Brave New Washington
It has been questioned throughout the wine industry what might the new Washington Industry most greatly resemble? There have been major shifts in the industrial landscape and the future is unknown. The landscape is rapidly changing underneath our feet.
With an eye towards recent actions in the mergers and acquisition market, it appears that luxury and prestige brands hold a strong value. The sales of low priced bottles are reaching double digit monthly and yearly figures across the West Coast. White wine and rosé have now eclipsed red wine in terms of consumption.
Washington made its reputation nationally by making a great bottle of wine for the money. WA’s growth on the national wine scene was in a golden heyday where sub $15/bottle and sub $10/bottle experienced searing, nearly 20 year growth. Washington held itself as a forerunner of over delivery for the price point. In a competitive market, Washington acquitted itself above its fighting weight and clawed out shelf space.
Growth in price points $15-$25/bottle and $50+/bottle show a continued climb in growth. In a market where the pie is shrinking, differentiating a region based on its excellence at higher price points and its gravity as a destination (Hello, Walla Walla) are the points on which Washington could hang its hat into the future. Wineries with hero scores are prominent in Washington and they have been since the 1980s.
The grape market in Washington will surely shrink in the coming years, and it may need to do so to be able to grow again.
The new focus from outside investment eyes are upscale boutique labels that over deliver from exclusive AVAs at high price points. The new reality for Washington could involve an industry similar in size to that of Oregon, with mid sized wineries holding a balanced proportion of the grape marketplace. Washington’s rightful presence on the global marketplace may be better landed in the guise of luxury production, breathtaking destinations, and its natural sustainability with an eye towards the future.