Industry Insider: How Wineries Survive A Changing Wine World

The point is that there is a lot of choice for consumers looking for quality wines at fair prices. Let's underscore that a little, because it is far too easy to overlook how the marketplace has changed in just a few decades. Much of that result is due to the increasing flood of nice wines coming from places no one would have seriously considered some 35 years ago, roughly when I began collecting wine. When I started collecting, France was the obvious number one choice for its classic regions, with secondary looks at Italy and Germany. There was Port, and Australia and California were revving up, but not showing anything like the muscle they have today. There were other things as well, but they weren't as often on the international radar circa 1980. Wine seemed pretty simple—it was a lot easier!

Today, you can pick nice wines, not just everyday $10 plonk, from places like Israel, Lebanon (beyond Musar), Bulgaria, Chile, Argentina, New York, Slovenia, Greece, and Virginia, among others. It's not just countries you never considered in the past, by the way, but also different regions within countries. In more familiar places, if you go outside the famous regions, the same trend exists. In Portugal, go beyond the famous name of Douro, from which region Port comes, and you will find gems in underappreciated appellations like Bairrada, Dão, Vinho Verde, Alentejo and Lisboa.

Even in bigger and more famous countries, new regions have emerged. Italy, for instance, may be a traditional giant for Piedmont and Tuscany, but time goes on and regions that used to be afterthoughts suddenly begin to make a mark—like Sicily. For this, I decided to interview my colleague Monica Larner: “…first Sicily was an emerging region, then Etna became an emerging region in Sicily, and today we’re talking single vineyards (Contrada) on Etna. Each layer is a new story to tell."

In Spain, everyone has heard of Rioja, but Ribera del Duero wasn't even a D.O. when I began collecting wine—and it was famous for very little. Toro came even later, in 1987. My Spanish colleague, Luis Gutiérrez, helped me out, confirming my impressions while referencing his Issue 211 article on Priorat, where he said that the Ribera del Duero appellation "was only created in 1982 and before that only a handful of wineries existed. Yes, there was a tradition to grow vines and produce wines in the region, but they were mainly claretes, wines produced from a mixture of red and white grapes and aged in oak barrel. The style was like an upmarket rosé."

The Israeli wine revolution, to put that in perspective, is often said to have begun with the founding of the Golan Heights Winery in 1982—it's not really much different looking at an emerging country or an emerging region within a country. More are coming online every time I look up. It's a bewildering and often exciting array of choices.

Things have dramatically changed, in other words, even in places you think have been famous for a long time. The competition is getting fiercer every day—it is very much a buyer's market. Once you get noticed, that's great, but now the hard work is just beginning. You have to seal the deal. To me, that means finding ways to get repeat buyers of most vintages. With the competition that exists, a customer can drift off and never come back. Letting them get away may mean the winery never sees them again. They may still love it, actually. But really—how many bottles of wine can a typical person consume without becoming an alcoholic? Or afford? Or find a way to cellar? So, they wander off to try something else, to explore a new category maybe, and the winery doesn't see them again for 10 years. They have nothing bad to say about the winery. They still theoretically intend to buy more. But they already have X bottles in the cellar that they never seem to get to. They just want to try other things. And then they never come back.

So how does a winery keep that customer from wandering off? Some small wineries create mailing lists and personal connections. I've seen some wineries like this—some of which aren't even actually all that good—completely sold out. To be sure, their quantities are often small, but the technique is right for the size. They may tell customers that if they purchase, say, at least 12 bottles a year, they can pick up the new release personally during the winery's release party, where they can meet the winemaker, get a bottle signed, have some wine and cheese and enjoy a small jazz band. For other wineries, it may mean participating in as many tastings as they are allowed to participate in. Others may make stronger personal connections at their own tasting rooms, some of which encourage people to hang out at tables and linger. (See the beautiful views at Wölffer Estate on Long Island, for instance, especially when you can sit outdoors. I was pleased to see Biblia Chora swamped with people in Northern Greece, too.)

Nothing substitutes for direct consumer contact and giving people a chance to taste your wines, but another popular method these days is social media. After all, if you have customers 4,000 miles away, they can't all come meet you at the drop of a hat.

What all of these methods—and others—have in common is this: it is an attempt to make permanent friends for the winery. And here is a simple truth: consumers will betray their vendors. They are less likely to betray their friends. The ultimate question is, how do you turn a drinker into a friend? Nothing substitutes for some personal contact. Even on social media, I see wineries making big mistakes. Their content seems to amount to "here's my new release, buy this." Or, “here's the wine that just got rated X points. Aren't we great?" All of that is fine to an extent, but it’s just a commercial.

Eventually, people tune out commercials. Act like a human being. Don't just talk about what you're doing in the winery. Talk about your kids, your vacations, books, movies. Create a connection by actually responding to people who have questions. Do something besides make a hard sell all the time. When you do that, you make friends. Then, they become more eager to try your wines when you do have something to announce. And friends, if they liked what they tasted, won't betray you so quickly. Remember that it has to be a principal of the winery or winemaker to make a personal connection and it will take more time. Deal with it. That's reality.

The wine world has changed. It is continuing to do so. Ignore it at your own risk. Everyone is going to need a plan. I'm just a helpless wine writer (and consumer). I don't have all the answers. But wineries need to start thinking of some and consumers need to realize there's more to buy besides the famous names.