Global wine consumption has fallen to levels not seen in more than six decades, leaving producers searching for new definitions of growth. From natural wine and Michelin-starred restaurants to China and Champagne, a handful of businesses are showing that expansion remains possible when producers know precisely who they are trying to reach.
After decades in which international trade and growing consumption transformed wine into a global business, the industry is confronting a markedly different reality.
According to figures from the International Organisation of Vine and Wine (OIV), around 110 million hectolitres of wine were consumed globally in 1900, rising to approximately 228 million hectolitres by 2000.
Last year, however, global consumption slipped below its 1961 level.
Health concerns, competition from RTDs and THC drinks, economic pressure and a crowded producer landscape have all contributed to the decline. The US alone now has 11,165 wineries, according to Wine Business Analytics.
Against that backdrop, Kathleen Willcox has examined several producers finding growth by abandoning assumptions that worked during decades of expanding consumption.
Wonderwerk targets younger drinkers
California’s Wonderwerk Wine offers perhaps the clearest example of building a business around a particular audience rather than relying on the broader wine category to grow.
Founded by Issamu Kamide and Andrew Lardy as a 300-case side project in 2018, Wonderwerk now produces around 26,000 cases across eight wines and is distributed in 22 US states as well as Japan and New Zealand.
The company’s colourful packaging, natural winemaking and association with music and nightlife have been deliberately designed to appeal to younger consumers.
“We’re making wines for the way young people live,” Kamide said.
Whole Foods is now Wonderwerk’s biggest retail customer, where sales have increased 180% year on year, according to Kamide.
Click HERE to read the full article.