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Marketing
Around The Vineyard

Is Your Wine Club Keeping Up With

Modern Subscription Models?

By: Gaynor Strachan Chun
I f COVID taught us nothing, it is that re-occur- and VIP perks. These membership clubs were found

ring sales are key to survival, and that custom-
in categories such as luxury apparel, food and wine.
ers are surprisingly resilient and creative with
changes in channel or delivery methods. The post- However, with the onslaught of COVID, the dra-
COVID conversations around alcohol distribution matic increase in E-commerce, digitally native
include the so-called “fourth tier” of instantaneous brands, and the growing influence of the Millennial
delivery (Instacart), and online options like buy mind-set and their expectations as consumers, the
online now and pick up in store later (BOPUIS). world of “clubs” has evolved. The consumer has
moved on. Have you?
At the same time as these channels evolve, the
elasticity of the traditional Wine Club is stretched 3 Subscription Models Have Emerged
as well. It is now estimated that the average person
is a member of two re-occurring subscriptions and
35% belong to three or more.

Why are we moving so swiftly into a subscription
economy? For wine, it’s a perfect storm of three
factors.

1. Our culture of consumerism is changing. The
mindless and haphazard consumerism of old is giv-
ing way to thoughtful and curated purchases where
the brand and its products add value to our lives.
This significant change in consumer thinking and
behavior has fueled, among other things, the rock- A McKinsey Report lays out the current state
eting growth of subscription models. Subscriptions of subscription models very clearly. What jumps
meet the needs of concerns such as waste reduc- out is that the traditional model of Subscribe for
tion and finding quality time with family. And, wine Access has been usurped by the newer models
clubs need to catch up to remain relevant, resonant of Subscribe for Replenishment and Subscribe for
and competitive. Curation. And, while Subscribe for Replenishment
2. We’re curious. The primary consumers for sub- accounts for a healthy one third of subscriptions,
scriptions are young urbanites, 25-44 years old. it is not a relevant category for wine clubs given
What they have in common is a sense of discovery. its focus on essential household, wellness and
They want to try new things and like being present- grooming products. Which leaves the wine industry
ed with options. Most subscriptions offer monthly needing to evolve the traditional wine club model,
mystery boxes, surprises, or trial sizes, giving cus- beyond offering a choice here or there, to compete
tomers a new product to try. This brings an addi- within Subscribe for Curation.
tional level of excitement to the unboxing experi-
ence and gets consumers to expand their product What does this mean? Successful Subscribe for
knowledge and preferences. Curation offerings have the following imperatives
3. We don’t value “saving” like our parents did. as the foundation of the subscription offered:
Our parents wanted the lowest price so they could
show off the best quality brand they could afford. • Move from a focus on transactions to long-term
The new consumer is interested in saving time. The relationships.
financial incentive is there, but you can’t just give a • Shift from acquisition focus to retention.
small discount to this group and expect to call it a • Shift from selling products to selling experiences
day on your benefits alone. • High levels of personalization, flexibility and sur-
prises.
Only a few years ago, the model was simple. You • A highly anticipated unboxing experience.
joined a club to gain exclusive access to products • Impeccable customer service.
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