Wine Business Trends 2020 - Wine Business Monthly
Highlights from Wine Business Monthly Technology and Financial Webinar
Are you curious about wine business trends 2020?
Most of us know that e-commerce is booming in the US wine industry.
Some wineries boast record sales, but others struggle.
Why?
What role does technology play into a winery’s bottom line?
Virtual tastings have been an important way to sell wine since COVID-19 first closed tasting rooms.
But what are the recent wine business trends?
Wine Business Monthly Wine Industry Technology and Financial Webinar
In mid-September 2020, Wine Business Monthly held a two-day conference focusing on technology and finances in the US Wine Sector.
Enthusiastic speeches alone from Annette Alvarez-Peters, former wine buyer for Costco, and Mel Dick, President, Wine Division and Senior Vice-President of Southern Glazer’s Wine and Spirits, energized and enlightened.
They covered wine business trends that included online purchases, as well as new packaging for wine.
Wine Business Monthly Webinar: Hidden Gems
In roughly a dozen panel sessions and presentations, wine market experts revealed “hidden gems” and lessons learned from surviving—and even thriving—during COVID-19.
Machine Learning? Artificial Intelligence? How Insights from Microsoft Can Help Your Winery Thrive – Wine Business Trends for 2020.
Machine Learning: Training the Wine Consumer
Most of us are familiar with how Amazon quickly learns our preferences in literature and clothing.
We see how this online retailer instantly suggests “also bought” or “similar to” items for our perusal.
In her talk titled Using Artificial Intelligence (AI) Machine Learning (ML) and Recommendations to Elevate Experience, Ms. King spoke about the tests Microsoft performs to show wine business trends.
Particularly the importance of Artificial Intelligence and Machine Learning in predicting the customer’s (already established) preferences.
While almost everyone in the wine industry will agree that machine learning is the key to selling more wine, Ms. King highlighted some challenges specific to the wine industry.
Amazon quickly learns our preferences in literature and clothing – now also wine
Challenges of Artificial Intelligence in the Wine World
In the Artificial Intelligence Machine Learning world, success depends on user data.
First challenge – In the wine industry, “user data” remains scattered across retailers and distributors.
Second Challenge – wine prices range widely from under $10 to over $100. US wine drinkers range from absolute beginners to seasoned collectors.
Third Challenge—the specific language of wine often defines logic (at least, where Machine Learning and Artificial Intelligence is concerned).
In normal parlance, the opposite of “dry” is “wet.” But in the wine world, this means a wine that is not sweet.
In the wine industry, “user data” remains scattered across retailers and distributors. .
How to Elevate the Consumer Experience: Wine Industry Trends 2020
Elevating the Wine Consumer Online Buying Experience
Elevating the consumer experience can be the “keyword” of Wine Industry Trends 2020
Not every winery is yet at the level to use Machine Learning and Artificial Intelligence in their e-commerce.
Yet as the two-day conference went on, a surprising number of medium-sized wineries already have highly skilled chief technology officers overseeing e-commerce.
In her presentation on wine business trends, Ms. King also stressed the importance of Machine Learning to “elevate the consumer experience.”
By this, we can interpret it to mean that machine learning and artificial intelligence make it faster, easier, and more efficient to buy the right product.
And in a very broad sense of the word, elevating the consumer experience is what this conference was all about.
It can be the “keyword” of Wine Industry Trends 2020
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The Virtual Tasting Room: Elevating the Consumer Experience
First of all, what is the “consumer experience” in a virtual tasting?
And does it really need to be elevated at all?
If you’re a Wine Business Monthly (WBM), subscriber, you’ve read how various wineries have held virtual tastings since COVID-19 forced tasting rooms to close. (You can search for them on the WBM website).
Both the enlightening WBM Packaging and Online Selling conferences also touched on virtual tasting events.
This two-day wine business trends seminar focused more directly on technology and finance regarding virtual tastings.
And also, in line with the wine industry conference theme, many panels also focused on how to elevate the consumer experience within the virtual tasting room environment.
Wine Industry Veterans: Setting the Tone
With his 63 years in the wine industry. Southern Glazer’s Mel Dick discussed how the pandemic changed consumer wine drinking and buying behaviors.
Wine Business Trends Selling Wine Online
The New Wine Consumer: Living in a Cocoon
"The Most Relevant consumer trend to dominate in the next ten years is cocooning.”
Today more wine consumers—and new wine consumers—shopping online.
Kaumil Gajrawala, Managing Director, Beverages, Household & Personal Care Products, Food Retail & Wellness at Credit Suisse Securities, elaborated on this consumer retail wine trend in his presentation.
In more than a dozen financial slides and graphs covering every aspect of wine business trends, the basic message is that consumers are spending money on their house and related furnishings—because they are staying inside their home.
As Wine Business Monthly highlighted in their Central Coast webinar, consumers are spending more money on wine in supermarkets because they are entertaining at home.
The trend of wine consumers spending money on their home and home entertaining (in the form of wine) is a trend Mr. Gajrawala feels will continue well into the future.
The trend of wine consumers spending money on their home and home entertaining .
Surviving and Thriving with Data: Tips, Strategies, and Tools
This lively, engaging panel featured top wine market experts including:
♦ Alex Kessler, manager, consumer insights and business intelligence, O’Neill Vintners & Distillers;
♦ Stuart Henry, director of technology, DuMol Winery;
♦ Jill Whitfield, senior marketing manager, Biltmore Estate;
♦ Ashley Trout, owner & winemaker, Brook & Bull and Vital Wines:
According to the panel, over 55% of all wineries collect and analyze consumer data.
The focus of this talk was to underscore the importance for wineries to collect—and manage—customer data.
More than ever, wineries must rely on wine clubs and past purchases to be profitable.
But how much data do wineries really need on their customers?
How can they reach out to buyers, or wine club members of the past?
More than ever, wineries must rely on wine clubs and past purchases to be profitable. .
Wine Business Trends: Is it Possible to Push Too Hard?
Data “Reshaping” in the Winery
But how much contact is too much? What frequency means that the winery is ‘pushing too hard?
The Virtual Tasting Room: Getting Your Website in Order
♦ Russ Mann, CEO, WineBid;
♦ Celeste Hope, director of digital marketing, Hope Family Wines;
♦ Sarah Conde, digital consumer success, Stoller Wine Group;
♦ Michelle Kaufmann, communications director, Stoller Wine Group;
This dynamic panel focused on how wineries navigated from the tasting floor to a virtual experience after COVID-19 closed their tasting rooms.
Panelists also highlighted the importance of improving the online website experience.
The Stoller Wine Group, for example, used a combination of storytelling and videography to make virtual customers feel as if they were in the actual tasting room.
“Storytelling is the oldest form of connecting,” Stoller explained. “It’s a way to bond and connect with people. It helps people engage in our brand.”
The wine business trends panel discussed the importance of connecting with the consumer and reaching them on a personal level.
It was also felt important to segment their list or club members.
A key recommendation from the panel urged wineries to focus on their top twenty percent of consumers, favoring them with special allocations and new releases.
Best Winery Practices for Virtual Wine Tasting Events
Since managing editor Erin Kirschenmann first began highlighting virtual tasting events in Wine Business Monthly, these virtual tasting events have become more sophisticated.
Wineries also agree Virtual Wine Tasting Events are here to stay, even after the COVID-19 situation resolves.
One reason is that it is increasingly unrealistic for wineries to expect wine lovers to travel to a wine region, rent a hotel room or Airbnb, and buy wine.
It is much more practical to bring the winery to the consumer in the form of a well-planned virtual tasting.
Evolution of the Tasting Room
Though only six months have passed since the first wave of virtual tasting events in April 2020, much has changed.
The panelists agreed that expecting consumers to open four or six wines during a tasting event is too much.
The new trend is to creating tasting packs with smaller bottles.
Besides having a winery staff member deliver the tasting event, many wineries are also getting their winemaker involved.
Some wineries are even pairing virtual tastings with cooking demonstrations from the winery or local chefs. For example, St. Supery has a dynamic program that gets team members, club members, and wine lovers involved with live cooking demonstrations and wine pairing.
Stoller Wine Group mentioned that they have four videographers on staff, and that this helps enliven the virtual tasting experience.
Retaining Wine Club Members
Wine clubs are the bread and butter for many wineries. Keeping wine club members engaged should be front and center.
A newsletter can be part of this engagement. Celeste Hope of Hope Family Wines mentioned that often light-hearted and fun newsletters resonate the best.
She mentions she often writes about things from her family life in relation to the winery, or what is going on with her children and pets. “Even cooking videos do well,” she says.
Wine Industry Trends: Conclusion
Technology—especially for smaller and family owned wineries—may prove initially challenging.
Yet adapting to technology is best addressed sooner rather than later.
Technology—especially for smaller and family owned wineries—may prove initially challenging.
Yet adapting to technology is best addressed sooner rather than later.
Many thanks to Wine Business Monthly for making this possible.
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