U.S. Wine Sales Fell 3.9% in July as Distribution Cuts Deepened the Slump

The U.S. wine market continued to contract in the four weeks ended July 18, with dollar sales down 3.9% and volume falling 5.6%, according to new NielsenIQ data, as suppliers and retailers faced weaker consumer demand, lighter promotions and growing distribution pressure.

The latest NIQ Full View: U.S. Wine Pulse report shows a category still struggling to regain momentum after months of soft results. NielsenIQ said reduced distribution accounted for 23% of the decline in the latest four-week period, a larger share than in recent readings. Softer promotions contributed 14% of the drop, while decreased consumer interest remained the biggest factor at 63%.

Weekly performance showed little change. Dollar sales reached $357.6 million in the most recent week measured, down 0.8% from the prior week. That suggests the pace of decline is no longer worsening sharply, but it also points to a market that has not found a clear path back to growth.

Still wine remained the main source of weakness across the category. In the four weeks ended July 18, still wine dollar sales fell 4.5% and volume declined 6.1%. Sparkling wine held up better, with dollar sales down just 0.1% and volume off 0.8%. Non-alcoholic wine again stood out as the strongest segment, with dollar sales rising 16.5% and volume increasing 12.6%.

The contrast between traditional wine and non-alcoholic products adds to a broader shift in beverage alcohol, where moderation and lower-alcohol choices have gained ground with some consumers. Sparkling wine’s relative resilience also suggests that shoppers are still willing to spend in segments tied to celebration or perceived value, even as overall wine purchases remain under pressure.

Among manufacturers, E. & J. Gallo Winery remained the largest by dollar sales despite declines of 2.9% in dollars and 134,800 cases in volume. The Wine Group ranked second, but posted a steeper drop, with dollar sales down 10.8% and case sales lower by 270,800. Deutsch Family ranked third and was one of the few major suppliers to post growth, with dollar sales up 3.2% and case volume up 13,300.

Trinchero Family Estates ranked fourth, with dollar sales down 4.7% and case volume off 45,300. Delicato Family Wines rounded out the top five manufacturers by dollars, with sales down 6.2% and case volume lower by 46,600.

When ranked by dollar growth rather than size, Deutsch Family led the group among major suppliers tracked in the report. Wagner Family Wines followed with dollar sales up 7.0% and case gains of 3,500. Vineyard Brands posted a 6.8% increase in dollars and added 6,200 cases. Constellation Brands rose 1.9% in dollars with case gains of 7,500, while Kobrand increased dollar sales by 3.3% even as case volume slipped by 1,000.

At the brand level, Josh Cellars held the top spot by dollar sales and also posted growth, with dollars up 7.4% and case volume rising by 32,800. Barefoot ranked second but declined 4.7% in dollars despite a relatively small case loss of 5,100 compared with some other large brands. LaMarca ranked third and turned in one of the strongest performances among leading labels, with dollar sales up 12.3% and case volume up 21,900.

Bota Box ranked fourth by dollars, with sales down 4.3% and case volume lower by 30,500. Sutter Home was fifth, with dollar sales down 5.4% and case volume off 33,900.

Among brands posting the strongest dollar growth, LaMarca led the list at 12.3%, followed by Josh at 7.4%. Whitehaven rose 17.2% in dollars and added 7,100 cases. Avaline posted one of the sharpest gains in the report, with dollar sales up 41.8% and case volume higher by 4,500. Bonanza increased dollar sales by 23.6% and added 3,100 cases.

The data covers total wine excluding wine-based cocktails and comes from NielsenIQ retail measurement for the four weeks ended July 18. The figures point to a market where broad demand remains weak, but pockets of strength continue to emerge in sparkling imports, premium table wine brands and non-alcoholic offerings.

For producers and distributors heading into late summer and early fall, distribution will be a key issue to watch if current trends continue. NielsenIQ’s breakdown suggests that shelf presence and availability are becoming a larger part of the category’s problem at a time when consumer demand is already soft. That combination leaves many mainstream still wine brands exposed to further losses unless they can improve placement, sharpen pricing or find growth through segments that are still expanding.

The latest numbers also show how uneven performance has become inside the category. Large legacy brands continue to dominate total sales but are losing ground in many cases, while a smaller group of brands is gaining share through premium positioning, sparkling formats or alignment with changing drinking habits. In that environment, even modest gains stand out more clearly than they did when the broader category was expanding.

For retailers, the report suggests that assortment decisions may carry more weight than usual in coming months. With fewer promotions supporting movement and distribution cuts contributing more to declines, brands that can maintain velocity may have an advantage in securing shelf space. For wineries and importers, especially those tied to still wine, the challenge remains how to generate new demand in a market that has yet to show sustained recovery.