Dec 21, 2021
Winc reports unprecedented growth in organic wines, driven by expanded distribution
Winc, Inc. recently announced the growth and expansion of its organic wines in major national retailers including Walmart, Whole Foods, Albertsons, HEB, Central Market, and HyVee, in response to unprecedented demand from consumers.
Winc markets itself as one of the fastest-growing at-scale wineries in the U.S., according to a news release.
The organic wine market in North America is expected to reach $3.9 billion in size by 2027, an 11.6% CAGR, according to an industry report by The Insight Partners, reflecting consumers’ preferences shifting toward products that are healthier, naturally-produced and chemical-free. In a recent Winc customer survey, 73% of respondents ranked health factors, including organic, as a top driver for initial purchase, according to the news release. The growing demand for healthier options is also closely aligned with millennials prioritizing sustainability and a March 2021 Wine Intelligence Report indicated that organic wine was the highest opportunity type of wine among younger consumers. With an estimated 76% of Winc’s direct-to-consumer (DTC) customer base being millennials, Winc has also received increased demand for organic products that prioritize sustainability.
“We are committed to our customers’ feedback and adapting our products to meet their evolving needs,” Brian Smith, president and co-founder of Winc, said in a news release. “Throughout 2021 we have prioritized building out our organic offerings through several new initiatives and partnerships making Winc a market leader within the organic wine industry in the United States. As younger consumers seek more sustainable options in all categories, Winc is positioned as a key supplier in this rapidly growing market.”
Winc grew the number of organic offerings from 18 to 48 during 2021, bolstered by the acquisition of assets from Natural Merchants, one of North America’s leading importers of natural, organic, and biodynamic wines, according to the news release. Shipments of organic wines in the Company’s DTC channel increased 19.8% year-over-year through December 8, 2021, outpacing non-organic SKUs (stock keeping units), and nearly two-thirds of all SKUs sold in Q3 2021 were organic. Winc has also experienced significant growth in organic wine sales in its wholesale channel – organic wines made up 81% of all Winc unit sales at Whole Foods in November 2021, up from 58% in Q3 2021. Top organic brands within the Winc portfolio include Cherries & Rainbows, Pizzolato, Biokult, and Les Hauts de Lagarde. Looking ahead to 2022, Winc plans to continue driving growth in its organic portfolio across DTC and wholesale by further scaling supplier relationships and building its brand portfolio with the introduction of an organic Prosecco, an orange wine, and a non-alcoholic wine.