What's in Store in 2016 for the Wine Industry?
Posted on Sun 10th Jan 2016 at 12:26
There are probably very few people in the wine industry who can say they have had a quiet year. With big mergers such as Majestic's acquisition of Naked Wines, a trend towards a reduction in supplier numbers, and people’s wine preferences shifting, most of us have had to stay on our toes and find innovative ways to get ahead.
There are probably very few people in the wine industry who can say they have had a quiet year. With big mergers such as Majestic's acquisition of Naked Wines, a trend towards a reduction in supplier numbers, and people’s wine preferences shifting, most of us have had to stay on our toes and find innovative ways to get ahead. Next year looks to be no less ‘interesting’, and Harpers have published an article about what the industry can expect next year. Based on a survey of people in the trade, the article highlights what people think might happen in 2016. The good news is that there is much optimism, with respondents believe that there will be many opportunities available next year. Some of these come from premiumisation, the trend towards consumers buying less but spending more, and others come from the surge in people buying wine online. In terms of innovations, 31% thought that the biggest would be in the way that retailers were sourcing wines, and the changing agency model. Only 7% of respondents thought that crowd-funding would be a significant innovation for the sector in 2016. As to what consumers would be buying, the survey noted a shift in preferences, with 66% of people thinking consumers were moving away from oaked white wines and 55% thinking they were moving away from oaked red wines. More than half thought that rosé was becoming more popular, while over three quarters stated that Prosecco would continue its meteoric rise in popularity. In terms of challenges, respondents thought that the following would be the top 5 in 2016:
- Declining profit margins
- Price wars and the culling of ranges
- Increased competition
- The shift to online shopping
- The lack of consumer education
In addition, over two thirds, 67%, thought that one of the most important issues faced by the trade next year would be 'multiple retailers and price wars; range culling/excess supply'. Despite the challenges and issues ahead, 76% of respondents thought that they would still be working in the industry in three years' time, demonstrating that they are happy in their career path. If companies can showcase these happy employees, they should be able to combat the problem of attracting new talent in the industry, something that 70% of respondents felt needed to be done. Whatever 2016 does bring, we wish you a happy and productive year, and look forward to working with you in the near future.