The Wine Industry Needs to Evolve
by Cyril Penn
January 17, 2019
“This is probably the most important report that we’ve put together, Silicon Valley Bank Wine Division EVP and founder Rob McMillan said as he kicked off yesterday’s annual state of the wine industry broadcast.
“I say that because I believe the wine industry has reached a tipping point.”
A replay of the broadcast will be available.
Indeed the 18th annual State of the Wine Industry Report, required reading for pretty much anyone involved with the U.S. wine industry, indicates long-term trends have taken the business to a transition point: The report cites headwinds that are contributing to a slowdown of industry growth: Baby boomers moving into retirement and declining in their per capital consumption; millennials not yet embracing wine consumption to the extent some predicted; negative health messaging about alcohol consumption; competition from craft beer and spirits; potential competition from recreational cannabis, private labels at retail, and more.
Download the report here.
McMillan said the the industry needs to come together to address those aforementioned headwinds.
The issue of greatest concern, he said, is the millennial generation’s lack of participation in the premium wine category.
As consumer preferences and their price sensitivity to wine evolve, that should change the way wine is marketed and sold, McMillan said.
“When you get to the point where you have flat to zero growth, the only way to grow is by taking (market share) from somebody else,” he warned. “I don’t want us to get to a point where (as an industry) we have winners and losers. We’re going to have to come together and evolve.”