How do we succeed in a stagnant market? How do we reach new consumers? Who are our competitors? How do we become more focused and creative? These were some of the questions discussed at last week’s Wine Industry Sales Symposium (WISS) in Santa Rosa, presented by the Wine Industry Network (WIN) with more than 350 attendees.
As an attendee with an analytical perspective, these are the takeaways from the sessions attended:
State of the Wine Industry
Veteran wine industry experts Dan Berger and Dale Stratton from Azure Associates opened the one-day conference with a data-driven analysis of the current state of the wine industry and consumer trends. They confirmed that the direct-to-consumer (DTC) wine category is either flat or declining in volume. They identified several challenges facing the industry, including changing consumer preferences, unpredictable economic conditions, limited market growth, and a challenging route to market. To succeed in a flat market, they emphasized the importance of identifying your position within the industry, understanding your consumer base, and developing a focused consumer strategy incorporating health and wellness.
New Type of Consumer
Susan DeMatei from WineGlass Marketing highlighted the significant generational shift and stressed the need for wineries to adapt their marketing and selling strategies. She compared the values and behaviors of the baby boomer generation with those of the next generation. The key differences include the next generation’s interest in experiences beyond the winemaking process, decreased tolerance for details, and their desire for engagement and inclusivity. Panelists added that their life is open to comments, and they expect wineries to know them. To cater to this consumer base, offering varied experiences and developing tailored marketing plans is essential.
Data and Customer Surveys
Although in separate sessions, Cathy Huyghe from Enolytics and John Keleher from Community Benchmark discussed the importance of leveraging your data with regional or other comparisons to provide insight into sales. Other session panelists emphasized the need for more customer surveys, particularly among DTC customers who can provide valuable feedback. Nadia Kinkade from Far Niente Winery shared their approach of conducting an annual survey with many open-ended questions to gather insights on customer acquisitions, benefits, events, consumption, preference, and other wine club memberships. Several sessions discussed the significance of collecting email addresses from all winery customers as part of a comprehensive data strategy.
Impact of Artificial Intelligence
In the closing session, technology experts Paul Mabray from Pix and Justin Nolan from Treasury Wine Estates discussed the impact of Artificial Intelligence (AI) on the wine industry. Mabray described AI as a tool that can provide a head start on tasks, facilitate efficient work reviews, and create a “good enough product.” The key takeaway was that wineries need to determine their specific needs when it comes to AI, such as content creation, image generation, or coding. Nolan shared how Treasury Wine Estates used AI solely to create a new web-based online wine channel reducing the estimated time and cost by significant margins compared to traditional methods.
Overall, the Wine Industry Sales Symposium provided valuable insights supported by data and research. To succeed in a flat market, it is crucial to adapt to changing consumer preferences, leverage data and surveys for strategic decision-making, and explore the potential of Artificial Intelligence. By implementing these takeaways, wineries can position themselves for growth and success in an evolving industry.
