The United States leads the world in wine consumption and The Duckhorn Portfolio expects the U.S. share of the global wine market to continue to grow.
In turn, The Duckhorn Portfolio is the leading producer of luxury wines in North America.
The company has been delighting millions of consumers with authentic, high-quality, affordable wines for more than four decades.
The Duckhorn Portfolio has a portfolio of highly acclaimed luxury wines across multiple varietals, appellations, brands and price points.
In particular, its portfolio focuses exclusively on the desirable luxury segment, which it defines as wines that sell for $15 per 750 ml bottle and above.
According to Statista data that captures on- and off-premise sales, the total value of U.S. wine sales was more than $78 billion in 2021.
While the Covid-19 pandemic initially adversely impacted on-premise sales, including in bars and restaurants, The Duckhorn Portfolio has seen the channel recover to pre-pandemic levels.
As a result, the total value of wine sales in the U.S. is expected to remain relatively resilient to any future impact of the pandemic.
The Duckhorn Portfolio believes that favorable trends will continue and that wine will gain further share of the U.S. beverage alcohol market, led by established brands with diversified offerings.
Most of The Duckhorn Portfolio’s wine is sold in the growing U.S. market.
Millennial and Generation X American adults have come of age in a culture where cooking shows, celebrity chefs, farmers’ markets and food blogs are the norm.
Increasingly, American consumers are hungry and thirsty for high-quality food and beverages and are willing to pay more for items perceived as superior. The Duckhorn Portfolio highlights that wine continues to benefit from this premiumization trend.
The firm finds that millennial wine buyers tend to spend more per bottle than any other generation and that, as their careers advance and their incomes rise, both millennials and Generation X wine enthusiasts are willing to spend more on wines, especially those from experiential brands with authentic estates.
As of July 2022, the luxury wine segment has increased its share of the overall wine market by 5.0%, since December 2019, according to IRI.
The Duckhorn Portfolio has steadily increased its market share in the growing luxury wine segment before, during and coming out of the pandemic, and believes premiumization will continue to benefit its business as consumers seek trusted brands.
According to IRI, U.S. luxury wine segment sales grew 3.5% in the fiscal year ended July 31, 2022.