In this article, we are going to discuss the biggest wine company in the US. If you also want to read about the other top wine producers in America, here is our complete list of the 15 Biggest Wine Companies in the US.
Global Wine Market:
Wine is one of the Most Consumed Alcohols in the World. As we mentioned in our article – 20 Best Wine Brands in the World – the global wine market size was valued at $441.6 billion in 2022 and is projected to reach a value of $698.54 billion by 2030, with a CAGR of 5.9% over the forecast period.
Wine is gaining huge popularity among millennials and youngsters, owing to its refreshing appeal and low ABV offerings. The rising demand for premium and luxury wines, increasing consumer awareness about the health benefits of wine, and the growing popularity of wine tourism are some of the key factors driving the growth of the wine market.
According to the 2024 BMO Wine Market Report, the actual dollar sales of all wine sold in the U.S. market reached $107 billion in 2023 – an all-time high. Considering that wine dollar sales in the country were just over $73 billion in 2018, the market has witnessed a staggering increase of 46% in the last few years. The report also indicates that the largest U.S. wine companies account for more than 80% of the overall wine production in the country. Here are the U.S. States that Drink the Most Wine.
Trends of Global Wine Production:
The global wine production witnessed one of the most significant declines in recent history last year. According to the International Organization of Vine and Wine, the overall wine production around the world was estimated at 237 million hectoliters in 2023, a considerable decrease of 9.6% compared to the previous year and the lowest volume since 1961. The OIV stated that the steep decline can be attributed to a confluence of adverse climatic events, including early frost, heavy rainfall, and drought, coupled with widespread fungal diseases.
However, contrary to the global trend, the U.S. produced an estimated 24.3 mhl of wine last year, marking an increase of 8.5% compared to 2022 and further solidifying its position among the Top Wine Producing Countries in the World. The rise in production has been favored by cool temperatures and heavy winter rains in the Napa and Sonoma wine regions of California.
Sustainability in the Wine Industry:
When we talk about sustainable winemaking, it is usually about the entire process and not just the additives at the end. There has been a concerted effort across the entire wine industry to transition towards biodiversity and organic farming. This means no pesticides, herbicides, or synthetic fertilizers, and an all-around effort to promote a variety of plant life in the vineyard. In short – growing grapes in a way that is harmonious with nature. This is an approach that a massive amount of wine producers have now embraced.
Constellation Brands, Inc. (NYSE:STZ) is a leading premium wine company with a widely admired portfolio that includes Woodbridge by Robert Mondavi, Clos du Bois, Blackstone, Estancia, Ravenswood, and more. It was announced last year that the company’s renowned To Kalon Vineyard has achieved organic certification through California Certified Organic Farmers (CCOF), the first organic certifying agency in the U.S. Located in Napa’s Oakville appellation, To Kalon Vineyard has been farmed organically for the past four years and meets rigorous standards around the use of renewable resources and conservation of soil and water. This achievement accelerates STZ’s deep commitment to its Environmental, Social, and Governance (ESG) strategy while improving the health and sustainability of the land for future generations.
The New York-based company made headlines last summer when its Mexican beer brand, Modelo Especial, became the Top-Selling Beer in America after dethroning Bud Light. As a result, Constellation Brands, Inc. (NYSE:STZ) reported a revenue of over $2.12 billion during its last quarter of fiscal year 2024, making it one of the Biggest Wine Companies by Revenue in the U.S.
The U.S. beer industry saw a tough start to the year, given the poor weather conditions in the states. However, STZ’s beer segment, which brought in 82% of its sales in FY 2024, still reported growth of 10.9% during the last quarter. The volume demand continues to grow and the company management stating that Q1 2025 is ‘setting us off on a really solid year’ suggests that they are seeing no major signs of slowdown. And while STZ’s Wine & Spirits segment witnessed a 5.6% decline in Q4, its smaller size minimizes the downside risk. For fiscal year 2024, Constellation Brands generated $2.8 billion in operating cash flow and was able to reduce its net leverage ratio by nearly half a point while returning over $900 million back to its shareholders through quarterly dividends and share repurchases. And although its forward dividend yield doesn’t seem high at 1.51%, the company has both paid and grown its dividends for the last eight years.
Another factor helping STZ is that America’s Hispanic population is growing almost twice as fast as its general population, so brands like Modelo and Corona are expected to stay in high demand. Constellation Brands, Inc. (NYSE:STZ) continues to be one of the Best Alcohol Stocks to Buy Now, with 47 hedge fund holders in Q1 2024 boasting an overall stake value of over $2.74 billion.
Pixabay/Public Domain
Methodology:
To collect data for this article, we have referred to WineBusiness Monthly, looking for the Largest Wine Companies in America. The following companies have been ranked in order of the total cases sold annually by their brands in the domestic market. The list does not include private labeling or custom crush wineries that make wine for others.
1. E. & J. Gallo Winery
Annual Case Sales in the US: 100 million (WBM estimate)
Established in 1933 by brothers Ernest and Julio Gallo in Modesto, CA, E & J Gallo is not only the #1 Wine Seller in the US, but also the largest winery in the world by volume. The family-owned winery’s expansive portfolio includes popular brands such as Barefoot, Apothic, and Dark Horse, as well as more premium labels like Louis M. Martini and MacMurray Estate Vineyards.
The winery’s commitment to sustainability and innovation is also evident, with initiatives such as water conservation, renewable energy use, and precision viticulture shaping its operations. According to Beverage Industry, the E & J Gallo Winery boasted a revenue of around $8.3 billion in 2023.
If you also want to read about the other large wine producers in America, here is our complete list of the 15 Biggest Wine Companies in the US.
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