Category: Financial

Rolling Out Revenue

Cyndi

Five reasons why mobile retail works for wineries

mobile trailer with sign saying local wine here

By Corey Krejcik, Founder of Thirsty Bandit

In today’s marketplace, wineries are discovering that fixed tasting rooms, while foundational, are no longer enough to fully capture consumer attention or revenue potential. The modern wine audience is constantly in motion, more often exploring experiences that fit into their lives rather than planning entire weekends around a single visit. As a result, mobile retail (think branded trailers, trucks, or small pop-up tasting experiences) and seasonal activations have become essential tools for growth, storytelling, and brand connection.

  According to Wine Market Council research, nearly 60% of millennial wine buyers say they’re more likely to try a brand if they encounter it at a festival, pop-up, or event. These mobile formats are rewriting the rules of engagement: reaching new customers, building awareness, and generating direct sales—all with lower overhead and faster returns than permanent infrastructure ever could.

  Below are five interconnected reasons why this model works and why wineries that embrace it early are likely to lead the next era of growth.

1. Brand Visibility as a Moving Billboard – Every mile a mobile wine unit travels is a marketing impression. A well-designed trailer or branded truck isn’t just a point of sale; it’s a rolling expression of your brand identity. Wrapped in bold visuals, anchored by consistent design language, and styled with the same intentionality as a tasting room, it becomes a moving billboard that tells your story everywhere it goes.

  Imagine a well-designed wine trailer parked along Main Street for a downtown First Friday program. Staff chatting up customers and pouring glasses to be enjoyed while shopping after-hours. Passersby stop, take photos, and post them online. The moment isn’t just aesthetic; it’s strategic. Every shared image, every tagged post, extends your reach far beyond the event itself.

  Smart design makes this amplification effortless. “Instagrammable” touches like a striking bar façade, a photo wall, or a vintage-inspired logo, encourage organic sharing. QR codes linked to wine clubs or digital tasting notes turn social impressions into measurable leads. The exposure doesn’t end when the event closes, it multiplies across feeds, hashtags, and memories.

  In a category that often leans on tradition, mobility signals modernity. It tells consumers your brand isn’t confined to the vineyard—it’s part of their lifestyle, wherever they go.

2. Lower Fixed Costs & Faster ROI – Every winery leader understands the cost of brick and mortar: design, construction, utilities, maintenance, and staffing. A mobile unit rewrites that equation.

  Compared to building or leasing a permanent tasting room, mobile activations dramatically reduce fixed costs. There’s no need for heavy infrastructure, zoning approvals, or long-term leases. Most mobile setups are built as plug-and-play systems. Units are meant to be self-contained, code-compliant, and designed to be operational in minutes.

  But the most compelling case isn’t just lower cost, it’s speed of return. For many wineries, mobile units pay themselves back within a single season of festivals, markets, or regional events. A well-run activation can pour thousands of glasses over a few weekends, with direct sales, signups, and wholesale leads all feeding the revenue stream.

  From a strategic perspective, mobile retail functions as both a sales tool and a marketing engine. The investment is easy to justify when the same asset generates immediate income, long-term exposure, and scalable brand equity.

Even accounting for staff, licensing, and fuel, a mobile unit often costs a fraction of a single tasting room buildout. The result: more financial flexibility and faster pathways to profit.

Corey and Rachel of Thirsty Bandit chat with Suzanne Hasz, founder of Hudson Trailer Co., about the growth potential of mobile retail and seasonal pop-up experiences for wineries, exploring how evolving consumer behaviors are driving brands to meet audiences wherever they are.

3. Flexibility & Seasonal Alignment – Wine is seasonal with production schedules, harvest, events, and consumer habits ebbing and flowing throughout the year. A mobile retail program lets wineries move with the rhythm of demand rather than being anchored to it.

  Picture this:  a winery launches its spring rosé release at a downtown flower festival, pours summer whites at a waterfront concert series, and then rolls out to a harvest celebration in autumn. Each stop hits a different audience, season, and mindset, but the brand remains consistent.

  This flexibility doesn’t just boost revenue; it optimizes operations. Inventory can be shifted in real time to high-traffic events. Staff scheduling becomes dynamic rather than static. Marketing follows cultural energy rather than waiting for it.

  In practical terms, this means your brand stays top-of-mind year-round, not just during wine country’s peak tourism months. And for smaller wineries, mobility provides the agility to compete in larger markets without the overhead of permanent expansion.

4. Experiential Appeal & Consumer Expectations –

Modern consumers want more than a transaction. They crave connection, storytelling, and experiences that feel personal. The tasting room will always be sacred, but it represents just one chapter in the customer journey.

  Mobile activations give wineries a way to bring the vineyard to the people. When executed thoughtfully, each encounter becomes a chance to tell your story: how your grapes are grown, what inspires your blends, why your brand exists at all. Guests aren’t just sampling—they’re connecting.

  In many cases, a single memorable experience can shift perception more effectively than any ad campaign. Someone who discovers your brand at a festival might later seek out your bottles at retail, join your wine club, or even plan a trip to the vineyard itself.

  Experiential retail isn’t a trend; it’s a reflection of how modern consumers form loyalty. They don’t just buy what you make, they buy how you make them feel.

5. Testing New Markets & Expanding Reach –

Perhaps the greatest strategic advantage of mobile retail is market testing without permanent risk.

  For rural or destination-based wineries, reaching new audiences can be costly and uncertain. A mobile unit allows them to meet urban consumers where they already gather—farmers markets, concerts, street fairs, or high-end shopping districts—without committing to a long-term lease or a new facility.

  These interactions go beyond direct sales. Every event provides insight into customer behavior, pricing sensitivity, and brand perception. Tracking purchases, email captures, and on-site engagement builds a feedback loop that informs broader strategy.

  Imagine a mid-sized winery that takes its mobile tasting bar on a six-city summer circuit. Over three months, it collects thousands of emails, identifies which markets drive the most engagement, and discovers that its rosé outsells reds by 2:1 in coastal regions. Those insights shape next year’s production and marketing plans.

  Each glass poured becomes a data point, each conversation a potential customer, and each market test a map for future expansion.

Operational Considerations

  Success in mobile retail depends as much on execution as vision. The logistics may be lighter than a full-scale facility, but they’re no less important.

  Staff must be brand ambassadors first, servers second. They work in confined spaces, under variable weather, and in dynamic crowd conditions. This requires adaptability, strong product knowledge, and high service and hospitality acumen. Their demeanor shapes not just the immediate experience but the long-term impression of the winery.

  Compliance is equally critical. Permits, health codes, and insurance requirements vary by jurisdiction, and alcohol laws can differ dramatically from county to county. A mobile unit can’t hit the road and start serving anywhere. For many wineries, partnering with local event coordinators or compliance consultants streamlines the process and ensures consistency.

Financial Clarity

  For wineries weighing the investment, the economics are compelling. Mobile units typically cost a small fraction of constructing a new tasting room, and the speed of return is striking. Many recoup their investment within a single season of strategic activations.

  The key is to view the build not as an expense, but as an asset with multiple revenue functions. It sells wine directly, generates brand visibility daily, and produces marketing content that drives ongoing engagement. Each event feeds both the bottom line and the brand story.

  When CFOs see that a single mobile trailer can simultaneously boost DTC sales, social exposure, and wholesale leads, the case for mobility becomes more than creative, it becomes financial strategy.

Turning Tastings Into Memberships

  A glass poured at a farmers’ market shouldn’t be the end of the story. It should be the beginning.

  Mobile activations are prime opportunities to capture data—emails, social follows, QR sign-ups—and funnel them into your membership and subscription programs. Staff can invite guests to join wine clubs, pre-order seasonal releases, or receive exclusive offers tied to the event they attended.

  This transforms a casual encounter into a relationship continuum, one that extends far beyond the moment of pour. The person who first discovered your Sauvignon Blanc at a summer concert might be receiving shipments from your reserve collection a year later.

Looking Ahead

  Mobile activations aren’t a passing experiment. They’re the next evolution in how wineries engage audiences. The craft beer and ready-to-drink sectors have already proven the model, showing that consumers love brands that move with them, both literally and emotionally.

  For wineries, the opportunity is to lead this transformation rather than follow it. Mobility doesn’t replace the tasting room; it extends its reach. It transforms a static space into a fluid experience that meets consumers wherever they gather.

  In an industry defined by tradition, mobile retail offers something radical: the ability to be both timeless and timely. The wineries that embrace it now will not only expand their markets, but also redefine what it means to be a wine brand in motion.

  Corey Krejcik is the founder of Thirsty Bandit, providing strategic marketing, brand development, and revenue optimization for hospitality and wine brands. With over 20 years of executive leadership experience, he believes the best outcomes are found at the intersection of strategy, adaptability, and identity. Outside of work, he enjoys cooking, running, home renovation projects, and spending time with his wife and two teenage children in Malvern, PA.

Vineyard Insurance

Cyndi

When should you file a claim on your grapes?

PHOTO SHOWING A VINEYARD GROWING ON TRELLIS

By Trevor Troyer, Agricultural Risk Management

That’s a question I get a lot.  Some growers think that they should wait until they know for certain that they have a loss when they finish harvest.  You should turn in a claim as soon as there is a weather event or other cause of loss situation.  This helps to document what is happening during your growing season as it unfolds.  It also gives the adjuster time to come out if needed to inspect before the harvest.

  You might have a situation where you have a late frost/freeze event for multiple nights.  Primary buds may be damaged in your vineyard.  Other nearby vineyards may have mild to moderate damage.  It’s good to document these weather events when they happen and open up a claim.  You may have other weather events that occur over the growing season that contribute to your tonnage being low.

  Even if you are not sure about the extent of the damage, you should contact your agent and have them open up a claim for you.   Depending on your coverage level you may think that you won’t have a loss.  At this point don’t worry about the deductible percentage of your crop insurance policy.  Call your crop insurance agent and open up a claim.  It is not hard for the adjuster to withdraw the claim after you harvest, if it turns out your production was ok.

  It is always better to have a claim open than not in this type of situation.  There’s no way early in the season to figure out how much your yield will be down but if the claim is open and documented its better for all.  This gives time to have an adjuster assigned, time to do an inspection and to document any visible damage and then to document any added damage several months later as well.  Damage can very well be cumulative during the year should you experience several weather events and other things that could reduce your yield.

  Here’s what it says in the 2025 Basic Provisions of the Common Crop Insurance Policy:

14. Duties in the Event of Damage, Loss, Abandonment, Destruction, or Alternative Use of Crop or Acreage

Your Duties –

     (a) In the case of damage or loss of production or revenue to any insured crop, you must protect the crop from further damage by providing sufficient care.

     (b) You must provide a notice of loss in accordance with this section. Notice provisions:

(1) For a planted crop, when there is damage or loss of production, you must give us notice, by unit, within 72 hours of your initial discovery of damage or loss of production (but not later than 15 days after the end of the insurance period, even if you have not harvested the crop).

  Per the USDA Risk Management Agency, you have from 72 hours of the original cause of loss or until you discover it and up to 15 days after the end of insurance.  I do not recommend waiting till 15 days after the insurance period, however, it does happen, and I am sure some growers will do it.  I have had vineyard owners call me and say that their tons are down for a certain variety.  That’s fine but I recommend that you open up a claim across all the varieties you have planted.  Then we have to piece together what happened.  What was the cause of loss?  When was it?  Was this the only thing or were there other weather events?  It is always much easier for everyone if the claim is turned in close to the date of damage.

  Losses do get paid but it is much easier on everyone, including the grower, if you report causes of loss right after they occur.  That doesn’t mean you have to know for sure that you will have a loss, just that an event happened that may cause your crop to be reduced by harvest.

  Here are the Causes of Loss out of the Grape Crop Provisions from the USDA RMA:

10. Causes of Loss.

(a) In accordance with the provisions of section 12 of the Basic Provisions, insurance is provided only against the following causes of loss that occur during the insurance period:

     (1) Adverse weather conditions;

     (2) Fire, unless weeds and other forms of undergrowth have not been controlled or

     pruning debris has not been removed from the vineyard;

     (3) Insects, except as excluded in 10(b)(1), but not damage due to insufficient or improper application of pest control measures;

     (4) Plant disease, but not damage due to insufficient or improper application of disease

     control measures;

     (5) Wildlife;

     (6) Earthquake;

     (7) Volcanic eruption; or

     (8) Failure of irrigation water supply, if caused by an insured peril that occurs during the insurance period.

(b) In addition to the causes of loss excluded in section 12 (Causes of Loss) of the Basic Provisions, we will not insure against damage or loss of production due to:

      (1) Phylloxera, regardless of cause; or

      (2) Inability to market the grapes for any reason other than actual physical damage from an insurable cause specified in this section. For example, we will not pay you an indemnity if you are unable to market due to quarantine, boycott, or refusal of any person to accept production.

  Number 1 on the list is Adverse weather conditions.  This could be just about anything, frost, freeze, drought, excess moisture, and hail.   Fire is listed as well and because of this there can be damage several miles away from any given fire due to smoke.  If you do have smoke taint you will need to get an independent lab to check for smoke taint markers.  You can also have rejection letters from wineries stating that they don’t want the grapes due to smoke taint. Insect and disease damage are covered but you must show that you have application records, for example, spraying.  Wildlife is another one that can cause problems – deer, raccoons, birds and others.  Earthquake and Volcanic Eruption I have never seen a claim turned in for.  .  Number 8, Failure of irrigation water supply, is something that can be a big problem for growers.  Certain areas rely heavily on irrigation.  If there is a drought and your well or reservoir dries up, then that is a payable cause of loss.

  Don’t wait to contact your agent about a potential situation or adverse weather that may reduce your crop.  Even if you are not sure if something is a covered loss it is best to reach out to your agent.  That is what your they are there for.

A Note on Federal & State(s) Tied House Distinctions

Cyndi

Tied house evil is a concept that most alcohol beverage industry stakeholders are aware of. 

a man sitting in front of his laptop computer on his cell phone

By Brad Berkman & Louis J. Terminello of Greenspoon Marder LLP

For the beverage marketer, operating within its confines is virtually mandated to avoid regulatory scrutiny and potential administrative action by state and federal regulatory authorities. Most marketers do indeed adhere to general tied house restrictions when developing and executing programs. However, it is also likely that the distinction between federal and state tied house laws is overlooked. The purpose of this article is to instruct the reader on the distinctions between the two to avoid potential missteps that may lead to regulatory adversity. An effective way to conduct this analysis is to examine select statutory and code provisions.

A General View of State Tied House Evil

  Using Florida law as an example, Florida Statue §561.42 is the state’s tied house statute. In part, the statute states:

561.42 Tied house evil; financial aid and assistance to vendor by manufacturer, distributor, importer, primary American source of supply, brand owner or registrant, or any broker, sales agent, or sales person thereof, prohibited; procedure for enforcement; exception.—

(1) No manufacturer, distributor, importer, primary American source of supply, or brand owner or registrant of any of the beverages herein referred to, whether licensed or operating in this state or out-of-state, nor any broker, sales agent, or sales person thereof, shall have any financial interest, directly or indirectly, in the establishment or business of any vendor licensed under the Beverage Law; nor shall such manufacturer, distributor, importer, primary American source of supply, brand owner or brand registrant, or any broker, sales agent, or sales person thereof, assist any vendor by any gifts or loans of money or property of any description or by the giving of any rebates of any kind whatsoever. No licensed vendor shall accept, directly or indirectly, any gift or loan of money or property of any description or any rebates from any such manufacturer, distributor, importer, primary American source of supply, brand owner or brand registrant, or any broker, sales agent, or sales person thereof;

  Florida’s tied house evil essentially prohibits upper-tier industry members from having a direct or indirect financial interest in a vendor of alcoholic beverages. They shall also not assist any vendor by any gifts or loans of money or property of any description or by the giving of any rebates of any kind whatsoever (unless there is a stated exception in the law).

  By comparison, below is a partial reprint of the Texas tied house evil statue. Even a quick reading shows similarities with Florida law.

Sec. 102.07.  PROHIBITED DEALINGS WITH RETAILER OR CONSUMER.  (a)  Except as provided in Subsections (b), (d), and (g), a person who owns or has an interest in the business of a distiller, rectifier, wholesaler, class B wholesaler, or winery, or the agent, servant, or employee of such a person, may not:

(1)   own or have a direct or indirect interest in the business, premises, equipment, or fixtures of a retailer;

(2)   furnish, give, or lend any money, service, or thing of value to a retailer;

(3)   guarantee a financial obligation of a retailer;

(4)  make or offer to enter an agreement, condition, or system which will, in effect, amount to the shipment and delivery of alcoholic beverages on consignment;

(5)   furnish, give, rent, lend, or sell to a retail dealer any equipment, fixtures, or supplies to be used in selling or dispensing alcoholic beverages, except that alcoholic beverages may be packaged in combination with other items if the package is designed to be delivered intact to the ultimate consumer and the additional items have no value or benefit to the retailer other than that of having the potential of attracting purchases and promoting sales;

(6)  pay or make an allowance to a retailer for a special advertising or distribution service;

(7)   allow an excessive discount to a retailer; or

(8)  offer a prize, premium, gift, or similar inducement to a retailer or to the agent, servant, or employee of a retailer.

  The essential takeaway is that, generally, state-level tied house statutes essentially contain similar prohibitions, including:

•Direct or indirect interest by an upper tier industry member in a vendor

•The upper tier industry member provides money or things of value to a vendor.

Federal Tied House by Comparison

At the federal level, alcohol beverage law regulations can be found in Title 27 Chapter 1 of the Code of Federal Regulations (C.F.R.), and federal tied house regulations can be found in Part 6.1 through 6.153 of that section.

Interestingly, certain parts of federal tied house prohibitions resemble those of the states, as illustrated in the following section of the C.F.R.:

§ 6.21 Application.

Except as provided in subpart D, it is unlawful for any industry member to induce, directly or indirectly, any retailer to purchase any products from the industry member to the exclusion, in whole or in part, of such products sold or offered for sale by other persons in interstate or foreign commerce by any of the following means:

(a) By acquiring or holding (after the expiration of any license held at the time the FAA Act was enacted) any interest in any license with respect to the premises of the retailer;

(b) By acquiring any interest in the real or personal property owned, occupied, or used by the retailer in the conduct of their business;

(c) By furnishing, giving, renting, lending, or selling to the retailer, any equipment, fixtures, signs, supplies, money, services or other thing of value, subject to the exceptions contained in subpart D;

(d) By paying or crediting the retailer for any advertising, display, or distribution service;

(e) By guaranteeing any loan or the repayment of any financial obligation of the retailer;

(f) By extending to the retailer credit for a period in excess of the credit period usual and customary to the industry for the particular class of transactions as prescribed in § 6.65; or

(g) By requiring the retailer to take and dispose of a certain quota of any such products.

  A careful examination of the above reveals an expressed and distinct element of federal tied house. The reader should pay specific attention to the use of the term exclusion, which is further defined in § 6.151 and § 6.152:

§ 6.151 Exclusion, in general.

(a) Exclusion, in whole or in part, occurs:

(1) When a practice by an industry member, whether direct, indirect, or through an affiliate, places (or has the potential to place) retailer independence at risk by means of a tie or link between the industry member and retailer or by any other means of industry member control over the retailer; and

(2) Such practice results in the retailer purchasing less than it would have of a competitor’s product.

(b) Section 6.152 lists practices that create a tie or link that places retailer independence at risk. Section 6.153 lists the criteria used for determining whether other practices can put retailer independence at risk.

§ 6.152 Practices which put retailer independence at risk.

The practices specified in this section put retailer independence at risk. The practices specified here are examples and do not constitute a complete list of those practices that put retailer independence at risk.

(a) The act by an industry member of resetting stock on a retailer’s premises (other than stock offered for sale by the industry member).

(b) The act by an industry member of purchasing or renting display, shelf, storage or warehouse space (i.e., slotting allowance).

(c) Ownership by an industry member of less than a 100 percent interest in a retailer, where such ownership is used to influence the purchases of the retailer.

(d) The act by an industry member of requiring a retailer to purchase one alcoholic beverage product in order to be allowed to purchase another alcoholic beverage product at the same time.

  Placing retailer independence at risk is a fundamental element of the concept of exclusion. TTB investigators, when examining a case for exclusion, look for the presence of evidence of Subsection 2 § 6.151 – that is, did the industry members’ actions result in the retailer purchasing less of a competitor’s product as a result of those actions or practice. § 6.152 provides us with guidance as to practices that give rise to exclusion, but that same section states that the list is not exhaustive.

  For the alcohol beverage marketer, this presents a unique challenge. After all, the goal of both the sales and marketing teams is to increase sales through shelf or back bar presence or placement on a wine list. A natural extension of a placement of this sort is that another brand very likely will lose its spot on the aforementioned selling real estate.

  The lesson to be gleaned under federal tied house regulations is that brand builders should put practices in place that arguably feature their brands at retail and allow consumers to make the choice. Retailers will govern themselves based on consumer preference rather than on the exclusion of one brand over another, thereby putting retailer independence at risk.

  Tide house violations can take many forms and can occur both at the state and federal levels. Investigators are well versed in building and prosecuting cases of tied house violations. Though the discussion above does not address the full scope of potential violations, it is incumbent on marketers of alcohol to be aware of state and federal laws in this area and tailor their programs with the objectives of sales success and regulatory compliance.

You Can’t Market to Everyone

Cyndi

Why demographics still matter in wine

three generation of positive women smiling while looking at camera and hugging isolated on grey

By Susan DeMatei, Founder of WineGlass Marketing

At first glance, it may seem logical to take a broad approach to wine marketing—after all, shouldn’t the goal be to sell wine to anyone who’s willing to buy it? Not exactly.

  In practice, marketing to “everyone” is a fast track to appealing to no one. You water down your message, misfire your tactics, and wind up wasting both budget and energy trying to reach people who were never going to buy from you in the first place. Smart marketing is selective, not scattershot. And that’s where demographics come in.

  At their core, demographics are just the quantifiable details about your customers—things like age, gender, income, education, and marital status. But in the hands of a capable marketer, demographics become strategic tools. They help decode how different consumers make decisions, what cultural cues they respond to, and how best to approach them with offers they’ll actually care about.

  Wine, with all its history, nuance, and ritual, may be universally loved—but not uniformly understood. That’s why understanding the demographics of your audience is one of the most important investments a winery can make. Not in the abstract, but in the applied: how different generations buy, what they value, and how to speak their language.

Age Isn’t Just a Number-It’s a Strategy

  Among all demographic variables, age remains one of the most predictive indicators of consumer behavior in the wine space. Your 67-year-old customer and your 27-year-old customer may both enjoy Chardonnay—but the stories, channels, and experiences that led them to that bottle couldn’t be more different.

graph reflecting results of a 2023 benchmark segmentation stury of wine drinkers vs non-wine drinkers

  So how do you use this knowledge?

  You start by recognizing that each generation brings a unique set of preferences, priorities, and expectations to the table. These differences are shaped not just by age, but by shared cultural context—what technology they grew up with, how they were marketed to as teens, and how they define things like quality, authenticity, and value.

  Here’s a breakdown of how different generations engage with wine—and what your winery should do about it.

The Silent Generation (Born 1928–1945):

The Loyal Traditionalists

  While their presence in the market is shrinking, their loyalty is unwavering. The Silent Generation prefers reliability over novelty and is far more likely to value a long-standing relationship with a winery than to chase the latest release.

  They tend to gravitate toward established varietals, classic packaging, and consistent pricing. Most importantly, they still respond to print. Think newsletters, phone calls, and handwritten notes—not push notifications.

Action Step:  Reinforce value and familiarity. Printed materials, bundled discounts, and a personal touch go a long way.

Baby Boomers

(Born 1946–1964):

The Experience-Driven Collectors

  Boomers are the architects of modern wine culture in the U.S. They invented the wine tasting as vacation activity. They made critic scores a thing. They turned mailing lists into badge-worthy status symbols. For much of the past three decades, they were the ones buying the library vintages and signing up for vertical tastings with religious fervor.

But time changes habits. As they approach retirement, Boomers are buying less and moderating more. They still want quality and ritual—but they also want convenience and value.

Action Step:  Focus on smaller format options, curated selections, and loyalty programs that emphasize connection over exclusivity. They still appreciate prestige—but they now appreciate sensible pricing just as much.

Generation X

(Born 1965–1980):

The Forgotten Powerhouses

  Gen X is frequently left out of marketing conversations. This is a mistake.

Despite their smaller size, Gen Xers are in their peak earning years, and they value quality and reliability in their purchases. They’re skeptical by nature—raised in an era of economic uncertainty and cultural disillusionment—and they’re not easily swayed by flash or trend.

  They also exist at the intersection of analog and digital. They read emails and engage with apps. They’re on social media, but they also like printed tasting notes. They’re pragmatic, fiercely independent, and allergic to anything that feels like a sales gimmick.

Action Step:  Speak directly and respect their intelligence. Offer clear value, consistent product quality, and customer service that rewards loyalty without fluff. Combine digital convenience with occasional analog moments.

Millennials

(Born 1981–1996):

The Values-Driven Explorers

  Millennials are the largest consumer cohort in U.S. history, and they’ve been quietly reshaping wine culture for years. Where Boomers sought status, Millennials seek alignment. They care less about Robert Parker scores and more about soil health. They want transparency, flexibility, and values that match their own.

  They are also deeply influenced by visual storytelling. Experiences matter—but only if they’re worth posting. They prefer inclusive, approachable brands that make wine feel less like a secret society and more like a good party.

Action Step:  Show your work. Be transparent about sourcing and sustainability. Ditch the formality and engage authentically on digital platforms. Offer flexible wine club options and behind-the-scenes storytelling. And yes, your label design matters—don’t let it look like a Word doc from 2003.

Generation Z

(Born 1997–2012):

The Unfiltered Futurists

  Gen Z isn’t just digital-first—they’re digital-only. If your website isn’t optimized for mobile, if your online store takes more than five seconds to load, or if you’re still asking people to download PDFs to join your club… you’ve already lost them.

  This generation values fun, flexibility, and visual relevance. They will try your wine if it appears in a trending video. They will buy it if the branding makes them feel something. But they won’t stay loyal unless you earn it—every time.

  And they have no patience for old rules. They like slushies, canned wines, pet-nats, sweet reds, and anything that gets people together. They’re not here for tradition. They’re here for the moment.

Action Step:  Prioritize mobile, visual storytelling, and interaction. Think sampler drops over verticals. Think memes over mailing lists. Your wine club should feel like a community, not a contract.

A Note on the Underage (for Now): Generation Alpha

  Gen Alpha is still pre-legal-drinking-age, but they’re already influencing your customer base—through their Millennial parents. They’re the reason your tasting room has crayons and juice boxes now. And they’ll be of legal age by 2034.

  Smart wineries are thinking ahead: creating family-friendly experiences, building tech infrastructure, and embracing sustainability initiatives now—so when Gen Alpha gets here, you’re already fluent in their expectations.

In Summary:

Choose Your Audience Before You Choose Your Campaign

  Marketing to everyone is marketing to no one. Demographics, and particularly generational cohorts, give you a powerful filter for your strategy. They tell you who your audience is, where they’re most comfortable, what they care about, and how to speak to them in a way that resonates.

  So the next time someone says “our wine is for everyone,” feel free to politely disagree—and then ask them which generation actually signs the credit card slip.

P.S. This blog is based on decades of research, but we’ll never pretend it’s the final word. People are complex. Trends shift. If you’ve seen different behavior from your own customers or cracked the code on reaching Gen Z through interpretive dance and Instagram stickers, we’d love to hear it. Knowledge is meant to be shared—preferably over a glass of something interesting.

  Susan DeMatei founded WineGlass Marketing; the largest full-service, award-winning marketing firm focused on the wine industry. She is a certified Sommelier and Specialist in Wine, with degrees in Viticulture and Communications, an instructor at Napa Valley Community College, and is currently collaborating on two textbooks. Now in its 13th year, her agency offers domestic and international wineries assistance with all areas of strategy and execution. WineGlass Marketing is located in Napa, California, and can be reached at 707-927-3334 or wineglassmarketing.com.

Practical Tips

Cyndi

How to Maintain Beverage Inventory Levels in Uncertain Times

man with clipboard counting bottles of wine

By Nick Fryer, Vice President of Marketing, Sheer Logistics

Managing beverage inventory has never been simple, but in today’s environment it’s harder than ever. Geopolitical tensions, climate-related disruptions, shifting consumer demand, and rising logistics costs have all made supply chain management a high-stakes balancing act for wine, spirits, and beverage brands.

  Take the March 2025 tariff scare, for example. When the U.S. threatened new duties on European goods, hundreds of Chianti orders were suddenly grounded in Tuscany. For importers, it was a stark reminder that sales performance alone doesn’t determine success. If products aren’t where they need to be, when they need to be, revenue is lost. Similarly, when President Trump announced a 25% tariff on Canadian whiskey, some Canadian provinces ordered the removal of American-made spirits from retail shelves, causing a 66% drop in sales between March and the end of April.

  So how can beverage producers minimize delays, manage risk, and keep shelves stocked without overcommitting inventory? Below, we’ll break down the most effective tools and strategies to build resilience—from smarter freight partnerships to just-in-time inventory systems that actually work.

How to Forecast Seasonal Spikes and Holiday Demand

  Many reports have appeared in the last year bemoaning customers who are drinking and spending less. Even as some note declines in wine sales, there are still plenty of spikes that businesses can take advantage of.

  Food and beverage consumption has major seasonal variations. So much so that entire studies have been done to determine the environmental and psychological factors at play. Most craft beverage operations don’t need in-depth academic research on the issue, though. What they need is clear and accurate predictive analytics.

  The best way to forecast seasonal spikes is through forecasting platforms. Usually powered by AI and advanced algorithms, this technology uses internal, historical sales data as well as external market, season, and weather trends to determine when certain products will be in demand. The value of this is that it not only improves sales approaches but it helps craft beverage operations avoid supply chain disruptions.

  Businesses can plan what to have in stock, where, and then bolster shipping operations accordingly. Forecasting demand makes it much easier to ensure that inventory and logistics are ready for demand spikes like holiday demand rather than overwhelmed by it. There’s a competitive advantage in this as well.  Businesses that can get ahead of seasonal trends the most from them.

Tips on Selecting Reliable Freight Partners for Your Craft Beverage Shipments

   As e-commerce customers demand increasingly quick and easy deliveries, that pressure invariably trickles back to the businesses targeting those customers. For that reason and many others, having a reliable freight partner is an invaluable part of any beverage manufacturing or distribution operation. Here’s what to look for:

Craft Beverage Experience:  Most wines, if not sold in cans or boxes, are sold in fragile glass bottles that need to be handled with care at every step. That’s why a logistics partner with some experience in this industry is so important.

Proper Compliance and Permits:  Transporting spirits across national and state borders comes with legal requirements that can cause lengthy delays if not complied with. This again is an area where experience helps, as it ensures that logistics teams have better knowledge of permit systems and are up to date on regulations.

Cold Chain Capabilities: The right freight partner needs to have cold chain capabilities that match the needs of your products to ensure end-to-end quality control. In-transit conditions should protect the integrity of your product, not degrade it.

References:  Track-records speak volumes. Hearing from others who have worked with a logistics team is a great way to get a sense of their reliability. It’s also worth checking public records on insurance claims histories, etc., for potential red flags.

Technology and Tracking: Many wineries and beverage makers are shipping their products for delivery over long distances. Freight partners that offer up-to-date technology and tracking can make these journeys far less stressful.

  Tracking ensures transparency and makes it easier to keep customers accurately informed on delivery times. It’s also important that tools like routing technology are in use to keep transit as efficient as possible.

Flexibility:  How would the team respond to a last minute delivery request due to demand spikes? What plans do they have in place to deal with delays? These questions can expose the flexibility and resilience of a freight partner and how well they can pivot in tight situations.

The Trick for Maintaining Product Integrity in Transit: Packaging and Temp Control

  Wine and many other craft beverages are adversely affected by temperature variations. That said, even when temp control has been maintained, damaged packaging can give the impression of a damaged product. Maintaining quality in transit is all about addressing both areas.

  IoT (Internet of Things)devices that track environmental factors can help keep wine packaging and its contents in perfect condition. The devices will automatically flag if temperature or humidity levels go out of range so that logistics teams can quickly intervene. This then prevents condensation from forming that could damage packaging. It also stops chemical reactions from occurring, such as accelerated fermentation, which could degrade product quality or even lead to bursting cans. This is a common problem with wine spritzers transported without proper temperature control.

  Packaging itself also impacts temperature control. In this instance, however, it’s not about whether wine is stored in a bottle or a can but how it’s packed in transit. Insulated boxes, for example, ensure that even if there’s a delay on the road, wine is still kept at a steady temperature.

How to Cut Inventory without Sacrificing Stock Availability

  Shipping delays are often discussed in terms of what goes wrong in transit. It’s the reason why GPS tracking and data-driven routing are so important. However, many delays actually begin in the warehouse with inventory issues.

  Overstocking can crowd storage areas and slow fulfillment, while understocking has its own issues. The last thing any craft beverage operator wants is demand coming in that their inventory levels can’t match. Here’s how to balance both:

Predictive Analytics:  This technology empowers businesses with insights that allow them to cut the inventory that’s unlikely to sell and instead only stock what’s needed. This makes deliveries much easier to manage as stock is easier to find. It also prevents stockouts and the costly shipping delays that come with them.

Inventory Tracking:  Another way to reduce inventory without threatening availability is through better tracking. Here again, IoT sensors can be useful. RFID tags are another tracking option. Either way, these devices can automatically track inventory levels in real time and, when paired with an IMS, help automate restocking to keep up with predicted demand. This prevents businesses from holding onto too much stock while still ensuring that they have enough to meet customer demand.

FINAL POUR:

Key Takeaways for Reliable Shipping & Inventory

  The trick to addressing shortages and delays in craft beverage operations comes down to inventory and shipping management. Here’s a quick overview of how businesses can make these areas more reliable:

•    Track inventory and use predictive analytics to forecast demand and prevent warehouses from being overloaded with stock or scrambling due to shortages. Data takes the guesswork out and puts the balance back.

•    Invest in great packaging and temperature control in order to protect the quality of your products throughout the logistics network.

•    Pick freight partners carefully based on their experience, use of technology, and the kind of flexibility they can offer.

  Nailing the above can help businesses prevent and handle delays. Most importantly, it builds systems that can thrive no matter the season or the directions this industry takes.

Author Bio:

  Nick Fryer is the Vice President Of Marketing, Sheer Logistics with over a decade of experience in the logistics industry, spanning marketing, public relations, sales enablement, M&A and more at 3PLs and 4PLs including AFN Logistics, GlobalTranz, and Sheer Logistics.

From the Sublime to the Ordinary

Cyndi

Art in a bottle and insurance considerations

photo showing rows and rows of barrels on racks in a winery

By Brad Berkman & Louis J. Terminello of Greenspoon Marder LLP

The wine-making experience is often sublime, requiring the best attributes of the artist. Sometimes, however, it is essential to call on the practical among us. In this instance, at least, I am referring to the insurance broker along with the versed attorney who can assist in advising on insurance policies that manage and limit the winemakers (“Suppliers”) risk (it’s worth noting that these recommendations are applicable to all producers of beverage alcohol as well as distributors). Of course, this article is written by an alcohol beverage attorney, so its main objective is to make this publication’s readers aware of recommended areas of coverage for production and distribution relationships and agreements, as well as in the context of the contract packaging relationship.

  In simple terms, business insurance is essential for managing risk and protecting a business against economic loss. Wine is obviously a consumable good, and risk exposure occurs from the production facility through the distribution chain and ultimately, to the consumers’ table. It is advisable that the producer ensure that it, and its partners down the distribution chain, have adequate insurance guarantees that are memorialized as obligations in the various agreements that the Supplier may enter.

General Contractual Provisions

  Insurance terms and their requirements can be confusing to those unfamiliar with them. As an exercise in clarification, below is a sample of insurance provisions that may appear in a Supplier/distributor agreement with terms that may be known to the reader, but little understood. First, read the following:

Supplier Insurance: Producer will maintain: (1) primary products liability coverage totaling at least $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate, on an occurrence and (2) commercial general liability insurance of not less than $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate. Producer will give Distributor at least 30 days’ advance written notice of cancellation, nonrenewal, or material change in the terms of the liability policy. All policies shall name Distributor as an additional insured party.

Distributor Insurance: Distributor shall maintain Commercial General Liability Insurance and Product Liability Insurance in such an amount as is commercially reasonable but not less than the coverage amounts stated in Paragraph above. Within ten days of the effective date of this Agreement, Distributor will provide to Brand Owner an original certificate of insurance evidencing such insurance and these terms and thereafter will provide Brand Owner with each certificate of renewal, within ten days of the effective date of renewal.

What Stands Out?  

  Obviously, the reader will notice that the insurance provisions are reciprocal and that both the Supplier and distributor have insurance obligations. Additionally, both parties are named as additionally insured on the other party’s insurance policy. The additionally insured party is not the policyholder but is added to the policy, and the policy’s protections are extended to the additionally insured, covering them for the risks of the policyholders’ activities. In our example, additional insurance provides the distributor with protection against a Supplier risk event, and the producer is protected against a risk event associated with the distributor. This begs the question, what are the party’s insurance policies covering in the above clauses?

For the Producer-Product Liability Coverage

  Wine producers and Suppliers should have product liability insurance coverage as identified in the contractual provision. This type of coverage covers consumers’ claims against the producer stemming from damage caused by the alcoholic beverage. Such damages may include those resulting from a manufacturing defect during the production process. Ideally, the product will always come off the bottling line fit for human consumption, but sometimes contaminants or other substances may be present and consumed by the end user, which causes injury. Product liability insurance will cover the economic consequences of such incidents. Those entities in the chain of distribution, such as wine distributors, should also consider obtaining product liability insurance to guard against economic loss resulting from the distribution of beverages that may be defective.

  Many insurance policies, including those covering consumables like wine and alcohol beverage, have policy payout limitations. Phrased another way, your insurance provider will only pay up to a maximum coverage amount per occurrence or in the aggregate. Per-occurrence limit is the amount the insurance company will pay for a single claim or incident. The aggregate is the total amount the insurer will pay for all claims covered by the policy for its term.

  It is wise for the Supplier and distributor to include these policy limitations in their agreement to ensure adequate coverage in the event of a claim. Further, it is important to consult with an insurance professional to be sure that the policy limitations provide adequate coverage and protection based on the policyholder’s economic exposure.

General Commercial Liability Insurance

  General commercial liability is also called for in the above reciprocal clauses. As an industry standard, General commercial liability insurance protects against economic loss from claims that the Supplier or distributor caused injury to another person or property. Common areas of coverage include bodily injury, medical expenses, or property damage caused by the wineries or distributors business operations. As an example, this type of coverage may cover damage caused by a distributor’s vehicle to a retailer’s property when delivering the Supplier’s product. As with product liability insurance, adequate amounts should be acquired per occurrence and in the aggregate based upon risk exposure. Again, speaking with an insurance professional is essential for determining sufficient coverage amounts based upon the economic risk exposure to the policyholder.

Additional Areas of Coverage for Consideration

  There are many types of risk coverage available to wineries and other alcohol beverage industry members. Other coverage areas to explore include:

•     Liquor liability insurance: Covers claims for incidents as a result of the consumption of alcohol and for actions brought by claimants under dram shop laws (dram shop laws concern a business’s liability for the service and over-consumption of alcohol by consumers on their premises). This is especially important for Suppliers that have tasting rooms on their premises.

•    Recall insurance: Covering economic loss for the recall of defective alcohol beverage products that made its way into the marketplace.

•    Crop Insurance (for wineries in particular): Protects against losses to the crops from damages due to weather and other factors.

•    Business interruption insurance: Covers losses resulting from an unplanned interruption or temporary stoppage in business due to unforeseen circumstances.

  Risk management and the policy types mentioned here, and the terms defined, are meant to introduce and bring clarity to an often thought of as mundane area of business operations. However, it is extremely important that stakeholders in the beverage alcohol industry, in whatever form they take, bring serious consideration to this matter. Inadequate insurance coverage amounts or the wrong policy coverage could lead to catastrophic consequences for those who labor so hard to create and distribute art in a bottle. The reader should take care to consult with well-versed insurance professionals and attorneys to ensure adequate risk management.

Vineyard Insurance

Cyndi

When can I sign up for grape crop insurance?

vineyard showing damage from storm

By Trevor Troyer, Agricultural Risk Management

Crop Insurance is unlike most other types of insurance.  There are specific deadlines for signing up, reporting the previous year’s production, reporting acreage etc.  You can only sign up for crop insurance by certain dates.   Since crop insurance is partially subsidized through the USDA these dates, along with premiums, are set by them. 

  All states where you can obtain grape crop insurance, except for California, have the sign-up deadline or Sales Closing Date (SCD) of November 20.  The states where grape crop insurance is available are Arkansas, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, and Washington.  Grape Crop insurance is not available in all counties in the above states though.  You may be able to obtain coverage through a special Written Agreement with the USDA, in one of those counties where it is not.

  If you want to amend the existing policy for next year, it needs to be done by the Sales Closing Date.  What changes might you want to make by the SCD or sign-up deadline? 

The main ones are:

1.    Add coverage.

2.   Cancel coverage.

3.   Change optional endorsements.

4.  Increase coverage levels.

5.   Decrease coverage levels.

  What about options that you might not realize are available?  While all crop insurance is the same from one insurance provider to the next, not all options may be added by your agent.  He or she might not have told you about certain ones or they themselves might be unaware of different endorsements that are available.  Contract Pricing and Yield Adjustment are a couple I think can be particularly important. 

  Yield Adjustment is an option that allows you to use a higher yield, in a disaster or in place of a bad year. This would replace your actual yield, in the database that is used to calculate your average tons, with a higher one.

  Here is what the Crop Insurance Handbook, 2023 and Succeeding Years says:

  For APH yield calculation purposes, insureds may elect to substitute 60 percent of the applicable T-Yield for actual yields (does not apply to assigned and temporary yields) that are less than 60 percent of the applicable T-Yield to mitigate the effect of catastrophic year(s). Insureds may elect the APH YA and substitute 60 percent of the applicable T-Yield for low actual yields caused by drought, flood, or other natural disasters.

  T-Yield is a transition yield. These are set by the USDA for each county and variety.  The main point is that Yield Adjustment allows you to use a higher yield to calculate your average.  This can make an enormous difference when it comes to how much of a reimbursement you get on a claim. 

harvester working in the grapevine vineyard

  I have seen many vineyards in California and Oregon that had zero production due to fires and smoke taint.  Their averages would have been significantly worse moving forward without Yield Adjustment (YA).  This would in turn cause them to have less insured value and lessen the likelihood of future claims getting paid.

  Contract Pricing is another valuable tool that allows growers to increase their price per ton.  Prices per ton are set by the USDA Risk Management Agency per county and variety and other counties allow for Contract Pricing.  If you have a contract or contracts with a winery or processor you may be able to get a higher per ton price.  This endorsement – Contract Pricing (CP) needs to be elected at the Sales Closing Date.  Contracts are not due till the acreage reporting date which is later. 

  With Contract Pricing for vineyards, all your grapes do not have to be grown under contract.  You can have part of your grapes grown under contract and your other grapes are not.  Or you can have other grapes grown under different contracts, with different values per ton, with various wineries.  In these cases, a weighted average is used to determine the per-ton price.  Of course, if the value of your grapes goes up so does your premium. 

  Here is an example from the Crop Insurance Handbook:

  Production based contract for 290 total tons at $2,100 per ton = $609,000 total contract value. Non-contracted 72.5 tons at the price election of $1,622 per ton = $117,595. Total value of contracted and non-contracted tons = $726,595. Total value of $726,595 divided by the total expected production = $2,004 weighted average price.

   So, at the time of a claim in the above example any indemnity payment would be $2004 per ton instead of $1622.  Again, using Contract Pricing means your premium will go up.  The higher the dollar value the more the premium will be.  I have seen growers choose not to use CP because of this.

  Another option that growers may opt to use is price election. Normally the price election is 100%. 

  What is price election or percentage? Simply put it is a percentage of the price you are getting per ton.  For example, at 75% coverage you are covering 75% of the value of your grapes.  You would have a 25% damage deductible.   The underlying price election would be 100%.  So, you are getting paid 100% of the value of the grapes covered (75%).  If you had CAT or Catastrophic coverage you would have a coverage level of 50% and a price election of 55%.   You can adjust this price election percentage by coverage level. 

  This can get extremely complicated, but it can make sense for a variety of growers.  You can select different price percentages for different coverage levels.    What if you choose a higher coverage level and then a lower price percentage?  Sometimes this makes more sense.  You would be more likely to have a claim paid but the claim payment might be less.  You would still come out ahead rather than not having a claim paid.

  Here is an example let us say you choose 65% coverage.  If your average is 5 tons per acre, then you are covered for 3.25 tons per acre.  You have a 35% or 1.75 tons per acre deductible.  You must harvest less than 3.25 tons an acre to have a loss.  Maybe you think 35% is too big a deductible.  You might have had a loss last year of 30% and did not get paid anything.  You have looked at 80% with a 20% deductible and that seems good, but the premium is too high for you at 100% of the price.  You could instead choose 80% coverage and then decrease the price percentage.  That way you lower your deductible percentage, making it more likely to have a claim paid while paying around the same premium.

   Decreasing the price percentage lowers the dollar value of what is covered and therefore lowers the premium.  You will get less money per ton, but you may get a claim payment, where in the past you would not have been paid as much or at all.

  This is all very relative to the grower, the state, the county or growing region and the main perils with which you are concerned.  These are just a few examples of available tools you can use to mitigate your risks.  Hopefully, this helps.

Why Less Visitation to Wine Country Is Everyone’s Problem

Cyndi

By: Susan DeMatei – WineGlass Marketing

Wineries with tasting rooms know all too well that foot traffic is shrinking. But it was our clients without a hospitality arm who got us thinking: how important is the on-site channel to the wine industry as a whole?

  Maybe we’re just evolving. After all, people buy everything—from cars to carrots—online these days. Isn’t it natural for wine to follow suit?

  We pulled on that thread, and it turns out the decline in wine country tourism is a bigger issue than it first appears.

What Is the Problem?

  When we look at why wine sales are down, we can break it into three core factors:

•    Frequency


•    Volume


•    Abstinence


  And one of those clearly dominates.

  Frequency—how often someone chooses wine—is the elephant in the room. It accounts for a whopping 65% of the volume decline. Simply put, fewer people are reaching for wine in their daily lives.

  Next up is volume, responsible for about 19% of the drop. These consumers still drink wine, but they’re drinking less per occasion.

  Finally, abstinence represents only 7% of the decline. These folks have exited the wine category altogether, often favoring spirits, RTDs, or non-alcoholic options.

  This breakdown gives us a clear direction: focus on increasing frequency, encourage responsible volume, and work to keep existing wine drinkers from drifting away.

Who Is the Problem?

  Demographic data shows us where the decline hits hardest—and where there’s still potential.

chart showing decrease in wine consumption coming from ages 65+

Let’s start with age.
Younger drinkers (ages 21–24) are actually increasing their wine consumption—by 73% more than any other age group. Meanwhile, drinkers aged 65+ are leading the retreat, with an index of 121 for drinking less and just 48 for drinking more. This could be due to health concerns, lifestyle shifts, or simply changing preferences.

  Income tells a similar story.
Low-income consumers (<$50k) are more likely to be drinking less wine. On the other hand, higher-income consumers are still spending—often on premium bottles—indicating the luxury wine segment remains strong.

So if we’re looking for growth, it’s clear: the opportunity lies with younger, affluent consumers who are curious and still forming their wine habits.

How Do We Encourage Premium Wine Purchase?

  Across the board, consumers who begin buying wine over $20 didn’t just wake up one day and change their habits. They were introduced to a gateway wine—a bottle that surprised and impressed them, often in a memorable setting.

  That single bottle becomes a turning point. From there, consumers often start exploring more expensive options, seeking wine education, and becoming more involved in wine culture. Creating that moment is the key. The industry’s challenge is to get more consumers to cross that threshold.

Where Do These Gateway Moments Happen?

  According to the Wine Market Council, the most common place consumers discover wines over $20?

Wine country.

chart showing travel is an important introduction to wine

  A full 76% of consumers say visiting a winery or wine region plays a role in their discovery of premium wines. The physical, sensory, and emotional experience of being on-site is nearly impossible to replicate online.

  Social gatherings, tastings, and trusted retailers also matter—but in-person, immersive experiences lead the charge. More passive methods like influencer content or wine club shipments don’t seem to have the same effect.

  The takeaway? Wine isn’t just a product. It’s an experience—and wine country is still the best showroom we have.

Why This Matters

  Our biggest opportunity lies with converting curious, affluent younger consumers into wine lovers—and eventually, loyal buyers. To do that, we need to get them into wine country.

Research consistently shows that visiting wineries increases consumers’ exposure to higher-end wines and reinforces a lifestyle that includes wine. And that lifestyle leads to stronger engagement, deeper knowledge, and more frequent purchases.

But Here’s the Catch

  Only 16% of consumers visit a wine region monthly or more—and most of them are already wine lovers.
Another 53% visit once to three times a year.
And 31% of consumers visit less than once a year or never.

chart showing novice and infrequent drinkers less likely to go to wine country

  That last group is where the biggest opportunity lies—and also our biggest challenge.

  Novice wine drinkers make up 54% of those who rarely or never visit wine country. These are exactly the people we need to reach if we want to grow the category long-term.

The most engaged wine tourists?

•People who buy $50+ wines


•Those who own 25+ bottles


•Wine experts


The least engaged? Newcomers.

  This leaves us with a critical challenge: How do we attract novice drinkers and infrequent buyers to wine country in the first place?

What Now?

  To grow our consumer base, wineries must take this data seriously. That means:

•Lowering the barriers to entry with more accessible, welcoming, and inclusive experiences


•Designing immersive, unforgettable visits that educate and inspire


•Investing in storytelling, hospitality, and connection—the things that can’t be bottled, boxed, or shipped


In Summary

  The decline in wine country visitation isn’t just a hospitality problem—it’s a brand engagement crisis. If fewer people are stepping into our world, fewer people are falling in love with wine. And that affects the entire industry, from DTC to wholesale.

  We need to rethink the winery experience, not as a bonus channel, but as the first step in a consumer’s lifelong journey with wine. The more gateways we build, the more drinkers we gain—and the better chance we have at making wine culture thrive for generations to come.

  Susan DeMatei founded WineGlass Marketing; the largest full-service, award-winning marketing firm focused on the wine industry. She is a certified Sommelier and Specialist in Wine, with degrees in Viticulture and Communications, an instructor at Napa Valley Community College, and is currently collaborating on two textbooks. Now in its 13thyear, her agency offers domestic and international wineries assistance with all areas of strategy and execution. WineGlass Marketing is located in Napa, California, and can be reached at 707-927-3334 or wineglassmarketing.com.

rows of wine grape vineyards

Why Should I Get Grape Crop Insurance?

Cyndi

By: Trevor Troyer – Agricultural Risk Management

That is a question I hear a lot. It can make a lot of sense to purchase grape crop insurance, depending on the growing risks you are dealing with.  For others it might not be a perfect fit for them. Often times large growing operations may “self-insure” as they have money set aside for the upcoming season.  For a lot of growers this is not an option as a large portion of the previous year’s income is being re-invested into the new crop.  If they don’t make a good crop and sell it this year, they might not have enough money for next year. 

  Grapes are very different from traditional row crops or vegetable crops.  A lot of the risks are very much the same though.  Drought, freeze, wildlife damage, fire/smoke and the list goes on. From what I can see the risks are actually more with perennials.  Your vineyard is subject to the elements and other risks all year round.  Things may happen after you harvest that might affect the following year’s grape production.  You might have a late frost and lose your primary buds.   There might be a fire 20 miles away that could ruin your crop’s value.

  Risks are different depending on growing regions throughout the US.  You might have grower in Pennsylvania or New York worried about frost/freeze and then a grower in Sonoma or Napa County in California worried about smoke taint.  Regional issues play a large part in decisions on whether or not crop insurance is right for you.  Also, grape variety can play a large part in your decision making.  And then how much coverage is needed for the risks involved in making a good profitable crop.

  With rising production costs, tariff and trade issues this makes decisions on crop insurance even more tricky.  Chemical prices are rising, fertilizer is at an all-time high shipping and labor costs are also up.  Can you afford to purchase crop insurance? Can you afford not to have it with how much you have invested now? These are questions that have to be asked.  I have had growers ask about reducing their coverage as these production costs go up.  You then have to ask how much of a loss can you sustain and not have it affect your ability to keep growing.  Can you lose 20% of your tonnage?  What about 40%?  That is something you have to think about.

  Crop insurance is designed to help a grower have enough money to be able to produce a crop the following year.  It is not set up to replace profits lost.  I have had winery owners complain to me that it doesn’t cover the cost of how much their wine is worth.  While I can totally understand this, it is the growing costs that are being insured against loss.

  Crop insurance does not cover the production costs of making wine or juice etc.  Only Causes of Loss listed in the policy are being insured against.  It doesn’t cover the inability of a grower to sell his grapes or broken contracts with wineries or processors.  It does cover grape quality issues due to an insured Cause of Loss like smoke taint due to a Fire.

  Here are the Causes of Loss for Grapes out of a National Fact Sheet from the USDA:

Causes of Loss

You are protected against the following:

•    Adverse weather conditions, including natural perils such as hail,frost, freeze, wind, drought, and excess precipitation;

•    Earthquake;

•    Failure of the irrigation water supply, if caused by an insured peril during the insurance period;

•    Fire;

•    Insects and plant disease, except for insufficient or improper application of pest or disease control measures;

•    Wildlife; or

•    Volcanic eruption.

Additionally, we will not insure against:

•    Phylloxera, regardless of cause; or

•    Inability to market the grapes for any reason other than actual physical damage for an insurable cause of loss.

  Crop insurance is partially subsidized through the USDA. Premiums are subsidized from 100% at Catastrophic Coverage (there is an administrative fee though) to 38% depending on coverage level chosen.  A lot of growers “buy-up” coverage from 65% to 80% and their premium subsidy is around 50% to 60%. Crop insurance is more likely to pay out a claim than any other type of insurance.  

  Premiums are more expensive than a lot of other types of insurance, this is why the premiums are subsidized. The subsidy makes your premium much more affordable.  You do not hear too often of people that have had an auto accident 3 years out of 5, with a claim paid each of those years.  But I have seen vineyards have payable losses 3 out of 5 years.   No one wants to have a loss but they do unfortunately happen.

  Hopefully you don’t have a lot situations where you have a loss.  But as a grower you need to assess your risks and take action.  These have to be taken into consideration for the growing region your vineyard is located in. Here are some other questions to ask yourself. What are your break-even costs?  Do you know your cost of production with projected inflation? Have you evaluated the risk of a severe crop loss? What varieties are planted in your vineyard?  Some types of Vitis vinifera are more susceptible to weather issues than others. Are you able to repay current operating loans without crop insurance in the event of a loss?

  Grape crop insurance is available in the following states; Arkansas, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Virginia and Washington state.   Crop insurance may not be available in all counties in these states, though. 

  My job is to help you make an educated decision, based on your risks, on whether or not you need crop insurance.  And then, if it is a good fit to mitigate your risks, to determine how much coverage is needed. 

grape vineyard

Vineyard Insurance: When Should I Open a Claim?

Cyndi

By: Trevor Troyer – Agricultural Risk Management

When to open up a claim on your grape crop insurance is important.  A lot of growers say that don’t know if they have a payable loss early in the season.  With grape crop insurance you are covering an average of your production per grape variety. Depending on what coverage level you have chosen this could mean you have a large deductible or small one.  It can be hard to tell how much early season damage will affect your tons harvested.

  Here are the Causes of Loss per the Grape crop provisions:

1.  Adverse weather conditions;

2.  Fire, unless weeds and other forms of undergrowth have not been controlled or pruning

     debris has not been removed from the vineyard;

3.  Insects, except as excluded in 10(b)(1), but not damage due to insufficient or improper

     application of pest control measures;

4.  Plant disease, but not damage due to insufficient or improper application of disease control

     measures;

5.  Wildlife;

6.  Earthquake;

7.  Volcanic eruption; or

8.  Failure of irrigation water supply, if caused by an insured peril that occurs during the

     insurance period.

  In a situation like any of the above a claim should be opened immediately.  Depending on the severity of the Cause of Loss an adjuster will come out and inspect the vineyard.  I always tell growers that they should take pictures of any damage that day.  It is always good to document damage as close to the time it occurred as possible.

  Some varieties of grapes show more damage than others.  This is to be expected as some are more resistant to different weather conditions.  And from what I have seen over the years with Adverse Weather Conditions are that they may not affect a vineyard or field evenly.  You might have more damage on one side of the vineyard or more damage on the lowest part of the blocks etc.  Damage varies but just because one variety or one area looks better than others doesn’t mean that you should not open a claim on that variety or block.

  You should open up a claim now regardless.  The damage may be less than you think and you don’t end up having a payable claim.  But it is still best to get one opened up right away.  Don’t wait to see how many tons you harvest before opening a claim!  Insurance providers always want to know early so that they can be prepared with adjusters.

  Here is an excerpt from the “How to File a Crop Insurance Claim” Fact Sheet from the USDA:

  Most policies state that you (the insured) should notify your agent within 72 hours of discovery of crop damage.  As a practical matter, you should always contact your agent immediately when you discover crop damage.

  I cannot stress enough the importance of opening up a claim early.  A lot of claims with grapes are relatively routine.  Once the claim is opened an adjuster will come out and document the damage.  You will continue to grow your crop and try to mitigate any damage received. Once you harvest grapes you will meet with the adjuster and give him your production records that show your tonnage per variety.  He will then adjust the claim based your guarantee (average tons per acre per variety and the price for that variety in the county.)

  In some circumstances you will need to get direction from the adjuster before doing anything.

What are your responsibilities after damage if the grapes have not matured properly and will not?     What if they have been rendered unusable (smoke-taint has been a major cause of this in California)? 

  Here is a section from the Grape Crop Provisions that goes over this:

11. Duties in the Event of Damage or Loss.

In addition to the requirements of section 14 of the Basic Provisions, the following will apply:

(a)  You must notify us within 3 days of the date harvest should have started if the crop will not be harvested.

(b) If the crop has been damaged during the growing season and you previously gave notice in accordance with section 14 of the Basic Provisions, you must also provide notice at least 15 days prior to the beginning of harvest if you intend to claim an indemnity as a result of the damage previously reported. You must not destroy the damaged crop that is marketed in normal commercial channels, until after we have given you written consent to do so. If you fail to meet the requirements of this section, all such production will be considered undamaged and included as production to count.

  It is important to stay in contact with your adjuster during a claim.

  A lot of things can happen to your vines that could cause them not to produce a full crop.  The insurance period is long and it is important to report everything that may reduce your crop.

  When you sign up for crop insurance, coverage for grapes starts on February 1 in Arizona and California.  It begins on November 21 in all other states.  The end of insurance unless it is otherwise specified by the USDA RMA, is October 10th in Mississippi and Texas, November 10 in Arizona, California, Idaho, Oregon and Washington.  In all other states the end of insurance is November 20th.  Crop insurance is continuously in force, once signed up for, unless cancelled or terminated.  Your coverage for following years, will be the day after the end of the insurance period for the prior year.

  Adverse weather conditions could be anything that could cause damage to your grapes. For

example; drought, frost, freeze, excess moisture etc. Wildlife could be bird damage, deer etc.

Fire would also include smoke taint as that is a result of a fire.

  Crop insurance does not cover, the inability to sell your grapes because of a buyer’s refusal or contract breakage. It also doesn’t cover losses from boycotts or pandemics. Phylloxera is not covered, regardless of the cause. Overspray or chemical damage from a neighboring farm is not covered either.

  Get those claims opened up early and stay in contact with your agent and adjuster!