Silicon Valley Bank: The US wine industry will bound back in 2021

The US wine industry is poised to bounce back in 2021, according to a report by Rob McMillan, Founder, Silicon Valley Bank, with a consumer desire to celebrate set to help drive wine sales this year.

Silicon Valley Bank’s 20th annual review of wine industry prospects predicts that temporary gains will yield to long-term declines. The report raises doubts that this year’s expected sales momentum will carry very far into 2022.

Wineries that have established strong direct-to-consumer sales during the Covid-19 pandemic, as well as online retailers, can expect more gains in 2021, the report says, while bricks-and-mortar retailers, urban-based grocers and restaurants will take years to recover.

Restaurants will drastically need new investment to survive or to re-appear. Yet, the report predicts a quick recovery for the industry as a whole, although the relative importance of individual sales channels will shift dramatically.

Online wine retailers had major growth in sales during 2020, and that is expected to continue into 2021. This channel, and wineries’ own online efforts, “will represent 20% of an average winery’s sales within five years,” the report predicts.

McMillan stressed that wineries, in spite of the loss of tasting room sales, are not in the same financial straits as restaurants. “Wineries seldom go bankrupt,” he said, “even if they are over-leveraged. If they have financial problems, there’s always a willing buyer.”

One problem that was lurking in the US at this time last year, according to the report, was an over-supply of wine. But damage to crops from last year’s fires and smoke, as well as diminished tasting room sales, resulted in supply now being back in balance with demand.

However, one problem that has not gone away is the changing ages of wine drinkers. As Baby Boomers continue to retire, they are being replaced by younger drinkers with different agendas.

While the decrease in demand by Boomers for wine purchases at all price levels has not been as precipitous as once predicted, the decline is not being offset by younger drinkers, who often see better value in craft beers and in spirits.

“The digital world parallels the real world,” McMillan said, “and the new consumer is not one who wants to rely on advice from most current sommeliers. We need to consider the values of younger drinkers, and they value things in the wine world differently.”

Download the full report

https://www.svb.com/trends-insights/reports/wine-report

New Zealand Winegrowers Announce Inaugural 2021 Wine Week

The New Zealand Winegrowers has just revealed details its inaugural New Zealand Wine Week, which kicks off February 8th, 2021 as a virtual event.

With activities planned across the USA, UK, Ireland, and Canada, there is a wide-range program including tastings, discussions, and online activities, including ‘Challenging the Myths around Food Miles.’

The events have been designed to explore New Zealand’s wine story showcasing its “premium, sustainable, and diverse wines”, states NZW.

They will also offer participants the opportunity to participate in live discussions with leading wine voices from around the world.

“In these challenging times we are delighted to be able to work together across our key Northern Hemisphere markets to bring a wide range of valuable intel and insight from renowned speakers,” said Charlotte Read, general manager, marketing.

“We aim to shine a light on many aspects of New Zealand wine during this week and show that even though we can’t physically be together, we can raise the profile and celebrate New Zealand wine with our trade and media audiences,” she added.

Other activities include: ‘What’s New… What’s Next!?’ – a winemaker led panel discussion seminar exploring behind the scenes in New Zealand wine cellars;  ‘Pinot Noir Soils’ – a webinar delving into the different regions that excel in growing Pinot Noir; Syrah Masterclass – exploring the diverse styles and regional expressions with Rebecca Gibb MW; New Release Self Pour – a guided self-pour tasting to explore a set of new releases from New Zealand; and Instagram Lives with Dr. Jamie Goode plus several New Zealand winery personnel to explore different facets of New Zealand wine.

As part of the week, an online New Zealand wine catalog will also be launched, aimed at trade-based in US, UK, Ireland, and Canada, which will provide a service whereby customers can browse participating winery profiles and compare varieties, price, channel, and availability in each market.

For full details and registration

https://www.nzwine.com/en/events/new-zealand-wine-week/

 

Wines of Argentina Ends a “Successful Year”

Wines of Argentina (WofA) said it is well on its way to achieving the objectives set out in its business plan in August. The two-year plan centres on strengthening the global positioning of the country’s wine industry through digital marketing and generating business opportunities for its members.

It is focused on establishing a digital presence for Argentine wine (vino Argentino) “with much greater force”.

With Covid-19 curtailing travel opportunities, WofA has successful hosted over 50 digital events, reaching winemakers, educators, consumers and the trade, with the campaign particularly centred on the US and China.

In order to further strengthen its digital presence, WofA has partnered with software development company Globant. Globant will develop a digital global marketing strategy for WofA, adding technical capabilities and expertise to its offering.

Magdalena Pesce, marketing and communications manager at Wines of Argentina, states: “Digital tools have allowed us to consolidate the positioning of Argentine wine as never before, even in a highly atypical and challenging year. Our permanent commitment to education and digital communication has proven to be the way we must continue to be efficient in reaching different audiences around the world, effective in the use of our resources and, above all, mark a presence for Vino Argentino where international strategic audiences interact: digital ecosystems”.

It has also focused its attention on the Latin American market, particularly Brazil, Argentine wine’s third-largest market. WofA has carried out virtual events specifically targeted at the Brazilian market, including Virtual Business Round, which saw 28 wineries and 41 importers participate.

Training for Sommeliers Argentina 3D also hosted an educational program for somms based in Brazil, Mexico, Peru, Colombia and Paraguay. To strengthen its presence in the market, WofA launched a Spanish-language podcast focusing on the Mexican, Peruvian, Colombian and Paraguayan markets.

Maximiliano Hernández Toso, president of Wines of Argentina, said: “At WofA we are constantly looking for new languages ​​and means of communication to strengthen the positioning of Vino Argentino and increase its distribution and sales at an international level. Currently, this means promoting the use of digital platforms and from this trend a business plan has been in development for 4 months and has already shown strong results. We are encouraged to continue betting on this trend to make the most of the infinite possibilities of the digital world to achieve a greater objective: to boost exports.”

Champagne Nicolas Feuillatte and Champagne Castelnau Announce Merger

The Boards of Directors of Centre Vinicole – Champagne Nicolas Feuillatte (CV-CNF) and the Coopérative Régionale des Vins de Champagne Castelnau (C.R.V.C) agreed on the action in order to “strengthen the cooperative movement in the Champagne region”.

The move is subject to a vote at the AGM of both companies in June 2021.Once approved, a new name will be created.

CV-CNF and CRVC represent over 6,000 growers in the French region. Nicolas Feuillatte is the largest producer in the region before this merger was announced. “Our grower families will be proud to back this new cooperative project. Our vision of the future and determination will safeguard the social and federating values of our community of local winegrowers,” said Fabrice Collin, C.R.V.C’s chairman.

Véronique Blin, chairwoman of the CV-CNF, said: “This merger represents the place where our common destiny will take shape, where together we will find the impetus to breathe new life into the Champagne vineyard, and from which we will emerge stronger and more together.”

 

FIVE LAWS IMPACTING THE DRINKS WORLD IN 2021

Five Laws Impacting the Drinks World in 2021

http://www.spiritedbiz.com/five-laws-impacting-the-drinks-world-in-2021/

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