Rabobank Wine Quarterly: Fortune Favors the Bold

 


If you aren't willing to break new ground, you might just be left behind.
 
That's the conclusion of a report by Rabobank Wine Quarterly concerning the wine industry's 2014 third quarter statistics. 
 
“Rather than diluting well-established brands in a muddled attempt to be all things to all people, bold and progressive companies have developed contemporary brands with a fresh look-and-feel, aimed squarely at wine consumers looking to engage with the category in different ways,” the report by the Dutch bank stated.
 
Rabobank noted that these new wine consumers aren't so much concerned about wine quality and provenance as they are about what the wine communicates about the person who is drinking it.
 
“While still valuing quality and displaying a willingness to pay for it, these consumers often lace less value on provenance and brand heritage and more on what the brand says about them and the occasion on which they consume it,” the report said.
 
This paradigm shift is the result of the well-documented rise of millennial wine drinkers, whose tastes and motivations are different than the baby boomers before them who drove wine sales and marketing.
 
“In terms of demographics, the influence of the baby boomer generation … is gradually giving way to the millennial generation,” Rabobank said. “In non-traditional wine drinking countries, millennials are drinking more wine than any of the previous generations did at their age.”
To adequately meet the needs of the new generation of wine drinkers, Rabobank suggested older companies may find more success in releasing new brands of wine rather than overhauling their existing image.
 
“Attempts to reposition a brand within a market can prove to be a much more challenging and questionable process,” Rababank observed. “Many wine companies are finding that it can be more effective to launch a new brand that better responds to evolving market dynamics, rather than trying to reposition an old brand.”
 
This type of response may be the key to capturing the attention of the new generation.
 
“It is becoming clear that a more attuned, bolder and progressive approach is necessary to win an increasingly complex and dynamic global market landscape,” the report read.
 
The Rabobank quarterly report also included statistics about the 2014 global harvest as well as 2013 import numbers.
 
According to the report, the United States passed the United Kingdom to become the world's biggest importer of wine. Rabobank estimated the US import market's value at nearly 4 billion euros. 
 

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