2024 Predictions for the Wine Industry
🗞 HEADLINES
🍷Owner of Château Lafite Rothschild has acquired Chablis producer Domaine William Fèvre, the Bordeaux estate’s “first foray into Burgundy”. (VinePair)
💶 IWSR findings show the rate of premiumisation is slowing. The long-running premiumisation trend in beverage alcohol weakened significantly in the first half of 2023, as consumers felt the full impact of economic pressures and geopolitical uncertainty. (TheIWSR)
📦 American alcohol delivery service Drizly is due to be closed by Uber after purchasing it for US$1.1bn just three years ago, reports have claimed. (The Drinks Business)
🍾👇🏾 Champagne shipments down
Champagne shipments have returned to pre-covid levels.
📉 The CIVC has revealed that total Champagne shipments in 2023 were down 8.2% to 299m bottles.
Overstocking by distributors, for fear of shortages in 2022, partly explains the decline in 2023.
🌤️ Silver linings… Despite the drop in volume, the increase in value for cuvées, has enabled Champagne to maintain its sales above €6bn - essentially, consumers are willing to pay higher prices for unique blends.
🎰 2024 PREDICTIONS
Here are Meininger’s top predictions for wine in 2024:
👎 Dodgy Logistics: Shipping wine is unlikely to become cheaper or easier as a result of ongoing conflicts in the Middle East impacting travel on the Suez Canal. In addition, the EL Niño weather pattern will impact transport through the Panama Canal.
👎 Dodgy Economy: Even though inflation could fall, excess consumer savings from the COVID era are dwindling and many wine buyers are feeling the pinch.
👎 Dodgy Politics: The rise of right-wing populist governments across the democratic world is a real possibility. This could have ‘swift and drastic’ results, such as when Trump slapped a 25% tariff on US imports of EU wines.
👍 Optimism for Australia: China will finally drop its harsh tariffs on Australian wine which will boost Aussie exports, but to what degree remains uncertain.
👎 Consumption Decline: Where wine was once part of a daily diet, it is now a discretionary purchase (even in France) that has to compete with a growing range of other beverages.
👍 No & Low Boom: The low and no-alcohol trend will continue to surge in 2024, with an increasing number of launches across various styles, including potential super-premium offerings.
👍👎 Nutrition Mania: Europe's new law requiring a nutrition declaration on wine labels may lead consumers to pay more attention to calories and sugar. This could encourage producers to offer clearer information, especially when using terms like 'dry.'
👍 AI: AI will continue to disrupt wine marketing. The creation of press releases, newsletters, images, and videos is increasingly AI-generated.
👎 Viticulture: The previous year presented particularly difficult growing conditions, especially for organic producers. This may have consequences for the expansion of organic and/or HPV vineyards globally.
👍👎 Health: Last year, the WHO declared all consumption of alcohol as unhealthy. Overcoming this zero-alcohol message will prove challenging, primarily due to the difficulty in securing funds for a substantial informational campaign.
🥂🏆 Celebrity Tipples
The Drinks Business has revealed the names of wines served at this years prestigious award ceremonies so far.
Franciacorta provided the 75th Emmys with sparkling wines from the region’s finest wineries. Justin Vineyards & Winery, from Paso Robles, was the official wine partner for the 75th Emmy Awards season, offering wines made from Bordeaux grape varieties.
The official partners for the 77th British Academy Film Awards (BAFTAs) are Champagne Taittinger and Villa Maria.
Meanwhile, Moët & Chandon welcomed guests at the Golden Globes.
The Oscars will take place on 10 March 2024 and all be revealed soon. Rosé Champagne by Fleur de Miraval, co-owned by Brad Pitt, was the wine sponsor of the 2023 ceremony.
Thanks for reading!