What the wine industry needs to do next is brilliantly summed by Rob McMillan of SVB Financial Group in the Silicon Valley Bank 2020 State of the Wine Industry Report.
Wineries that have operated under this premise will likely emerge stronger and those who have not now have a chance to evolve and join the winning circle:
“Based on the industry’s current results, making great wine isn’t good enough for the consumer today. We are increasingly missing the mark on consumer expectations, and our results show it,” he said.
“This oversupply, coupled with eroding consumer demand, can only lead to discounting of finished wine, bulk wine and grapes”, he continued, pointing out that even the smaller 2019 harvest was not enough to correct the oversupply.
He warned that this could lead to the demise of many vineyards in California, prompting those remaining to implement great efficiencies.
“The dominant competitive issues will shift to management strength and the decision-making ability of teams and organizations,” he said.
The industry also needs to address the desires of the new consumer, which vary substantially from the baby boomer consumer.
“The industry should rightly be concerned,” McMillan said. “We aren’t engaging with the millennial consumer, and boomers who have driven wine sales for the last 30 years won’t live forever.”
Quini is positioned with unique technology, data, and the ear of the consumer, to help.
Read the full article published today by The Drinks Business, at https://bit.ly/2HCkkUw