Wine Vineyard

Cold weather damages vineyards

Cold weather in January damaged some vineyards in Walla Walla, northern Washington and British Columbia; however, the extent is not yet known. Damaged acres could reduce wine grape production in 2024.

Excess wine supply in Washington

While the removal/replanting of vineyard acres and damage from recent weather events could reduce yields and improve the supply and demand balance, Washington is likely to remain oversupplied over the next couple of years. Excess inventories with multiple vintage years remain a challenge.

California’s 2023 crop size increases

California’s 2023 wine grape crop increased 8% from 2022, in part due to production gains in the North Coast, Central Coast and northern interior regions; however, a significant number of tons were not harvested due to weak demand and quality issues. As in Washington, California faces an oversupplied market.

Direct-to-Consumer (DtC) sales mixed

DtC sales values in 2023 were relatively flat across the West Coast; however, declines occurred in terms of volume in both California and Oregon. National DtC sales are increasing in the $60+/bottle categories and falling in lower-priced tiers.

Imports decline in 2023

Wine imports declined from nearly every major trade partner, particularly Chile (down 45% year over year), France (16%) and Italy (13%). While total value declined as well, per-bottle values increased by 7% on average. Reduced import volumes and increased per-bottle values could support domestic prices.

Wine imports by country

Source: U.S. Census Bureau.