Wine Business Monthly
Texas had some of the strongest growth in 2020 (15 percent); and while that growth was down by more than half in 2021 (7 percent), the state still fared better than the country’s other winery-dominant states. Roxanne Myers, president of the Texas Wine & Grape Growers Association, pointed to the pandemic as the major contributor to this decline in growth, year-over-year.
“You saw very few wineries putting in second, third, or fourth tasting rooms because it was a very uncertain market,” said Myers. “Also, because wineries were shut down along with bars, it wasn’t prudent to open up a new winery business while you couldn’t operate."
“Online sales have multiple barriers to entry,” added Myers. “First, interstate shipping laws make it difficult to follow the rules about state taxes and reporting. Also, some of the more powerful internet wine retailers use wines available by distributors; so, if a winery doesn’t use a distribution company and only direct-ships, it’s hard to compete online with limited marketing resources.” Myers is confident that growth will rebound in 2022 and said a lot of movement is taking place in the Hill Country and north of Fort Worth, towards the River River area.
“There are a few concerns in the marketplace right now with regards to viticulture, namely herbicide volatilization and climate change. Aside from that, Texas is still a big market for wine consumers, and I believe we’ll see more and more investment here,” she said. “Land in Texas is less expensive than other areas, making it attractive to outside investment, and there are few restrictions for getting a permit to manufacture and direct-sell wine."