The Two Wine Industries: Large vs. Small Wineries
““The wine industry doesn’t come in one size or shape that fits all and doesn’t run at a single speed... When a journalist asks me about what’s happening in the wine industry, I have to stop, pause, and think. Which wine industry are we talking about?” ”
I often say there are two wine industries—one that garners headlines and dominates the conversation, and another that quietly sustains thousands of small producers. Most news articles, conferences, and speakers are focused on the large production wineries, and for good reason—317 wineries in the U.S. produce anywhere from 50,000 to over 500,000 cases of wine annually. These wineries, making up just 3% of all U.S. wineries, account for the lion’s share of economic impact, wine sold, and jobs created. In contrast, 85% of U.S. wineries produce fewer than 10,000 cases per year. And yet, when the wine industry is discussed, it’s often as though these 10,000 small wineries don’t even exist.
The large and small wineries operate on entirely different scales and face distinct challenges. Yet, it’s rare to find any mention of this in wine writing. The conversation around trends, problems, and solutions is often limited to the big players.
Mike Veseth, known as The Wine Economist, recently touched on this distinction in a blog post. He introduced the concept of the Three Vs: viticulture, vinification, and vendre—growing grapes, making wine, and selling it. While all wineries handle these functions, the way they approach them varies significantly based on size.
The wine world is more complex than most realize. While large wineries dominate headlines, small producers make up the heart and soul of the industry, quietly crafting wines that reflect their passion, dedication, and unique vision. It’s time we shine a light on these hidden gems and their vital role in shaping the true landscape of wine.
Small wineries, for example, often handle all three functions in-house—family members tending vines, making wine, and selling directly to loyal customers at tastings or online. Large wineries, on the other hand, may outsource grape-growing or winemaking, relying instead on bulk production, massive distribution pipelines, and a brand built to move volume. As Mike points out, growing grapes and making wine are both capital-heavy, risky endeavors, and the selling process is no different. The big players specialize in one or two of these areas, while small wineries juggle all three.
This division of labor, or lack thereof, shapes how the different parts of the wine industry operate. Yet the large producers dominate the narrative because of their economic clout. Small wineries may produce less than 10% of the wine sold, but with over 10,000 small wineries in the U.S. alone, their numbers are impressive. If they banded together, their voice would be much louder.
The reality is that small wineries face unique challenges—limited access to capital, distribution issues, and consumer competition from massive brands that dominate shelf space. Yet, despite these obstacles, the romantic image of small, family-owned wineries persists. Hand-tended vines, artisan winemaking, and intimate tastings all contribute to the allure, but they don’t tell the whole story of the struggles behind the scenes.
The big question is: how do we shift the conversation to acknowledge both wine industries? How do we ensure that the stories, challenges, and innovations of small wineries are heard alongside those of the large ones? We need to start by recognizing that there is no single wine industry. There are two—distinct in their operations, yet both vital to the overall wine economy.
What do you think? Should we start making more noise about the unique challenges and strengths of small wineries? Hit reply and share your thoughts.
