How Winery and Vineyard Owners make Purchasing Decisions in 2024

How Winery and Vineyard Owners make Purchasing Decisions in 2024
Winery and vineyard owners are adapting their buying strategies in 2024 due to:
- Advancing technology
- Changing consumer preferences
- Growing focus on sustainability
Key factors influencing purchasing decisions:
- Quality standards
- Price considerations
- Supplier relationships
- Local market needs
- Digital tools and data analytics
Major shifts in the industry:
- Increased use of e-commerce platforms
- Adoption of data-driven decision making
- Focus on sustainability practices
- Rise of direct-to-consumer sales
Quick Comparison: Traditional vs. New Purchasing Methods
Aspect | Traditional | New (2024) |
---|---|---|
Decision making | Gut feeling | Data-driven |
Sales channels | Distributors | Direct-to-consumer |
Technology use | Limited | Extensive |
Sustainability | Optional | Essential |
Market research | Basic | Advanced analytics |
To stay competitive, winery owners need to:
- Invest in digital tools
- Prioritize sustainability
- Focus on premium offerings
- Stay attuned to consumer trends
The wine industry is changing fast. Owners who adapt quickly will be best positioned for success in 2024 and beyond.
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How We Got Our Data
We wanted to know how winery and vineyard owners make buying decisions in 2024. So, we did a big survey across the U.S. wine industry. Here's how we did it:
Survey Methods
We used three ways to get info:
1. Online Surveys
We sent out a questionnaire to winery and vineyard owners across the country. It had 31 questions and took about 9 minutes to finish.
2. Email Survey
We also sent a survey to people in our company's email list.
3. Focus Groups
We held group meetings in four U.S. regions: West, Midwest, Northeast, and South.
This mix helped us get both numbers and stories from the industry.
Who We Surveyed
We talked to all kinds of wine people:
- From 40 different states
- Big wineries and small ones
- Grape growers, winemakers, and other wine pros
Here's where our survey folks came from:
Region | Description |
---|---|
Napa and Sonoma counties | The heart of California wine |
Central Coast of California | Up-and-coming wine area |
Rest of California | Other wine spots in California |
Pacific Northwest | Oregon and Washington |
Rest of the United States | Wine regions in other states |
When We Did It
We did all this in early 2024. Here's how it went down:
- Sent out surveys: Early 2024
- Collected answers: About 4-6 weeks
- Had focus groups: After we looked at the survey results
In the end, we got:
- 422 answers from our big national survey
- 1,234 answers from our email list (over 18 days)
- Lots of good info from our focus groups
This gave us a ton of info about what's going on in the wine world in 2024.
"The key is to get past the intimidation factor of not knowing enough." - Cathy Huyghe, Enolytics co-founder and CEO
What Drives Buying Decisions
In 2024, winery and vineyard owners face tough choices when making purchases. Let's look at what's shaping their decisions:
Quality Standards
Quality is king for wine businesses. Here's what they care about:
- Tough equipment: Owners want pumps, tanks, and crush gear that last and don't break down.
- Smart tech: There's buzz around GPS and self-steering features that make work easier.
- Supplier know-how: Good advice and support from suppliers is a big deal.
"Quality of advice, build, support, and service." - Joe Lutomske, Author
Price Factors
Quality comes first, but price still matters:
Owners want gear that's worth the money long-term, even if it costs more upfront. They're looking at ways to buy pricier models without breaking the bank. And they love machines that can do multiple jobs - it's all about getting more bang for their buck.
Supplier Trust
Good supplier relationships are key:
Owners are doing their homework. They're checking reviews and warranty info before buying. They want suppliers who can keep up as their business grows. And they prefer local suppliers with parts and service nearby.
Local Market Needs
Where you are matters:
Factor | How It Affects Buying |
---|---|
Who's drinking | Older wine drinkers are changing what sells |
Local tastes | Different areas like different wines and prices |
Money matters | Local economy affects what people can spend |
Take big cities like New York and San Francisco. Restaurants there are changing how they price wine. A glass usually costs $8 to $15, but fancy places might charge up to $30.
Digital Tools in Buying
The wine industry is going digital in 2024. Online systems are changing how winery and vineyard owners buy stuff. Let's look at the key digital tools shaking things up:
Online Buying Platforms
E-commerce is a big deal for wineries now, especially after COVID-19 lockdowns. Many have upgraded their online buying:
- They're selling directly to consumers online
- They're using multiple channels to let customers browse, learn about wines, and get them delivered
- They're expanding to platforms like Amazon, Wine.com, and Drizly
This shift is huge. The global alcohol e-commerce market could hit $212.54 billion by 2030, growing 16.32% yearly from 2023-2030.
Data Tools
Data is driving decisions in the wine industry now:
Customer Analytics
MJ Dale from Customer Vineyard says:
"In a hyper-competitive and well-built wine industry that's now national, waiting for people to come to our tasting rooms is not the only way to do business."
They mix customer data with other sources to help wineries:
- Spend marketing money better
- Create better experiences for customers
- Make products that attract new customers
Winery Management Software
These tools help wineries run smoother:
Software | What it does | Why it's good |
---|---|---|
Ekos | Tracks inventory, production, sales, and accounting | Makes everything work better together |
360Winery | Manages warehouse, costs, retail sales, e-commerce | Handles everything from start to finish |
WineDirect | Handles online sales and wine clubs | Boosts direct sales to consumers |
Smart Sensors
IoT tech is changing how vineyards are managed:
- Stops diseases
- Makes crops better
- Uses water smarter
This means better wine and lower costs.
Online Research
Winery and vineyard owners are using online resources to buy smarter:
- B2B platforms like B2B Wine Prospects have big databases of U.S. wineries and vineyards
- Virtual trade fairs like Hopwine are getting popular
- Online industry reports keep owners up to date
The wine industry is going digital fast. Using these tools helps winery and vineyard owners buy smarter, work better, and stay ahead in a changing market.
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Changes in Buying Methods
The wine industry's buying landscape is shifting. Here's what's new in 2024:
Business Connections
Relationships still matter in wine business, but they're changing:
- Wineries can't just rely on distributors anymore. They need to get involved in sales.
- Working with wholesalers? You've got to understand what they need.
Ray Johnson from Sonoma State University's Wine Business Institute puts it this way:
"You have to respect the people you're working with. When both sides are at the negotiating table, both sides have to be OK with what's going on. Otherwise, the relationship won't continue."
New Buying Tools
Tech is shaking things up:
Tool | What It Does | Why It's Good |
---|---|---|
E-commerce | Sells wine online | Reaches more customers |
Virtual trade fairs | Digital networking events | No travel needed |
AI recommendations | Suggests wines to customers | Boosts sales |
Here's a fun fact: U.S. online wine sales jumped from $1.4 billion in 2017 to $3.5 billion in 2023. That's a LOT of digital wine!
Who's Calling the Shots
Buying decisions aren't as simple as they used to be:
Small wineries are teaming up to buy together. Smart move!
Wineries are hiring people who know both wine AND tech. Double threat!
Young folks (hello, Millennials and Gen Z) are changing what wineries offer. They want real experiences and healthier options.
Jeff Gillis, who created Winelikes, says it's all about trust:
"Instead of reading off these reviews on some wine apps, like I don't know who this person is behind the wall… I want to see someone I trust."
Bottom line: To stay in the game, wineries need to embrace new tech while keeping those personal connections strong. It's a balancing act, but that's the new world of wine!
Market Research Tools
In 2024, wineries and vineyards are using smart market research tools to make better buying choices. Here's what's shaping the industry:
Wine Industry Databases
Two key databases are helping wine businesses:
-
B2B Wine Prospects
- Covers all U.S. wineries
- Has checked contact info
- Uses a flexible credit system
-
2024 U.S. Wineries Report
- Shows current and future estimates
- Includes financial ratios
- Covers 5-year trends
Picking Suppliers
Market data helps wineries choose suppliers:
- They use reports to check supplier quality
- Financial info helps predict if suppliers will stick around
- Knowing a supplier's market share shows how reliable they are
Jessica Mozeico from Et Fille says:
"Using data services, we made targeted wine releases. One sold out in hours!"
Seeing Results
Wineries track how well these tools work:
1. Sales Boost
Dry Creek Vineyard kept more wine club members by sending gifts based on data.
2. Saving Money
Duckhorn Wine Co. used Oztera's Teravina to manage inventory and track costs better.
3. Market Smarts
The Wine Market Insights of 2024 report helps wineries stay on top of trends from 2018 to 2031.
Aileen Sevier from Early Mountain Vineyards notes:
"During COVID, data became crucial. It helped us connect with customers better."
Tips for Better Buying
Want to boost your purchasing game in 2024? Here's how winery and vineyard owners can level up their strategies and supplier relationships:
Working with Suppliers
Building solid supplier relationships is key in the wine world. Here's the lowdown:
Do your homework: Before you reach out, know what the supplier offers and how it fits your needs.
Talk it out: Be upfront about your sales goals and what marketing support you're after.
Team up: Don't just buy - be a brand champion. Shout about your suppliers on social media.
James Stewart from Stewart Cellars puts it perfectly: "It's not just about the numbers and hitting the goals. It's about making friends."
Using New Tools
Tech can make your buying process smoother and smarter. Check out these game-changers:
Tool | What it does | Why it's great |
---|---|---|
Inventory Management Software | Keeps tabs on stock and sales | Less waste, better forecasts |
ERP Systems | Links buying, inventory, and sales | Gives you the big picture |
Wine Club Management | Handles subscriptions automatically | Keeps customers coming back |
Real-world wins: Dry Creek Vineyard used smart gifting to keep wine club members happy, while Duckhorn Wine Co. brought in Oztera's Teravina to get a grip on inventory and costs.
Planning Ahead
Stay ahead of the curve with these tips:
Keep your ear to the ground: What's hot in wine right now? What are people drinking?
Don't put all your grapes in one basket: Spread out your suppliers to avoid getting caught short.
Know your worth: When you're negotiating, know what you bring to the table and aim high.
Professor Maurice Schweitzer from Wharton School of Business nails it: "Preparation, information and a good understanding of what both parties need to achieve" is the secret sauce for nailing negotiations.
Wrap-up
The wine industry is changing fast in 2024. Here's what winery and vineyard owners need to know:
Digital Transformation
The wine world has gone digital. It's not just about how people buy wine - it's changing how the whole industry works.
Take Vivino's app. It's created a huge community of wine lovers, completely changing how people pick and buy their wines.
Then there's the direct-to-consumer trend. Companies like Naked Wines and Winc are cutting out the middleman. They're connecting winemakers straight to wine drinkers, with personalized recommendations and deliveries.
Sustainability: The New Normal
Sustainability isn't just a buzzword anymore. It's becoming the standard.
Regenerative viticulture is taking off. Maison Mirabeau and Hope Well Wine are leading the charge, setting new global standards for sustainable winemaking.
Labor practices are under the microscope too. Tablas Creek Vineyard, for example, is now holding regular feedback sessions with their workers.
And consumers? They're driving this change. A whopping 70% of regular US wine drinkers say sustainability matters to them.
Market Shifts
The market's changing in some big ways:
- Premium wines are killing it. Looks like people are thinking "less but better" when it comes to wine.
- The East Coast wine scene is blowing up. More vineyards, more focus on hybrid grapes.
- Big players are getting bigger. That's making it tough for smaller wineries to get their wines out there.
What Wine Drinkers Want
Consumer habits are evolving:
- Younger folks (think Millennials and Gen Z) are getting into wine. But they're doing it their way.
- Online wine shopping is booming. Lots of people are cool with ordering their vino on the internet now.
- Low- and no-alcohol wines are on the rise. People want options.
Tim Ford, the big boss at Treasury Wine Estates, puts it like this:
"We're still seeing the premiumisation trend playing out for the wine category online, on-premise and in bricks-and-mortar retailers."
So, what does all this mean for winery and vineyard owners? You've got to roll with the changes. Invest in digital tools. Make sustainability a priority. Focus on those premium offerings. And keep your finger on the pulse of what wine drinkers want.
Do that, and you'll be set up for success in 2024 and beyond. The wine world's changing - make sure you change with it.