Every year, the Wine Industry Financial Symposium meets in the Napa Valley of Northern California to discuss the challenges, changes and trends the industry is experiencing. This year, according to the Napa Valley Register, the Symposium’s main theme was that of change and adaptation.
While the symposium’s forums may have revolved around innovation and the changes it can bring within the industry, a major concern was the shrinking harvests, as supplies have gotten consistently smaller from 2010 to present.
“California’s supply is at the point where we can’t move the needle much,” David Freed, chairman of the Silverado Group, told the source. “Americans are drinking more wine, and demand marches on at 2 or 3 percent of [the] year, [but] our supply is somewhat constrained for a number of years.”
Much of this tightening of supplies comes from stricter environmental regulations and increased competition among nut and row crop farmers in the Central Valley. Also, according to Freed, nearly 4 percent of all vines stop producing and have to be replaced each year.
But, while vintners may experience challenges with growing their crops, the industry is seeing a shift in their customer base. According to the source, 27 percent of Millennials – consumers aged 21 to 35 – make up their “core drinkers.” These individuals will consume wine at least weekly, which is the highest rate out of any demographic.
In order to take advantage of this rising demographic of core consumers, wineries may want to alter their custom labels to appeal more toward the younger age group. By investing in a Primera LX400 color label printer, businesses can create the wine labels they need to increase brand awareness in this core group.