Strategies for Wine Marketers: Recapturing Lost Customers in a Competitive Market

Wine business experts gathered in Santa Rosa for an industry conference on Wednesday to address the changing landscape of wine consumption and market strategies. Nearly 300 professionals attended the event, which combined market analysis with actionable strategies for adapting to a declining consumption trend.

Keynote speaker Chris Bitter, a senior analyst from Terrain, emphasized the need for vintners to evolve their sales and marketing strategies in response to decreased wholesale wine sales — down 3% in value and 5% in volume over the past year. He noted that while wines priced under $11 faced a significant decline, premium and luxury segments have remained resilient.

Bitter highlighted several challenges within the industry, including a reduction in retail selections and distribution points. Additionally, while U.S. wine exports peaked in 2015, they have since fallen due to recent trade tensions, especially with Canada. Jennifer “JB” Kelly, a consultant focused on wine sales and marketing, pointed out that many producers struggle to adapt quickly to these changing market conditions.

The direct-to-consumer (DTC) sales channel, previously considered a stronghold for the industry, is also facing challenges. Data indicates that total DTC revenues have declined by 3% in the past year, with significant drops in tasting room visitation. Bitter attributed this decline to rising costs associated with wine country visits and an increase in Americans traveling abroad.

Bitter noted that although wine club shipments have remained stable, membership growth is slowing, prompting a need for wineries to adapt their offerings. Many wineries are still utilizing outdated club structures from the 1980s, which do not meet contemporary consumer expectations for personalization and value.

During various panel discussions, experts emphasized the importance of creating exceptional tasting room experiences and understanding evolving consumer preferences. Karen Wetzel, a wine educator, advocated for enhanced service quality in tasting rooms to drive sales, as many consumers are less inclined to purchase wine when they do not feel a strong connection with the experience.

The symposium concluded with discussions on renewing wine club programs by focusing on customization, data-driven strategies to track cancellations, and reaching potential members outside the tasting room. Additional insights on authenticity and sustainability in marketing underscored the need for brands to build genuine connections with consumers, especially among younger generations who lean towards authenticity and peer reviews over traditional wine scoring systems.

In this challenging environment, industry stakeholders agreed on a critical takeaway: adapting to shifting consumer expectations and preferences is vital for sustaining success in the evolving wine market.

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!