Boom time for Oregon wines, which has recorded growth ten times greater than overall industry
Oregon’s wine industry is booming, with an additional 44 wineries opening up last year and the number of planted acres and exports hitting an all time high.
Sales volumes were up by 16% according to the Oregon Wine Board’s Vineyard and Winery Report, far oustripping the wine category’s national growth rate of 1.6%.
The annual study, conducted by the University of Oregon’s Institute for Policy Research and Engagement (IPRE), found that 44 wineries were added to Oregon last year, compared to 24 added in 2016. Grape growers flourished too in the past year, with their numbers increasing from 1,052 to 1,144 vineyards in the state.
The most notable growth was seen in emerging wine regions along Oregon’s northern border with 18 wineries added last year and the Rogue Valley with 13 more wineries in this AVA within Southern Oregon.
At the same time sales surged to to $550 million in 2017, boosted by increases in direct and wholesale sales, sending the numbers up almost 4% from the previous year’s $529 million in sales. Total value of the production of wine grapes increased 14% from $167 million to $192 million in 2017. The north Willamette Valley continues to lead growth in the state with 73% of total tons crushed. Total tons crushed increased by 9.3% from 70,579 tons to 77,170 tons while case sales increased 6% from 3.39 million to 3.60 million.
Retail wine sales of Oregon wine for the 52 weeks ending Aug. 11, 2018 rose 16%, compared to the wine category’s growth of 1.6% overall. Variety-wise, Oregon Chardonnay is trending up 10% in a flat segment and Oregon Pinot noir volume is up 17% in a segment that grew just 2%.
Over the past three years, planted acreage jumped by 17% from from 28,034 to 33,631 in 2017. This resulted in increased yields of Cabernet Franc, Chardonnay, Pinot Blanc and Pinot Noir, while volumes of Cabernet Sauvignon, Merlot, Pinot Gris and Syrah dropped.
“The global wine market is fiercely competitive and these data suggest Oregon is well-positioned with increasing supply generally balanced by surging consumer demand,” said Oregon Wine Board executive director Tom Danowski. ‘”We continue to see the marketplace recognizing quality and Oregon delivering it more consistently across more grape varieties and growing regions than ever.”
Oregons’s exports performed well last year with overall exports of 94,351 cases, returning to levels last seen in 2014. Canadians are the top international consumers of premium Oregon wines, accounting for nearly half (49%) of exported Oregon wine cases heading north.
Japanese consumers bought 26% more Oregon wine than they did in 2016 with imports increasing from 6,592 to 8,952 cases in 2017. The U.K. consumed 10,047 cases of Oregon wine in 2017, as compared to 6,953 in 2016, a jump of 31%.