The VinePair Podcast: Wine Demand Is Down. What Happens Now?
Earlier this week, Meininger’s International published a piece titled “Wine Inventory Tightens Across the US” which demonstrates a decline in the volume of wine SKUs at bottle shops and restaurants. Distinct from the de-stocking trend — which saw retailers clearing inventory by only reordering the minimum amount required — this current phenomenon involves a consolidation of selections in order for retailers to better harness their purchasing power.
For example, rather than a bottle shop stocking 100 wines and paying whatever the distributor charges for a single bottle or case, shops might only stock 50 to allow for them to buy twice as much of each, likely at a better price. It’s possible that we are entering a period where the average consumer notices less choice. Not that there won’t still be plenty of wines out there, but there’s likely to be far fewer in the future, especially as winemakers also weigh which wines are worth creating and marketing.
Today on the “VinePair Podcast,” Joanna and Zach respond to even more reporting regarding how retailers and on-premise operators are reacting to declining demand for wine. While some producers are turning to price increases to shore up profits, many customer-facing businesses are reducing the number of SKUs they stock to concentrate purchasing power and perhaps to better align with what most wine drinkers really want. Tune in for more.
Zach is reading: Wine and Ice Cream Are a Terrible Pairing, So Why Are Bars Selling Them Side By Side?
Joanna is reading: A Quest to Drink 3,000 Beers and the Quiet Comeback of Ticker Culture
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