Wineries
Description
Companies in this industry make wine and brandies either from grapes that they grow or that are grown elsewhere. Major companies include Bronco Wine Company, Constellation Brands, E&J Gallo Winery, Jackson Family Wines, and The Wine Group (all based in the US); as well as Concha y Toro (Chile), Heineken Beverages (South Africa), Gruppo Italiano Vini (Italy), Treasury Wine Estates (Australia), and Veuve Clicquot (France).
Global wine production reached about 232 million hectoliters in 2025, according to the International Organization of Vine and Wine (OIV). Major wine-producing countries include Italy, Spain, and France, according to the World Population Review.
The US winery industry includes about 4,000 producers with a combined annual revenue of about $20 billion.
COMPETITIVE LANDSCAPE
Demand for wine is driven by the restaurant and hotel industries, the level of business entertainment spending, and consumer income. A winery's profitability depends on production volume and sales price, both of which can vary from year to year. Large companies have stronger distribution channels and can enjoy significant economies of scale in production. Small wineries can compete with big-volume producers by making higher-quality wines that sell at a premium price. The US industry is concentrated: the 50 largest companies account for about 70% of revenue.
Imports are a major competitor for US wine producers, accounting for about 30% of the US market. Imports come mainly from France, Italy, New Zealand, Spain, and Australia. Major markets for US wine exports include Canada and the UK. Exports account for about 70% of US production.
PRODUCTS, OPERATIONS & TECHNOLOGY
Wine, using red grape and white grape accounts for about 40% of the industry revenue, each. Leading table wine varietals (wines named after the grape they are made from) are chardonnay, pinot noir, merlot, white zinfandel, cabernet sauvignon, pinot grigio, syrah, and sauvignon blanc. Other revenue sources include dessert wines, distilled liquor, and revenue from the rental of space for events such as weddings.
Wineries manufacture wine and brandies through fermentation of grapes and other fruit. Grapevines are tended in spring and summer and grapes harvested in early fall. After being crushed, the grapes (skins, pulp and liquid, called the "must") are fermented in large vats for several weeks. Fermentation is caused by the yeast Saccharomyces, found naturally on grape skins, that transforms the sugar of the grape into alcohol. After fermentation, the wine is pressed out and aged in metal vats for several months before being filtered and bottled.
Some companies blend several different wines before bottling and may buy blending wine from other producers. Higher-quality wine is aged in oak casks for up to two years before bottling. White wines are produced by removing the grape skins at the crushing stage. Wine may be stored and shipped in tanks, barrels, and bottle case lots.
The type of grape determines the taste of the wine, as do soil and weather conditions during the year. Many wineries grow their own grapes, but some (especially the large ones) also buy grapes from contract growers. High-volume wineries may buy most of their grape supply from independent growers.
Contracts with growers may extend over several years, or may be for a one-year ("spot market") period. The cost of grapes can fluctuate substantially from year to year, depending on quality and yield. Many contracts for future purchase of grapes or bulk wine stipulate that market conditions will determine price, but other contracts have minimum price requirements. Despite having contracts, wineries don't know the final costs until after harvest, because of contract variables such as grape quality, vineyard yield, and market conditions.
Global wine production reached about 232 million hectoliters in 2025, according to the International Organization of Vine and Wine (OIV). Major wine-producing countries include Italy, Spain, and France, according to the World Population Review.
The US winery industry includes about 4,000 producers with a combined annual revenue of about $20 billion.
COMPETITIVE LANDSCAPE
Demand for wine is driven by the restaurant and hotel industries, the level of business entertainment spending, and consumer income. A winery's profitability depends on production volume and sales price, both of which can vary from year to year. Large companies have stronger distribution channels and can enjoy significant economies of scale in production. Small wineries can compete with big-volume producers by making higher-quality wines that sell at a premium price. The US industry is concentrated: the 50 largest companies account for about 70% of revenue.
Imports are a major competitor for US wine producers, accounting for about 30% of the US market. Imports come mainly from France, Italy, New Zealand, Spain, and Australia. Major markets for US wine exports include Canada and the UK. Exports account for about 70% of US production.
PRODUCTS, OPERATIONS & TECHNOLOGY
Wine, using red grape and white grape accounts for about 40% of the industry revenue, each. Leading table wine varietals (wines named after the grape they are made from) are chardonnay, pinot noir, merlot, white zinfandel, cabernet sauvignon, pinot grigio, syrah, and sauvignon blanc. Other revenue sources include dessert wines, distilled liquor, and revenue from the rental of space for events such as weddings.
Wineries manufacture wine and brandies through fermentation of grapes and other fruit. Grapevines are tended in spring and summer and grapes harvested in early fall. After being crushed, the grapes (skins, pulp and liquid, called the "must") are fermented in large vats for several weeks. Fermentation is caused by the yeast Saccharomyces, found naturally on grape skins, that transforms the sugar of the grape into alcohol. After fermentation, the wine is pressed out and aged in metal vats for several months before being filtered and bottled.
Some companies blend several different wines before bottling and may buy blending wine from other producers. Higher-quality wine is aged in oak casks for up to two years before bottling. White wines are produced by removing the grape skins at the crushing stage. Wine may be stored and shipped in tanks, barrels, and bottle case lots.
The type of grape determines the taste of the wine, as do soil and weather conditions during the year. Many wineries grow their own grapes, but some (especially the large ones) also buy grapes from contract growers. High-volume wineries may buy most of their grape supply from independent growers.
Contracts with growers may extend over several years, or may be for a one-year ("spot market") period. The cost of grapes can fluctuate substantially from year to year, depending on quality and yield. Many contracts for future purchase of grapes or bulk wine stipulate that market conditions will determine price, but other contracts have minimum price requirements. Despite having contracts, wineries don't know the final costs until after harvest, because of contract variables such as grape quality, vineyard yield, and market conditions.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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