WINE SALES ARE WANING…WHY?

I’ve been involved in wine sales for many years. This is the first time in my career that I’ve experienced a decline in wine sales. During the recession that began around 2007, wine sales were flat but did not fall into negative territory. This prompts the question, why are wine sales waning? I have a few thoughts on this. These are my opinions, based on my observations and experience in the wine world, not on data accumulated from surveys and industry gurus. Just little old me and my personal insights. Take it or leave it, that’s up to you.

Most of the decline is is among the younger population. Why is that? One thing is the lack of discretionary income; I think that goes without saying. However, this is really not the main reason. Many young people are drawn to beverages such as White Claw and ready-to-drink cocktails. It has also become hip to not drink at all. It’s hard to argue against not drinking, since many of us from the past probably drank too much in our younger years. However, wine has been a part of human culture since the beginning of time. In the Bible, Noah, the builder of the ark, is said to have planted grapevines after the flood and to have made and drunk wine, no doubt with his family as well. Needless to say, wine has a long history, not only because of the reference above, but also because it is part of the written history of so many cultures.

In moderation, wine is a healthy beverage with many benefits, such as heart health. Without getting too technical, red wine contains compounds that are really good for us. Resveratrol, a powerful antioxidant found in red grape skins, may help prevent damage to blood vessels. There was quite an extensive article written some years ago about the residents of Sardinia. On this island of Italy, they drink a red wine called Cannonau Di Sardegna (Grenache). This, of course, is not the only wine they drink, but it is a mainstay for many to enjoy with their meals. Cannonau Di Sardegna contains a high level of Resveratrol. As a result, the residents of this island off of mainland Italy have an unusually longer lifespan than the rest of the world. We’re talking in the high nineties. Good living, good wine, and healthy hearts. I doubt there is a decline in wine drinking there.

However, I think there is another, harder-to-prove reason for the decline in wine sales, especially among younger people. I say, “harder-to-prove, because this is a personal observation of mine, that I’ve been thinking about for quite a while. I’ve discussed this opinion with many of my friends and acquaintances in the wine industry, and most of them see and agree with my point. Because of social media, the younger people are inundated with bits of information that come at them in huge doses. To clarify, the group of people I’m referring to is in the age group of the mid-twenties to mid-thirties. This is the group most likely to be interested in viewing wine-related clips on YouTube, Instagram, or Twitter. I know there are many other social media platforms, but the ones mentioned are a powerful group in this arena. I spend a few hours a week reviewing what is being put out there about wine— information, reviews, and the like. Many different people are trying their best to disseminate information about wine, including myself. What I’ve seen troubles me just a bit. I’m not going to mention anyone in particular, because I like their platforms. But I see a trend that could be a reason why this group of younger people I’ve referred to could be turned off to wine.

Most, not all, of the reviewers I watch tend to focus on more expensive wines. They almost flippantly talk about wines in the twenty-five to fifty-dollar range as good values. Excuse me. As wine critics, we must accept that younger people are NOT going to view a wine in this price range as a good value. Even being part of the baby boomer generation, I cringe at these price points. Baby Boomers are some of the biggest wine purchasers in the world. But this generation is slowly shrinking, leaving a void that needs to be filled. There is a lot of discretionary income amongst this older generation. They have no problem dropping fifty dollars on a good bottle of wine, not so much with the Millennials and Gen Zs. And this is the group that is most likely to be watching wine critics on YouTube or Instagram. They watch these people and most likely get turned off to wine. How can they afford to experiment with this beverage at these prices? One winemaker put it quite succinctly. The wine industry is putting itself out of business by focusing on high-end wines. These are the people who feed wine critics and periodicals with samples, hoping to get good reviews and high scores.

Many of the high scores in wine publications are given to expensive wines. It’s true, that quality comes with a price. However, if we want to attract Gen Zs and Millennials to wine, we must realize they do not wish to, or simply cannot, spend big bucks on wine. Let’s look back to the seventies for example. White Zinfandel was huge back then. It was easy to drink, on the sweet side, and it was cheap. The same people who drank White Zinfandel back in the day are now the same ones who may drop a big bill on a bottle of fine Cabernet Sauvignon. The same could be said about the people who consumed wine coolers like Bartles & Jaymes…Remember that? I’ve often used the analogy that wine is like coffee. Many of us started drinking coffee with cream and sugar. I loved hanging out with my dad at the lumberyard where he worked. He is a big coffee drinker, and he always had a pot of coffee percolating at the office. I was just a young boy back then, but my dad would let me pour myself a cup and dump a big shot of powdered coffee creamer into it, along with about eight sugar cubes. I loved it! The wine cooler of the coffee world. However, I’ve graduated from that, and now drink strong black coffee. The same could be said about wine. We want the younger group to be introduced to palatable wines that are not expensive. As they develop a taste for it, they may decide to step up in what they want to spend, and try something different. Some will never change. They may continue to drink the wine they feel is safe. That’s okay too. At least they are drinking wine.

This brings me to my solution for getting the young crowd interested in wine. Cut the snobbery, the stories, and the high-priced wines. There are, believe it or not, a ton of really good wines out there that are under fifteen bucks. These are the wines that we, as wine professionals, need to focus on. For those of you who have watched my YouTube channel… Stan The Wine Man TV —you know, that is my main focus. There are others out there with this same idea, and I would like to see more. We want to attract people to the wine world, not scare them away. I do review expensive wines from time to time, but it is rare. I want to attract Gen Zs and Millennials to wine, and the best way is to feature not only great values but also wines that are affordable. I will continue to fight this battle, and I hope to see this trend reverse itself.

Cheers!

Stan The Wine Man

About Stan The Wine Man

I am a blue collar wine guy who has been in the biz for over twenty years. I work at a store in a tourist destination stop. I work hard at finding the best wine for the money. I love the challenge of learning my customer's palate so I can find the best wine for them, whether it is Petrus or white zinfandel. Cheers!
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