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BEVCOMMUNITY

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Bank Releases State of the Wine Industry Report

By February 26, 2024Top News

Napa Valley’s Silicon Valley Bank released its latest wine industry findings. In summary, direct-to-consumer volume and value sales were lower in 2023 and tasting room visitation dropped for the second straight year, but the strong 2023 holiday sales should improve the outlook for both. Consumer demand for the total wine category continues its decline. As reported over the last several years, fewer U.S. consumers have been drinking wine as alternatives such as RTDs, spirits, cannabis or abstaining altogether are on the rise. The report cites an oversupply of planted vineyards with conditions present for overproduction, which may lead to inventory excess, discounting and price reductions. The premium wine business has been the “bright spot” in total wine category sales, with volume sales above $12 remaining positive. Read more here.

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