THE FUTURE OF WINE AND SPIRITS
In a WSD survey conducted at the beginning of the summer, we asked our readers what they consider to be the next biggest trend(s) in the wine and spirits industry. The majority of replies stuck to these themes: import/export markets, on-premise and off-premise trends, trading down vs. trading up, packaging, consolidation, varietals and spirits categories. One thing that everyone seems to agree on is that consumption will continue to grow. (“Wine with lunch will soon become a staple,” said one reader). Some of the answers may surprise you, so let’s take a look.
IMPORTS AND EXPORTS. Many of our readers think wine imports from countries such as Argentina, Chile, South Africa, New Zealand and Spain will become a much stronger force in the US.
“Argentina will pass Chile on the premium ladder (if it hasn’t already). France will keep doing what it always has at home and will step up vineyard and brand purchases for labels outside France (Argentina, Chile, US etc.),” said one reader.
ON- AND OFF-PREMISE TRENDS. The word “convenience” popped up in a lot of peoples’ answers. What that means exactly we’re not sure, but thankfully other respondents were more specific. Readers believe that restaurants and retailers will eventually focus more on food and beverage pairings, which we agree with. In addition, they wrote that wines by the glass could eventually range between $12-$20, much like martinis, and that restaurants and hotels will soon offer more high-quality private labels wines. Here’s a sample of some of the responses:
“More specialization in retail. The proliferation of thematic franchises such as Vino 100 and Wine Styles is a precursor to an explosion in entrepreneurial retailing which will lead to boutique and specialty retailing with focus on specialized areas (i.e. strictly new world wine shops, Mediterranean wine stores, collectible wines, as well as unique retail pairings with wines ranging from a typical wine & cheese boutique to the wine and art or wine and antiques).”
“An eventual reduction in the total number of wine sku's at retail.”
“Retail recognition to innovation.”
“Back to basics rapport selling.”
TRADING DOWN VS. TRADING UP. An increase in consumer education will eventually affect the current “trading up” trend by—well, no one could really decide.
“I think both will continue to go upscale and boutique with more continued focus on the big and bold in wine and experimentation in spirits.”
“Hopefully, a shift away from consumers blindly buying the label they know best and actually tasting and learning more about the spirits they drink.”
“More production of "luxury" brands”
“More super premium spirits, more marketing of wine to under-35 consumers.”
“Generic wines being trendy again.”
“Increased popularity for artisan spirits -- more than 70 micro spirits makers currently in U.S.”
PACKAGING. Survey respondents think we will see more things like bottle shapes, tetra packs, box wine (premium and lower-end) and screw caps in the future.
INDUSTRY CONSOLIDATION. It’s a major trend even now as suppliers, wholesalers and retailers race to get bigger. As if we haven’t already heard enough about consolidation, most WSD readers think it’s only going to continue. Here are some interesting comments:
“Continued global sharing of information and winemaking techniques in the future. We will see more winemakers that travel to make wine in both hemispheres and discover things that will aid the entire industry as a whole.”
“I think over the next 10 years you will see the mega giants (distributors, suppliers and retailers) start to go back to the mom and pop businesses where service is the main focus and not profits.”
“Direct to consumer and the falling apart of the three-tier system especially in wine.”
VARIETALS AND SPIRITS CATEGORIES. According to you, consumers want more flavors and more colors. When it comes to wine varietals, respondents believe the following are the future: Riesling, Rose, California Petite Syrah, South African Pinotage, Italian Prosecco, New Zealand Pinot Noir, California red blends (Meritage) and esoteric varietals from international wineries.
“Younger consumers, especially female, are already exploring all flavor profiles in all facets of the industry, and are moving towards whiskey on more occasions. I predict a continued move to red wines, especially Pinot Noir, Beaujolais, and other more approachable reds.”
For spirits, almost all the respondents stressed “premium” and/or “super-premium.” The categories included: Gin, premium Rum, premium Vodka, premium Tequila, Irish whiskey, Tequila flavor Bourbons and imported Russian Vodkas.
“Tequila is growing but I don’t see the long term, steady growth, mainly because of the lack of flavors. It’s difficult to sell a premium flavored Tequila --- The consumer just don’t know what to do with it and it ain't Raspberry Margarita's.”
“Rum is on the way up - Tommy Bahamas, Cachaca, Rhums... tropical/Latin drinks with premium brands.”
IMPORTS AND EXPORTS. Many of our readers think wine imports from countries such as Argentina, Chile, South Africa, New Zealand and Spain will become a much stronger force in the US.
“Argentina will pass Chile on the premium ladder (if it hasn’t already). France will keep doing what it always has at home and will step up vineyard and brand purchases for labels outside France (Argentina, Chile, US etc.),” said one reader.
ON- AND OFF-PREMISE TRENDS. The word “convenience” popped up in a lot of peoples’ answers. What that means exactly we’re not sure, but thankfully other respondents were more specific. Readers believe that restaurants and retailers will eventually focus more on food and beverage pairings, which we agree with. In addition, they wrote that wines by the glass could eventually range between $12-$20, much like martinis, and that restaurants and hotels will soon offer more high-quality private labels wines. Here’s a sample of some of the responses:
“More specialization in retail. The proliferation of thematic franchises such as Vino 100 and Wine Styles is a precursor to an explosion in entrepreneurial retailing which will lead to boutique and specialty retailing with focus on specialized areas (i.e. strictly new world wine shops, Mediterranean wine stores, collectible wines, as well as unique retail pairings with wines ranging from a typical wine & cheese boutique to the wine and art or wine and antiques).”
“An eventual reduction in the total number of wine sku's at retail.”
“Retail recognition to innovation.”
“Back to basics rapport selling.”
TRADING DOWN VS. TRADING UP. An increase in consumer education will eventually affect the current “trading up” trend by—well, no one could really decide.
“I think both will continue to go upscale and boutique with more continued focus on the big and bold in wine and experimentation in spirits.”
“Hopefully, a shift away from consumers blindly buying the label they know best and actually tasting and learning more about the spirits they drink.”
“More production of "luxury" brands”
“More super premium spirits, more marketing of wine to under-35 consumers.”
“Generic wines being trendy again.”
“Increased popularity for artisan spirits -- more than 70 micro spirits makers currently in U.S.”
PACKAGING. Survey respondents think we will see more things like bottle shapes, tetra packs, box wine (premium and lower-end) and screw caps in the future.
INDUSTRY CONSOLIDATION. It’s a major trend even now as suppliers, wholesalers and retailers race to get bigger. As if we haven’t already heard enough about consolidation, most WSD readers think it’s only going to continue. Here are some interesting comments:
“Continued global sharing of information and winemaking techniques in the future. We will see more winemakers that travel to make wine in both hemispheres and discover things that will aid the entire industry as a whole.”
“I think over the next 10 years you will see the mega giants (distributors, suppliers and retailers) start to go back to the mom and pop businesses where service is the main focus and not profits.”
“Direct to consumer and the falling apart of the three-tier system especially in wine.”
VARIETALS AND SPIRITS CATEGORIES. According to you, consumers want more flavors and more colors. When it comes to wine varietals, respondents believe the following are the future: Riesling, Rose, California Petite Syrah, South African Pinotage, Italian Prosecco, New Zealand Pinot Noir, California red blends (Meritage) and esoteric varietals from international wineries.
“Younger consumers, especially female, are already exploring all flavor profiles in all facets of the industry, and are moving towards whiskey on more occasions. I predict a continued move to red wines, especially Pinot Noir, Beaujolais, and other more approachable reds.”
For spirits, almost all the respondents stressed “premium” and/or “super-premium.” The categories included: Gin, premium Rum, premium Vodka, premium Tequila, Irish whiskey, Tequila flavor Bourbons and imported Russian Vodkas.
“Tequila is growing but I don’t see the long term, steady growth, mainly because of the lack of flavors. It’s difficult to sell a premium flavored Tequila --- The consumer just don’t know what to do with it and it ain't Raspberry Margarita's.”
“Rum is on the way up - Tommy Bahamas, Cachaca, Rhums... tropical/Latin drinks with premium brands.”
posted at 1:04 PM
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