Here is a recap of the key components of the Silicon Valley Bank 2010 State of the Wine Industry Report:
The Report provides the following questions which I believe anyone selling wine must be able to answer:
1. What do your wine consumers want?
2. Who are your consumers?
-Are they Baby Boomers/Millennials/other?
-Are they part of your club?
3. If your customers attitudes are changing what will you do to stay relevant with them?
4. What strategic decisions will you make this year to position your wines for future success?
5. How will you get these answers?
Other keys facts:
-The average highest price SKU (for wines with at least 1000 cases produced) was $56 dollars before the "crash". This number went down 4% after the "crash".
-The market for any given producer's top brand is still doing well.
-The pain point for wineries is most often in their higher volume mid priced SKU's - readily available to consumers.
-Value is not based on price but "something else".
This last notion (Value is not based on price but "something else") is the most intriguing to me. What is this "something else"? Is it branding? Connection? Word of Mouth?
What is the "it" factor for your wine business?
