Growing Power of Medium-Sized Wineries

The winery-to-consumer direct shipping market experienced a year of robust growth in 2014. We’ve discussed some marks of this growth with our coverage of the average wine bottle price and the increasing popularity of Pinot Noir from the information in our Direct Shipping Report.  Another example of the progress 2014 saw comes from the success that medium-sized wineries experienced.

Untitled-2Medium-sized wineries are those that produce 50,000 – 499,000 cases per year. In 2014, medium-sized wineries made up 253 of the total 8,185 in the U.S. Though this is only roughly 3% of the total wineries, medium-sized wineries accounted for 31.2% of the total volume of wine shipped direct to consumers. This was a 24% increase in the volume of wine shipped in 2013.

This growth for medium-sized wineries came at a cost, however. Excluding limited production wineries, medium-sized wineries were the only wineries to BlogImageexperience a decrease in the average price per bottle. Medium wineries took a 7% cut on their average price per bottle. This seems to be a worthy loss, nevertheless, as these medium sized wineries experienced a 15.6% increase in the total dollar value of the industry.

The direct to consumer industry clearly strengthened in 2014. The growth experienced by medium-sized wineries is another example of this overall growth. We will find out this year if they can maintain this growth while also achieving an increase in the average price per bottle.

For more details on how all wineries in the U.S. performed in 2014, download the 2015 Direct Shipping Report.

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