Price-sensitive consumers have kept a lid on wine sales this year, while grape sales are likely to remain slow. As for the moderation movement, a range of factors are contributing. It was a disappointing first half of the year for U.S. wine sales as a shaky economic backdrop quashed the signs of progress that were evident in late 2024. Nonetheless, there has been modest improvement in some areas since spring.  Retail wine sales fell across price segments in the first half but declined at a slower pace in the second quarter than in the first (see Page 3). Following a bleak first five months of 2025, direct-to-consumer sales, while still down, firmed in June and July. Alternatively, exports deteriorated markedly in the second quarter as shipments to Canada collapsed.  Unfortunately, I am not expecting much improvement in the near term.  The economic outlook remains murky, but the Terrain team believes that slow economic growth, a gradually eroding labor market, and sticky

Afternoon Brief, February 20th

Hawke's Bay Cleanup Begins: After the tragic impact of Cyclone Gabrielle, the weather-bombed wine region looks to salvage what it can...