Are Your Wine Sales Feeling the Pinch? Here’s Why – And What You Can Do About It

Have you noticed a decline in wine sales lately? Maybe you’re running a wine club, but each new shipment brings a wave of cancellations, or worse, declined cards. Perhaps you’re seeing fewer visitors overall, even as AOV seems to climb.

If this sounds familiar, you’re not alone – and it’s not your fault. We’re all navigating what could be called a “silent recession.” And while that may sound ominous, it’s actually something you can adapt to without a complete overhaul of your business.

The Economic Landscape

It doesn’t matter whether you’ve been in the business for decades or just a few years – inflation and shifts in consumer behavior are impacting everyone. Over the past year, economic pressures have tightened budgets across the board. For example, the government deficit-to-GDP ratio is over 6%, which is unprecedented, according to Forbes. Even during past recessions, the deficit-to-GDP ratio was only ever as high as 3%. Increased government spending has kept the economy going. However, it has also led to inflation, directly affecting disposable income. 

As a result, wineries are feeling the impact. Visitation numbers in both the U.S. and Canada are down, and consumer behavior is changing – people are becoming more selective, spending more cautiously, and prioritizing needs over wants.

Why Does this Matter to Wineries?

Hubspot's Consumer Trends report for 2024 makes this clear: over half of respondents in the U.S. believe we’re already in a recession. And 55% have started tightening their budgets. If your customers are becoming more cautious, it’s time to rethink your approach, especially if you’re targeting younger generations like Millennials and Gen Z.

These generations now wield significant spending power, and their purchasing habits differ from older groups. For them, purchases must offer immediate, tangible value. For instance, many ask themselves, “Why buy a wine I might not even enjoy, when I could pick a familiar drink that lasts longer and guarantees satisfaction?”

Creating Experiences That Resonate

The key to gaining traction in this “silent recession” is by meeting your customers where they are. Millennials and Gen Z buyers are less interested in ornate tasting notes and more attracted to tangible experiences and stories they can share. For example, when I recall my visits to places like V. Sattui or Stoller, the experience itself is what drives me to purchase their wine – the memories, the scenery, and the behind-the-scenes stories.

To appeal to these newer, experience-driven consumers, consider making a few low-cost adjustments:

Update Menus with Imagery: A simple picture can go a long way. Millennials and Gen Z will look at the menu and understand exactly what it’s describing, but the decisive factor is visual. Many will look up images on Instagram or TikTok to see what the food looks like on the plate.

Simplify Language: Instead of complex descriptors that may not resonate, choose terms that paint a clear, relatable picture of your wine’s flavor.

Focus on Storytelling: Share your brand’s journey, highlight the uniqueness of your vineyard, and invite visitors to feel like they're a part of your story.

Moving Forward

Now that the causes of the economic pressures are in focus, along with some practical things you can do now to adapt, our next topic will dive into specific technologies and digital marketing strategies that can help you stay agile in this changing environment. We’ll explore tools and tactics you can implement to keep your business thriving without breaking the bank.

Stay tuned – because adapting is easier than you might think.

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