Key takeaways related to winery direct-to-consumer shipping
The Silicon Valley Bank released its annual “State of the Wine Industry” report, which looks back at DTC activity in the 2025 calendar year. The findings paint a difficult picture across the industry, but especially for the direct-to-consumer sales channel. Here are a few key takeaways that relate to the shipping aspect of the DTC channel. Text in quotes and italics taken directly from the report.
The State of the Wine Industry - A new landscape
“New paths to promote and sell wine are necessary.”
Data shows that existing strategies are not as viable as they once were. The route to the consumer needs support and new thinking. But what it does not need are additional hoops to jump through to give consumers access to the wines they love.
“DTC still margin engine: What is fascinating is that while the top quartiles of performers are doubling down on declining visitation and direct sales, those taking a novel approach are few. That tells me there is an opportunity for many wineries to take a risk by investing in regions outside of their home state. At a minimum, wineries should be testing ideas and seeking the way forward, rather than doing more of the same.”
Now is the time to meet the consumer where they are, rather than expecting them to come to you. The state of the wine industry demands it. This quite literally includes the wineries’ ability to ship outside of their home state, and clear and consistent shipping regulations are key to accomplishing this.
Economic challenges are numerous
“Premium wineries will face ongoing headwinds, including weaker wine club retention, lower tasting room conversion rates, and rising price resistance.”
Every DTC sale becomes more precious for a winery, with little room to accommodate any roadblocks. It is difficult enough to keep customers; it becomes nearly impossible if they can’t receive their wines easily.
“Inflationary fatigue, shifting discretionary priorities, and a slowdown in affluent consumer spending have tempered pricing power.”
The gap in lost sales can’t be addressed through price increases. It’s not just that consumers have fewer dollars to spend; there is more competition for those dollars as well.
Challenges and pressures abound, which is all the more reason why this important channel for the domestic wine industry (and an important GDP driver) should not be needlessly frustrated with restrictions and additional costs. Losing out on sales to a particular state because of shipping restrictions or seeing increased costs because of new regulations eats into already slim margins.
Added pressure from wholesale tier upheaval
“RNDC’s exit from California is a symptom of other issues our wholesale partners are dealing with. They will continue to go through transformative change in the years ahead. DtC tactics need to evolve from the overreliance on hospitality and experience at the winery, to an expanded view of DtC that meets the consumer where they live.”
The wholesale tier has its own challenges and shouldn’t add to a winery’s struggles. Let’s keep DTC shipping viable in all states so we can support this crucial sales channel for the industry.
