Why can't Amazon master wine delivery?
HEADLINES 🗞
El Nino has officially arrived in Australia, set to bring a higher chance of frost, higher day temperatures and lower night temperature as well as lower rainfall.
A French study published Wednesday has found a link between the density of vineyards near homes and an elevated risk of childhood leukaemia. (RFI)
One in three women in wine face harassment at work, a new survey has found. More than three quarters (76%) felt that women are underrepresented in leadership roles, and half (54%) believe that discriminatory pay and conditions are an issue in the UK wine industry.
TECH 📲
Why selling wine on Amazon is so damn hard
Ever wondered why Amazon never mastered wine delivery?
According to an article by Meininger’s, “they failed to build a reputation for having any real expertise in the sector”.
Another sticking point is logistics. Shipping directly via Amazon “ties up capital” (I’m assuming this means, the stuff has to be stored by Amazon). One solution is to outsource supply to local wholesalers (It’s not totally clear from the article but I’d imagine this means the seller’s Amazon page acts more like a brochure and the seller becomes more of a broker).
Other challenges abound - establishing a brand position or launching new wines is challenging. Also, it’s expensive! Amazon takes a 10% commission from sellers in the wine category which is added to the retail price. Customers typically spend 10-15% more than they would in a store. 💸
So why do certain customers buy from Amazon? There is an appreciation for rapid delivery and the assurance that their payment data stays with Amazon.
MENTAL HEALTH
Wellness & wine?🧘♀️
The trade charity for the UK drinks industry (The Drinks Trust) is offering a new wellbeing support service, reveals Richard Siddle for The Buyer.
The programme aims to help alleviate the wider economic costs of mental illness in England. Corporate well-being partners include We Are Wellbeing (employee wellbeing programmes) and FinWell (financial education provider).
The programme consists of four key elements:
💻 An online platform offering hundreds of resources in different formats.
🏋️♀️ Training opportunities offered at a discounted rate for members.
🎪 Live events for members to get together in a year to discuss challenges and attend workshops.
🙋♀️Training in-house ‘Wellbeing Champions’ who will oversee the programme for your business.
Businesses can access this programme through membership of The Drinks Trust (£2,500 annually).
LEGAL
UK loosens the rules
In 2024, rules will be loosened regarding how wine is produced, packaged and labelled in UK - to “drive investment, growth and jobs” in the UK’s wine industry. Jerry Lockspeiser reports for Harper’s.
For instance, UK winemakers will now be able to blend imported bulk wine with any other imported or locally produced wine (similar to how Sekt is produced in Germany).
The definition of ‘wine’ will also expand to incorporate low and no alcohol wines.
Wines labelled as Pinot Grigio or Malbec for instance, can be at whatever alcohol level they choose, with no country of origin.
Of course, the biggest challenge will be how to position these wines on shelves arranged by country, in retail outlets. However, the new rules should provide “enormous scope for new product development”.
Wine of the Week
Cherubino, Dijon Chardonnay 2022
Interesting to sample different Chardonnay clones at a tasting of Margaret River wines in 67 Pall Mall. Cherubino’s Dijon Chardonnay felt more flinty and textured than the Gingin clone.
Thanks for reading!