The United States wine industry is entering a new phase of recovery, but not every winery is benefiting equally.
While overall market conditions remain challenging, a growing divide has emerged between wineries that continue to expand and those struggling to maintain sales. According to the Silicon Valley Bank Direct-to-Consumer Wine Report 2026, now published under First Citizens Bank, the difference is becoming increasingly clear: success is less about external market conditions and far more about business strategy.
The report, based on responses from 450 family-owned wineries across the United States, examines the performance of direct-to-consumer (DTC) sales—an increasingly important revenue channel for premium wineries. Its findings reveal that while the average winery recorded virtually no revenue growth in 2025, the highest-performing businesses increased revenue by an impressive 22%. Meanwhile, wineries in the bottom quartile experienced a 13% decline.
Rather than pointing to regional reputation, production size, or market positioning as the primary drivers of success, the report concludes that the real differentiator is where wineries choose to focus their efforts.
A Market Stabilizing—But Not Yet Recovering
The 15th edition of the report arrives after several difficult years for the U.S. wine industry, marked by slowing consumer spending, inflationary pressures, changing purchasing habits, and declining wine consumption among younger demographics.
According to Rob McMillan, Executive Vice President and founder of Silicon Valley Bank's wine division, the market may have reached the bottom of its downturn, but wineries should not mistake stabilization for recovery.
His assessment is cautious: conditions feel different, but they are not yet better.
While the pace of decline has slowed, wineries must still navigate a marketplace where consumers are increasingly selective about how, where, and why they purchase wine.
Customer-Centric Wineries Are Pulling Ahead
One of the report's most significant findings is that successful wineries are not necessarily spending more money—they are spending it differently.
The strongest-performing wineries consistently prioritize:
- Understanding their target consumer
- Building long-term customer relationships
- Strengthening brand identity
- Creating memorable experiences
- Delivering value beyond the bottle
By contrast, lower-performing wineries devote much of their attention to reducing operating costs, improving internal efficiencies, or investing in physical infrastructure such as tasting room renovations.
While operational efficiency remains important, the report argues that it cannot generate sustainable growth on its own.
Instead, wineries that consistently outperform competitors begin every strategic decision with one simple question:
What does our customer want?
Less successful wineries often begin with an entirely different question:
How can we produce the same product more cheaply?
This subtle difference in mindset influences virtually every aspect of the business.
Brand Building Outweighs Cost Cutting
The report challenges a common assumption during economic slowdowns—that aggressive cost reduction is the safest route to profitability.
Instead, Rob McMillan argues that businesses cannot cut their way to growth.
Cost discipline certainly matters, but long-term revenue depends on maintaining consumer demand, and consumer demand is created through strong brands rather than lower production costs.
Successful wineries continue investing in:
- Customer engagement
- Marketing
- Wine club relationships
- Personalized communication
- Premium experiences
These investments strengthen loyalty even when consumers reduce discretionary spending.
Pricing Strategy Becomes a Competitive Advantage
Perhaps the most surprising finding concerns pricing.
During periods of weaker demand, many businesses instinctively lower prices to stimulate sales.
However, the report shows that the highest-performing wineries are 60% more likely to increase bottle prices than their lower-performing counterparts.
Why?
Because premium wine buyers often associate price with quality.
Deep discounts may temporarily increase sales volumes, but they can also weaken brand perception, suggesting financial distress or declining product value.
For premium wineries, preserving prestige often proves more valuable than chasing short-term sales.
Smarter Promotions Instead of Bigger Discounts
Rather than relying on blanket price reductions, the report recommends targeted promotional strategies that preserve perceived value.
Examples include:
- Free shipping offers
- Complimentary bottles with case purchases
- Product bundles
- Exclusive wine club benefits
- Limited-time added value promotions
These approaches reward customers without reducing the headline price of the wine itself.
Maintaining price integrity allows wineries to protect both margins and brand positioning while still encouraging purchases.
The Direct-to-Consumer Channel Continues to Evolve
Direct-to-consumer sales remain one of the most important business models for premium American wineries.
Unlike wholesale distribution, DTC provides wineries with:
- Higher profit margins
- Direct customer relationships
- Greater pricing control
- Valuable consumer data
- Enhanced brand loyalty
However, the report makes clear that simply operating a tasting room or online store is no longer enough.
Leading wineries are refining every stage of the customer journey—from digital marketing and personalized communication to exclusive events and membership experiences.
The customer relationship itself has become the product.
The Importance of Experience
Both successful and struggling wineries continue organizing events, adjusting prices, and improving visitor experiences.
The difference lies in execution.
High-performing wineries carefully design experiences around their target audience's preferences and expectations.
Every tasting, event, or communication reinforces the winery's identity and emotional connection with consumers.
Lower-performing wineries often focus more heavily on operational improvements without equally strengthening customer engagement.
The report suggests that consumers increasingly remember experiences more than infrastructure.
Lessons Beyond the Wine Industry
Although the report focuses specifically on American wineries, its conclusions carry implications across the broader beverage alcohol industry.
Breweries, distilleries, cider producers, and premium beverage brands all face similar questions:
- How should premium brands respond when demand softens?
- Is discounting the best strategy?
- How can customer loyalty be maintained?
- Where should limited investment dollars be allocated?
The findings suggest that protecting brand equity often delivers stronger long-term financial performance than competing primarily on price.
Businesses that understand consumer motivations and invest in lasting relationships are better positioned to weather economic uncertainty.
A Growing Performance Gap
Perhaps the most important conclusion from the report is that the gap between winners and losers is widening.
The strongest wineries continue growing despite difficult market conditions.
Others continue losing revenue despite making many of the same operational changes.
This divergence reflects a broader shift in competitive strategy.
Rather than simply selling wine, successful wineries are building communities, experiences, and brands that consumers actively seek out.
Looking Ahead
The U.S. wine market remains under pressure, but opportunities continue to exist for businesses willing to adapt.
Consumers have become more selective, value-conscious, and experience-driven. Wineries that respond by deepening customer relationships, protecting premium positioning, and investing in brand value appear significantly better equipped to navigate today's marketplace.
The Silicon Valley Bank Direct-to-Consumer Wine Report 2026 sends a clear message: the next phase of growth in American wine will not belong to those who cut costs the fastest, but to those who understand their customers the best.
As direct-to-consumer sales continue evolving, customer-centric business strategies—not production efficiencies alone—are becoming the defining competitive advantage in an increasingly demanding wine market.
Source: Vinetur