traction, alongside divided interest in orange and natural wines. There’s a shift from ultra-premium wines towards exploring unfamiliar grapes and styles, signaling a year of consumer adventure amidst economic uncertainties in the wine landscape.
Wine Enthusiast Companies Announces New Reviewers for Napa Valley and Sonoma County Wines
Wine Enthusiast Companies introduces new reviewers for Napa Valley and Sonoma County wines, appointing Elaine Chukan Brown for Napa and Tom Capo for Sonoma. With expansion, both join as Writers at Large alongside existing California tasters, Matt Kettmann and Tonya Pitts. Previously, the Italian regions were divided between Danielle Callegari for Southern Italy and Tuscany and Jeff Porter for Northern Italy. The company, boasting record-breaking website traffic, announces plans for continued growth and welcomes fresh perspectives while detailing the credentials and backgrounds of the new reviewers.
A New Wine Legal Battle Erupts in California
A legal battle has erupted in California over a law preventing out-of-state wine producers from selling directly to California retailers and restaurants. Small wineries from Washington and Colorado, along with legal experts, are challenging the law’s fairness under the Constitution’s Commerce Clause. The suit contends that this restriction favors in-state businesses and limits consumer choices while potentially impacting wine prices. If successful, it could significantly alter wine distribution laws nationally, potentially expanding options for consumers and businesses. However, the outcome remains uncertain, with potential implications for both in-state and out-of-state wineries’ access to the California market.
Treasury Wine Estates sued over Dracula wine
A spook-tacular wine story is unfolding at Vampire Vineyards, where owner Michael Machat is suing Treasury Wine Estates over their Halloween edition 19 Crimes Dracula Red Blend, alleging it causes confusion and deceives the public. The lawsuit accuses the wine giant of unjust enrichment and demands compensation for each bottle sold in the US, claiming consumers thought they were purchasing Vampire Vineyards’ Dracula goods. Machat seeks at least $15 per bottle sold and $36 for on-trade sales. Treasury Wine Estates declined further comment, citing the ongoing case.
Can TikTok help future proof the wine trade?
TikTok is becoming a force in shaping wine choices, with creators educating users on grape selection. Gen Z’s significant influence on purchasing decisions, especially related to food and drinks seen on social media, is undeniable. While some wine bar owners welcome the attention, others, like Paris’s Folderol, faced disruptive crowds after TikTok fame, leading to necessary security measures. Despite challenges, not all influencers cause unwelcome hype, with some focusing on educational content or highlighting alternative wines. We, personally, love to see the way that social media boosts lesser known wine tourism destinations, like the Valle de Guadalupe wineries that we love so much.
Ancient Roman wine production may hold clues for battling climate change
The Romans, prolific wine consumers, employed unique vine-growing methods that may offer solutions for today’s climate challenges. Their agroforestry system, called arbustum, involved growing vines high into trees on damp, flat lands, a practice seemingly at odds with modern vineyard approaches. These methods, combining vines with fast-growing trees, not only thrived but also contributed to soil drainage and microclimate control. Despite increased warmth and humidity during the Roman era, these techniques sustained viticulture effectively. Modern experiments in France echo these benefits, showcasing how tree shade can delay grape ripening without yield loss in warmer climates. Insights from ancient practices, highlighted by the UN’s emphasis on agroforestry’s value in combating climate change, suggest potential adaptations for winemakers facing environmental shifts, prompting broader considerations about learning from history amid an uncertain future.
