Washington state wineries bet on events as wine sales slow
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A vineyard of Cabernet Sauvignon grapes near Kennewick, Washington, in 2024. Photo: Emree Weaver/Bloomberg via Getty Images
Washington's wine industry is navigating a drop in sales — and some local vintners are adapting to shifting drinking habits with creative twists on the tasting room experience.
Why it matters: Wineries are doubling down on in-person events — from wine-and-nacho pairings to seafood boils — to deepen customer ties and help drive revenue as global wine consumption slides.
By the numbers: Washington wineries sold 10.5 million cases in the 12 months ending in March, according to market data the Washington State Wine Commission shared with Axios.
- That's down about 15% from the 12.3 million cases they sold in 2022, and roughly 23% from the 13.6 million cases they sold in 2019.
Yes, but: The slump isn't uniform across the industry, Kristina Kelley, executive director of the Washington State Wine Commission, told Axios.
- Washington wines priced around $20 to $30 a bottle have recently seen increases in sales, Kelley said, a sign that customers are investing in higher-quality wines on the rarer occasions they choose to drink.
- "We are seeing the growth in the premium part of our portfolio," Kelley said. "A lot of the decline is in that lower price point, $10 or below."
- Those trends have hurt some of the state's bigger producers more than smaller wineries, which produce fewer cases and focus more on direct-to-consumer sales, Kelley said.
Case in point: The highest-volume wine producer in Washington state, Columbia Crest — part of the Ste. Michelle Wine Estates portfolio — saw about a 30% decline in gallons sold from 2021 to 2024, according to data from the state Liquor and Cannabis Board.
- Over the same period, sales rose at more than 200 of the state's smaller wineries, the data shows.
What they're saying: Samuel Hilbert, co-owner of Aluel Cellars in Seattle, told Axios he began noticing last fall that "people weren't buying as many bottles as they used to when they'd come in."
- That was followed by a drop in wine club memberships around the start of this year, he said.
- "We've had to focus a lot more on getting people into the tasting rooms," Hilbert said.
- That has meant leaning into interactive events — from themed release parties and oyster pairings to paint-and-sip nights. Last month, Aluel hosted "Grenachos," pairing Grenache and Grenache Blanc with nachos.
Tinte Cellars, which has tasting rooms in Woodinville and Seattle's Georgetown neighborhood, has also embraced events — including monthly concerts, a catered seafood boil and all-local wine and food pairings, general manager Cameron James told Axios.
- The idea is to expand the tasting room experience "beyond going up to the bar and having three tastes," James said.
What we're watching: Big producers are adjusting, too. Since its 2021 sale to private equity firm Sycamore Partners, Ste. Michelle Wine Estates has focused on "intentionally refining our portfolio," spokesperson Lynda Eller wrote in an email.
- That has meant "focusing on staying true to where we come from and making great wine, not just more of it," Eller wrote.