I'm more convinced than ever that the wine's industry's decline relative to other beverage categories has a root cause: It's own insecurity about its product. In virtually every consumer good category, there is a spectrum that usually follows this trend: Higher quality --> higher price. And in virtually every category I can think of, whether its tequila, wool sweaters or cars, I see discernment and status with the luxury end of the market. But what I don't see is the industry self-immolating by literally insulting the preferences of the mass-produced products within their own category. To justify high prices at the luxury end, the wine industry makes the preferences of the masses seem uncouth, basic, uneducated. It's maddening, especially because of how short-sighted it is. These are the luxury market's future customers, after all! Some people who didn't drink wine just get rich and buy a wine cellar out of the status, but most people who become Explorers and Collectors were once Lifestyle drinkers. They just got older, had more time to learn and have more disposable income (which usually tracks upwards into peak earning years of 45-55). And you know what's one of the deepest, most negative emotions you can have? Shame. True story-- a wine blogger I read distinguished between wine by fine wine or imposter wine. Because the latter is, you know, fake. As if it's a knockoff Gucci handbag, bringing a bad rap to the true representation of product. Rather than just a good but not extraordinarily crafted wine. And when a Collector makes a comment to a Lifestyle Buyer, like, "I can't drink that-- it's not even real wine," that sticks with someone. They might remain a wine drinker because they like wine-- but they have no desire to become an Explorer-- because it's intimidating and can result in more shame. The industry has created this language to create a wedge, but it's backfiring. I wish wine drinkers could find more solidarity in their collective shared preference for wine. I just don't think the industry will let them. If you like wine but not wine culture, give me a shout out in the comments. #wine #wineindustry
Every CEO of a winery and or company should walk the retail shelves of three different types of stores - grocery, club and good independent. Take a good look when set by Thursday then again on a Monday to see for yourself what sells. Know your consumer and category!
I agree with your assessment. When I started in the wine business, over three decades ago, I pointed out that much of the process is obscured by gate keepers, much like the diamond industry. I think the wine industry will be fine, and look different in the next 20 years. But those wineries that survive and succeed will help lift the veil that confuses consumers.
Aside from the anecdotal story, assuming the casual drinker engages with it, there's not much substance. I’ve outlined the reasons for the decline in wine consumption, and what you described. Woke Culture in the Wine Industry: The shift towards critiquing the patriarchy and demonizing Western cultural history has detached wine enthusiasts from the product’s heritage and narrative. This, coupled with the constant promotion of climate catastrophe, has further impacted the industry. Neo-Prohibitionists and Experts: The growing presence of influencers and organizations like the WHO has overwhelmed traditional experts, swaying public opinion and contributing to the decline in wine consumption. Cannabis Legalization The increasing acceptance and availability of cannabis. Low Replacement Rate of Wine Drinkers: With declining female fertility rates and a shrinking demographic of traditional wine drinkers, the consumer base is diminishing. Natural and Clean Wines: The influx of natural and clean wines has created confusion among consumers, making it harder to appreciate traditional wines Alternative Beverage Choices The growing popularity of spirits, beer, and non-alcoholic wines has provided more options, impacting wine consumption
Hi Daniel, I have experienced people talking to me about this before too in Singapore where I am based. I hardly comment.on linked in posts, but I see the wisdom in the way you posted, so I hope to participate and in the process learn more. Whenever in Singapore someone said this to me, I always had to reflect try to figure out if this is in fact benefitting the wine industry overall. For example: This culture maybe help to get rid of mediocre wine? Thereby encouraging wineries to strive to make higher quality wines Which brings about the culture of continuously striving for uniqueness, differentiation and pushing consumers to drink better quality rather than quantity. Would love to hear your opinion on what I just said. So I can have a professional perspective from someone of your expertise. Thank you 🙏
Agree on all points. What the hell is wrong with us? Inability to communicate on consumer terms, total focus on product not consumers, conveying education requirement for enjoyment, over-premiumization, and the list goes on!
Well said Daniel, an early “on ramp” to the tremendous growth in wine consumption & consumer engagement were the wine cooler’s in the late 80’s - California Wine Coolers, Bartles & James, etc. Today those of LDA, have many options & choices between cannabis, smalll production, craft spirits & beers. As you suggest, the wine industry needs to bring innovation & new message that is engaging & relevant to attract new consumers
Common sense, empirically described M.S. Hanni, but this condition is a universally worldwide shortsighted epidemic. I hope the wine industry lasts long enough not to implode!
Great point here. It’s self-sabotage at its finest for anyone in the industry to make someone who’s enjoying any sort of wine feel uncomfortable about it.
Change is the only constant. The wine industry has the same look now that the dinosaurs had when the snows started. Some will perish and the rest will evolve. Adapt or die.
Wine Futurist & Terroir 2.0 Visionary 🔥
2moDaniel Rodriguez. In my opinion, the root cause of the wine industry’s decline is a failure to adapt to changing consumer tastes and preferences. Instead of embracing innovation and accessibility, the industry has often clung to its history and terminology, creating a sense of elitism that has pushed potential customers away. To succeed, the wine industry should shift its focus from the past to the future, prioritising inclusivity, innovation, and a customer-centric approach.