The Crush - March 2020 - 9

[ UNIFIED SYMPOSIUM ]
Discussing general consumer trends, Brager said per capita
alcohol consumption is flat and spirits show a small gain in
market share at the expense of beer and wine. In less than four
years, the hard seltzer category (White Claw, etc.) has grown
rapidly and is approaching $1.6 billion in annual sales value -
bigger than rosé and sparkling wines, and three times bigger
than hard ciders. Seltzers are popular with millennials and
equally consumed by men and women. Brager said, "This is
likely a sustainable growth segment for at least the next couple
of years."
Based on consumer polling, Brager said health/wellness
concerns are the number one reason cited by people for drinking
less, with almost 50 percent of all alcohol beverage drinkers
making an effort to reduce overall alcohol consumption.
In addition, 67 percent of North Americans want to know
everything going into their food and drinks, suggesting wine
producers may have market opportunities with ingredient
labeling, listing calorie content and promoting health benefits of
wine products.
Brager listed several other consumer driven trends for wine
producers to consider going forward:
*	 Drinking "better"/premiumization

Fredricks also said, "A market of excess is also a market of
opportunity, with the potential to market and sell wine at
more price points, including entry-level pricing to attract new
consumers."
Session moderator and economist
Mike Veseth said wine is not alone
among consumer products and
beverages. Beer, soda, water and
milk also face excess supply and
unresponsive demand with slower
sales. He also noted that although
this situation is different for U.S. wine
production compared with the last
15 years, it is a normal situation for
every other major wine producing country on earth, and some of
these countries have had flat or negative wine sales growth for a
number of years.

"Demand takes longer to create. Pulling
vines reduces supply and can turn around
the market quicker." - Jeff Bitter

*	 Flavor: trying different tastes and styles
*	 Experiences involving wine, food and social activities
*	 Convenience: where wine is bought and how it's packaged
*	 Generational/cultural consumer shifts
Brager summarized: "We're in a competitive battle amidst a
changing consumer environment. There are growing segments/
channels in wine that still afford opportunities - leverage them!
Give consumers what they want, where and how they want it."
Turrentine Brokerage President Steve
Fredricks said the wine industry has
seen oversupply cycles before and was
able to adapt and innovate in the past
to get through them. He predicted
2020 would still be a challenging
year to sell bulk wine and grapes.
Acres will be removed, they can be
redeveloped to newer standards and
quality, or they can be fallowed or
planted to trees. "Cycles happen," he said. "Pay attention to
variables and remember things can change rapidly. There is no
'one size fits all' strategy, and actions are already being taken
across all areas."

MARK YOUR CALENDAR
January 12-14, 2021
FAQs: www.unifiedsymposium.org/post/
unified-symposium-cal-expo-2021-faq

MARCH 2020 / 9
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The Crush - March 2020

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