Wineries

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 11,000 wineries in the US produce and sell a wide range of wines. Wines can be broadly categorized into three groups: still wine, often referred to as table wine; sparkling wine, effervescent wines like champagne; and dessert wine, such as brandy. Most wineries operate their own vineyards for grape production, but may purchase a large percentage of their needs from independent growers.

Industry Consolidation

The industry has seen an increase in the consolidation of vineyards and wineries, particularly smaller, family-owned operations.

Increased Regulation And Taxes

The wine industry is subject to strict, frequently changing, federal and state government regulations covering virtually every aspect of operations from production to advertising.

Industry size & Structure

The average winery employs 4-5 workers and generates $1.8 million in annual revenue.

    • The wine making industry in the US is characterized by thousands of small, family-owned wine growers and wineries, together with a few very large, sometimes publicly-held, wine conglomerates.
    • There are over 11,000 wineries in the US, employing about 48,600 employees, and generating sales of about $20 billion.
    • The average winery relies on seasonal contract workers for many growing and production related jobs.
    • US export sales of wine are about $1.67 billion, to 151 different countries.
    • In California, about 620,000 acres are devoted to wine grapes, growing over 110 varieties of grapes and producing an average of 4 million tons of grapes annually.
    • The 4 largest US wineries, which include E&J Gallo, The Wine Group, and Constellation Wines, generate about 41% of total industry revenue.
    • The greatest wine producing states are California, Washington, and Oregon.
                                    Industry Forecast
                                    Wineries Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Apr 21, 2022 - Major Cities Drop Vaccine Requirements for Bars, Restaurants
                                    • Amid falling COVID-19 cases, vaccines requirements for indoor dining and bars are being lifted. Major cities that had required proof of vaccination for indoor dining – including New York, Los Angeles, San Francisco, Seattle, Philadelphia, and Boston - have since removed the requirement. As of April 4, 2022, 23 states had banned vaccine requirements, including mandates and passports.
                                    • Demand for wine in restaurants and bars may increase as pandemic conditions have improved and restrictions have eased. Hawaii, the final holdout among states with indoor masking mandates, let its mask mandate expire on March 25. The Centers for Disease Control and Prevention still recommends that masks be worn in areas of substantial or high transmission, regardless of vaccination status.
                                    • Deals by private equity funds to invest in wineries, vineyards, and distributors increased 75% year over year through September, according to Refinitiv. According to Pitchbook, spending on mergers and acquisitions of wine-related firms totaled $8.1 billion during the first nine months of 2021, up from $1.8 billion during the same period in 2020. Analysts say that investors are betting on rising prices for winery acreage despite a pandemic-related decrease in demand for wine.
                                    • Americans’ drinking habits – what they drink and how much – are about the same as they were pre-pandemic, according to new research conducted by Echelon Insights. The result is contrary to the widely-held assumption that people are drinking more during the pandemic. While 1 in 5 respondents reported drinking more, nearly the same amount also reported drinking less. Nearly 60% of respondents reported no change in their drinking habits since the pandemic began. These results are in line with other public polling from 2020 that showed most Americans reported drinking about the same during quarantine, including IUPUI, Morning Consult, and YouGov results.
                                    • Seasonally adjusted US sales at food services and drinking places rose 1% in March 2022 compared to February. On an unadjusted basis, sales rose 25.7% in the first three months of 2022 compared to the same period in 2021.
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