Two Wineries, Same Appellation, Same Year. One Grew 22%. One Fell 13%

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by

Glasshouse Creative

Same market. Same tariff noise. Same consumer drinking less. Same brutal DTC numbers.

Silicon Valley Bank surveyed 450 family wineries for its 2026 direct-to-consumer report. The top quartile grew revenue 22%. The bottom quartile fell 13%. A 35-point spread between operations facing identical conditions.

The report is blunt about what separated them. Top performers grew “by focusing on customers and relationships versus cost containment.” Rob McMillan, who has written the report for 25 years, put it plainly: “No matter the environment, you can’t cut your way to growth.”

If you’re an owner or GM who spent the last two years cutting, that sentence deserves a minute.

The cuts made sense. The gap they left didn’t.

Nobody trimmed payroll for fun. The 2025 numbers justified it — DTC shipments fell 15% by volume, a 967,000-case drop and the steepest single-year contraction Sovos ShipCompliant has recorded since it began tracking in 2010. Outside Napa, California wineries lost 32% of DTC volume in one year and 47% since 2021. Napa held its dollar line at +1% but still shed 8% in volume.

You protected cash flow. That was the correct call at the time.

But look at what most estates actually cut. The senior marketing seat went first, because it was the biggest number. The execution layer stayed, because someone has to send the emails and run the club.

So the strategy left and the labor remained. And now the SVB data says the wineries pulling away are the ones executing well on customer relationships — which is precisely the work that requires the seat you eliminated.

That’s the gap. Not effort. Not headcount. Direction.

Rebuilding it internally is more expensive than the salary line implies

Say you’re considering hiring back a marketing director. Run the real number, not the offer letter.

Per the Bureau of Labor Statistics, benefits accounted for 30.1% of total employer compensation costs for private industry workers as of March 2026. Wages are only about 70% of what an employee actually costs you. A $120,000 director is closer to $172,000 fully loaded before you count anything else.

Then add what doesn’t show up on the org chart. Three to five months to recruit and close a senior hire in a market where good people are cautious about wine. Another two quarters before they know your allocation tiers, your club cohorts, and your distributor relationships well enough to make a real decision. Severance exposure if the market moves again. And the structural problem that you’re buying one person’s judgment, one person’s network, and one person’s blind spots for the next several years.

That’s a seven-figure commitment over a three-year horizon, made at a moment when you can’t confidently forecast four quarters out.

What the agency model actually buys you right now

This is why more North Bay estates are running strategy through outside partners instead of rebuilding departments. Not as a discount. As a different structure.

Senior judgment, sized to the problem. You don’t need forty hours a week of director-level thinking. You need five to ten, applied to the decisions that matter — release sequencing, club retention architecture, pricing and allocation strategy, which campaigns to kill. The rest of the week is execution, which you can already staff.

Cost that moves with your cash flow. A retainer scales up before a major release and down in February. Payroll does neither. In a market where you’re forecasting quarter to quarter, converting a fixed cost into a variable one is not a small structural advantage.

Pattern recognition across brands. An in-house director sees one winery’s data. A partner working across multiple estates sees which club retention tactics are working right now, which email cadences are fatiguing, and what’s happening to conversion across the valley — this quarter, not from a conference talk last year. That view is difficult to buy any other way.

Production capacity you can’t justify staffing. Photography, video, brand film, web builds, campaign design. You need these in bursts around releases and harvest. Employing them year-round makes no financial sense, and hiring one generalist to do all of it produces work that looks like one generalist did all of it.

Your existing team gets better. This is the part owners underestimate. Your coordinator is probably capable and probably under-directed. Give them a real quarterly plan, campaign briefs with the creative direction already made, and a monthly retention read, and their output changes immediately. You are not replacing anyone. You are giving the team you already pay for something to execute against.

Why the timing matters

SVB’s read is that the steepest phase of the decline has passed, though momentum hasn’t fully returned. That makes the next several quarters the consequential ones.

The wineries that spend this window rebuilding customer relationships will hold share when demand recovers. The wineries that spend it holding the line on cost will emerge with a thinner list, a fatigued club, and a brand nobody has heard from in eighteen months.

The 35-point spread in that report isn’t a forecast. It already happened. The question is which side of it your 2027 numbers land on.

Three objections worth answering

“An outside partner won’t understand my brand.” Fair, and true of generalist agencies. It is not true of partners who work exclusively in wine and spirits, who know Commerce7 and Klaviyo natively, who understand compliance, allocation, and why a harvest week is not a normal week. Ask any prospective partner to describe your club renewal cycle before you sign anything. The answer tells you everything.

“I’ll lose control of my brand.” You retain more control, not less. You approve the plan, your team executes it, and you see the results monthly. Compare that to a full-time hire whose day-to-day you realistically do not review.

“I’ve been burned before.” Most owners have — usually by open-ended retainers with no defined deliverable and no measurable outcome. The fix is structural: fixed scope, defined deliverables, and a metric agreed before work starts. If a partner won’t commit to what success looks like, that’s your answer.

What this won’t fix

Direct answer: it won’t fix a wine quality problem, a pricing problem, or a distribution problem. It won’t reverse category-wide consumption decline. And it won’t work if you buy it and ignore it — the estates that get the most from this model are the ones where the GM sits in the monthly review and makes decisions off it.

It fixes one thing, which happens to be the thing the 2026 data says is separating winners from losers: whether someone with real experience is steering your customer relationships week to week.

Where to start

Two entry points, both concrete.

Wine Club Retention Audit — a fixed-fee analysis of where your members are lapsing, what’s triggering it, and the specific campaign sequence to stop it before your next push. Scoped, priced, and delivered before harvest.

A 30-minute conversation — send us your current release calendar and club numbers. We’ll tell you where the gap is. If the gap isn’t strategy, we’ll tell you that too, and we won’t pitch you.

Glasshouse Creative — creative with intent. Wine and spirits brands across Napa and Sonoma.

[Book a call →]


Sources: Silicon Valley Bank 2026 Direct-to-Consumer Wine Report · Sovos ShipCompliant 2026 Direct-to-Consumer Wine Shipping Report · U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation, March 2026


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