Navigating Turbulent Waters: Unveiling the Wine Industry’s Challenges with Expert Robert Joseph

Low Alcohol and No-Alcohol wines are an increasing challenge to the wine industry

The wine industry is experiencing increasingly challenging headwinds. For a fresh look at its state, we recently interviewed prominent British wine critic Robert Joseph.

Robert Joseph is a prominent British wine critic, journalist, and author. He began his career in wine journalism in the 1980s, co-founding Wine International magazine and the International Wine Challenge, one of the world’s most respected wine competitions.

He has authored several books on wine, including the popular The Complete Encyclopedia of Wine and Robert Joseph’s Ultimate Wine Companion. Joseph is also a regular columnist for various wine publications and has frequently appeared on television.

In addition to his role as a critic, Joseph is deeply engaged in the wine industry. He helped start the Le Grand Noir wine brand, which enjoys a global market presence, and he offers his expertise as a consultant.

JM: You have mentioned that the wine sector is too focused on consumer education about wine, likening it to not needing to be a shoe leather expert to buy shoes—just needing shoes that fit well. What should the industry prioritize to help consumers find wines they enjoy without focusing too much on education?

RJ: The wine industry can take cues from the spirits sector, which does not emphasize educating the public about how gin, vodka, and rum are produced. Similarly, Champagne producers concentrate on crafting products that appeal to their target audience’s preference, ensuring repeat purchases.

Consider how many enthusiasts of Aperol Spritz are aware of its production details, origin, or manufacturer? They are drawn to its appealing color and taste. Some wine brands like Whispering Angel and Barefoot have successfully adopted this approach, catering to various budget ranges without focusing heavily on the educational aspect.

Barefoot Wines Range of Sweet and Fruity Wines

JM: It’s estimated that 85% or more of the wine industry’s sales are at price points below $20. Does the wine media adequately cover lower-priced wines, or is there too much emphasis on the expensive, plus-$20 wines that most consumers do not buy?

RJ: The wine media – which, as a critic, I was once part of – quite reasonably focuses on what it sees as the more ‘interesting’ wines, just as automotive writers don’t spend quite as much time on the latest cheap Nissan as on the exciting new BMW.

But my favorite critic in any domain—the movie critic Roger Ebert—wasn’t like that. He was as ready to cover new teen flicks as the latest Scorsese. So, yes, we do need more writers looking at entry-level wines, but with an eye to whether they are ‘fit-for-purpose’ rather than whether they match up to a different set of quality criteria. Their failure to do this has opened the door to Vivino and influencers who are happy to do the job for them.

JM: The world hosts hundreds of wine competitions, and securing top accolades at esteemed ones can propel a new brand forward significantly. Judges often come from a background of professional wine expertise, with credentials that require extensive study and strict exams. However, one might question if these individuals are the optimal judges for the wines most often purchased by average consumers, and whether their judging standards reflect consumer preferences.

RJ: As a founder of the influential IWC and a board member at Mundus Vini in Germany, my position is somewhat precarious in this discussion. These judges are tasked with evaluating the absolute quality of wines, similar to assessments in Olympic gymnastics or dog shows.

Nonetheless, it’s crucial to remember that absolute quality may not always resonate with consumer priorities. Consumers don’t typically purchase wine ‘blind’ as in competitions. They’re influenced by factors like the label, region, grape variety, brand, and price when making purchasing decisions. Thus, a medal from a competition or a critic’s score is just one of several factors they might consider.

JM: Over the past five years, wine sales have plateaued in North America. Red wine has seen a minor decrease, white wine a marginal increase, and while rosé has surged, this growth has notably slowed. Are these shifts indicative of changing consumer preferences, or do they suggest a potentially stagnant or declining market long-term?

RJ: The shift to pink, white, and sparkling wines is intriguing because it shows how wine is transitioning to a simpler drink rather than a complex food pairing. People are familiar with what they prefer, ordering Chardonnay, Pinot Grigio, or Sauvignon Blanc based on their taste preferences.

When it comes to rosé, the choice is even more straightforward: dry or sweet. Few might consider the type of grape in their pink wine. Who cares? It’s interesting to note the role of Red Blends in the US market, serving as a reliable choice.

Friends share a celebratory toast with rosé wine at a gathering.

While many enjoy complexity and are keen to explore wines like Georgian Qvevri or French Pet Nat, these enthusiasts are outliers in the broader wine-drinking demographic. This occurs despite the significant attention they receive from wine media.

JM: How has the introduction of canned wines, including flavored wines, changed the dynamics of the wine marketplace? Is it resulting in a net expansion of the market or driving a migration to lower price points?

RJ: These products aren’t necessarily cheap. But they fit my narrative of helping reposition wine as a beverage rather than a ‘noble’, complex product that must be taken seriously. I see no reason to imagine they will disappear despite the wishes of many wine conservatives.

JM: Younger consumers seem less interested in wine consumption. Roughly a third of Gen Z consumers say they prefer no alcohol or low-alcohol beverages. How should the wine industry respond to this generational preference?

RJ: There are two answers. 1) embrace this and produce lo-no wine-based drinks to satisfy their demand. I am unashamedly doing with a le Grand Noir 0.0% extension to our range. 2) promote the unique, historic qualities of wine that make it such a great convivial product and such a delicious partner to food.

1) and 2) can coexist. Evidence suggests that consumers of non-alcoholic beverages often still indulge in alcoholic options, sometimes during the same event. I envision someone enjoying le Grand Noir 0.0% Blanc as an aperitif, and later, as the evening unfolds, sipping a 12.5% le Grand Noir Pinot Noir with dinner or as a subsequent drink.

JM: With baby boomers showing preferences for Cabernet Sauvignon and Chardonnay, do you think millennials and their juniors’ tilt towards Pinot Noir and Sauvignon Blanc has been recognized by the wine industry?

RJ: The shift isn’t entirely straightforward. While it’s true that younger consumers are adopting lighter, crisper varieties like Sauvignon, Pinot Grigio, Prosecco, and Pinot Noir, it’s premature to dismiss the relevance of Cabernet and Chardonnay just yet.

Reflecting on my earlier comments regarding Red Blends, I predict the emergence of alternative wine options. I am currently developing a wine in Georgia named K’AVSHIRI that merges varied grape types, winemaking techniques, and regional characteristics from different vintages. It challenges conventional winemaking norms, which I believe will inspire others in the industry to explore new avenues.

JM: Are we producing an excess of wine, and is it priced too highly?

RJ: When considering global wine consumption trends, it is apparent that excessive wine production has been an issue for many years. The industry is only now facing this reality. Moreover, a significant portion of the wine produced is sold too cheaply, yielding insufficient profits particularly when considering the challenges posed by climate change.

In Europe, it’s becoming increasingly common for the younger generation to decline the opportunity to follow in their winemaking parents’ footsteps. Consequently, I anticipate a production decline of about 15-20%, primarily affecting the lower end of the market. Only large operations like Gallo or European cooperatives, which are equipped for high-volume, low-cost production, will remain competitive in creating inexpensive wines.

On the other end of the spectrum, the most expensive wines, similar to luxury dining and high-end fashion, which have solidified their market value, will persist. However, those caught in the middle will face challenges.

Are they cheap enough to attract buyers who cannot or don’t want to spend more than $12-15? Are they well-marketed enough to attract people with bigger budgets? Which brings me back to where we started. Spirits and beer brands have margins that permit them to do the marketing that helps to justify the premium pricing that, in turn, gives them those margins. Too many wine businesses simply have too little money.

JM: Thank you.

One Community. Many Voices. Create a free account to share your thoughts.

Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.

In order to do so, please follow the posting rules in our site’s Terms of Service. We’ve summarized some of those key rules below. Simply put, keep it civil.

Your post will be rejected if we notice that it seems to contain:

User accounts will be blocked if we notice or believe that users are engaged in:

So, how can you be a power user?

Thanks for reading our community guidelines. Please read the full list of posting rules found in our site’s Terms of Service.

---

About the Author: Chris Lehoux

Meet Chris Lehoux, an experienced wine connoisseur and dedicated blogger with a deep passion for all things wine-related. With years of expertise in the industry, Chris shares insightful wine reviews, valuable wine tasting tips, expert pairing advice, and captivating tales of vineyard visits. Join Chris on a journey through the world of wine, where every sip is an adventure waiting to be savored!