Category: Marketing

A Generational Guide to Customer Journeys and Shopping Habits

Cyndi

 By: Susan DeMatei – founder of WineGlass Marketing

Let’s be real—every generation shops differently. Boomers? They’re all about the in-store treasure hunt, but Gen Z and Millennials are navigating their purchase journeys with the ease of a swipe. In a world where everything’s one click away, that in-person experience better bring something extraordinary to the table if you want to capture their attention.

How Each Generation Shops

  According to DigiMarCon, you’re leaving money on the table if you focus only on driving sales through the tasting room. Boomers prioritize price and quality, while Gen Z and Millennials want more—think influencer recommendations, charitable connections, and community engagement. It’s not just about the product anymore; it’s about the vibe around it.

Chart showing what factors are a part of your purchase decision top 8

  When it comes to what influences purchasing decisions, each generation has its own quirks. Boomers, ever-practical, still base their choices mostly on price and quality. But our younger friends, Gen Z, and Millennials are adding more layers to the decision-making process, with charitable donations and influencer recommendations creeping up as key factors. They’re showing us that shopping isn’t just about the product anymore—it’s about the impact, community, and vibe around it.

  Ethical transparency? That’s a win across the board. Interestingly, across all age groups, ethical considerations are gaining traction. Gen Z and Millennials especially want to know where their dollars are going—whether it’s helping the planet or supporting a good cause. People are looking at how brands treat their employees, their environmental policies, and whether they have an active, engaged community. It’s clear that brands who are transparent and ethical have an edge in today’s market. After all, why not buy from a company that makes you feel good about your purchase, right?

  Bottom line? People are buying with their hearts and wallets these days.

Where Do Consumers Find Products?

  The research highlights key differences in where consumers from different generations go to discover products. Given that Gen Z and Millennials are digital natives, social media, search, and YouTube ads are key for reaching them, while Gen X and Boomers tend to favor TV, search, and retail (in person).

chart showing where do consumers discover products

  It’s all about meeting people where they are. For Gen Z and Millennials, that’s online, but Gen X and Boomers still like their TV and in-store browsing even if they’re starting to make that digital shift. And when it comes to making that purchase? Boomers are still team “in-store,” while the younger crew leans toward Amazon, websites, and even social media shops.

  All generations still buy products at a store. However, the research indicates that the preference for in-store purchasing decreases significantly with age. As we would suspect, buying online from retailers and directly from a brand’s website is also high on the list of preferences when it comes to shopping.

It is An Omnichannel World

  As the wine industry pivots from Boomers to younger generations, having an omnichannel strategy is essential. Gen X and Millennials are bouncing between tasting rooms and online shopping like it’s second nature. Does your marketing reflect that?

Gen Z Shopping Habits:  This crew is glued to their phones—social media and digital discovery are king. TikTok, Instagram, and YouTube are their top platforms. Brands that take a stance on social issues get major brownie points with 50% of Gen Z, so don’t be afraid to get vocal.

Millennial Shopping Habits:  Millennials aren’t too far off from Gen Z. They’re plugged into social media, internet searches, and YouTube ads. But they’re especially passionate about companies taking a stand on social issues like climate change, income inequality, and LGBTQ+ rights. If your brand’s values align with theirs, you’re golden.

Gen X Shopping Habits:  Gen X prefers a blend of search, social media, and in-store shopping to discover new products. With 90% using social media, Facebook, YouTube, and Instagram are their top platforms. When it comes to social issues, they’re divided—40% believe companies should take a stance, while another 40% think they should remain neutral, leaving 20% undecided.

Boomer Shopping Habits:  Boomers primarily shop through TV ads, internet search, and retail stores, with minimal engagement on social media—only 20% have discovered products there recently. Most Boomers believe companies should avoid taking a stand on social or personal issues, which rarely influence their purchase decisions.

Seamless Experiences Are Critical

  People aren’t just looking for a great deal. They’re increasingly prioritizing seamlessness experiences. Everyone, regardless of age, is looking for that seamless shopping experience. Your website should be mobile-friendly because over 70% of Gen Z, Millennials, and Gen X are discovering products on their phones. Slow, confusing, or hard-to-navigate experiences leave consumers dissatisfied and disgruntled.  Consumers now demand high-quality experiences that are connected, easy to use, convenient, and channel agnostic. As a result, brands that deliver convenience, ease, and connectivity will win over brands that don’t.

The Phone Rules

  The chart below, pulled from the DigiMarCon report, clearly shows the importance of optimizing your website for mobile. Close to 3:4 of everyone across 3 generations (Gen Z, Millennials, and Gen X) say they discover products on mobile. When was the last time you checked your brand’s website on your phone?

chart showing how do you prefer to purchase products

A Final Word

While the report does not specifically reference the wine industry, it has a lot of good data about overall shopping habits across generations. It is clear why tasting rooms were such a success with the Boomer generation.

  The wine industry may have thrived on Boomer loyalty, but we need to broaden our horizons to win over the next generation of wine lovers. To do this, we must ensure we meet our consumers where they are (not only where we want them to be) to successfully capture the generations who will fuel the wine industry for the next 40 years or so. Whether they’re tasting in the vineyard or adding bottles to their digital cart, make sure you’re there, ready to meet them where they’re at—because the future of wine is in their hands.

  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 12th 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.

HOW TO: Maximize Tasting Room Sales Through Engaging Visual Content

Cyndi
woman smiling making heart sign with both hands sitting in front of a laptop and a half filled wine glass

By: Jake Ahles, Founder, Morel Creative

Did you know video content accounts for 85% of online consumer traffic? If you’re not utilizing video to showcase your tasting room, you’re leaving untapped opportunities on the table (pun intended). Not only that, but consumers are also995% more likely to remember a brand when the message is delivered via video.

  But visual content alone won’t get the job done. If it doesn’t form a cohesive, clear, consistent message that connects with your audience, it won’t resonate. In other words: your tasting room needs a visual content strategy. And, no, ‘posting on social media every day’ is not a strategy.

  Because the results may not be as direct, wineries and tasting rooms sometimes treat visual content as an afterthought, believing that a few random posts on social media will suffice. We call this a “spray and pray” approach and it unfortunately doesn’t drive the results brands desire. Treating visual content as a checkbox activity may feel productive. But posting content without a structure and vision dilutes your brand’s message and weakens its impact. A strategic approach does the opposite—it elevates, connects, and converts.

  For tasting rooms, a thoughtful visual content strategy can be a game-changer. A well-crafted visual strategy doesn’t just look good; it works. Wine brands with strong visual storytelling have better marketing results. They see more tasting room visits, larger wine orders, and greater customer loyalty.

The Four Cs: Crafting a Visual Content Strategy for Your Tasting Room

  There are four key principles to crafting an effective visual content strategy. I call them The Four Cs.

Using the following key ingredients we can create video and photo content that drives tangible ROI. Let’s take a look.

Cohesion: A cohesive visual content strategy takes into account all of your customers touch points. From your tasting room itself, to the packaging you ship your bottles in. From your merch to your social and online presence.

Clarity: Use your visual content strategy to clearly tell your story. It should show what makes your wines and, thus, your tasting room unique. Can your audience clearly articulate why they choose your wine over your competitors? We think of this as your differentiating factor, or Unique Selling Proposition (USP).

Consistency: Are you sharing your USP consistently across platforms and content? A consistently crafted USP is essential to building brand loyalty.

Connection: The most overlooked of the 4Cs. It’s the emotional bond your brand has with your audience. Wine is a product that people aspire to own. How does your wine brand and tasting room fulfill your audience’s dreams?

  You’re probably thinking: who has time to deal remember all of this? Well, that’s why a strategy is so important! Once in place, just follow the strategy. Review the results and iterate as you get feedback – what’s working, what’s missing the mark?

The Power of a Strategic Approach to Visual Content

  Instead of scattering posts on social media, imagine a content strategy that guides your ideal clients to your brand and turns them into fans. This strategy will align with your brand’s story and connect with your visitors’ emotions. By developing a thoughtful approach to content, tasting rooms can create memorable experiences that lead to increased reservations and sales and still feed the social media algorithm.

Key Visual Content Strategies for Tasting Rooms

  As we’ve said, connecting your brand to your audience is key to a long-term, successful, visual content strategy.

  To do this, you want to build off the educational, engaging, and emotional facts that truly differentiate your brand in the market. The facts that help your customers achieve the aspirations they’re looking for in a wine experience. We call this the F.E.E.E.D. Framework.

  While each winery has its own unique story to tell, let’s detail an adaptable framework that can be customized to showcase your brand, authentically:

1.           Behind-the-Scenes Vineyard Tours: Use videos to show the vineyard’s beauty. Let customers experience the winemaking process, from vine to wine.

2.           Tasting Experience Time-Lapses: Use time-lapse videos to highlight a typical tasting experience, giving potential customers a preview of what to expect.

3.           Winemaker Interviews: Create emotional connections. Film short interviews with the winemakers. Show their passion and unique approach.

4.           Food Pairing Photography: Capture mouth-watering images of wine paired with gourmet dishes, which can inspire potential visitors to come and experience it firsthand.

5             .Seasonal Photo Series: Develop a photo series that showcases your vineyard through the seasons, highlighting its beauty year-round.

6.           Live Streaming Special Events: Stream your live events, like wine tastings or release parties. This will engage remote audiences and encourage future visits.

  Along with other tailored content engagements, these content types form a Cohesive content campaign encompassing each of the content types outlined above. We can start with winemakers in the field, prepping the vines through to harvest and bottling. We’ll intercut this with interviews, food pairings, content of special events, and a photo series. We’ll wrap up with a tasting experience that shows the connection between winemakers and guests. From this master campaign, which clarifies your wine business’s USP, you can spread various content pieces through your content calendar and on different platforms – from your newsletter to your blog, tasting room print outs to trade show collateral. This will ensure content consistency.

  Something I often hear from brands is that content creation can be expensive. I hear you. But the initial investment in professional visual content will produce significant returns over time by attracting more visitors, increasing social media engagement, and driving wine club sign-ups. This is how market leaders are made and legacy brands are formed.

  “Fine,” you say, “but who has the time?” A well-structured content strategy can be sustainable and iterative. A well-planned, scalable system can help your team be more efficient and effective. It should include content calendars and pillars. This way, your team can create content without getting overwhelmed.

Build a Sustainable, Scalable Visual Content System & Watch Your Tasting Room Flourish

  With a clear content strategy that focuses on engaging storytelling and consistent messaging, you can differentiate your tasting room from competitors and build a loyal customer base. A sustainable visual content system can help you stand out in a crowded market. It can do this through immersive videos, stunning photography, or interactive experiences.

  Plant your flag in the sand and make your tasting room a must-visit destination. Don’t let your tasting room blend in. Make it the destination for wine lovers. Take the first step toward transforming your tasting room experience through a cohesive, consistent, clear visual strategy that connects.

How to Market Your Wine For Today’s World

Cyndi
a man holding a wine bottle talking to a woman and standing in front of many shelves filled with different wine bottles

By: Shawn Zylberberg

One of the greatest living winemakers in the world, Michel Rolland, recently said that it has never been easier to make great wine, but it has never been harder to sell it. The entire wine industry, regardless of fine wine or bulk producers, can find common ground to agree with Rolland’s words. With wine consumption declining from historic highs to an extremely competitive market to volatile economic conditions, it is crucial for wineries to know how to market their product strategically by leveraging their unique story and identifying the magnets that will pull consumers and trade alike to place that bottle in the cart or list. The following are five key areas that are used to successfully market wines today.

Media Relations:  The wine industry feels quite small at times, which highlights the importance of relationships in the community, whether it’s with wine critics, distributor partners, sommeliers and wine directors or high net worth consumers. At Colangelo & Partners, media relations is the most important factor when marketing a wine brand and driving sales successfully, from price points of $800 bottles to $15 bottles. 

  Wineries can start by identifying the right media contacts—those who specialize in wine, food, and lifestyle reporting—and critics that cover the respective region. Compiling a media list of these contacts serves as a guide for getting a winery in front of consumers, and reading their content is important to understand their style, audience and whether your brand is a good fit for the target publication. It is not recommended to reach out to the media list until your company messaging is ironclad as it will be easier to identify the best selling points in a tailored pitch.

  Pitching and sampling remains the best way to connect with today’s best wine writers and engage them to write an in-depth story about your wines. A personalized approach that showcases deep understanding of the subject you produce and they cover is essential. A wrongly sent pitch can have serious consequences and come off as offensive to the writer. Remember, they receive hundreds of pitches a week so concise, targeted words are recommended.

  When crafting a pitch, the best ways to engage writers includes an ‘exclusive.’ People want what they can’t have, and exclusives are a great way to form a bond with a writer and give them the keys to a story such as leadership changes, a new wine launch, winery or partnership. The bigger the better! This will result in the peak of media relations, which is when writers come to you without you typing a letter.

Wine Events:  For making the strongest, most memorable impact on consumers and trade, a wine event is the best choice. Countless times, wine collectors have stuck to wine brands due to one in person experience that created a bond between them and a winery that’s everlasting. Wine dinners are very typical, and can be replicated from market to market to showcase portfolios for consumers paired with a great menu. But for an effective event that will attract media and trade, find a strong angle that writers will be intrigued to cover such as an anniversary, a vertical of one SKU that dates to the inaugural vintage, a new wine launch or an event with an important figure of the company. Filling seats is the hardest part, so making the event an attractive offer will help. After the event, following up with media and trade will be important to continue to build on the angle to produce results. As for consumers, leveraging purchase order forms at the tasting will increase sales. Do not expect consumers to buy the wines after the tasting as they will forget and put it off. Buying wine at events is about the moment.

Critic Relations:  Building and maintaining relationships with wine critics is a must for successful wine marketing. Critics significantly influence consumer perceptions with the 100-point scale that affect purchasing decisions, making it essential to engage with them effectively. As mentioned earlier the first step is to identify which critics cover your region. Start with large publications such as Wine Spectator, Wine Enthusiast, Jeb Dunnuck, The Wine Advocate, Vinous, James Suckling, and Decanter. All of these magazines have a submissions protocol, some of which require fees such as Wine Enthusiast’s new tastings protocol.

  Engaging critics beyond just sending samples is crucial. Invite them to your winery, attend annual events such as Wine Spectator’s New York Wine Experience or Vinous Icons or James Suckling’s Greatest Wines of the World series, or even participate in exclusive seminars at these events (although they will require large product donations). Supporting publications and building a rapport can lead to more favorable reviews and increased exposure. Additionally, consider offering exclusive previews of new releases or limited-edition wines to create buzz and anticipation among critics and consumers.

  Great scores should be showcased in promotional materials, websites, and through social media channels to build credibility and attract new customers. It’s not enough to just send samples and collect scores. Although we are increasingly in a digital world, having winemakers visit critics in person in New York, Napa or elsewhere is important to build the bond. Better yet, invite critics to visit your winery and meet with the team to get a better sense of your story and how the level of quality is achieved in the glass. When annual tasting reports come around, critics will include in-depth information about the wines since they’ll likely remember a visit rather than a flight of 20 wines in a cold room alone.

Trade Tastings:  If on-premise is a big part of your selling strategy, trade tastings are essential for building relationships within the wine industry. These events allow producers to connect with distributors, retailers, and sommeliers, creating opportunities for new business partnerships. Day time events during the week are best for trade as they are often working in the afternoon to late at night. Whether it’s a small eight person sommelier lunch or a large 40 person seminar with rows of tables, the tastings should include a presentation, winery spokesperson and even a co-host with high credentials such as Master of Wine or Master Sommelier to serve as a highly technical and knowledgeable guide for the attendees.

  There is currently a high turnover rate for hospitality staff and many sommeliers have much to learn in their fast-paced roles. Building a presentation with concise, memorable educational points will serve as a strong guide for trade to drive sales. One could also utilize trade influencers with large followings on social media to raise awareness within the community. Many sommeliers and retailers in big cities are now throwing ‘pop-up’ dinners that bring lots of millennial and Gen Z consumers to the table. This could be a more strategic, less expensive approach than a large seminar.

  The most successful wineries have perfected the art of personalization. Remember to follow up with attendees and have distributor partners continue to connect to make more placements based on the presentation.

Get Help:  Lastly, media relations and communications programs are very labor intensive. Hiring a public relations agency with highly talented teams that are educated in all facets of the market can make the marketing process much easier and more effective. Whether it is an annual contract or three-month project to help build messaging, agencies have the know-how and relationships to offer helpful advice and guide your brand to the next stage.

About the Author: Born and raised in South Florida, Shawn Zylberberg joined Colangelo & Partners in August 2022 and is based in Miami, Florida. His wine journey started in New York City as a sommelier, but his passion was born during his years working as a writer at Wine Spectator. Shawn holds the prestigious WSET Diploma and continually cultivates valuable industry connections and storytelling abilities to materialize goals and identities across fine wine brands and portfolio companies around the world. His role at Colangelo & Partners is Senior Account Executive.

If This Was Easy, Everyone Would Do It.

Cyndi
king on laptop with a calculator

By: Susan DeMatei, founder of WineGlass Marketing

Setting expectations is difficult. After all, we all want perfection and success, so isn’t it just positive thinking to predict that your campaigns will be victorious? That’s what “The Secret” tells us, anyway.

  But while it can’t hurt to take a stab at manifesting abundance and contemplating gratitude, you are likely using more concrete values, such as benchmarks and previous performance, to project the results of your marketing campaigns to your management.

  We submit additional data points to anticipate reasonable responses to your marketing campaigns. These data points are:

•             What environment exists around this campaign?

•             What workload can I reasonably handle successfully?

•             What does my management consider, including the cost of goods sold?

  Let’s break each of these down and include some real-life winery examples.*

CONTEXT: What Have you Done for me Lately?

  Many marketing decisions are best made with data. Your database is your guidebook; you should know the segments within, their values, and their behavior. Historical data empowers you to make informed decisions. If you don’t have it, that’s fine, but then expect a low degree of certainty in your predicted response. You should test some targeting, offers, and messages to learn what your database responds to.

  But along with performance benchmarks, it helps to know the history of communication with your customers. Don’t expect them to wake up quickly if you haven’t talked to your database in a predictable cadence or included information about your brand, people, or location to engage them. Customer communications are like any other relationship: the dialog needs thoughtful nurturing. If you only reach out when you have something you need (selling wine), your recipients might turn deaf to your calls to order.

  Take the case of a recent boutique client who, because of the current economic conditions, had cut all social media and emails out over the past two years. Without a tasting room, he felt it prudent to stop all marketing until his new vintage release. It had been a year since his last email, two years since his last social post, and he was ready to release his next vintage. We recommended warming up the audience weeks ahead with updates about the brand, the people, the vintage, and the vineyard. Why spend time on this step? Because you remind consumers who you are and why they fell in love with you in the first place. He declined, citing that he wanted to avoid spending money on any activities that were not about sales.

  We also recommended we launch a low-level advertising program to gather new mailing list signups from Meta for a few hundred dollars. Why? We know that databases naturally decay at a rate of about 2% a month, and with such a long hiatus between touchpoints, there would likely be a fair amount of database degeneration. Meta is the most efficient channel for adding contacts to a database without a tasting room. He also declined this recommendation, insisting we send the email to his database to launch the new wine. It was a beautiful email. He obsessed over every line of copy and took time in the design. It was perfect.

  The database did not return with one single order. It did result in a 10.5% bounce rate (wrong addresses), a meager 6% open rate, and zero clicks. He had expected sales to be like previous years before he cut out all consumer communication. He learned marketing isn’t a faucet you can turn on and off, and one single channel is only part of the story. The sales may come in from an email, but each transaction is influenced by social media posts, emails about the brand, texts on events, or other communications that keep your consumers interested and engaged with your winery. Without hearing from the winery in almost a year, the response was silence when the time came for the new release.

  The parable? Keep up with your marketing – especially now. When you need sales post more, communicate honestly and resist the urge to shrink back into a shell to wait out the storm. Over time, if you share information of value on a consistent schedule with consumers, they will become reliable buyers. This ongoing two-way communication is a responsibility and a commitment, but it’s worth it in the long run. How long, you ask? In our experience, it takes six to nine months of repetition and best practices to train a database to open and click on your emails to the benchmark standards we share here.

Dashboard of Benchmarks

WORKLOAD: If We Could Hold Time in a Bottle.

  It is possible to do everything right, and still be disappointed. Another client recently came to us wanting to use Enolytics for email segmentation. Typically, they had launched one mass email each quarter to their entire database and wanted to learn if breaking it up into segments would bring in more sales. They were specific about the goals – they wanted 4x the cost (our fees) in sales. We dove in, quickly outlined a half dozen segments we wanted to try with email offers, and began the program. From the first week of May to the first week of July, we executed eight emails to micro-segments and brought in over $60,000 in sales – almost 5x our fees. When we paused for a mid-program touch base, we were surprised when the program was canceled.

  Why? They explained that executing eight emails instead of one was a lot of work for their team, which was not set up to work with an agency daily, reviewing copy and images and supporting the resulting sales and customer queries the campaigns created.

  This highlights our second expectation variable—time. Yes, segmentation is effective, and yes, best marketing practices take time and thought, so prepare for that. Set reasonable internal expectations for the time and effort it takes to support smart marketing.

COGS: Rhymes with Dogs, but not as Awesome.

  What your winery considers costs can vary. Typically, the Cost Of Goods/production costs aren’t up for debate. The cost for grapes by ton, barrels, and storage are documented and outlined in the COO’s spreadsheets. However, the Cost Of Goods Sold is another number entirely, as when marketing gets involved, it becomes less defined. A tasting room is likely the most expensive channel to sell if you add up the mortgages or rent, staff, overhead, groundskeeping, utilities, etc. But few wineries consider that. Why are wineries quick to ignore some costs but then obsess about advertising dollars or outsourcing fees?

  Our third example is on this topic, which we battle with frequently. We worked with a substantial Napa Winery, which, seeing tasting room traffic wane, wisely wanted to test whether they could attract consumers to buy wine over $100 purely online. Up for the challenge, we outlined Meta and Google ads and set up for a three-month test. We aimed to sell a three-pack of wine online to brand-new people outside their database.

  At the end of the test, we had spent $7200 and brought in $21k in sales—or a ROAS of 2.89. We were thrilled as the average Return on Ad Spend is around 1.5 for Google and 1.7 for Meta. But we were up for a surprise when our client did not consider the campaign a success. Why? Because they included our cost along with the ad spend, which made it closer to breaking even.

  There are a couple of breaks with logic when including outsourcing fees in your cost of goods sold, and I’m not just saying this to defend our costs. (Ok, maybe I am a little bit.) First, when your employees execute programs internally, it isn’t free. There is still a cost to having employees. You need to include or exclude consistently. The second flaw is that you don’t take a break and go home early when adding outsourced support. No, you are freeing yourself or your team to do other critical tasks of value. So instead of considering outsourcing as just a drain on funds, look at it as paying to accomplish a goal.

  Another point this winery missed was lifetime value of these customers. Remember that the future value of these 42 new consumers is still being determined. Two months later, seven ordered again, and now are a total value of $30k and 50 orders.

BRING IT HOME

  I will leave you with a last cautionary tale combining all three above areas into one misadventure. This involves a very successful central California winery with multiple locations. They intensely focused on traffic to their tasting rooms but needed to create a thoughtful remarketing email program. Since the last marketing manager left, they had not routinely emailed their database in over 18 months. As predicted, the database was sluggish in responding initially, but as our segmentation and repetition continued, we saw sales increase more readily. We micro-targeted groups of 300 – 1000 based on recency and product choice. The client was dubious, and we routinely had to remind him that with small lists come small sales. (After all, a 5% response on a list of 350 recent buyers of a certain SKU is only about two orders). After two and a half months, we had made back the money spent on our retainer and were just starting to see the database respond, but the client pulled the plug, saying the test was “a disaster.” Why? From his point of view, he said he could have done nothing and been in the same spot. I’m sure that is true, but it’s unclear how they’d ultimately succeed sitting on cases of unsold wine with no customers!

  Since they hadn’t done much online sales before, I inquired about his internal barometer for online sales success, to which he replied 4x our retainer cost. I asked him if he included his own employees’ costs when evaluating the tasting room channel, to which he replied, “That’s none of your business.”

  This example combines so many mistaken assumptions about marketing. First, a conjecture that marketing performs immediately at full steam. Second, an lack of understanding that regular segmented emails do bring a higher % of conversions, but realizing the lists are smaller so the number of sales might seem small. (But, they add up.) Third, the inconsistency of including manpower cost in one channel but not another. Finally, unrealistic metrics for success. I have heard some creative KPIs before, but never that marketing shouldn’t cost anything – that the benchmark was comparing any marketing costs to the cost of doing nothing. Doing nothing will always be cheaper. And easier.

  What’s the point of my rant? Well, I got to vent, so if you made it this far, thanks for that. But know there are no tricks. There is no silver bullet. There is no magic tool, database, or platform that will bring you thousands of dollars. Like all things in life, selling your wine takes thought and focus. Marketing is a process that takes time – assume 6-12 months. And money – assume 5% of your gross sales. And effort – sometimes yours, sometimes others. But if you set reasonable expectations and communicate your goals, you can succeed by improving over time.

  Ultimately, the cost of not doing marketing is assuredly failure, which is a far greater cost than anything you might risk with a few ads or emails.

  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 12th 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

Family Frenzy in Wine Country

Cyndi

The Case for Kids and Canines

two small dogs riding in car and out the car window is a very large wine bottle and barrels

 By: Susan DeMatei and Nathan Chambers

Let’s kick things off with a dose of reality. We’ve all been there: it’s a bustling Saturday morning in July, you’re bracing for a packed day at the Tasting Room, and Murphy’s Law is in full effect. Two of your staff are out sick; another is off serving the crowd at an art and wine festival downtown. You unlock the door at 10:01 AM, only to be greeted by a frazzled family of five: mom, dad, and three rambunctious kiddos. The younger two are reenacting a wild-west shootout with gravel as ammo, while the third is glued to an iPad, deep in the latest YouTube Kids saga. Mom and Dad look like they’ve just survived a hurricane, and you have a “high-roller” group arriving in fifteen minutes. And then comes the kicker: “Can we bring in our German Shepherd?” You contemplate if it’s too late to call in sick.

Inclusive is the New Black

  If you have yet to hear, exclusive is out, and inclusive is in. Wine Country is in transition. Once upon a time, parents would leave their little darlings with Grandma and Grandpa for a weekend of serene wine tasting. No screams, barks, gravel fights, or corkscrew chases – just pure, undisturbed, oenophile bliss.

  But the landscape is shifting. Gone are the days when only adults graced the vineyards. Millennials and Gen Z are now our primary guests, and they have an entirely different vision of vacation based on their values and lifestyles.

chart reflecting USA fertility rates 1990-2023

The Millennial Way of Life

  Millennials – the primary purchasers of luxury wines – are adulting very differently than their parents or grandparents. Children are no longer “to be seen and not heard.” They incorporate children into their lives rather than revolve their lives around kids’ activities.

  These choices make sense if you consider they marry later, have kids later, and are parenting differently than previous generations. They marry around 30 (compared to Boomers at 23), and the average age for starting a family is between 30 and 34. With 15 years of a career established, they’ve built a firm adult foundation. So, they prefer to incorporate their kids into their activities rather than revolving everything around the kids. “Helicopter” parenting with structured times and schedules has given way to “drone” parenting, where the kids are encouraged to explore and gain confidence with new experiences. The 2023 Annual US Family Travel Survey revealed that 81% of parents plan to travel in the next 12 months, indicating a robust interest in family travel. (Traveling with the family is one of the major tourism trends in 2024). According to Travheir, 44% of millennials with children have traveled together, and 62% have included children under five. Many parents believe bringing along their children is essential for a child’s development. A recent study by the Family Travel Association found that 88% of families believe travel helps children overcome lingering pandemic impacts.

resident population in the united staets in 2022, by generation (in millions)

What Does This Mean for Wineries?

  With these generational changes, families and even pets will become more common at wineries, urban tasting rooms, and, yes, even at events. What is important to realize is that this isn’t laziness, selfishness, or just that they didn’t want to pay for a sitter. Showing up with kids demonstrates their values. They hold their inclusive belief system dear and will not want to see it challenged. In today’s “cancel” society, you might think twice before telling a feisty mom with a large online following that you didn’t want to allow her child on the patio. A quick search on Google will bring you dozens of outraged parents indignantly waiving one-star reviews.

chart showing resident population in the United States by 2022, by generation in millions

Adapt, Don’t Collapse

  This doesn’t mean you need to completely fold to pressure and allow children to run wild. With some forethought, you can make your experiences positive for well-behaved kids and your best adult guests. Wineries are no strangers to pivoting. Rainy day? Clear the bar for indoor tastings. The large group arrives early? Grab that chilled Pinot Grigio and entertain them in the garden while your team preps inside. The same flexibility applies to welcoming families. Happy parents are likelier to join wine clubs, buy bottles, and rave about their experience.

Planning for the Future

  Embrace the chaos and plan for it. Here are some ideas to make your winery more family and pet-friendly:

•    Kid Seating: There are no bar stools for the kids, but maybe some reserved outdoor tables with snacks like applesauce tubes, pretzels, and water. A coloring book and crayons can go a long way in keeping them occupied.

•    Kid Juice Tasting: Offer kids their “tasting” experience with various juices in plastic cups. They can swirl, sniff, and taste alongside their parents, perhaps even jotting down their impressions.

•    Tour Guide Games: Insurance permitting, why not engage kids with a scavenger hunt during tours? Flashlights in the cellar, leading the group – it’s all about making them feel involved and excited.

•    Selfie Stations: Set up a spot for fun photos, including their dog. Parents can share these on social media, and you can create a winery dog calendar as a special gift for wine club members.

•    Doggie Snacks: Go out with dog snack packs, perhaps from a company like Barkuterie. Consider a small, fenced area for dogs to roam off-leash if space allows.

Embrace the Change

  You survived the visit. The family bought four bottles, the kids didn’t set anything on fire, and they’re off to the next winery. Now, it’s time to reflect: what can you do to be more family-friendly? How can you welcome pets while ensuring everyone’s comfort? With some planning, you’ll enhance your guests’ experience and boost your bottom line.

  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 12th 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

A Short and Quick Guide to Wine Importation Regulatory Process

Cyndi
row of Spanish wine bottles

By: Brad Berkman and Louis Terminello

Importing wine into the United State may initially seem like a daunting task. Licensing requirements and related matters appear to be complex with requirements at both the federal and state levels. With proper planning and guidance, the insurmountable becomes a manageable process. This article will act as a short guide to the initial licensing and regulatory concerns encountered by new importers.

Licensure At the Federal Level

  Importation of wine into the stream of commerce of the United States is regulated by the Alcohol and Tobacco Tax and Trade Bureau (TTB). Prior to importation, the potential importer must qualify to hold a TTB Basic Permit as an Importer. TTB examines the qualifications of the owners and officers through a personal questionnaire process that is executed under the penalty of perjury to ensure that the individual applicant is not impaired from holding the permit. Qualifications of applicants can be found in the Code of Federal Regulations. Printed below are the code sections showing the requirement for licensure and the required qualifications for licensure.

§ 1.20 Importers.

  No person, except pursuant to a basic permit issued under the Act, shall:

(a) Engage in the business of importing into the United States distilled spirits, wine, or malt beverages; or

(b) While so engaged, sell, offer or deliver for sale, contract to sell, or ship, in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits, wine, or malt beverages so imported.

§ 1.24 Qualifications of applicants.

  The application of any person shall be granted, and the permit issued by the appropriate TTB officer if the applicant proves to the satisfaction of the appropriate TTB officer that:

(a) Such person (or in case of a corporation, any of its officers, directors, or principal stockholders) has not, within 5 years prior to the date of application, been convicted of a felony under Federal or State law, and has not, within 3 years prior to date of application, been convicted of a misdemeanor under any Federal law relating to liquor, including the taxation thereof; and

(b) Such person, by reason of the person’s business experience, financial standing or trade connections, is likely to commence operations as a distiller, warehouseman and bottler, rectifier, wine producer, wine blender, importer, or wholesaler, as the case may be, within a reasonable period and to maintain such operations in conformity with Federal law; and

(c) The operations proposed to be conducted by such person are not in violation of the law of the State in which they are to be conducted.

  In conjunction with the personal questionnaire process, the applicant entity is disclosed including ownership structure. Among other things, certain signing authorization forms are prepared, and parties are assigned signing authority on TTB documents.

  In addition to the Importers Basic Permit, it is wise for the applicant to apply for a federal wholesaler’s permit. This permit will allow the licensee to ship alcoholic beverages in interstate commerce. The process for applying for this license is quite similar to the federal importers permit. For consistency purposes, below is a reprint of the code section establishing the requirement for this license.

§ 1.22 Wholesalers.

  No person, except pursuant to a basic permit issued under the Act, shall:

(a) Engage in the business of purchasing for resale at wholesale, distilled spirits, wine, or malt beverages; or,

(b) While so engaged, receive, sell, offer or deliver for sale, contract to sell, or ship in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits, wine, or malt beverages so purchased.

  Both federal permits, if the application process is managed properly and barring any unforeseen issues, should be issued within 45-60 days.

  It’s important to note that basic permits do not expire. They remain in effect until revoked, suspended, voluntarily surrendered or automatically terminated. Automatic termination can occur by operation of law when there is an unreported change in the licensed entity. In particular, change in ownership or stock transfers, among other things, must be reported to TTB on the appropriate forms within 30 days of the occurrence. If they are not reported, the basic permit will terminate by operation of law. It is essential that any contemplated change to the business be analyzed for its effect on the license and reported appropriately if required.

  As an additional note, the foreign winery/production facility must be registered with the FDA as a food facility. A registration number is assigned and must be available at the time of importation or the wine will not clear customs.

Product Approval

  Prior to importation, certain wines may be required to go through a formula approval process conducted by the TTB laboratory, though most do not. Generally, if there are added ingredients including flavorings, formula approval process is required. However, most wines produced and containing only grapes should not require formula approval. Other alcoholic beverages such as spirits and malt must be analyzed separately, as those products tend to have a more stringent formula approval process.

Certificates of Label Approval (COLA’s)

  All imported wine labels must be submitted to the TTB prior to importation and approved. Approval results in the issuance of a Certificate of Label Approval, more commonly called a COLA, which is required to be presented to US Customs at the port of entry, along with other documents.  TTB will examine the label to ensure that all mandatory labeling requirements are met. The wine label approval process can be complex, particularly for a first-time submitter. Certain pieces of information need to be affixed and positioned according to the regulations or the label will be rejected by TTB until brought into compliance. It would be beneficial, especially for the first-time submitter, to consult an expert when commencing the COLA process.

State Licensing

  As noted, TTB regulates the importation of beverage alcohol in foreign and interstate commerce. Prior to brand introduction in any state, it is incumbent on the importer to determine which state licenses are required prior to selling the wine within the borders of that state. As a general rule, some sort of non-resident permit is required, and often times brand registration as well. This is not a one-size-fits-all model, and these writers stress that each state’s requirements be examined carefully, and the appropriate licenses must be obtained.

Innovations and Trends in Winery Caps, Corks and Closures

Cyndi
cork person helping another cork person off a cork screw

By: Alyssa L. Ochs

Sealing up a bottle of wine with a cork or cap is one of the last things a wine producer does to prepare a finished product for consumers to enjoy. However, caps, corks and other types of closures should be much more than a final afterthought.

  The closure you choose for your wine preserves your precious creation and adds a sense of familiarity and distinction to your brand. The right closures prevent spoilage and oxidation, contribute to the desired aging process and enhance the design of your label. Even wineries that have been using the same closures since their first harvests may be interested to learn about innovations and trends in this industry, as well as sustainability initiatives that complement an eco-minded approach to winemaking.

  Here’s an update on what’s happening in the wine cap, cork, and closure industry to inspire your next bottling process.

Types of Wine Closures

  Natural cork is the most common and traditional type of wine closure, which gives bottles a classic and elegant look while adding subtle flavors to aging wine. Synthetic cork looks like natural cork but is made from plastic, which poses little or no risk of a potentially undesirable corky smell from trichloroanisole (TCA). Champagne and sparkling wine corks have elastic discs at the bottom and a mushroom shape. Agglomerate corks are made with granulates from natural cork production and can store wine for short periods of time in an affordable way. Meanwhile, capped corks combine natural and plastic materials to allow for the best of both worlds – limited oxygen interaction with the wine and an effective seal.

  Aside from corks, many wineries use caps to seal their wine bottles. Screw caps allow for easy opening and resealing while eliminating the risk of cork taint. You’ll often find wine bottles sealed with crown caps that are similar to the ones used on beer bottles. Crown caps are best for early consumption and most common with sparkling wines.

  A zork is a plastic, resealable wine closure with a top that peels off. It provides unique access to the wine and a good seal, but it’s best for wines that will be consumed promptly. A helix is a twist-off closure made from glass, offering a sense of elegance to premium wines. The company Vinolok offers glass closures with an original all-glass version, a duet of glass and wood, and collections of glass closures that come in creative, modern and playful shapes. Wine bottles can also be sealed with hermetic corks with a hinge and silicon enclosure. Hermetic corks are reusable and most commonly used after a bottle is opened so the remainder can be saved for later consumption.

Innovations in Wine Closures

  While screw caps used to be generally frowned upon in the upscale wine industry, they have been gaining popularity as viable alternatives to traditional cork. Screw caps provide reliable seals and consistent wine quality, and they do not present the risk of cork taint. Producers are getting creative with their screw caps by using attractive colors, designs and company logos.

  Similarly, significant improvements have recently been made in synthetic wine corks to help them more closely mimic the look and feel of natural corks. However, compared to natural cork, synthetic materials often allow for more consistent oxygen control and reduce the risk of wine tasting like the cardboard, wet newspaper, mold, or earthiness associated with cork taint. Although cork taint only affects a small percentage of bottles closed with natural cork, it is still a major concern in the industry.

  Another innovation in the industry is using nitrogen or argon gas preservation systems to help bottles stay fresh after opening. This innovation complements good wine closures to ensure freshness. Wineries can extend the life of bottles opened in their tasting rooms, and consumers can use them at home so they don’t feel obligated to finish entire bottles. You can now buy single-can, private wine preservers that deliver about 120 uses for about $10 to $20. The spray cans use inert nitrogen, argon and carbon dioxide to displace the oxygen that ruins wines to protect the freshness and flavor for days, months or even years.

Green Initiatives for Sustainability 

  However, some of the most exciting developments in wine closures make bottles eco-friendlier and more attractive to sustainability-minded consumers. One company, Vinventions, has been in business since 1999 and leads the way in innovative bottle closures. All Vinventions closures are manufactured with sustainability in mind and to help winemakers maintain control over the oxygen ingress after bottling.

  The company’s Green Line offers the first-ever certified zero-carbon footprint closure, with fully recyclable materials derived from sugarcane-based products. Its Blue Line products are recyclable and made with 50 percent raw materials from plastic recycling. Vinventions’ SÜBR closure is a polyurethane-free and taint-free micro-natural closure, and its Vintop screwcaps have multi-feature designs and liners for premium wines.

  Wineries may request samples of the closures on the Vinventions website to test them for their wines. The company aims to ensure that all of its closures are 100 percent recyclable, renewable or biodegradable by 2030, and it continues to invest in research and technology to improve product performance in the wine, spirits and olive oil industries.

Pros and Cons of Caps, Corks and Closures

  To help you make the best decision for your winery, here are the pros and cons of the most popular closure types to discuss with your team:

Natural Cork

Pros: • Adds subtle flavors to wine

• Recyclable, renewable and biodegradable

• Best for aging up to 10 to 25 years

• Traditional, ceremonial and romantic

Cons: • The potential of cork taint

• Variation in the consistency of corks

• Often cost more than screw caps

Synthetic Cork

Pros: • No cork taint risk like natural cork

• Durable with quality that has been improving recently.

• Affordable and cost-effective

Cons: • Public perception of them being for low-quality wines.

• Wine should be consumed within the first couple of years.

• Generally less effective seal than natural cork.

Composite Corks

Pros: • Consistent quality so the wine doesn’t taste moldy or musty.

• Adds elegance to high-end wines

• Cost-effective and affordable

• Made from renewable resources

Cons: • Costly for producers

• Not ideal for long-term aging

• Prone to breaking and crumbling

Screw Caps

Pros: • No risk of cork taint

• Easy opening and resealing

Cons: • It is not ideal for aging wine

• Best for early consumption

Crown Caps

Pros: • Easy to open

• Consistent and reliable seal

• Great for freshness and wine quality

Cons: • An unexpected closure among consumers

• Not ideal for all types of wine

• Limited aging potential

Glass Stoppers

Pros: • Attractive for luxury wines

• Distinguish your brand from competitors

• Reusable with an excellent seal

Cons: • More expensive than traditional closures

• It can be difficult to open

• It can allow in too much oxygen, damaging wine.

Zorks

Pros: • Easy and convenient to open

• Elegant appearance

• Becomes a reusable tasting cork once opened.

Cons: • Not ideal for long-term aging

   • It fits most, but not all, standard wine bottles.

   • More expensive than other closures

Industry Trends to Consider

  With all these variations, innovations and sustainability initiatives in mind, you might wonder how most wineries are handling their closures these days.

  There is a growing interest in sustainability initiatives and eco-friendly closures that don’t deplete the Earth’s resources or end up in landfills. This trend is perhaps the most notable in the industry right now. Wineries are showing their preferences for biodegradable corks and traditional cork alternatives in their packaging solutions. Cork technology is also being developed to ensure excellent wine preservation capabilities and sealing efficiency.

  Wineries are also becoming more creative and open-minded about their closures as closure manufacturers develop new ideas. Now is a great time to explore the aesthetic appeal of wine closures that go beyond purely functional purposes to stand out among the competition and attract new consumers. There is a growing demand for premium wines, which is where glass and other alternative closures can emerge and make a real impact.

  In the Wine Bottle Closures Market report for 2024-2031, researchers found that the global wine bottle closures market was worth $3,885.36 million in 2022 and will likely reach $5,459.4 million in 2028. Major manufacturers in this industry are Vinventions, Inspiral, Astro, Waterloo Container Company, Cork Supply and Orora. Other industry leaders to watch include Amorim, Interpack, Labrenta, Precision Elite, AMCOR, Federfin Tech, DIAM, MASilva, Guala Closures Group and Bericap.

  The market is growing steadily, with cork, screwcap and plastic closures most prevalent. It has bounced back since the COVID-19 pandemic and has seen rising demand levels and more interest in experimentation and innovation. Geography also plays a role in wine closure preferences, with traditional corks still dominating Europe, where traditions run strong, yet there is more variance in other parts of the world.

  Will this be the year your winery switches up your bottle closures and tries something new? The leading industry players mentioned above might be worth contacting and exploring further to see if their latest products and closure strategies could fit within your current operations and future winemaking goals.

The Refined Palette of Investment

Cyndi

Exploring Wine as a Strategic Asset

wine bottle laying on blue silk

By: Shana Orczyk Sissel – Founder, President & Chief Executive Officer of Banríon Capital Management

In a time period marked by the unpredictable swings of traditional markets, many investors are turning their attention to more tangible assets that provide not only financial returns but also offer a personal and luxurious experience. Among these alternatives, fine wine is becoming increasingly appealing. As a long-time observer and participant in the alternative investment space, I have seen a significant uptick in wine investment interest, particularly among investors aiming to diversify their portfolios while adding a uniquely personal touch.

Why Wine?

  The appeal of investing in wine is layered and robust. Historically, fine wine has shown remarkable resilience in the face of economic downturns, often outperforming traditional stocks and bonds during inflation and market instability. This resilience is largely due to wine’s status as a luxury item, with its value driven by limited supply and increasing global demand. The finite production of certain vintage wines means that as bottles are consumed, the remaining ones become rarer and potentially more valuable. This positions wine not just as a hedge against inflation but as a compelling means for capital preservation.

Wine Fundamentals for Investors

  For those new to wine investing, understanding the fundamentals is crucial. Key factors to consider include the reputation of the vineyard, the quality and rarity of the vintage, and proper storage conditions to preserve the wine’s value. Investing in wine requires a strategy for buying, storing, and eventually selling:

●     Selection: Focus on well-known regions like Bordeaux, Burgundy, and Napa Valley, which historically produce wines that appreciate in value.

●     Storage: Proper storage is critical and should be in a climate-controlled environment to protect the wine’s quality and longevity.

●     Insurance: Like any valuable asset, wine collections should be insured, especially as their market value increases.

●     Exit Strategy: Knowing when and how to sell is as important as knowing what to buy. Most fine wines reach a peak market value at a certain point of maturity.

Personalization at Its Best

  Investing in wine is a deeply personal experience. Each bottle has its own story, tied to its origin, vintage, and the subtleties of its taste. This personal dimension allows financial advisors to engage with their clients on a deeper level. Offering wine as dividends, for instance, instead of traditional cash payouts, forges a more meaningful connection between investors and their investments. Imagine the moment of pride an investor feels when uncorking a bottle from “their” vineyard’s wine while entertaining at home.

Strengthening Relationships

  For advisors, the wine industry offers a distinctive way to deepen client relationships. Discussing wines, sharing tastings, and exploring vineyards can be powerful relationship-building experiences. These interactions allow advisors to connect with clients in settings that extend beyond conventional business environments, fostering a sense of camaraderie and shared interest.

  In the same vein, effectively marketing a vineyard or winery to financial advisors can enhance these relationships further. Invite advisors to your property for tours, tastings, and in-depth discussions about your production process and business philosophy. When advisors are familiar with a vineyard’s story, its commitment to quality, and its unique offerings, they are better positioned to recommend these investments confidently to their clients.

Diversification Through Wine

  Wine offers substantial diversification benefits. Its low correlation with conventional financial assets like stocks and bonds means it can help smooth out portfolio volatility, providing steadier returns over time. Incorporating wine into an investment portfolio can act as a buffer against market swings, appealing to those seeking more stability in their investment journey.

Avenues for Investing in Wine

  There are several options when it comes to investing in wine, each offering unique benefits and risks. Direct ownership of bottles or cases is the most traditional method, providing control over selection and requiring knowledge of wine regions and proper storage. Alternatively, wine funds offer ease through professional management, though they lack liquidity and involve fees. Those preferring a more traditional market approach might consider wine stocks, which involve investing in publicly traded companies related to the wine industry. Wine futures, or “en primeur,” allow investors to buy wine before it is bottled, potentially at lower prices, but this comes with its own set of risks related to market and production quality.

  Emerging trends like wine exchange platforms and crowdfunding are modernizing wine investment. Exchange platforms provide transparency and liquidity, enabling the trading of wine much like stocks. Crowdfunding platforms let investors buy shares in vineyards or wine projects, reducing the barrier to entry and allowing participation in potential profits from wine production without substantial upfront investment. We work closely with advisors to help them tailor and better understand the investment options that work best for individual clients.

Seizing Opportunities in the Regulatory Landscape

  Recent shifts in regulatory frameworks have opened new avenues for winemakers and investors. With the ability to raise capital from the public more freely than before, vineyards and wineries can now explore new ways of funding their operations and expansions. However, despite the high demand, there are surprisingly few wine funds available, offering a niche yet potentially lucrative investment opportunity. A thorough understanding of the market and regulatory environment will ensure investors can identify and capitalize on the best offerings.

Targeting a Broader Investor Base

  The demographic of wine investors is expanding, with women in particular drawn to the combination of cultural appreciation, luxury, and investment potential that fine wine offers. Wineries have a significant opportunity to cater to this demographic, especially at tastings, which predominantly attract couples and women. Additionally, social media has introduced new marketing channels that are not only more cost-effective compared to traditional advertising channels like television, but also resonate strongly with the female market. Influencers can provide a personal touch and create authentic connections with products, while “mom memes” underscore wine’s cultural integration.

Global Market Trends

  The global wine market is experiencing significant shifts, influenced by changing consumer behaviors and economic conditions. According to Spherical Insights, the global wine market size is projected to reach $583 billion by 2032 with a compound annual growth rate of 5.7%. Emerging markets, especially in Asia and parts of Africa, are developing a robust appetite for luxury wines driven by increasing wealth and a growing middle class. As a result, demand is likely to keep rising, potentially pushing prices higher in well-established and emerging wine markets alike.

  In Europe and North America, consumption patterns are stabilizing, but the interest in high-quality, sustainable, and boutique wines is growing. This shift towards premium products supports higher price points and can enhance investment returns.

The Future of Wine Investing

  The future looks promising for the wine sector. As awareness of its benefits grows, more investors are likely to explore how wine can complement their portfolios. For newcomers, starting with a reputable wine fund can provide a secure and enlightening entry into the market, combining financial benefits with the pleasure of ownership.

The Last Sip

  Wine investing extends beyond simple asset acquisition; it’s about embracing a lifestyle and crafting a portfolio that mirrors personal tastes and passions. For those eager to incorporate sophistication and personalization into their investment strategy, wine offers an enticing path. Whether you’re a seasoned collector or new to the world of wine, the right investment strategy can transform every sip into not just a taste of exquisite craftsmanship but also a toast to financial prosperity.

As Founder, President & Chief Executive Officer of Banríon Capital Management Shana Orczyk Sissel helps independent advisors navigate the complex world of alternative investing, bridging the gap between public and private alternative investment opportunities. Additionally, she assists clients with investment platform development, alternatives in portfolio construction and developing best practice in alternative investment due diligence. In this role, Ms. Sissel assisted in the launch of Armada ETF Advisors, and served as a key advisor in the firm’s recent launch of its first ETF product, the Home Appreciation U.S. REIT ETF (HAUS).

8 Proven Ways to Elevate Winery Revenue in a Changing Market

Cyndi
two people clinking their champagne glass

By: Jonathan Smalley, President and CEO of SmaK Plastics

The Times They Are A-Changin

According to CNN, global wine consumption has fallen about 6% between 2017 and 2022. Consumers have changed their drinking habits and inflation has eroded their disposable income.  That means nearly 1.9 billion fewer wine bottles were consumed last year than in 2017.

  Today, operating a successful winery requires more than just producing exceptional wines.

It demands a strategic approach to maximize operations space, production and labor, reduce overhead costs, and increase revenue and create growth.

•   The wine industry is evolving. Gen X-Z tastes are changing.

•   Wineries are at the intersection of artistry and business acumen.

•   Behind the scenes, winemakers and CFOs grapple with OpEx challenges.

•   At the same time, retail shelf space is getting more crowded – with flavored beverages.

  In this article, we will explore proven methods to increase winery revenue.

1.  Diversify Offerings to Attract a Broader Audience: An effective method to boost winery revenue is by diversifying product offerings to appeal to a wider customer base. While the core product remains wine, expanding into related areas such as events, food, and merchandise can significantly increase revenue streams.

     Silver Oak Cellars has successfully diversified its offerings. In addition to its acclaimed Cabernet Sauvignon, the winery hosts events like wine dinners and tastings. The winery’s online store also features branded merchandise, from glassware to clothing.

2.  Create a shelf space strategy – Evaluate and create modernized, distinctive labeling. Craft an eye-catching and distinctive packaging design for your Wine Club offers. Consider packaging that not only highlights your brand but also communicates the craft and quality of your wine.

     Create open communication with distributors and retailers about your differentiation and process. Collaborate on promotional events (where legal). Utilize data to ID regional preferences to tailor your product assortment. Consider P-O-S displays that showcase the craftsmanship behind your wines. Utilize shelf talkers and promotional signage to highlight unique tasting notes, food pairings, and any awards or accolades your wines have received        

3.  Expand Specific Production to Match Trends – Create craft beverages that meet emerging trends. Be a trendsetter. Consider new methods to expand your production to deliver new flavors that buyers want.

     Be aware: Buying used oak barrels used can sound affordable, but is risky. Used barrels can come with risk of bacterial contamination as well as a lower impartment of oak. And used tanks are not warranted by manufacturers.

4.  Implement Wine Club Memberships for Customer Loyalty – A new, modern wine club can create a loyal customer base, consistent revenue and a strong sense of community. Offer exclusive benefits such as early access to new releases, discounts on purchases, and members-only events.

     Ridge Vineyards is known for its exceptional Zinfandels and Cabernet Sauvignons. Ridge has a well-established wine club called the Monte Bello Collector Program. Members receive allocations of limited-production wines, invitations to member-only events, and access to library releases. This not only generates consistent revenue for the winery but also strengthens the connection between the brand and its customers.

5.  Enhance Online Presence and E-commerce – In the digital age, an online presence is crucial for wineries. Establishing a user-friendly website, utilizing social media, and implementing e-commerce capabilities can broaden a winery’s reach and drive sales directly to consumers. Invest in strong brand visibility and “edutainment.” Provide insight. Engage with your audience online and offline to create a community around your brand. A strong and recognizable brand can attract attention from retailers and consumers, and lead to increased shelf space.

     La Crema Winery has effectively expanded its online presence. The winery’s website offers a seamless e-commerce experience. La Crema actively also engages with its audience on social media platforms, and has created a virtual community around its brand.

6.  Optimize Production Space – Unleash the Cellar Potential: Say goodbye to wasted corners and hello to reimagined production. Evaluate every nook and cranny. Reorganize with precision. Utilize the space that is wasted on racking.

     Embrace flexible, movable vertical storage to increase capacity without sacrificing accessibility. Utilize stackable solutions to create skyward profits. Stackable fermentation, production, blending and aging solutions increase production, allow easy access, and deliver results. Easily blend without having to un-stack, un-rack and re-rack-and-stack barrels.

7.  Shorten the Distance and Vessel Use Between Processing Stages – Modernize your production Transfers. Reduce barrel transfer time with a streamlined, repurposed container layout. Redefine your processing flow to minimize transfer time, reduce labor, and eliminate spillage risks.

     Increase efficiency across all processes. Streamline labor-intensive tasks, from juice movement to cleaning, stacking, and maturation. Optimize productivity across your square footage. And vanquish the evaporation enemy.

8.  Embrace Modern Winemaking Techniques with Oxygen – Permeable Polyethylene Tanks:

  In recent years, wineries have increasingly turned to innovative winemaking equipment, such as poly, food-grade plastic tanks, to optimize production efficiency and cut costs. These tanks, made from high-quality polyethylene, present a viable alternative to traditional oak barrels.

  Oxygen-Permeable Polyethylene Tanks provide winemakers with a more cost-effective and sustainable solution. The use of plastic tanks aligns with sustainability goals. These vessels require less water and chemicals to clean, are lightweight and can be used for all winemaking processes, last more than 25 years, and reduce the demand for dwindling oak resources.

  Les Bourgeois Vineyards, situated in California, has successfully incorporated plastic tanks into its winemaking process. By investing in Oxygen-Permeable Polyethylene Tanks, the winery has reduced operational costs associated with barrel purchasing, maintenance and replacement. The polyethylene tanks allow Seghesio Vineyards to allocate resources to other aspects of production.

•    Poly tanks give winemakers scalability, and stackable use of production space.

•    Polyethylene vessels are sustainable. (Water and Labor Savings). These tanks can be utilized in all aspects of winemaking: production, fermentation, maturation and transport to bottling.

•    French oak barrels are produced at approximately two barrels per 100-year-old tree. Oak barrels must be sanitized using chemicals and large quantities of water. And they’re only good for 4-5 years.

•    Advanced, Oxygen-Permeable Polyethylene Tanks are long-lasting, controllable and breathe like a barrel.

•    Winemakers can easily and quickly expand capacity and space use. Polyethylene tanks are easy to move, clean and stack. And have low up-front capital cost.

Summary

   A combination of strategic planning, modern communication, customer engagement, adaptability to market trends, and new production techniques is required to grow winery revenue.

  Wineries can both build strong relationships with their customer base, and create sustainable higher margin revenue by diversifying offerings. At the same time, wineries must work strategically to create additional market pull, and shelf space. This can be created via consistent (short and unique) communication, and community building.

  Wineries must look forward to the future buyer profile and engage prospect/buyers via modernized wine clubs, enhanced online presence, and content.

  Wine owners and financial managers must also look at methods to reduce OpEx costs, streamline and increase production efficiency, sustainability and margins and revenue.

  These methods can help wineries steadily grow in a competitive market.

Author’s Bio

Jonathan Smalley, President and CEO of SmaK Plastics.  An expert in the production, fermentation, aging and transport of craft beverage and food production solutions. Over the last 20 years, he successfully directed the engineering and development of successful products for more than 4,000 global wineries, cideries and food processors.

The Stars Are the Limit

Cyndi

Trends Shaping Tourist Season 2024

By: Susan DeMatei, Founder of WineGlass Marketing

Can you believe it’s May? Soon rain will abate, vines will reach for the sky, and summer will be here before we know it along with, hopefully, tourists. To prepared for our always-diligent attempt at educated counsel to our clients, we’ve been reading up on all the travel trends for 2024. Will the political climate once again hijack all of America’s attention and make people wary of venturing out? Or will it be more likely to scare us to other countries for a respite abroad? If tasting room traffic is down this year as it was last year, it is even more important to know what consumers are looking for in the hopes of developing programs consumers want. The smart winery will be continually testing different experiences this year to try and attract the right customer to their brand.

Consumers Will Be Vacationing

  Forbes recently surveyed 1,000 Americans asking them about their travel plans this year and it seems wanderlust continues unabated into 2024, with Americans poised to jet set, road trip, and beach bum their way through the year. 52% of respondents bravely committed to maintaining the same travel tempo as the previous year, while an audacious 40% are revving their engines for even more escapades.

  Seems like the young’uns are leading the charge, as always. Gen Z and Millennials are showing off their travel prowess, with 56% and 49% respectively gunning for more stamps in their passports. Meanwhile, Gen X and Baby Boomers are chilling like fine wine, content to keep their travel habits on cruise control.

  What’s on the itinerary, you ask? Well, it’s a classic lineup: family visits, beach frolics, and the timeless allure of the open road. These perennial favorites are still top contenders for 2024, proving that some things never go out of style.

chart showing types of trips americans plan to take in 2024

  It’s clear that the travel bug has an expensive taste and those that are planning to travel realize it will cost them. 39% of respondents are planning to beef up their travel budgets and another 35% will maintain their spending power. How much, you ask? Well, 72% of respondents say they are ready to drop upwards of $2,000 on their escapades and nearly half are primed to dish out a minimum of $4,000 throughout the year. So price doesn’t appear to be a barrier for a good time. ( Who needs to worry about inflation when there are adventures to be had?)

  When faced with the question of how they might be willing to cut back, most opted for a “quality over quantity” approach reporting they’d rather take fewer trips or shorten the duration over cutting back on luxury or experiences.

Destination Trends

  As we review research on 2024 travel, it’s clear that we’re not just chasing destinations—we’re chasing experiences. Whether it’s savoring the silence of a remote getaway or indulging in culinary delights, we’re in pursuit of moments that linger long after the suitcase is unpacked. What follow are seven trends we feel dovetail nicely into Wine Country.

travel changes americans will make due to continued inflation

Home Swapping: A New Twist on Hospitality

  In a world where the line between work and play blurs, travelers are seeking longer stays abroad without the hefty price tag. Enter home swapping, a trend gaining momentum as remote work becomes the norm. Platforms like Twin City and Kindred offer innovative solutions, connecting travelers with like-minded individuals for mutual home exchanges. Gen Z, ever the trendsetters, are spearheading this movement on social media platforms like TikTok, using hashtags like #houseswap and #homeswap to showcase their adventures.

  WGM Ideas: What are you doing to partner with AirB2B, VRBO, Twin City and Kindred in your area? Are there “honorary” local programs you can try to these transient “residents”? How can you bring your wine into their new “home”?

Peak Season Takes a Back Seat

  The traditional peak season for travel is experiencing a shift, with travelers increasingly opting for shoulder season adventures. Luxury travel specialists report a surge in bookings for off-peak periods, citing factors like economic concerns and a desire for authentic, less crowded experiences. With flexible working arrangements on the rise, travelers are seizing the opportunity to explore popular destinations during quieter times, avoiding the crowds and high prices associated with peak season.

  WGM Ideas: Can we take a page from hotels and offer special experiences mid-week or in shoulder or hot months? Research tells us when we have the time to spend with guests, their Average Order Value goes up, so what does time allow you to offer in these slower times to make their experience extra-special and create more memories and sales?

Private Group Travel: The Ultimate Bonding Experience

  The desire to share travel experiences with friends and family is driving the rise of private group travel. From multi-generational family trips to reunions with lifelong friends, travelers are seeking meaningful connections through shared adventures. Companies like Black Tomato are catering to this demand with tailored itineraries designed to create lasting memories. Whether it’s a backcountry feast in the Grand Canyon or a rafting expedition in Peru, these experiences offer a unique way to bond with loved ones while exploring the world.

  WGM Ideas: Some of you won’t like this, but the question of what to do with kids will move from an infrequent grumble to a persistent roar as Millennials move into their 40s and want to vacation as their whole selves – teenagers, dogs and all. Even if kids aren’t an issues, large groups can sometimes become boisterous and overwhelm the ambiance. What can you do to accommodate lively group visits while keeping a luxury solemn experience for others? Can you open up one patio to only one or the other? Can you offer different time slots? The time is here where simple saying “no” to groups will mark you as inhospitable and in the minority. Best to plan ahead now and be prepared as this trend grows.

Skip-Gen Travel: Bridging Generational Divides

  Skip-gen travel, where grandparents vacation with their grandchildren, is on the rise. As families seek to strengthen bonds across generations, travel agencies are creating specialized itineraries to cater to this demand. From safari adventures to cultural immersions, these trips offer opportunities for meaningful connections and shared experiences. With an increasing number of grandparents eager to explore the world with their grandchildren, skip-gen travel is poised to become a lasting trend in the travel industry.

  WGM Ideas:  So, a 10-year-old, a 34-year-old and a 66-year-old walk into a bar…  It’s not a joke. If you’ve been smart you’ve already started to think about bifurcating your experiences and marketing to appeal to younger and older audiences so this trend should fit right into your plans. If you haven’t been smart, now is the time to rectify that. Before tourist season gets into full swing, we highly recommend creating different experiences targeted to seniors and … can we say juniors? Anyway, you get the point. Think about the comfort/height of seats down to different interest levels and non-alcoholic options. The more prepared you are the happier the guests and the more the sales.

Silent Travel: Finding Serenity in Silence

  In a world filled with noise and distraction, silent travel offers a sanctuary for weary souls. From silent meditation retreats to secluded nature resorts, travelers are seeking opportunities to disconnect and recharge. As awareness of the benefits of silence grows, so too does the demand for silent travel experiences. Whether it’s trekking the Japanese Kumano Kodo trail or exploring Finland’s Arctic landscape, these journeys offer a chance to find peace amidst the chaos of modern life.

  WGM Ideas: We know you’re going to get frustrated and say we just told you to allow kids to crawl all over your tasting room but curb the eye roll for a moment. We bet there is somewhere on your property to offer some serenity. Is there a corner, or bench or tree or trail through the vineyards you can clear off and feature as a private quiet area? Could you offer a different kind of experience that is the opposite of a guided tasting? It would be interesting to test to see if people just want to be alone. What about recording a short but insightful self-guided tour? Or something about the rabbits and owl boxes and vines they can scan with a QR code on an expertly placed sign? Just brainstorming but it’s interesting to think about and wouldn’t be hard to try.

Back-of-House Tours: A Glimpse Behind the Curtain

  As travelers become more conscious of their environmental footprint, they’re seeking experiences that prioritize sustainability and community engagement. Back-of-house tours offer a unique opportunity to see firsthand the efforts hotels are making to reduce their impact on the environment. From community outreach programs to eco-friendly initiatives, these tours provide insights into the social and environmental responsibility of hospitality businesses.

  WGM Ideas: The idea of “winery tour + sustainability discussion” intrigued us. For those of you who have gardens or do crazy magical things with cow horns – people will want a tour on that! THAT is different and something to build on. If you’re not focused quite so much about the cycles of the moon, you can still talk about running an agro-tourism business and how you fit into your particular ecosystem; what accommodations you make for wild animals, how you use sheep, or what you do to manage cover crop. Anything in the realm of working in harmony with mother earth is a trend right now that any winery can lean into.

Wild Feasting: Dining in Nature’s Embrace

  There’s something inherently special about dining al fresco, surrounded by nature’s beauty. Wild feasting takes this concept to the next level, offering curated culinary experiences in natural settings. From foraged ingredients to open-fire cooking, these experiences celebrate the connection between food and the great outdoors. As urbanites seek opportunities to reconnect with nature, wild feasting offers a chance to slow down, savor the moment, and truly appreciate the bounty of the earth.

  WGM Idea: Try to get as close to origin as possible. For those of you who have food programs, ditch the pre-packaged store-bought cheese and partner with a cheese monger.  Take a stab at drying your own jerky, salting your own nuts, or featuring local honey. Make the connections with food purveyors and see where the partnerships take you. Your customers will, literally, eat it up.

Astronomy Tourism: Seeking Solace in the Stars

  As society yearns for genuine connections with the natural world, gazing at the stars offers a sense of wonder and perspective unlike any other experience. Astronomy tourism, the practice of traveling to remote locations to observe celestial phenomena, is on the rise. Wellness-focused hotels and resorts are embracing astronomy tourism, providing guests with opportunities to marvel at the cosmos.

  Which is good because 2024 is shaping up to be an astronomical extravaganza, with celestial events galore. From total solar eclipses to dazzling meteor showers, the year promises unforgettable sights for stargazers. Scientists are even predicting the best displays of the Northern Lights in two decades, as we approach the next solar maximum.

  WGM Ideas: It would have been great if you were in the eclipse path this April, but since we can’t count on those every day, what can you do at night? Consider a club event after dinner with smores and a fire pit and guest astrologer. The goal is to get out of the cities and gain some perspective – and wine country fits the bill.

  Google searches will yield you a multitude of other tourism trends, but these were the ones we felt leaned into the winery vibe. We hope there are couple that intrigue to you brainstorm some options to try at your winery.

  And, best of luck this year in providing those Instagram-able moment because one thing is for certain; whether it’s savoring the silence of a remote getaway or indulging in wild delights, it’s clear we’re in pursuit of memories of moments that linger long after the suitcase is unpacked.

  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 12th 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