The bulk wine market in the Pacific Northwest is ever changing. Perhaps never moreso than in 2023.
The changes within Ste Michelle Wine Estates have been widely publicized. These reductions in anticipated wine grape production in Washington State will have a range of impacts. Many of these reductions were made after most of the farming inputs had been implemented. These sunken costs will lead to large volumes of fruit being for sale at attractive prices as well as bulk wines being broadly available for sale from both the 2022 and 2023 vintages. On the horizon, the number of planted acres will inevitably be reduced to cope with smaller production from the State of Washington’s leading producer. This activity dovetails with some new and significant plantings in Walla Walla Valley and Yakima Valley. This activity will create new and dynamic opportunities later this decade in one of Washington’s most coveted and recognized sub appellation as well as niche varietals from the heart of Washington State’s white wine producing appellation.
There are many mid sized and growing producers within and outside of the State of Washington having a great deal of success in National sales categories. The $15-$25 price point per bottle is achieving strong growth for some Washington brands in both the on and the off premise categories. There has been significant demand from value tier brands largely being sold through national retail chains. There has also been white hot success in alternative packaging formats growing their audiences in the 30-45 demographic, selling wine directly to consumers nationwide. These fast growing, creatively marketed, young minded companies are showing us what the future of the wine industry will look like.
The meteoric rise of Oregon and Willamette Valley Pinot Noir categories over the past decades appears to have somewhat cooled. Demand has been steady, but due to national wine sales realities, the slowing trend of wine sales across categories has finally landed in Oregon. This dynamic creates opportunities for companies that were being priced out of these categories with bulk wine and grape pricing and availablity from the past several vintages. The grape and bulk wine markets leave opportunity space for brands with their eye on nationally marketed Oregon and Willamette Valley Pinot Noir.
Incredible Bulk Wine Company remains your leading resource for Pacific Northwest bulk wines, wine grapes, and production contract opportunities across all categories. We look forward to discussing how your company may take advantage of current and future opportunities in the Washington and Oregon markets.