Anyone keeping up with the wine world is probably familiar with the consistent drum of negative data and hyperbolic headlines suggesting the industry is on death’s door. This panic has been primarily fueled by Silicon Valley Bank’s (SVB) 2024 report that donned a foreboding “survival of the fittest” theme for the U.S. market. The report sounded alarm bells for many in the business, driving home that consumer demand for wine is dwindling in favor of RTDs, spirits, and cannabis.
Wine professionals have long relied on SVB’s annual state of the industry report for data, but there’s a new bank in town — and it comes bearing less bleak news. On Wednesday, BMO Financial Group released their inaugural BMO Wine Market Report, which offers a surprising glimmer of hope.
“2023 was a challenging year for the U.S. wine industry, but more than half of all U.S. wineries met or exceeded their sales goals,” the report states. BMO claims that this report is the first of its kind to assess 100 percent of wine sold in the U.S. market, using extensive data from partners like WineBusiness as well as market research firms Bw166 and Gomberg, Fredrikson & Associates. The report also used insights from a survey of 630 U.S. wineries.
Though the industry certainly faces some persistent challenges, this report is cautiously optimistic about the future. Here are three key takeaways from the new BMO report.
Premiumization is fueling growth.
Even though sales by volume are on the decline, premium wine sales
