16 Feb 2020 Outlook for the Wine Industry. The Need for Technology
Rob McMillan, EVP and founder of Silicon Valley Bank’s Wine Division, writes one of the wine industry’s most authoritative annual reports that assesses current conditions with street-level intelligence and provides a unique forecast based on micro- and macroeconomic and behavioral trends.
In this report, Rob suggests that we are in the midst of a consumer reset, which requires every winery to reimagine how they sell and market wine. The early results tell us there are winners and losers today, with about 25 percent of the business struggling while the upper quartile of wineries is delivering record years.
“Boomers are not your target for growth given that the last of the cohort will hit normal retirement age in 10 years. We are slow to evolve as an industry and must solve for the young consumer, who has different values.”
“There are solutions, but hoping millennials will adopt boomer values as they age — and, as a result, move away from spirits and gravitate to wine — just isn’t a sensible business strategy.”svb-2020-state-of-the-wine-industry-report-final