Washington Wine Shipments Decline in 2Q 2022 Versus Strong Comparison 

Washington State wine producers shipped 2.9 million cases of packaged wines in the second quarter of 2022, a decline of 9% versus a strong comparison last year. This marks the fourth consecutive quarterly decline for the industry, based on Vintage Economics’ analysis of Washington State Liquor and Cannabis Board data.

Washington’s two largest wineries – Ste. Michelle Wine Estates and Precept Brands – both reported decreases for the quarter. Their combined shipments represent 70% of the state total.

Growth in the red-hot DTC channel is also showing signs of softening. Second quarter DTC sales/shipments fell on a year-over-year basis – the first quarterly decline since 3Q 2020.

Consequently, growth is beginning to stall in the small and mid-sized winery segment. More than half of all wineries reported drops in volume in 2Q 2022 versus the same period last year. Nonetheless, some continue to post strong gains. Mark Ryan, for instance, reported a year-over-year increase of almost 6,500 cases. And nearly two in three are still ahead for the trailing twelve-month period.

The Washington grape crop looks to be of good size and quality heading into August, though an extended period of triple-digit temperatures is posing a challenge for growers. There are currently no active large fires in the state.

Contact Chris Bitter for more detailed data and analysis on the Washington wine industry including winery level metrics or visit the website at www.vineconomics.com to learn more about Vintage Economics.

Chris Bitter

Bitter@VinEconomics.com

206-981-6885