Dear Client:
The direct-to-consumer wine shipping channel faced its toughest year yet in 2024, according to Sovos ShipCompliant’s 2025 DTC report. Overall DTC wine shipment sales were down 5% to $3.94 billion and volumes were down 10% to 6.4 million cases last year, their steepest declines since the 2010 inception of the report.
The report is an annual collaborative project between Sovos and WineBusiness Analytics, analyzing shipment data from over 1,300 US wineries’ monthly shipments to consumers. There were over 31 million wine shipments made in 2024.
DTC wine shipments made up 8% of the total value of all off-premise sales of domestically-made wines in 2024. According to managing partner at bw166, Jon Moramarco, the total off-premise sales market for domestic table and sparkling wines in 2024 (including DTC) came out to about $51 billion, short of 2023’s $51.4 billion.
AVERAGE BOTTLE PRICING UP, BUT STABLIZING. As in recent years, average bottle price increased once again, up 6% to a record $51.20. However, a “silver lining” Sovos highlights is that the overall rate of price increases is slowing– prices were up 7% in 2023, up 9% in 2022, and up 12% in 2021.
For some context on recent inflationary rates, between 2011 and 2019, yearly price increases averaged about +1%.
ALL PRICE TIERS SLOWING OR DOWN. For the third year in a row, lower-priced wines were in decline, only “slightly” offset by “stability in the upper price categories,” per report.
Wines priced below $40 per bottle saw a 15% decrease in shipments year-over-year in 2024. The $40-and-under category accounts for 54% of all DTC wine shipments, but only 23% of shipment value.
On the other end of the spectrum, wines priced $80+ saw a 2% year-over-year sales increase, a slowdown from its 5% growth in 2023, “indicating that even the higher price brackets are losing some momentum,” per report. The $80-and-above price segment makes up only 16% of DTC wine volume, but accounts for almost half (47%) of the channel’s sales.
TOP DESTINATIONS HOLD YET AGAIN. The top five wine shipment destinations held their spots again in 2024, with California coming in as the top destination, followed by Texas, Washington, Florida and New York. The five states received over half (52%) of all DTC wine shipments last year, with California alone receiving 28% of all DTC shipments.
Taking a slightly different view, Sovos broke down shipments per capita, which shifted the ranking quite a bit. The top five five destinations per capita included: Oregon, California, Washington state, Washington D.C., and Colorado.
Sovos notes that 2024 was notable for its lack of growth from new states opening up DTC markets. “With only a few states still banning or substantially limiting shipments, the channel now responds more to macroeconomic and cultural trends, similar to other mature industries,” they write.
One of the most recent additions to DTC wine, Alabama– which launched its direct shipment market in 2021– saw the largest volume increase year-over-year, up 19%. On the other hand, Alaska, which changed its winery licensing requirements last January, saw almost a 50% drop in shipment volumes last year.
Stay tuned for more from the DTC wine shipping report, including trends by region, winery size and varietals.
FAR NIENTE WINE ESTATES CEO RETIRES
Far Niente Wine Estates announced today the retirement of ceo Steve Spadarotto. Stepping in as interim ceo is Carol Reber, current member of the Far Niente board of directors.
Steve joined the company in 2018 and has helped “guide Far Niente through an exceptional period of financial growth and new product innovation,” including the launch of Post & Beam and the renovation of the new Bella Union Winery in Rutherford, per release.
“We thank Steve for leading Far Niente to become one of North America’s most dynamic and successful luxury wine companies during his tenure,” says Rick Magnuson, founder and executive managing director at GI Partners (which jointly owns Far Niente with Apax Partners).
“I am proud of what our team has accomplished over the past seven years,” says Steve. “I leave the company knowing that Far Niente is in great hands and poised for even greater success in the years to come.”
Carol has more than two decades of wine industry experience, most recently working as evp chief marketing & DTC officer at The Duckhorn Portfolio from 2010 to 2022.
“I have worked with Carol for over a decade and have been impressed firsthand by her industry acumen and leadership capabilities as both an executive and a board member,” Rick adds. “We look forward to seeing her usher in the next era of progress.”
WSD BRIEFS:
FREY RANCH DISTILLERY EXPANDS INTO CO & IL. Nevada-based Frey Ranch Distillery announced today its expansion into Colorado and Illinois. The portfolio is now available in 15 markets nationwide, including NV, CA, TX, OH, OR, GA, AZ, TN, FL, MI, VA, NM, and IN. “We’re excited to introduce the Frey Ranch portfolio to Colorado and Illinois – giving these markets a taste of true farm-to-glass whiskey with the grains we grow and harvest exclusively on our farm,” says co-founder Colby Frey, adding, “what’s also exciting is the groundswell of interest in estate distilling across the wider whiskey world.”
QUINTESSENTIAL EXPANDS SPIRITS PORTFOLIO WITH TIA LINDA’S MARGARITA RTD. Importer, marketer and distributor Quintessential announced yesterday it has struck a new partnership with Tia Linda’s Margarita. “Tia Linda’s Margarita stands out with their premium ingredients and exceptional flavors, and we look forward to expanding their presence nationwide,” says Quintessential co-owner Dennis Kreps. The brand contains 18% abv and comes in four flavors: Classico, Strawberry, POG (passion fruit, orange and guava), and Spicy Jalapeño. Tia Linda’s was founded in 2018, launching Classico in 1.75L bottles in 2020 before introducing individual cans in 2021. “Partnering with Quintessential lets us expand our reach while staying true to the values and flavors that have made Tia Linda’s a craft margarita favorite,” adds Tia Linda’s co-owner Meghan Hayward.
Until tomorrow,
Your editors
Sarah Barrett, Executive Editor
Hana Kruger, Editor
“Time flies over us, but leaves its shadow behind.” – Nathaniel Hawthorne
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