U.S. retail wine sales fell 4.1% in the four weeks ended Aug. 1

U.S. retail wine sales continued to shrink in the four weeks ended Aug. 1, with higher prices and a more favorable sales mix softening, but not reversing, a deeper drop in bottles sold.

NielsenIQ said in its Wine Pulse report released on Aug. 11 that wine sales in measured retail channels fell 4.1% in dollar terms from a year earlier, while volume declined 5.5%. The gap between those two figures suggests that average dollars taken in per unit sold rose by about 1.5%, a sign that pricing and product mix helped cushion the loss in revenue as consumers bought fewer units.

That support was only partial. The category remained in contraction across the latest four-week period, and NielsenIQ said a recovery was still out of reach. The report, which covers total wine excluding wine-based cocktails, pointed to three main pressures on the business: weaker consumer engagement, which accounted for 61% of the decline; contracting distribution, which represented 25%; and less effective promotions, which made up 14%.

The weekly trend showed a small improvement, but not enough to change the broader picture. Dollar sales reached $363.6 million in the latest week, up 0.4% from the previous week. That increase marked a modest lift in the short term, yet the year-over-year data still showed a category losing ground in both revenue and volume at a time when many producers and retailers are looking for signs that demand has stabilized.

The biggest drag continued to come from still wine, the largest part of the market. NielsenIQ said still wine sales fell 4.7% in dollars and 5.9% in volume over the four-week period. Sparkling wine held up better, with dollar sales down just 0.4% and volume off 0.9%. Non-alcoholic wine remained the standout growth segment, though from a much smaller base, with dollar sales rising 16.8% and volume increasing 13.1%.

Those segment results show where the market is holding and where it is weakening. Still wine’s larger losses continue to weigh on the overall category because of its size. Sparkling wine, while not growing, has been more stable. Non-alcoholic wine is expanding at a much faster pace than the rest of the business, reflecting a consumer shift that has been visible across beverage alcohol and adjacent categories, even if its total share remains limited.

The manufacturer rankings also reflected a market split between broad pressure and pockets of growth. E. & J. Gallo remained the top supplier by dollar sales, though its retail sales fell 2.5%, with a decline of 108,700 cases. The Wine Group held the No. 2 position, but posted a steeper 11.2% drop in dollar sales and lost 269,200 cases. Deutsch Family ranked third and was one of the few major suppliers to post growth, with dollar sales up 4.5% and case volume up 21,800. Trinchero Family was down 3.9% in dollars, and Delicato Family Wines fell 5.6%.

Among the companies with the strongest dollar growth, Deutsch Family led the group, followed by Wagner Family Wines, whose sales rose 5.2%. Constellation posted 2.0% growth, Vineyard Brands rose 5.5%, and Kobrand increased 1.6%, even as its case volume slipped by 1,400. That combination of rising dollar sales and flat or weaker case trends at some suppliers again points to the role of price and premium mix in sustaining revenue.

The brand rankings told a similar story. Josh remained the top wine brand by dollars and one of the strongest gainers, with sales up 9.3% and case volume up 41,100. Barefoot ranked second by dollar sales, though its revenue fell 3.5%. Even so, Barefoot added 10,100 cases, indicating that lower pricing or channel mix may have held down dollar performance relative to unit movement. La Marca ranked third and posted a 13.4% increase in dollar sales, along with a gain of 21,600 cases. Bota and Sutter Home, both in the top five by dollars, each posted declines in sales and cases.

Among the fastest-growing brands by dollars, Josh and La Marca were joined by Whitehaven, up 19.1%, and Kim Crawford, up 6.9%. Clay Creek posted the sharpest increase, with dollar sales up 1,044.5% and case volume up 11,100, though such large percentage gains often reflect growth from a smaller starting base.

For retailers, the latest NielsenIQ reading suggests that revenue is not falling as fast as demand measured in units, but the difference is narrow. A roughly 1.5% improvement in dollars per unit can help limit the damage from declining traffic or weaker basket sizes, yet it has not been enough to return the category to growth. That is especially important in wine, where many supermarket and large-format retail programs depend on steady volume through promotions, broad distribution and repeat purchases.

NielsenIQ’s breakdown of the decline points to problems beyond simple pricing. If 61% of the weakness is tied to consumer engagement, the issue is not only what shoppers are paying, but whether they are choosing wine at all. The added impact from reduced distribution means fewer items or less shelf presence are also playing a role. Less effective promotions, while a smaller part of the problem, suggest that discounting and temporary price cuts are not driving the same response they once did.

The result is a category that is still generating large weekly sales, but on a smaller base of units. In the latest four-week period, that left still wine carrying most of the losses, sparkling wine showing relative resilience, and non-alcoholic wine extending its growth streak. At the brand level, Josh, La Marca, Whitehaven and Kim Crawford were among the names posting gains, while at the supplier level Deutsch Family, Wagner Family Wines, Constellation and Vineyard Brands were among the companies moving against the broader downturn.