Headwinds Ahead: Wine in the Age of Wellness and Moderation
Wine has taken a bit of a beating lately.
Between new year’s resolutions, media attention to Dry (or damp) January, the uncertainty of impending tariffs, or consumers indicating they plan to drink less alcohol, the latest industry reports do not paint the brightest of pictures for wine.
Earlier this month, Silicon Valley Bank released their State of the Industry Report and on Monday this week, industry members gathered for Wine Data 2020 - presented by the Wine Market Council (WMC).
Both reports outlined clear headwinds for the industry, including a continued consumer interest in health and wellness, low and non-alcohol categories, and a movement toward alcohol in moderation.
In her keynote address, San Francisco Chronicle Drinks Editor Esther Mobley, challenged that why, in an age of growing trends in gluten-free, plant-based, and low-calorie lifestyle options, why is wine not putting itself front and center? After all, wine fits the health and wellness bill, but maybe we are not communicating this well enough. Point taken.
So where is this shift toward moderation and wellness coming from?
Lulie Halsted CEO Of Wine Intelligence shared what she sees as the two key drivers behind the interest in moderation and wellness; essentially the human need to be appealing to oneself and one another.
“I want to look good to me”
Citing economist Richard Thaler, Halsted pointed to a consumer’s decision to choose health and wellness as a reflection for the need for self-actualization. Whether it’s through improved diet, sleep, or exercise, people are looking for ways to improve themselves, for themselves.
“I want to look good to others”
Halstead pointed to our need to be loved, accepted, and part of a community where similar thoughts and behaviors are rewarded, accepted and celebrated. Sound familiar?
Incoming WMC President Dale Stratton stated that consumers have more knowledge than ever before about diet, sleep habits, who they spend time with (and on who we date!), but why is wine still shrouded in so much mystery on calories, additives (or lack thereof) and ingredients?
Then there’s White Claw.
Hard seltzers continue their meteoric rise with 250 items now comprising the $1.5 billion category, growing at 200% per year. Market leaders White Claw (59 percent share) and Truly (26 percent) positioning themselves as low carb, low ABV and all-natural flavors play to this trend.
So whether it’s White Claw’s all natural flavors, or Truly’s prompt to “Drink What You Truly Want” both brands speak the language of a health interested consumer.
Danny Brager, SVP of the Beverage Alcohol Division for Nielsen Research highlighted that wine is losing share to beer and spirits. In 2019 the wine category dropped in market share overall; the first drop since 2002, and largest single decrease since 1990.
Overall, it was a sobering morning of data overload, that will take time to make action plans against. Furthermore, if the global trends and requests for speaker opportunities are any indication, the growth trends in moderation and wellness will only continue to accelerate.
So we must find ways to effectively communicate the attributes of wine that already fill the health and wellness need. Share our own health and wellness lifestyles, and be advocates for an industry that supports the desire for better health and wellness in our own life and those around us.
Namaste,
Beck
What We're Reading:
There's no shortage of wine stories and media inundating our IN Boxes. Here's what has piqued our interest this week.
Feeling Overwhelmed? This Meditation Process Can Make You Feel Better – Cathy Huyghe for Inc.com
You've likely seen headlines talking about the importance of meditation. But how does meditation and mindfulness help our journey as entrepreneurs, every step of the way?
Eat Your Shitamins – TortoiseMedia.com
Following Teresa Carluccio’s popular guest post on gut health, comes another perspective on what to eat to keep your gut biomes happy.
Meet the Community!
Our community is only as strong as the company we keep, and here we meet some of the folks who make our profession so dynamic.
Dan Sims, Founder and CEO, Revel (Australia)
Years in the Industry:
A couple of decades. I kicked off my career in hospitality in the late 90s, and still to this day, it remains at the core of what I do. I started as a sommelier working in a number of awarded restaurants. My final stint was at the Melbourne version of Fifteen Melbourne and even got a little recognition of my skills from the Age Good Food Guide. From there, I consulted to restaurants and wine bars writing / developing wine and training programs and it was here I began focusing on events working with the likes of Melbourne Food & Wine Festival, Good Food & Wine Show.
Through this I observed that whenever we spoke about wine it was ‘death by master class'. Seeing this was the catalyst for me to develop a wine focused festival that put the wine drinker (and fun) first; enter Pinot Palooza.
In 2013 I started my own business, Bottle Shop Concepts, with the specific aim to run these events globally. Fast forward to today, REVEL (as we’re now known) has run wine festivals in over 15 cities and seven countries with Pinot Palooza the flagship alongside Game of Rhones, Sake Matsuri, MOULD: A Cheese Festival, Gauchito Gil’s Malbec Day, Wine Day Out, and Oinofilia.
Whilst we do festivals, today I see REVEL as much of a media company as it is an events business as we play a role in communicating a winery’s (or cheese producer) message to our audience. I remain a sommelier and communicator at heart, anchored in hospitality.
My Biggest Challenge To Wellness:
Mostly travel, lack of routine and, perhaps ironically, the wine industry. There are a lot of perks to working in wine and travel is indeed on of them. But there can be negatives for as much as I love imbibing what I promote (wine), the effects can and do build up over time. Add in a lack of routine, time away from home, fatigue, bad diet, stress and caffeine, it can sometimes feel like a hamster wheel of unwellness which can lead to mental health challenges (I certainly face my own).
We work in wine and it is wonderfully social for when you open a bottle, you share it with others after-all. But the flip side of this is getting caught up in the ‘go hard or go home’ (and sometimes misogynistic) culture of which drinking is at the core. Don’t get me wrong, I love working in wine but too much of a good thing can and does add up.
My other challenge is I really, really like the taste of wine so I admit, I am my own worst enemy!
How I Keep It Together To Stay Well:
Ha. I often think I struggle to keep it together! Jokes aside, I’m trying my best to focus on … (what was that word?) … “moderation”. Walking for me, especially in the morning, is a massive help for me as it allows me to clear my head prior to the workday which also gives me some time to think. I try and do this wherever I am in the world. On any event day I walk between 15 to 20 kilometers a day , and and my team at a large event (eg: PinotPalooza) walk up to 280 kilometers over the course of the event.
"For 2020 my ‘new year, new me’ routine will be including more gym time, better diet and severely moderating my wine intake during the week which, in turn, helps me sleep better; lack of sleep is of no good to anyone. I’d like to mediate more but often struggle as my head does spin (I need it guided) but I do often use apps like ‘Calm’ and ‘Headspace’ whilst flying as it’s a perfect excuse to. One thing I do love enjoy and which think keeps me sane, is listening to podcasts / audiobooks by people who aren’t necessarily in wine. It’s inspiring and their stories help me think outside the box. Taking time outside the wine industry bubble is also very good to my wellness!
You can connect with Dan on Instagram @dan_sims Twitter @dansims, LinkedIn: Dan-Sims and online at www.revel.global
Let’s Meet Up!
The wine world is truly global and we hope to see you at these industry events and gatherings!
ABG Events and Presenter Activities:
Unified Wine & Grape Symposium Feb 4 - 6, Sacramento CA
Panelist “2020 Headwinds Facing the Industry” (Beck)
Moderator “Tapping into Consumer Trends” and Panelist “Data Matters – It’s Not Your Size, It’s How You Use It” (Cathy)
Wonder Women of Wine , Mar 28 - 29, Austin TX
Panelist “Health & Wellness” Panel (Beck)
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Industry Event Travel:
Wine Paris Feb 10 – 12, Paris FR (Cathy)
B.E.V. NY Conference Feb 26, Rochester NY (Cathy)
Wine Marketing & Tourism Conference March 3-5, Eugene, Oregon (Cathy)
ProWein March 15 – 17, Düsseldorf GE (Cathy)
Bologna Business School April 7 – 9, Bologna IT (Cathy)
Vinitaly April 19 -22, Verona IT (Beck)
Future Wine Expo May 12 - 13, Santa Rosa CA (Cathy)
Drop a line to rebecca@abalancedglass.com or cathy@enolytics.com if you are interested in getting together for practice, a chat or a great glass together.
