Anthony Zhang | Cofounder of Vinovest, a leading wine and spirits investment platform.
For decades, access to the U.S. wine market—which surpassed $107 billion in sales in 2023—meant one thing for foreign wineries: find an importer, lock in a distributor and build brand presence through shelf space and sommelier buzz. But the rules have changed. The dramatic consolidation of U.S. distributors and importers has fundamentally reshaped the channel, squeezing small and midsized international producers out of traditional paths to market.
To stay competitive, wineries outside the U.S. must rethink their approach—not just to logistics, but to the entire financial architecture of their export strategy. The future belongs to those who can adapt to hybrid and direct-to-consumer (DTC) models and build brand equity without gatekeepers.
Fewer Players, Bigger Stakes
Over the past two decades, the number of U.S. wine wholesalers has dropped from roughly 3,000 in the mid-1990s to approximately 1,000 in 2023. Southern Glazer’s and Republic National Distributing Company (RNDC) are by far the two largest players in the U.S. wholesale wine and spirits market. These giants, optimized for volume, operate more like consumer packaged goods (CPG) logistics firms than traditional wine advocates.
For boutique and international wineries in this era of consolidation, the message is clear: If you don’t have volume and marketing budgets, you’re not a priority.
This shift has serious financial implications. By the time a wine passes through the three-tier system (importer to distributor to retailer), it can bear a three-to-four times markup from ex-cellar price to retail shelf. That markup structure is incompatible with the economics of small-scale, high-quality producers.
The Decline Of The Importer As Champion
Importers were once evangelists for their producers, hand-selling unknown gems from Slovenia to Sancerre. Today, most behave like financial managers, curating portfolios based on risk, compliance and ROI.
Large distributors often prefer high-volume products that ensure consistent sales and profitability. This preference makes it challenging for boutique global wineries to find distribution partners willing to take on their products.
The impact is a drop in brand visibility and elasticity. Without importer advocacy, foreign producers have little support building in-market narrative—meaning less pricing power, slower movement and reduced customer affinity.
DTC And Hybrid Models: The New Global Playbook
Direct-to-consumer sales, once reserved for California tasting rooms, are now being embraced by foreign wineries targeting U.S. consumers. A 2022 report found that the DTC wine shipping market had tripled over the prior decade, growing from $1.3 billion in 2012 to $4.2 billion in 2021.
Foreign producers are tapping into this trend by:
• Launching U.S.-facing e-commerce storefronts (e.g., Tenuta di Arceno, Bodega Garzón)
• Leveraging platforms like Vivino, Wine Access and SommSelect to build awareness and drive repeat sales
Wineries can retain up to 80% of the final sale price through DTC channels such as their website or tasting room—versus traditional distribution, which typically yields 30% to 50% margins and less pricing control, though it can expand market reach through retail and restaurant placements.
A hybrid approach blends both, using DTC for flagship or limited wines to preserve margin and exclusivity, while selectively distributing other SKUs through wholesale partners to reach broader audiences without diluting brand value.
Regulatory Friction As Strategic Catalyst
Tariffs, import duties and compliance costs have long plagued foreign wineries. The most recent example is the 2019-2021 U.S. tariffs on French, Spanish and German still wines. According to the Fédération des Exportateurs de Vins et Spiritueux de France (FEVS), in 2020 U.S. imports of French still wine fell in value by 400 million euros because of the tariffs. With the current 20% tariff on goods from the EU, it remains to be seen how much more revenue could be lost in the future.
Rather than accept this as an ongoing risk, forward-thinking producers are designing resilient financial models. These include:
• Using bonded U.S. warehouses to mitigate delivery delays and optimize cash flow. This shortens delivery timelines and defers tax payments, freeing up working capital and enabling faster fulfillment for DTC or wholesale orders.
• Building shipping cost contingencies into pricing structures. Rising freight and last-mile delivery costs are prompting wineries to incorporate shipping buffers into pricing. This protects margins from volatility while maintaining transparency in tiered or regional pricing.
• Partnering with U.S. legal entities to enable multistate DTC licensing. To legally ship DTC across states, foreign wineries often partner with or establish U.S.-based entities that hold necessary licenses.
The Brand Control Advantage
Finally, foreign wineries that go direct or hybrid gain control of their most valuable asset: their brand. Through email campaigns, virtual tastings, Instagram Lives and creator partnerships, they’re crafting consumer experiences that distributors simply don’t offer.
DTC channels empower wineries to build stronger customer relationships, increase brand loyalty and capture valuable consumer data—advantages that are often lost in the wholesale model. This direct connection not only boosts repeat purchases, it also creates long-term brand equity and resilience amid shifting distributor priorities.
Conclusion
The U.S. distribution ecosystem is consolidating rapidly—and leaving little room for boutique wineries that rely on the traditional three-tier model. But change creates opportunity. Wineries that invest in new distribution strategies and engage U.S. customers directly can increase margins, build brand equity and create a sustainable export future.
The future of wine distribution is direct.
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