Crimson Wine Group, Ltd. reported a decline in financial performance for the fiscal year ending December 31, 2025, with total net sales of $65.1 million, down 11% from $73.0 million in 2024. The decrease was primarily attributed to a 14% drop in wholesale sales, which fell to $35.5 million, driven by reduced domestic and export wine sales. Direct-to-consumer sales also saw a decline of 6%, totaling $26.4 million, largely due to decreased wine club memberships and tasting room visitations. The company noted that while depletions remained consistent with the previous year, lower shipment volumes and higher discounts to distributors negatively impacted net sales.
In terms of profitability, Crimson's gross profit decreased by 12% to $30.7 million, with a gross margin of 47% compared to 48% in 2024. The wholesale gross profit fell by 13% to $14.1 million, while direct-to-consumer gross profit decreased by 4% to $17.4 million. The company also reported a significant increase in other income, primarily due to insurance settlements related to past wildfires, which contributed to a total other income of $4.6 million, up from $1.1 million in 2024.
Operationally, Crimson Wine Group has been focusing on strategic developments, including the acquisition of the Raeburn wine brand assets for approximately $35.2 million, which was finalized on February 9, 2026. This acquisition was funded through cash reserves and borrowings from the company's revolving credit facility. The company continues to manage its vineyard operations proactively, with approximately 720 plantable acres across various regions, although it has removed underperforming vineyard acreage to align with long-term production goals.
As of December 31, 2025, Crimson employed 154 full-time, 41 part-time, and 24 seasonal employees, reflecting a stable workforce. The company has emphasized direct-to-consumer sales, which accounted for 41% of net sales, and plans to continue enhancing its customer relationships through wine clubs and tasting room experiences. Looking ahead, Crimson anticipates that the acquisition of the Raeburn brand will positively impact its market position, although it remains cautious about the ongoing challenges in the wine industry, including economic conditions and competition. The company believes it has sufficient liquidity to meet its operational needs and capital expenditures in the coming year.
About Crimson Wine Group, Ltd
Crimson Wine Group, Ltd. produces and sells luxury wines from estate-grown and purchased grapes across California, Oregon, and Washington. Its core brands include Pine Ridge, Archery Summit, Chamisal, Seghesio, Double Canyon, Seven Hills, and Malene. The company operates through direct-to-consumer channels and wholesale distribution, emphasizing quality, brand recognition, and sustainable practices in premium wine markets worldwide.
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