Inventory

3 Months Ended

Mar. 31, 2026

A summary of inventory as of March 31, 2026 and December 31, 2025 is as follows (in thousands):



	March 31, 2026		December 31, 2025
Finished goods	$	52,934	$	32,725
In-process goods	37,653		33,919
Packaging and bottling supplies	685		321
Total inventory	$	91,272	$	66,965

The Company’s inventory balances are presented at the lower of cost or net realizable value. The Company reduces the carrying value of inventories that are obsolete or in excess of estimated usage to estimated net realizable value. The Company’s estimates of net realizable value are based on analyses and assumptions including, but not limited to, historical usage, projected future demand, and market requirements. Reductions to the carrying value of inventories are recorded in cost of sales. If future demand and/or profitability for the Company’s products are less than previously estimated, then the carrying value of the inventories may be required to be reduced, resulting in additional expense and reduced profitability. The Company’s inventory write-downs may consist of reductions to bottled or bulk wine inventory.

Inventory write-downs of $0.7 million and $0.8 million were recorded during the three-month periods ended March 31, 2026 and 2025, respectively. Inventory write-downs reflect inventory expected to be sold at a loss due to current market conditions.

The increase in inventory as of March 31, 2026 from December 31, 2025 is primarily driven by the acquisition of Raeburn Assets. The inventory balances as of March 31, 2026 include the initial valuation noted in Note 2, “Acquisition of Raeburn Assets”, adjusted for sales and production-related activities since the date of acquisition.