Why bw166 Says Wine's Glass is 'Half Full'

bw166 has taken a "deeper look into the data" and concluded while the Silicon Valley Bank State of the Wine Industry Reprt and the 2023 Direct to Consumer Shipping Report by Sovos/Ship Compliant and WinesVines Analytics are technically correct, there are positive highlights for the wine industry.

To begin with, be166 says not enough focus was placed on the bubble that occured in wine DTC shipments during the pandemic. "The industry saw abnormally large increases in DTC shipments, well above the trend line, driven by the pandemic. While consumer spending declined in 2022, it merely reverted to the pre-pandemic trend," bw166 says.

Also, "every age group has been increasing its DTC spending over time, including the younger age groups," bw166 says. Significantly, the per capita spending of 21 to 30 years old has been increasing at a faster rate versus the 61 to 70 age band.

Overall, the wine industry is probably in better shape than recent headlines might indicate, bw166 says.  But, it adds, the economic situation faced by people in their 20s and 30s "needs to be addressed."

bw166 offers three steps the wine industry can take to further entice consumers.  First, pricing is a limitation.  So, "wine need not lower prices but (to) communicate value better."  Second, "with Spirits the growth driver of the industry over the past five years, another option is to create new products to compete with these key drivers: Tequila and RTDs."  be166 acknowledges this is easier said than done.  And finally, focus on the concept that drove wine beginning in the 1990s – namely, that wine was a meal accompaniment.