Last October, when some consumers were partaking in “sober October” and refraining from drinking alcohol, J. Lohr Vineyards & Wines had a diverging message: Come on Over October. The campaign was designed to spur socializing with family and friends, a practice that company president and CEO Steve Lohr says is waning. “We need to remind people that having wine in a social setting just makes life better,” he says. “If you’re sharing wine with your friends over dinner or somebody brings over a bottle, it just automatically brings cheer to any occasion.”

Lohr says the lack of casual socializing is particularly prevalent among younger consumer groups. “Those same 20- and 30-somethings who aren’t drinking as much are also, quite frankly, not as social,” Lohr continues. “They’re on their phones all the time. They need more moments where they can just be together off their phones in person and share over a glass of wine.”

Anthony Capobianco, senior vice president of global sales and marketing at Rodney Strong Wine Estates, also laments the shift. “One of the least-discussed factors is the retraction from events where we celebrate and commune together with friends and family,” he says. “There has, in my opinion, been a significant decrease in social gatherings, celebrations, and other occasions where wine…would be shared. People in recent years talk virtually more often than face-to-face and have more screen time. It is difficult to share a bottle of wine over the phone, computer screen, or on a social media app.

“There is so much talk about health in the media, but very little discussion about the benefits of socializing, human connection, and putting our devices down,” Capobianco continues. “People need to remember the joy of connecting with each other in person. If more people return to a focus of gathering together, I believe our industry could be happier and healthier than ever.”

Momentum is gathering behind this type of messaging. Industry trade organization Wine Institute is looking to help wineries with its Cultivating Togetherness initiative, which offers tools for encouraging more social interactions involving wine. “The idea is cultivate or bring together people so that they can share unique moments,” says Lohr, who serves on the Wine Institute Board.

Super-Premium Fortitude

The need to promote wine consumption occasions comes as overall consumer interest in wine continues to wane. The U.S. wine market declined an estimated 5.7% by volume last year, according to Impact Databank. Super-premium wines, however, fared better than the category overall. The leading million-case wine brands retailing at $15-plus combined for 2.4% volume growth in 2024, with five of the nine top labels showing positive gains.

That list of nine top super-premium brands includes six California labels. WX Brands’ Bread & Butter generated a 12% increase to 1.7 million cases in 2024, according to Impact Databank. Among its moves last year, Bread & Butter debuted a Sliced offshoot in the better-for-you wine category selling at $16 a 750-ml. In addition, The Diamond Collection from Delicato Family Wines registered growth of 4.6% to 1.1 million cases. Decoy by Duckhorn also turned in a solid performance, rising 2.7% to 1.5 million cases.

While super-premium wines hold strong, the largest declines are coming from wines priced at the premium level or below. “We see inflation impacting consumers and trading down heaviest at or below the premium segment, whereas the super-premium and above buyers have continued discretionary spending for fine wines,” says Jason Daniel, CMO for Foley Family Wines & Spirits. “The dramatic cellar-stocking trend in fine wines recognized during the pandemic is behind us, but consumer favorites are still performing.”

Nevertheless, Daniel acknowledges that headwinds continue. “Today’s influences span a range of factors from share shifts across beverage types, to generational shifts toward moderation, to cannabis, to a rise in quality and availability of new low- and no-alcohol offerings, albeit off a very small base,” he says.”

Gabriela Becker, vice president of marketing for Delicato Family Wines, adds another factor: the “anti-alcohol conversations that are playing out on a national level.” She also notes that consumers are drinking less but better, a trend that bodes well for the super-premium segment.

Capobianco says he sees the same, with consumers—especially younger consumers—buying less wine but heavily focusing on quality. “This is why I believe the Rodney Strong brands are in a place where the consumer is heading,” he says. “All of our innovation is focused on harnessing and succeeding in line with this trend and beyond. This includes investing in a new vineyard in the Russian River Valley to support our growing luxury portfolio, which will include a new 2023 Russian River Valley Chardonnay and Pinot Noir ($37 a 750-ml.).”

Butterfly Equity saw the long-term potential of The Duckhorn Portfolio, which it acquired in a $1.95 billion deal that closed in December. Adam Waglay, co-founder and co-CEO of Butterfly, says the purchase made sense because “it’s in line where the growth is and where consumers are going, and also the best business model,” he says. “And frankly we feel like the timing is right to be investing in this space. There are a number of challenges in this space at a high level” that allowed for the acquisition at a “significant discount to where wine assets trade.”

Robert Hanson, recently named Duckhorn CEO, adds the company is well-positioned in the $15-plus segment. “Despite the headwinds in the total wine market, this portfolio is clean and competing at the high-end, where the market actually has been growing. Even in the most recent period, while the market might have slowed down coming out of the demand and supply rebalancing that occurred coming out of Covid- 19, the high end continues to be quite buoyant and this portfolio continues to outperform the category.”

Confidence Is Key

Confidence in the super-premium and above segments is evident throughout much of the industry, even as the challenges continue. Luke Boland is corporate wine director for Hospitality Department, a New York City-based restaurant and hotel industry management and consulting firm for restaurants including Point Seven, The Bronze Owl, and Coral. He says wine consumption remains strong in his restaurants. “We’re lucky to work in the New York market where wine is an indulgence that people want and a social currency that has value beyond just drinking for the sake of it,” he says. However, Boland notes that “prices are getting too high,” which could cause people to curb consumption.

Retailer Ryan Oehmsen, co-owner and director of wine and spirits at White Horse Wine & Spirits in Absecon, New Jersey, says demand remains strong, particularly for high-volume brands. “Super-premium California wines remain a sweet spot for our wine sales,” he says. “Josh Cellars has seen a noticeable increase in popularity, particularly their Cabernet Sauvignon. Customers are drawn to trusted brands, so wines like Rodney Strong, Kendall-Jackson, Santa Margherita, J. Lohr, and Oyster Bay continue to perform well.

At The Party Source in Bellevue, Kentucky, fine wine buyer Stephen Auges also notes the vibrancy of Josh Cellars, along with Sonoma-Cutrer. But in particular, he notes that one AVA is on customers’ minds. “Paso Robles is hot and we’re seeing Daou and Austin Hope’s NV leading the way,” he says.

What’s Resonating

Constellation Brands has “sharpened our focus on higher-end wines and craft spirits, recognizing that while many consumers may be drinking less in volume, they are seeking a more premium experience that delivers on both quality and experience,” says Gretchen McDade, senior vice president of brands for the U.S. Wine & Spirits division at Constellation. She notes the ongoing vibrancy of Napa Valley wines, especially Cabernet Sauvignon, and consumer excitement around Rhône-inspired varietals from the Paso Robles region.

“We continue to build our presence there,” McDade says. “Booker recently expanded into an adjacent 27-acre vineyard; this land, plus the original 60-acre estate, is designated Regenerative Organic Certified and that stewardship of the land resonates with our consumers. Our Harvey & Harriet brand (part of the Booker family) continues to grow, and we see great potential with both the white and red blends under that label.”

McDade also points to Constellation Brands’ May 2024 acquisition of Sea Smoke, the Pinot Noir-focused winery in Santa Barbara. “The exceptional Sea Smoke Vineyard— located in the Sta. Rita Hills AVA within the Santa Ynez Valley of Santa Barbara, California—is tended following organic and biodynamic farming and winemaking practices, and yields incredibly complex Pinot Noir and Chardonnay wines,” she says.

For Foley Family Wines, versatile white varietals such as Sauvignon Blanc and Pinot Grigio/Gris are driving growth, Daniel says, citing Silverado Sauvignon Blanc and Chateau St. Jean Carneros Chardonnay as particularly vibrant labels.

Delicato’s Becker says “Sauvignon Blanc and Prosecco are the hottest varietals at the moment.” She cites Coppola Diamond Collection Prosecco, which was introduced in late 2022, as a particularly strong growth brand. Another new offering is a Sauvignon Blanc/Pinot Grigio blend called Shimmer under Coppola’s Diamond Collection brand. “This offering fills out the Diamond Collection portfolio to meet wine drinkers’ desires—it’s a traditionally made wine with a bright, light flavor profile and an ABV of just 11%, so it’s ideal as a refreshing, easy-drinking option that invites sessionable sipping.”

Delicato is flipping the script for a new offering called Wild Country Red ($18 a 750-ml.) under the Three Finger Jack label. “It’s a Lodi red blend targeted at consumers who don’t shy away from higher abv levels and who appreciate a bolder flavor profile,” says Becker. “It’s an answer to a consumer need that’s one of the flip sides of the trends we’re seeing around a shift to low- and no-alcohol wines—there is also a consumer who’s seeking out richer wines. It’s important for us from an overall strategic perspective to offer a portfolio that fits a broad base of wine consumers, catering to a variety of price points and palates.”

New blends can also expand the interest level from consumers, says Emily Wines, master sommelier for Cooper’s Hawk Winery & Restaurants. “Blends featuring lesser-known varietals are generating a lot of buzz, especially when paired with more familiar grapes to create a sense of discovery without stepping too far out of their comfort zones,” she says. “For instance, a Pinot Noir blended with Valdiguié has been a hit. We’re also seeing more adventurousness with white varietals, which is an exciting development in the premium category.”

No matter the region, style, or brand, Rodney Strong’s Capobianco suggests that where and how the wine is made is increasingly important to consumers. “I believe that the consumer is still engaged in what varieties and regions they enjoy, however, they are asking more discerning questions about the sourcing, the farming practices, and how the wine is made leading them to explore more beyond their traditional boundaries and comforts than ever before,” he says.

Broadening The Base

The new brands and new areas of focus are important as each winery attempts to expand its consumer base. With slow or no growth, even among super-premium wines, marketers are keen to tap into the next generation of drinkers. It’s no secret that younger consumers haven’t embraced wine in the same ways that previous generations did, but better-for-you options, heightened wine experiences, more transparent and environmentally conscious growing practices, and other efforts are all designed to bring more consumers into the wine world.

McDade, for example, says Constellation is upping its direct-to-consumer game. “We know that many younger consumers are looking for a great experience when they enter the wine space; they’re interested in the story behind the wine, and the intersection between wine, food, culture, and travel,” she says. “We’re focused on bringing that heightened experience to our consumers, whether it’s via outstanding hospitality at our wineries or through exceptional DTC experiences. For example, we’re in the midst of a multi-year, major renovation at our Robert Mondavi Winery that is designed to elevate the guest experience to incredible new heights.” McDade also notes the growing interest in the “betterment” category. “We feel it’s critical to offer lower calorie, lower alcohol options in this space,” she says.

Duckhorn’s Hanson also notes the trend. “The better-for-you, more conscious consumption trend is particularly important to younger consumers,” he says. Duckhorn launched Decoy Featherweight—which has 80 calories per 5-ounce serving and an alcohol content of 9%—in January 2024 to answer that consumer demand.

Cooper’s Hawk’s Wines agrees. “ While we still have a strong core of wine enthusiasts, we’re adapting by expanding our offerings in no- and low-alcohol alternatives to align with shifting preferences,” she says. “It’s about meeting guests where they are while continuing to celebrate wine as a centerpiece of the experience.”