One challenge most wineries face is that unless they have extremely limited production or immense name recognition, they’re never going to be able to sell all of their stock direct-to-consumer (DTC). To fill this gap, many wineries opt for the wholesale route, which helps get their wares in front of more consumers, typically at an affordable price point. But in recent years, things have started to shift.
Given the current low demand for wine, producers will be unable to raise prices. Without raising prices, inflation will eat away at profit margins, and lower-margin outlets like wholesalers simply won’t be viable for existing wineries. One listener hypothesizes that because of this, the only meaningful outlets for wine sales will be DTC, wine clubs, and tasting rooms. And if wholesale is no longer a viable sales chain for wineries, what kind of lasting impact will this have on the wine industry at large?
Today on the “VinePair Podcast,” Adam, Joanna, and Zach respond to a listener’s question about the deteriorating relationship between wineries and wholesalers. Will the financial challenges the industry is facing force wineries out of the three-tier system, or at least to a different understanding of said system? Tune in for more.
Zach is drinking: Loop de Loop Wines “Borderline Red”
Joanna is drinking: Borscht Cocktail at The Peach Crease Club
Adam is drinking: Cyprien Arlaud Bourgogne Blanc
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