Big Picture
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Inflation pressure is real
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Wine must catch up to other spirits in terms of pushing price tiers
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The industry needs younger consumers to choose wine more frequently
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The industry needs more high-end vineyards for wines over $25/bottle.
New Consumers
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New consumers seek quality over quantity
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Believe wine is healthier than other forms of alcohol
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Flavor and convenience factor into their purchasing decisions
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They’re also deeply conscious around perception and how their choice of beverage impacts their identity
Evolving Audience
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The number of alcohol abstainers is growing
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Consumers are increasing health conscious
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21-34 year-olds old purchasing wine lags compared to alternative products, which is problematic when 80% of drinkers still drink the first alcohol beverage they started with
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Younger multicultural consumers are less likely to pick up wine because they don’t like taste
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In terms of consumer metrics, 75% of high frequency and high-end consumers are white
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Keep in mind—by 2040, 1 in 5 Americans will be over 60
Consumer Attitudes
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82% of Americans believe carbon dioxide should be regulated and private industry should participate
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75% of consumers are willing to spend more for environmentally-friendly wine, but this same group doesn’t have an understanding of meaningful metrics and doesn’t trust self-reporting private industries
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Symposium speakers encourage winemakers to not only add sustainable certifications to labels, but also clearly explain why it’s important
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50% of consumers believe wine has more sugar than other alcohols
Marketing & Technology
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According to Google, you lose 50% of consumers if your website doesn’t load in 3 seconds
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Consider video tours of vineyards and using grape sales marketing and links for wine consumers
Alternative Beverages
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The ready-to-drink (RTD) cocktail category is bigger than all alternative wine packaging
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Gallo is by far biggest producer by 3x
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RTD’s are more popular than American whiskey, rum and tequila.
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Low to no alcohol products take market share from soda and water
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4 of 5 of such buyers also buy alcoholic drinks
Current Grape Sales
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Coastal demand and price is strong
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California inventory levels are higher now compared to 2022—even after a short harvest
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Buyers are willing to sign longer term deals for needed varieties
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For San Luis Obispo County, and Paso Robles in particular, demand looks good compared to outside regions
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Lodi and Delta areas are experiencing grower/buyer pressure more so than other regions in state
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Select varieties are reaching their limit—for example, Valley Cab Sauv shifted from $8 to less than $6 per gallon recently
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Bulk market activity is sluggish since Valley Cab Sauv inventory has grown problematic
2023 Survey of Grapevine Nurseries:
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43% white and 57% red
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Cab Sauv and Chardonnay are still king
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Pinot Noir pulling back
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Merlot, Syrah, and Petite Sirah continue to be relatively strong
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Sauv Blanc is third largest purchased, doubled from last year (acreage will grow by 8.4% based on plantings)
Looking Ahead
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Expect supply limitation due to under performance of the largest wineries combined with the cost of doing business in California
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More contracted grapes and less on-the-spot market
