THE CHANGING TIDE OF THE WINE INDUSTRY
Wineries have more political clout than ever before as they have rapidly increased 4,280 overall, a number larger than the NBWA and WSWA combined. Last year approximately 460 new wineries applied for licenses, making a 12% increase from the previous year.
Much of the motivation to start a winery is likely stemming from recent direct shipping laws and the growing popularity of U.S. wine among resident consumers and the rest of the world. The U.S. stands to be the largest wine drinking nation by 2008, and, coincidentally, it has never been easier to get a hold of a particular bottle of wine.
That said, what is to come of small, mom and pop wine stores as the internet and Costco take a bigger chunk out of wine sales? Texas – and likely California in the near future – has already passed a preliminary injunction to allow direct shipments from out of state retail stores, and others are sure to follow. Not to mention wineries bypassing distributors and retail altogether by directly sending shipments to consumers’ doorsteps. Is non-massive retail doomed?
Not so fast. Despite the fact that 15% of all table wine is sold at big-box stores, Americans are increasingly interested in learning more about wine which leaves plenty of room for wine merchants everywhere.
[Enter corner wine store.]
The number of intimate, customer-friendly wine stores is growing, and offers an irreplaceable experience for many browsers. A knowledgeable staff and well-represented selection beats the blue-coats at Wal-Mart or internet shopping for many.
It will be interesting to see if states can make a case for discriminating against the more numerous and perhaps less stable out-of-state retail in the say way Granholm bars states from doing to out-of-state wineries. Another possible option is allowing wholesalers to ship across state lines.
Let me know what you think. Feedback is always a great way to better understand and resolve what we are faced with in this industry. And of course, your opinions are always kept in confidence.
Much of the motivation to start a winery is likely stemming from recent direct shipping laws and the growing popularity of U.S. wine among resident consumers and the rest of the world. The U.S. stands to be the largest wine drinking nation by 2008, and, coincidentally, it has never been easier to get a hold of a particular bottle of wine.
That said, what is to come of small, mom and pop wine stores as the internet and Costco take a bigger chunk out of wine sales? Texas – and likely California in the near future – has already passed a preliminary injunction to allow direct shipments from out of state retail stores, and others are sure to follow. Not to mention wineries bypassing distributors and retail altogether by directly sending shipments to consumers’ doorsteps. Is non-massive retail doomed?
Not so fast. Despite the fact that 15% of all table wine is sold at big-box stores, Americans are increasingly interested in learning more about wine which leaves plenty of room for wine merchants everywhere.
[Enter corner wine store.]
The number of intimate, customer-friendly wine stores is growing, and offers an irreplaceable experience for many browsers. A knowledgeable staff and well-represented selection beats the blue-coats at Wal-Mart or internet shopping for many.
It will be interesting to see if states can make a case for discriminating against the more numerous and perhaps less stable out-of-state retail in the say way Granholm bars states from doing to out-of-state wineries. Another possible option is allowing wholesalers to ship across state lines.
Let me know what you think. Feedback is always a great way to better understand and resolve what we are faced with in this industry. And of course, your opinions are always kept in confidence.
posted at 3:17 PM
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