American vineyards are booming. And the year 2023 promises to be a pivotal moment in the development of this American luxury sector, which continues to gain momentum. And top-of-the-line vineyards are showing rising results across the United States. They are proof of a strong enthusiasm for these bottles made in the USA. This year, the wine sector also intends to accelerate its move upmarket. His lines of work? Social networks, wine tourism and sustainable development, which are at the heart of the concerns of luxury customers.
High-end wineries boost sales in the United States
While 2020 was a year of major crisis, it was paradoxically a good year for high-end vineyards in the United States. Direct sales to individuals then jumped. And this trend was confirmed in 2021. Sales to individuals had reached a historic level of 4.2 billion dollars in turnover. In 2022, the reopening of bars and restaurants has had an impact. And direct-to-customer sales fell by 1.6%. In 2022, winegrowers observe a much greater decline: 10.3% less sales. A historic drop, but which does not necessarily worry the sector.
Indeed, if the vineyards are selling less overall, they are still seeing a move upmarket. The luxury clientele in the United States is more fond than ever of the production of national vineyards. And despite declining overall sales, the average price of bottles sold in 2022 jumped 9.7% to now reach $45.16. Even better: the bottles of high-end wines are those whose sales are growing the fastest. In 2022, sales to individuals of bottles of 100 dollars or more increased by +7.8%. And they had already jumped by +34.2% in 2021.
How are American wineries consolidating their luxury brand image?
Like any luxury brand in the United States, vineyards have not hesitated to invest in digital. And many of them are also present on social networks. This positioning had a strong impact during the health crisis. He ensured the visibility of the vineyards to individuals and promoted direct sales. It also reinforces the attractiveness of American vineyards by allowing them to surf on high-potential commercial events. Thus, several vineyards participate in Black Friday by offering discounts on online sales.
The vineyards do not hesitate to ensure their visibility in the social media sphere. And several of them regularly work with influencers specializing in premium wines. This is the case of Girard Winery who thus resorted to a partnership with the American influencer WineWithPaige to promote their vineyards on Instagram. With nearly 31,000 followers, Paige Comrie is one of the most followed wine influencers for the Napa Valley, California area. And it symbolizes the way in which vineyards wish to position themselves with young wine consumers in the United States. By playing the card of unique experiences, with exclusive products often produced in small quantities, and the most inspiring lifestyle vision possible.
This strategy works to such an extent that many foreign investors are interested in the potential of luxury vineyards in the United States. So in 2018, the French group LVMH bought Colgin Cellars, one of the most famous vineyards in California.
The vineyards of the United States, real attractions for luxury tourism
California is not only the state with the most vineyards in the United States. It is also the one that sells the most high-end wines. And the reason can be summed up in two words: luxury tourism.
Since the 1980s, the Napa Valley region, renowned for its large wine estates, has made wine tourism its asset to bring in a wealthy clientele, both domestic and international. And to attract luxury customers, what better than unique high-end experiences? Many wine estates have invested in the construction of hotels with spas. In Paso Robles, several luxury establishments are even regularly listed among the best luxury hotels in the United States, and they attract many customers to the vineyards. Horseback riding, tasting workshops, gourmet restaurants are among the standard activities offered by these luxury vineyards/hotels. Here again, the priority given to unique experiences is directly inspired by luxury trends. And the strategy is a hit with premium customers.
Luxury and sustainable development in the United States: vineyards are also going green
The move upmarket of vineyards in the United States does not only require an ambitious commercial positioning. It is also part of a logic that consists of meeting all the expectations of high-end customers. And sustainable development is now an integral part of it. Many American vineyards are now launching initiatives in favor of production that is more respectful of the environment. A commitment that is all the more crucial as their activity is already threatened by climate change.
In California, for example, the authorities have decided to ban pesticides by 2050. But the wine sector did not wait for this deadline to organize itself. On March 24, Napa Valley winegrowers took advantage of their annual convention to host a seminar on sustainable development. Their ambition: to develop their activity around the concept of “Slow Wine”. The idea is to produce less, but better, by ensuring a wine-growing activity that is more respectful of nature.
And if this green argument has something to attract a clientele already well aware of ecological issues, it is not the only asset of the Slow Wine movement. Indeed, reducing the volume of production is also an interesting lever to accelerate the move upmarket of American wines. And the vineyards also see it as a way to develop a new facet of wine tourism in the United States, by surfing on the eco-tourism trend. So many assets that should further validate the efforts to move upmarket in the American wine industry.
