Wine Economist Top 5 of 2018

251626This week’s Wine Economist looks back at the five columns first published in 2018 that captured the most interest among the wine industry audience that frequents this page.

Sometimes it is difficult to find a common thread among the top columns, but not this year. Readers were concerned about U.S. wine sales and they focused on analysis that they hoped might give them insights into the changing market place and especially how to deal with the changing wine consumer base. Take a look at the Top 5 and see if you agree.

#5 U.S. Wine Sales: Five Surprising Facts

Concerns about wine sales were obviously on readers’ minds when this September 2018 column appeared. The premise of the piece was simple: we are all pretty familiar with the conventional wisdom about the wine market but the conventional wisdom doesn’t always hold in a changing world. Sometimes you need to look more closely at the data (Nielsen data in this case) to see what’s actually going on.

There were plenty of surprises to be found (five of them, as the title indicates), including Zinfandel’s high average price (higher than Pinot or Cab), Cabernet’s move past Chardonnay in total sales, the resurgence of French wine (think pink), Australia’s real sales challenge (price, not quantity), and Washington wine’s unexpected prominence when you shift the frame of reference a bit.

#4 Beyond Boom & Bust: Taking a Closer Look at the SVB Report

The Silicon Valley Bank‘s annual wine industry report always gets a lot of attention and with good reason. Timely analysis + innovative thinking + clear presentation = required reading.  But the complexity of the study is sometimes lost in the rush to report the headline conclusions. So I decided to take a deeper dive and shine a light on some of the aspects that weren’t getting the attention they deserved, especially with respect to the generational transition in the wine market.

This also gave me an opportunity to make a point of my own: sometimes the differences within generational cohorts are as important as the difference between them.

#3 Shaw Organic: Is This the Next Miracle from Bronco Wine & Trader Joe’s?

shaw1Organic food has moved from a niche to an important market segment. A lot of us have been waiting for wine to catch up. Bronco Wine, the makers of Charles Shaw (a.k.a. Two Buck Chuck), apparently got tired of waiting and, working with Trader Joe’s stores, introduced Shaw Organic, a line of affordable wines made with organic grapes.

Bronco is the largest vineyard owner in the U.S. (40,000 acres at last count) and has quietly become the largest grower of organic grapes as well. Is Shaw Organic the breakout wine — the wine that will create a critical mass of consumers who look for organic wine the same way that Two Buck Chuck democratized the wine market more generally? Too soon to tell, but it is a trend to watch.

#2 The Changing Face of Wine in America: The Cooper’s Hawk Phenomenon

Direct-to-consumer wine sales are on everyone’s mind. With costs rising faster than prices in most cases, those full-margin wine club sales have become a very high priority. Some say that many Napa Valley producers couldn’t keep the lights on without their wine club sales.

So who has the largest wine club? Incredibly, it is an Illinois-based restaurant and winery business called Cooper’s Hawk, which counts about 300,000 wine club members who visit their local restaurants once a month to pick up the latest wine. What makes Cooper’s Hawk so successful (and how can wineries reach the market they’ve developed)? And can the lessons of Cooper’s Hawk be applied more generally? Timely questions. No wonder this is the #2 column of the year.

#1 Outlaw Wine: 19 Crimes Succeeds by Breaking All the Wine Marketing Rules.

Millennials. They are the wine market of the future and the future is now. But what do they want and how do you get their attention? This May 2018 column, which is top of the list, looks at an incredibly successful Treasury Wine Estates product that was specifically developed to appeal to millennial men.

It is called 19 Crimes, which is kind of a strange name for a wine, and while I am not a big fan of the wine itself (it wasn’t crafted to appeal to me), I am very impressed with the way it has succeeded beyond all reasonable expectations by breaking all the wine marketing rules.

>>><<<

This is the final Wine Economist column of 2018. See you next year!

One response

  1. thank you for your amazing insight into our industry. I have been enjoying your newsletters and look forward to what you have in store for 2019.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: