Oregon wine leads U.S. in growing direct-to-consumer sales

Published 11:15 am Friday, January 28, 2022

PORTLAND — Bolstered by high demand and rising prices, Oregon’s wine industry led the U.S. in accelerating its rate of growth for direct-to-consumer sales in 2021, according to an analysis of shipment data from more than 1,300 wineries nationwide.

The annual report, issued by Sovos ShipCompliant and Wines Vines Analytics, shows Oregon wineries shipped 560,702 cases of wine valued at $285.5 million.

That represents an increase of 12.9% in volume and 18.7% in sales value over 2020, outperforming all other wine regions across the country.

Pinot noir dominated the share of Oregon direct-to-consumer sales, accounting for more than half of the state’s wine shipments and two-thirds of the total sales value. Even with a 5.1% increase in the average price per bottle — up to $51.29 — shipments of Pinot noir still jumped 8.2%.

“This translates into an undeniable increase in demand for Oregon wines, and Oregon Pinot noir in particular,” the report states.

Sarah Murdoch, communications director for the Oregon Wine Board, said Oregon only produces 2% of the nation’s wine, but has garnered a reputation for high quality, driving up demand among wholesalers and retailers.

“We’re still little, but we’re just getting more and more well known,” Murdoch said. “That demand is really hard to create in a crowded marketplace.”

Last year also saw a “great return to Wine Country” following pandemic closures in 2020, Murdoch said. More people were comfortable visiting tasting rooms, and wineries themselves became more savvy with online marketing.

“These things really helped people buy and have more Oregon wine shipped to them,” Murdoch said.

While Oregon wines account for only 6.8% of the value of direct-to-consumer shipments nationwide, that is more than double its share from a decade ago, the report states. 

It isn’t just Willamette Valley Pinot noir. In 2021, Chardonnay shipments from Oregon increased 28.7% in volume and 36.4% in value over 2020. That includes a 6% increase in the average price per bottle. 

Sparkling wine is also gaining steam in  Oregon, increasing 60.7% in value and 55.6% in volume over 2020.

Murdoch said Pinot noir has long been the bellwether winegrape variety in Oregon, though she described Chardonnay as a “sleeping giant.” Between 2016 and 2021, Chardonnay plantings increased 43% in Oregon, to 2,600 acres. 

“As plantings go up, our optimism in that grape goes up, and so does the attention,” Murdoch said. 

Industry-wide, direct-to-consumer wine shipments in 2021 returned to normal  following pandemic-fueled turmoil of 2020, the report states.

Total sales value eclipsed $4 billion for the first time. That was due to the largest ever year-over-year increase in the average price per bottle, up 11.8% to $41.16.

However, the large increase in average price per bottle comes on the heels of a 9.5% decrease in 2020, when more first-time buyers stuck at home were purchasing less expensive wines, and wineries were offering unusually large discounts.

“The winery (direct-to-consumer) shipping channel experienced a recovery in 2021 and a transition back to relative normalcy,” the report states. “In fact, 2021 looks a good deal like what we would have expected it to look like had the pandemic never happened.” 

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