🍷WINE INDUSTRY FRIENDS, RESTAURANTS, INVESTORS🍷
This is one of the most comprehensive and data driven reports on the 2023 state of the Wine Industry. Written by Rob McMillan, EVP and Founder, Silicon Valley Bank Wine Division.
Identifying the problems helps us to solve them, and as this report finds we have a few to tackle in the coming years. One of the biggest? (and has 16 pages dedicated to it) is consumer evolution - and the data couldn't be more compelling:
"Whatever we’ve collectively tried to do to engage with the younger consumer in the last decade hasn’t been good enough. In fact, if we are doing something, the results are getting worse, so you could argue that we should immediately stop doing it."
For years I've talked about the importance of paying attention to the next generation, as I watched wineries and brands throw money at high end consumer tasting, all expenses paid trips for buyers and Sommeliers, and out dated marketing like radio and bus ads.
And where has this gotten us?
"For many consumers, the data shows that wine is their parents' alcoholic beverage but not their own. If this preference continues for too many more years, it will only increase the number of nonadopters of wine, as the Wine Market Council data is already showing"
Add to this reality that Neo-prohibitionism is very much alive and well *gulp
Collectively this is a HUGE problem that has developed over years. The solution is also one that will take years to correct (this ship is mighty and hard to turn) but it is one that TOGETHER as an industry we can do.
Changing the narrative is imperative to changing the forecast of this industry.
As Rob McMillan notes "Younger consumers are more interested in what’s in the bottle — where it comes from, how it’s grown, the ingredients and additives, how it can make their lives more fulfilling and how you as an organization try to make the world better"
✨ Marketing is no longer about the stuff that you make, but about the stories you tell. ✨
We need innovative solutions that reach the right people, and at Knowbie we are actively working on this (and seeing some positive results)
Do you feel as passionately about this industry as we do? Message me & let's chat.
#wineindustry #restaurants #californiawine #startup #entrepreneurship
Managing Director, Innovation & Cross Border Banking, East West Bank
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