The Ups and Downs of US Wine Sales in 2020

The latest reports for US wine sales shows a monthly drop of 9% in the overall market but that hardly tells the story. On-premise sales are significantly down (one recent report shows a drop of 31%) but while off-premise sales remain relatively strong again that is not the whole story.

Just published in the Wine Business Monthly is an article that quotes a survey conducted by the Wine Market Council. They found that 39% of high frequency wine drinkers and 52% of ordinary wine consumers are spending less time in stores (off-premise retail). They normally would ask the store staff for recommendations, but this is not happening as much as pre-pandemic. The primary issue (40%) was that American consumers felt there were too many choices and secondarily (36%) that they were challenged by not being able to taste the wine (being unsure if they would like it).

Consequently, American consumers are buying big brand names (ones that always taste the same?). Going forward smaller producers are going to need to find solutions how to overcome these issues. In the past sommeliers at restaurants could be of help in encouraging wine drinkers to try lesser known brands but under the circumstances this may be a long time until this option returns. How many smaller (off-premise) retailers will be able to continue to provide alternative wine choices?

Once COVID-19 travel restrictions are lifted many Americans will seek to explore their world. Those who are wine lovers will choose wine tourism destinations. Being able to provide good alternative by smaller producers will be crucial to capturing visitor interest!