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Last summer, in a meeting in Eastern Washington, Ste. Michelle Wine Estates (SMWE), delivered some devastating news to the grape growers in attendance. The state’s largest winery told the vineyards it would purchase 40 percent less fruit from them over the next five years. That massive reduction came on the heels of SMWE announcing layoffs earlier in the year; just last month it revealed yet another round of job cuts. SMWE has long been a driver behind Washington wine, so its cascade of bad news cast a pall over the state’s entire industry in 2023. Words like “crisis” have been thrown around, while others argued Washington wine needed to be saved.

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Sean P. Sullivan, the publisher of Northwest Wine Report, summarized the situation well in an article written in early December, just after the second round of layoffs was announced. As Sullivan so succinctly states, “Washington is very much a tale of two industries.” SMWE produces seven million cases of wine per year—almost half of the state’s entire output—while “90 percent of Washington wineries make fewer than 5,000 cases per year.” So although there’s been a lot of doom and gloom in the air, in our eyes, much of the hand wringing is akin to a large fast-food chain announcing it will be closing eateries immediately followed by news outlets forecasting the end of fine dining.

While it seems that a major producer cutting its orders on fruit by 40 percent is a bad thing, not everyone sees it that way. Sullivan thinks it could be “very beneficial for Washington.” He tells us, “It gives growers a once-in-a-generation opportunity to evaluate what they have planted, where they have it planted, what is working, what is not, and what they might do differently. That will lead to taking out varieties or vines in some areas as well as planting or replanting in others.” And as Scott Lloyd, general manager of Quilceda Creek Winery—which grows its own grapes in estate vineyards and does not buy any fruit from outside growers—says, “For other wineries, there will be a renewed opportunity to have access to vineyards they have not had before to make fantastic wine at a great value.”

If you haven’t yet had the pleasure of sampling Washington State wine, you’re definitely missing out. This brand of wine is characterized by variety, with over 80 different grape varieties grown in the region. Despite this diversity, consumers and traders continue to prefer products they can easily identify. Common pairings include Napa with Cabernet Sauvignon, and Burgundy with Pinot Noir and Chardonnay. In Washington State, variations range from Cabernet Sauvignon, Chardonnay, Merlot, Riesling, Syrah, Sauvignon Blanc to any grape variety you can think of. Being the second-largest wine-producing state in the US, Washington started its winemaking journey in the 1860s. Today, a substantial proportion of the state’s wine products are shipped out of state. Top-tier wineries deliver directly to their consumers.

Quilceda Creek epitomizes such wineries. Their Cabernet Sauvignon is in such high demand that customers have to join a waiting list. Quilceda Creek owns and operates its own vineyards in the Columbia Valley and Red Mountain AVAs. A bottle of Quilceda Creek Cabernet Sauvignon fetches $200, while a bottle from Chateau Ste. Michelle Columbia Valley Cab Sauv sells for $17. Quilceda Creek’s prospects look bright, given its fiercely loyal customer base and consistent high ratings for its Cabernets.

Jesús Martínez Bujanda Mora, CEO of Valdemar Family, who represents the fifth generation of his family’s winemakers, also produces wine in Washington State at their Valdemar Estates winery in Walla Walla. While he predicts a high level of competition due to an oversupply of grapes, he believes that the quality and consistent high standards of Washington’s wines will counter any potential negative fallouts from the competition.

The Valdemar Family, in addition to Cabernet Sauvignon and Chardonnay, also produces Syrah, which could potentially further broaden Washingtons’s appeal to wine lovers. The high-quality, diverse and well-priced Syrah and Syrah-based blends, ranging from light and earthy to full-bodied and rich, make for an enticing prospect for consumers.

Everyone we spoke with offered a positive outlook for Washington wine. “Although we’re clearly in a period of transition, we remain optimistic about the future,” Kristina Kelley, executive director of the Washington State Wine Commission, says.

That transition echoes the one facing the industry as a whole, with sales falling the last few years as younger drinkers look to different beverages or abstain from alcohol entirely. That’s taking a toll on the likes of SMWE that specialize in wines on the lower end of the price spectrum. But there’s still a market for premium offerings, which Washington has plenty of. So we will carry on covering some of the shining stars to guide our readers toward the best wines the state has to offer. Look for bottles from L’Ecole No 41, Sparkman Cellars, DeLille Cellars, Figgins, Leonetti, Doubleback, and even the high-end bottlings from the winery that started this conversation, Chateau Ste. Michelle.

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