Duckhorn, a giant amongst Napa wineries, announced on Tuesday that it was culling several wines from its portfolio as part of a shift to focus on wines within the premium tier. The brand shared that it aims to focus heavily on its “core four” wineries: Duckhorn Vineyards, Decoy, Kosta Browne and Sonoma-Cutrer.
“The Duckhorn Portfolio is a champion of exploration and innovation in winemaking and has proudly offered customers a stellar portfolio of exceptional wines made in key varietals and from the U.S.’s top wine-growing regions,” said Duckhorn CEO Robert Hanson. “As we continue to execute our strategic priorities, we consistently evaluate our portfolio to ensure it is well-positioned to expand and profitably scale. We see tremendous potential for our core four wineries, along with Goldeneye, Calera and Greenwig, to contribute to the company’s vision to be a the leader in American luxury wine, with a curated, comprehensive portfolio of highly successful and growing brands.”
In order to focus more heavily on those brands, in addition to its Greenwig, Calera and Goldeneye labels, Duckhorn will be moving its funding from Canvasback, Paraduxx, Migration and Postmark labels. The brand shared that the label’s profits only contributed to a 3.9% of the winery’s total gross profit within the last 9 months.
The brand also shared it will shutter the doors of the tasting rooms for Migration in Napa, Canvasback in Walla Walla and Sonoma-Cutrer in Windsor. Duckhorn additionally shared that it would continue allocating resales to Sonoma-Cutrer’s wine club and focusing more on wholesale.
Duckhorn’s strategy appears to be a common one within what appears to be a troubled landscape for American wine. In April, Constellation Brands shifted its focus to premium and sold off major brands, including Meiomi.
Constellation reassured worried shareholders that the move was simply a shift in strategy, meant to focus on “evolving consumer preferences.”
The Forecast for Napa Wines According to the Silicon Valley Bank Report
Many industry insiders might be wondering why so many brands are shifting their focus to premium. In January, the Silicon Valley Bank Report seemed to provide some answers. The report is considered the leading predictor of the fate of the American wine industry, with a heavy focus on California, and often touches on trends while offering key insights to consumer behavior.
The report shared that premium sales were driving sales growth by 22%, and only showed sales declines within the single digits.
“The wine industry is undergoing a significant change, marking the first demand-based correction in three decades,” Silicon Valley Bank Wine Division Founder Rob McMillan said, according to the report. “We have been predicting a generational shift for many years, and the 2025 report data solidifies the wine industry is now living that reality. Different parts of the industry will heal at different times, but we can expect a continued downturn for some time before we reach flat growth.”
The Silicon Valley Bank Report shared that total volume of wine sales dropped from somewhere between -1 and -3%. Average wineries saw a revenue decline of approximately 3.4%.
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