The Pour #1: A brief introduction to Bin 113

At Bin 113, our goal is to share the latest and most relevant wine industry news and information in an effort to help boost your business. Our mission, however, is to use the experience we’ve gained across many other verticals to bring innovation, insight and strategies to an industry that is in need of upping its game (sorry!) in terms of its Direct-To-Consumer marketing.

Our passion for wine combined with our passion for marketing all adds up to helping wineries grow and flourish.

Who we are and what we love to do is at the essence of our mission. Aside from our 75+ years of DTC marketing experience, we are each wine enthusiasts. Jeff is our resident California guy who is a proud member of his local Chevalier du Tastevin chapter and the owner of a very boutique vineyard on the Central Coast. Jim has achieved certification as a Level-Two Somm, and I am a foodie who believes every meal is made better and elevated with that perfect bottle of wine.

Together, we have been known to spend hours, usually over a great bottle or two, discussing and analyzing the wine business and how it can benefit from our collective decades of DTC marketing experience.

We recently returned from the annual DTC Wine Marketing Conference with many impressions to share. Chief among them: The wine industry is facing some very strong headwinds going into this year, many of which will require wineries to become better and more strategic marketers.

• Consumption is down, while competition is up.
• The over 11,600 U.S. commercial wineries are all vying for their piece of a shrinking pie.
• Reduced consumption by certain demographic groups – including Gen X and Gen Z – makes it challenging for wineries to maintain, or increase, their market share.
• The traffic in tasting rooms – currently the industry’s leading source of new wine club membership and online buyers – has suffered from the pandemic and has yet to return to its pre-pandemic levels.

And yet, there are reasons to be optimistic, says Silicon Valley’s 23^rd annual ‘State of the Wine Industry’ report.

• While full category wine sales by volume will be down for a third consecutive year, 2023 year-end premium wine sales will likely end with another year of positive value growth.
• Tasting room visitation, though lower in the premium segment in 2023, is expected to improve in 2024.
• Direct to consumer sales will grow again modestly in 2024.
• Conditions for overproduction in the total wine category are present, but inventory supply is more balanced in the premium segment.

While in California, meetings with winery owners and senior executives unveiled thinking beyond tasting rooms for growing their DTC business. Thoughts included road shows and events, virtual wine tastings, and other techniques designed to retain members and increase their lifetime value. Personalization and customer engagement are top of mind to support both retention and acquisition.

As states continue to evolve their regulations on shipping, taxation and age verification, wine professionals will benefit from staying on top of these critical issues.

In future posts, we’ll examine a variety of topics to help wineries grow their businesses over time. If you have ideas for subjects you’d like to see covered here, feel free to reach out to us on our contact page.

Cheers!

Jeff, Jim and Alan

The First Pour – By Alan Kraft