Wine Market Trends

France’s vineyards ( just 3% of the country’s total agricultural land) are now the country’s biggest user of pesticides, insecticides and herbicides. That's just one country. This systematic application of chemicals and mono plantation principles can’t be sustainable for the land, nature, us and future generations. Even the so called less harmful applications like copper and sulphur cause indiscriminate destruction to biodiversity and soil life. Often building an increasing resilience within the very element ( such as fungi) that's being treated. Nature is alive and looking to survive, so adapts and changes to become more resilient - or pathogenic as we see it. From a human health perspective, wine can be health promoting - containing beneficial polyphenols and resveratrol,but not when it's laden with chemicals and toxins. Over 70 different additives are legally allowed to be used in the growing and making of wine. If they were listed on the label we'd probably never buy the bottle of wine.. There is a growing belief that a largely undisturbed, semi-wild vineyard is more sustainable while obviously being ecologically healthy. Yields may be lowered as the vines become less stressed ( poor soil, water stress and high density planting all contribute to the vines pushing out grapes in a state of stress and survival) but inputs are minimal too, biodiversity is vastly increased and irrigation needs reduced. Like we see within nature, leaving the soil as undisturbed as possible and covered at all times is key. Left this way the soil microbiota can evolve and function as it should, releasing minerals to the vines and building complexity below and above ground, creating a living soil where fungi are kept in-check and that same fungi helps keep aggressive bacteria in balance. This increasingly popular approach looks to re-create a growing environment where crops are part of the ecosystem, not separate, and nature dictates what goes on. The key being as little disturbance as possible as interference is unnatural and will ultimately weaken the system. The end result is hopefully wines of a greater complexity and local expression-high in health benefiting compounds. As climate change, drought, soil erosion, disease and biodiversity loss increase at an alarming rate, vineyards like all mono plantations will need to adapt. But the solutions as always lie within a return to the empathic embrace and intelligence of nature, not fighting her. ( Maybe the consumption of a little less but healthier wine by us too! ) Photo credit: @greenhillswine #biodiversity #miyawakimethod #vineyard #rewild #wine #permaculture #biodynamic #organic #restoration #reforestation #syntropic #nature #gaia #naturebasedsolutions #peace #ecosystem #regenerative #regen

The wine industry isn’t in crisis. It’s being recalibrated. This week I went deep into SVB’s latest report, CGA’s on-premise data, trade headlines from Drinks Business, and market signals from the US, Europe and South America. What’s emerging isn’t chaos. It’s clarity. The rules are changing. Fast. And if we’re honest, that’s exactly what we needed. SVB confirms what we’re all seeing. Boomers are ageing out, and younger consumers aren’t rushing in to fill the void. They’re drinking less, asking more questions, and choosing brands that reflect their identity and values. That’s not a threat. It’s a challenge. To stay relevant, we need to be more than wine. We need to mean something. CGA’s on-premise data shows US bar and restaurant visits are down, but spend per visit is up. The on-trade isn’t dead, it’s evolving. It’s becoming a curated, high-value discovery space. If your wine’s on the list, it better make an impression. One glass, one shot, one chance to connect. Then there’s the Oracles Craft Brands bankruptcy. A sharp reminder that the mid-tier importer model is under pressure. Thin margins, rising tariffs, fragile logistics. If your route to market relies on a single gatekeeper, you’re exposed. We need diversified, resilient pathways to trade. Not just contracts, but real relationships. Meanwhile, climate change isn’t coming. It’s here. And regenerative viticulture is no longer a fringe idea. It’s where serious producers are heading. Regenerative is a philosophy that reflects the future of farming, and the kind of integrity younger consumers expect. If we’re not already measuring soil health, biodiversity and impact, we’re behind. And then, the human factor. Chile’s Emily Faulconer being named among Los Más Influyentes del Vino is a sign of where the centre of gravity is shifting. People don’t want polished. They want personal. Story over spin. Connection over claims. So, what do we do? Relevance is now the key currency. Not heritage. Not technical prowess. That means understanding what drives consumption today: identity, values alignment, and trust. Route to market strategies must reflect geopolitical and structural realities. Overreliance on a single importer or legacy distribution model is a liability. The future lies in diversified partners. DTC infrastructure. On-premise strategies that build equity, not just volume. Regenerative viticulture is gaining traction because it speaks to quality, resilience, and ethics. Buyers are taking note, we need to future-proof production and pricing power. And most critically, brand value is shifting from institutional to individual. Consumers connect with people. The most effective storytelling is not crafted. It is lived, visible, and human. This is a moment to re-earn relevance with zero nostalgia for business as usual. #wineindustry #svbwine #cganiq #regenerativefarming #premiumwine #futureofwine #leadership #mclarenvale #winemarketing #consumertrends #emilyfaulconer

When “California wine” isn’t entirely Californian — and why it matters. California is facing a quiet transformation. In 2022, wineries imported nearly 68 million gallons of foreign bulk wine — roughly 400,000 tons worth. In the same year, growers left a similar volume of California grapes unharvested. This isn’t a headline-grabbing scandal; it’s a structural shift driven by: • Declining U.S. wine consumption • Rising farming and production costs • Oversupply and inventory pressure • Duty Drawback incentives • Labeling rules that allow up to 25% foreign wine in “American” blends • Increased reliance on low-cost bulk wine to stabilise margins For independent growers — especially in regions like Lodi and the Central Valley — the impact is profound: contract insecurity, stagnant pricing, and the removal of multi-generation vineyards that can no longer survive financially. For consumers, the long-term question is one of identity and trust. What does “California wine” signal if the bottle increasingly contains wine grown elsewhere? This story deserves a wider, more transparent conversation — one that includes growers, producers, retailers, and drinkers. https://lnkd.in/gfV6ecxS

The wine industry is finally on the same page about one thing: there’s a crisis. I think it goes far beyond needing a catchy phrase about coming over in October. Prove me wrong! We don’t need to rehash all the alarming stats, but here are 5 things I believe have gotten us into this mess—and none of them have to do with Gen Z or the rise of non-alcoholic drinks. The real issues are deeper and more systemic. (Maybe I'll do 5 more next week!) 1. Outdated Packaging: Why are we still selling wine in 5-serving, breakable glass bottles that require a special tool to open? This was fine centuries ago, but does it fit modern life? Shouldn’t we be asking ourselves if this is really what today’s consumer wants? 2. It's a Risky Purchase: Even a $15 bottle is a gamble when you don’t know if you’ll like it. We wonder why consumers rely on word of mouth or a label they recognize. The truth is, they’re looking for ways to reduce risk, but we’re not making it any easier. 3. Lack of Innovation: Wine brands haven’t evolved. Think about other beverages—beer, seltzers, spirits—they introduce new flavors, collaborations, and formats. Meanwhile, wine has stayed the same. Most consumers (less than 30% of US adults drink wine) can’t even tell the difference between liquids. We haven’t made it easier for them to try, describe, or connect with the product. 4. Over-Education, Not Connection: We keep trying to “educate” consumers, but they’re just looking for something to drink. Most people don’t care about the intricacies of a product. When I buy car tires or a leather purse, I’m not interested in a lecture. I just want it to be good quality, reliable, and easy to buy. Let’s stop over-explaining and start connecting. 5. The Wrong Kind of Storytelling: We talk about “our story,” but we forget the consumer. A story should be about how what we sell makes their life better. And we’re slow to adopt modern marketing. Consumers are buying DTC, subscribing to their favorite drinks, engaging with other beverage brands online—so why aren’t we doing the same with wine?   At the end of the day, it’s not about fighting new trends like no/low alcohol. Those will come and go and an industry should be able to weather them, and dare I say even capitalize on them. What we need is to evolve with the consumer, give them what they actually want, and stop holding onto outdated traditions that serve only the old guard. Who's with me? #winemarketing #rethinkingthewineindustry #winebusiness

The global wine industry is facing its deepest identity crisis in over 50 years — and it's not just because of war or climate change. In 2024, global wine consumption fell to 214 million hectolitres, the lowest since 1961. Production also declined sharply, down 4.8% year-on-year, as extreme weather events continued to reshape viticulture from Bordeaux to Barossa. The war in Ukraine and ongoing Red Sea instability have disrupted key markets and driven shipping costs and delays to record levels. But the real fracture is cultural. Younger consumers — Gen Z and younger millennials — are disengaging. Not because they don’t drink, but because wine doesn’t speak their language. They seek moderation, clarity, and innovation. Yet wine still presents itself with high alcohol, elitist codes, and outdated marketing that ties its image to a rural, conservative past. Ask a 28-year-old what wine means to them, and you’re likely to hear: “complicated, old-fashioned, unhealthy.” Meanwhile, the no-/low-alcohol wine category — which could be wine’s gateway to this generation — is growing rapidly. In 2023, its global market value exceeded $2.5 billion, with forecasts of steady 8%+ annual growth. Yet too many in the wine world still see dealcoholised wines as niche, inferior, or even threatening to tradition. Wine must stop resisting change and start investing in relevance. That means: - Creating high-quality low- and no-alcohol wines, not as afterthoughts, but as part of core R&D. - Adopting inclusive, clear language in labels and communication. - Reframing the role of the winemaker — not as a nostalgic contadino, but as an agro-tech entrepreneur managing data, biodiversity, and climate resilience. - Using marketing tools that every other industry already takes for granted: content, community, transparency, and smart digital storytelling. The world doesn’t need less wine. But it does need a wine industry willing to evolve, not by abandoning its values, but by finally learning to express them in a way that today’s consumers can hear.

For years, the wine industry had much to celebrate. Global demand was growing steadily, and China was the big upside. From the mid-2000s onwards, consumption expanded, and China became the unexpected engine, moving from less than 1% of global imports to around 8% by 2017, pulling producers from Bordeaux to Australia into an export-led growth model. But consumption has been slowing across most major markets in recent years. The US has softened after a long expansion, parts of Europe are declining, and younger consumers are drinking less or differently, with more attention to health, price, and alternative categories. This was already putting pressure on the system before China turned. The slowdown in China is partly about a weaker economy and some pressure to reduce imports, but the real driver is policy. The crackdown on official behavior and the ban on alcohol at government and party events have removed a key consumption occasion for premium wine. This effect goes beyond official settings, as companies and individuals tend to align with these rules in practice. The impact is already visible. Pernod Ricard and Diageo, two of the largest global drinks companies, are reporting double-digit declines in China. A market that once absorbed high-end exports at scale is no longer there in the same way. The industry had built itself around that demand. Vineyards expanded, exports increased, and Chinese buyers acquired estates in Europe, the US and Australia, sometimes rebranding them to fit domestic tastes. There was a clear belief that this demand would keep growing. It hasn’t. The industry now faces a difficult combination of slowing consumption globally, a sharp correction in China, and supply that cannot adjust quickly because of the long agricultural cycle. In some regions, growers are already pulling out vines or leaving grapes unharvested because prices do not cover costs. China is not the only issue, but it is accelerating everything. What used to be a growth industry is now being forced into adjustment, and that usually means less volume, fewer vineyards, and more consolidation. The deeper challenge is that wine depends heavily on context, on occasions and social meaning, and those are shifting faster than the industry can adapt. The industry needs to reset. Talking to many winemakers, it is clear that there is real uncertainty about what to do next. We will likely see bankruptcies as excess capacity leaves the system. Some consumers may lose access to wines they enjoy, although there should still be a healthier and more robust industry at the end of the cycle. Wine remains an important part of many agricultural regions, and that will not change. #agribusiness #strategy #transformation

🍷The Wine Industry’s Wake-Up Call⚠️ I recently returned from a trip to Paso Robles, where I had candid conversations with winemakers about the state of the industry. The message was clear: the market is down, and if trends don’t shift, many wineries are facing serious financial challenges. This isn’t just a Paso Robles issue—it’s happening across the wine industry. Consider these stats: • U.S. wine consumption has declined for three consecutive years, dropping another 2% in 2024. • Millennials and Gen Z are moving away from wine, opting instead for spirits, RTDs, and non-alcoholic alternatives. • Financial pressure is mounting—right now, 30% of U.S. wineries are operating at a loss, and if trends continue, that number could rise to 50%. Many winemakers are looking for ways to adapt—exploring new varietals, direct-to-consumer models, and premiumization—but for smaller and mid-sized wineries, survival is far from guaranteed. This is a wake-up call, not just for wine, but for any business reliant on historical trends and consumer loyalty. • Markets evolve—are you evolving with them? • Consumer preferences shift—are you paying attention? • Brand loyalty isn’t enough—are you actively earning relevance? The businesses that thrive in the next decade—whether in wine, retail, or tech—won’t be the ones hoping for a return to the past. They’ll be the ones adapting, experimenting, and meeting consumers where they are today. Are you seeing similar shifts in your industry? How are you adapting?

The Global Wine Map is Changing Shifting Boundaries: Traditional wine regions are facing challenges as temperatures rise. Up to 70% of current wine-producing areas could become unsuitable for grape cultivation if global temperatures increase beyond 2°C (3.6 F), pushing vineyards to higher latitudes and elevations. New Frontiers: Regions once considered too cold are now emerging as promising wine-producing areas. Varietal Adaptation: Winemakers are experimenting with new varietals and adapting vineyard practices. Some are exploring lesser-known varieties, such as Touriga Nacional, which are more resilient to warmer conditions. Quality Concerns: Rising temperatures are affecting grape composition, leading to higher sugar levels and potentially altering the balance and flavor profiles of wines. This poses challenges for maintaining the distinctive characteristics of renowned wine regions. Global Impact: The effects are being felt worldwide. While some areas like northern France and British Columbia may benefit, traditional regions in southern Europe and California face significant risks. For the wine industry, changes, innovation and adaptation will be key to ensuring a vibrant future. #ClimateChange #WineIndustry #Viticulture #Sustainability

This is something that would have seemed unfathomable not too long ago… 🤯 What happens when a beverage giant built on diversification decides to double down on what works — and walk away from what doesn’t? That’s exactly the crossroads Constellation Brands finds itself at today. ✅ Beer is booming Constellation’s crown jewel, Modelo, has become the #1 beer brand in the U.S., with Corona, Pacifico, and Modelo Oro riding the same wave of premium Mexican imports dominating off-premise shelves. Even with tariffs looming, beer is holding the line. ❌ Wine is sinking Constellation’s wine division — once a key pillar of its portfolio — has been in steady decline. After a 14% drop in wine sales year-over-year, the company is reportedly exiting the category altogether, breaking up its once-mighty portfolio and selling off brands to Delicato Family Wines and Duckhorn Portfolio. 💡 This isn’t just a Constellation story — it’s a snapshot of larger forces shaping beverage alcohol right now. I would say there are 3 macro trends driving the shift: 1️⃣ Demographics are reshaping demand. Younger consumers are drinking less wine, shifting their dollars to RTDs, craft spirits, functional beverages, and premium imports. For them, wine lacks both the cultural relevance and convenience they want. 2️⃣ Health-conscious drinking habits are cutting into traditional categories. From low-alc and no-alc beers to functional seltzers, consumers are actively seeking “better for you” alternatives — and wine hasn’t adapted quickly enough to this shift. 3️⃣ Economic uncertainty is driving trade-down behavior. In times of financial pressure, consumers either trade down to value brands or trade up to premium products that feel “worth it.” Mid-tier wine has been stuck in no man’s land, squeezed from both ends. What’s Next for Constellation? 🤔 With Modelo, Corona, and Pacifico firing on all cylinders — and Warren Buffett’s $1.24 billion investment signaling long-term confidence — Constellation is effectively saying: “We’re a beer-first business now.” That’s a bold — and necessary — pivot. But it also raises big questions: ➡️ Can Mexican imports sustain their momentum in a slowing beer market? ➡️ How will Trump’s tariffs impact the cost structure for Constellation’s Mexico-based brewing operations? ➡️ What does this mean for other big players in wine and spirits — will we see further consolidation as the category contracts? In an era where every brand is chasing incremental growth, having the courage to walk away can be the most strategic move of all. But the wine industry’s struggles aren’t unique to Constellation — they’re a wake-up call for every brand in the category. 💬 What lessons can other beverage leaders learn from Constellation’s pivot? Is wine’s decline reversible — or is this the start of a long-term contraction? #wineindustry #constellationbrands