Economic Change and the Global Wine Glut

Maybe it shouldn't be a surprise that there's a wine glut.  One hundred years ago, wine was a cheap source of calories for Old World workers who could not afford a better diet. Since World War II, incomes in the Old World have risen, and the demand for wine has fallen.  For these consumers, was an “inferior good” where demand fell as income rose and better substitutes entered the choice space. When income reaches a certain point, cheap calorie wine is replaced by a better diet and a smaller quantity of better wine.  In the New World, wine has become a discretionary purchase, and, for many, as aspirational item representing an important component of an elevated lifestyle.  Stagflation seems to have hit every part of the wine market quite hard. Low-income buyers are really feeling the inflation pinch. Those dollar stores that focus on sales to low- and moderate-income families find themselves under pressure to cut prices and cut costs. Shoplifting is up, we are told.

Aspirational products in general suffer when economic conditions and expectations force consumers to rein in their aspirations. That’s one problem that wine faces today.  (The Wine Economist)

Podcast: So You Want to Be a Luxury Brand

So opulent! So exclusive! In the first of two bonus episodes, we explore everything that helps brands like Ferrari and Manolo Blahnik scream luxury. (Kellogg Insight)

What Google image searches get wrong about wine lovers

The second session from the Wine Marketing Masterclass. Our new weekly course for anyone who sells or markets wine. Or students of the WSET Diploma, Master of Wine, or BA, MA, or MBA courses in wine. (Joe Fattorini's Substack)