What happens when authentic wine experiences meet changing consumer tastes? In this exclusive interview, Vinejoy's Mark Wrobel, a veteran wine industry expert, explores how natural wines, climate change, and younger drinkers are reshaping the wine landscape. From the rise of direct-to-consumer sales to the impact of sustainability practices, Mark shares invaluable insights on where the industry is heading.
I recently had a conversation with a friend about a memorable wine experience that perfectly captured what today's consumers seek: beautiful surroundings, quality wine, good food, and lasting memories with loved ones. This combination of elements shapes an experience for brand loyalty that keeps customers coming back for more.
In our interview with Mark, we wanted to better understand key elements affecting the wine industry to understand how consumer preference has shifted. As specialists in the experience economy, Hart partners with leading wine sourcing and distribution experts like Mark Wrobel, Sales Manager at Vinejoy. Based in Chicago, Vinejoy's mission is to bring the world's best wines to the Midwest. Against the backdrop of rising ready-to-drink cocktails, seltzers, and craft beers, Mark shares his perspective on the industry's shift toward authentic experiences, changing consumption patterns, and how factors like climate change are affecting global wine production.
What significant changes have you observed throughout your career in the wine industry? How have these shifts impacted the market dynamics and consumer behavior?
One of the most significant changes has been the focus on how wine is made. My wine career started in the late 2000s, so I got to see the heyday of wine consumption in the United States. However, back then it seemed to be more about just drinking wine and not about how the wine was made. In the last 15 years the focus shifted to how wine is made. Natural wines have been made for centuries but natural wine as a marketing term is relatively new.* These wines are marketed on their authenticity, on how the wine is made, the people who are making it and the place it’s being made. If you’re not marketing these stories you’re missing out on market share. It probably doesn’t hurt to have some hip packaging as well.
* Natural wines are organically or biodynamically farmed, utilize native yeasts to start fermentation with little or no manipulation in the winery, and are often unfined and unfiltered with little to no use of sulfur as a preservative.
What trends are you currently seeing in wine consumption patterns? How does this affect distribution channels or methods? Wine consumption in the U.S. is down in 2024 but it’s not catastrophic. Wine is losing consumers who just aren’t drinking, are drinking less or are pursuing a buzz outside of wine, like RTDs, liquor, beer, seltzers and cannabis. The good thing is that consumers are seeking out better wines and hopefully not so much the big brands that use organic or “low calorie” as marketing. People now care how the wine is made, so if your story isn’t authentic, consumers these days will see right through it. Distributors need to be thoughtful about the wines they choose to sell to stay on top of market trends.
Are there any other emerging trends that are particularly noteworthy?
Unfortunately, climate change will have the greatest impact on the wine industry in the next 20 years. There’s a lot to it, but some examples that are threatening the industry are wildfires in California/Oregon, extreme heat in regions all over Europe, extreme frost/hail in almost every wine region of France.
It will be very interesting to see how the industry adapts. Some winemakers are planting hybrid grapes that fend off diseases that develop in hotter weather. In 2020, winemaker Kelley Fox chose not to make any of her highly sought after Pinot Noirs due to wildfire smoke taint, and instead collaborated with a local artisan to make a vermouth. Farmers in Burgundy have fire pits throughout their vineyards to prevent frost.
What are you seeing when it comes to the younger demographic’s wine consumption patterns? How do you perceive their preferences and consumption habits shaping the industry's future?
The younger demographic is definitely drinking less but drinking better. Instead of drinking grocery store wine, they care more about how wine is made and they’re seeking out smaller brands that farm responsibly and make more dynamic wines. To capture this market share, wineries need to be authentic and connect with their consumers.
As consumer preferences evolve, how are wine brands strategizing to remain competitive in the market? Are there any innovative approaches you've seen being adopted to appeal to changing tastes?
Connecting with customers directly is key in remaining competitive, and social media is a good way to make connections. A good example is former sommelier turned winemaker Patrick Cappiello’s Instagram where he pulls back the curtain on life as a winemaker. It goes from simple things like why he chooses wax-topping bottles to making a plea to consumers to buy American wines.
However, the best way to connect with consumers is to meet with them face to face. Whether that be through a tasting room experience or traveling to other markets for tasting events and wine dinners. When a consumer can hear your story directly while tasting your wine, you have the opportunity to make a customer for life
In your view, how do established wine brands differ in their approach to addressing market shifts compared to newer, possibly more agile brands? Are there any notable contrasts in their strategies for staying relevant?
Bigger brands are going to be just fine. There’s still a large demographic that buys on name recognition and price point, so they don't need to evolve much to maintain their market share. However, that doesn’t mean they aren’t evolving. Silver Oak, one of the most well-known California producers, boasts about sustainability and commitment to the environment, which they would have never had to do 10 years ago.
It’s critical to be on top of trends, and more agile brands are well aware of this. A good example of this is Field Recordings Winery in Paso Robles. Field Recordings makes wines that are “all about the flavor – with none of the pretension.” Winemaker Andrew Jones has been ahead of the curve on several trends in the last decade. He was one of the first people to put high-quality wine in a can and he was in early on the orange wine trend with SKINS, which is now one of the highest-selling orange wines in the USA.
We’ll know there's something wrong for the big established brands when Silver Oak starts making an orange wine.
Are there specific categories or types of wine performing notably better than others in the current market? How are winemakers adapting their production and marketing strategies in response to these trends?
Consumers are turning toward more easy-drinking wines with lower ABV percentages. Orange wine has been trending for a few years now, but this summer has seen the rise of “chillable” reds. Andrew [Jones] from Field Recordings was again ahead of the trend when he created Freddo four vintages ago. Freddo is a Sangiovese blend that tastes like fresh cranberry, cherries and strawberry Jello shooters. The wine is great on its own, but Jones markets it with a label featuring “Coors Light” technology, where the white font on the label turns blue when the wine is properly chilled.
In what ways do you believe the wine industry can better engage with and attract younger consumers who may have different preferences and lifestyles compared to traditional wine enthusiasts?
Positioning in the market is key to engagement and newer brands are much better at it. Older brands still have soft advertising showing older drinkers and higher-end settings that are a bit out of touch with younger consumers. Newer brands engage directly with their customers by meeting them where they’re at, in places like social media. Newer brands are often better at creating experiences for their customers as well.
Considering the rise of e-commerce and direct-to-consumer models, how do you foresee the future of wine distribution evolving? What role do you think technology will play in shaping this evolution?
DTC is a great outlet for wineries. They can charge MSRP and make a higher profit margin and offer exclusive items that are not normally available in the regular distribution channels. However, a great website and e-commerce can only go so far. For now the distributor is still key in expanding the reach of the winery to markets across the country. One way that technology helps with that is when a winery has a great website. As a sales rep, my life is so much easier when I can easily find all the information I need on a supplier’s page to prepare my presentation. I take that information and pitch retailers and restaurants who in turn get excited about a new wine to share with their customers.
With sustainability becoming increasingly important to consumers, how are winemakers integrating environmentally friendly practices into their production processes, and to what extent do you think this impacts consumer perception and purchasing decisions? Consumers expect wines to be organic these days, so winemakers have to highlight their sustainability practices from field to bottle and create marketing that establishes their originality to stand out in a market where everyone is working in similar ways.
Given the growing interest in experiential consumption such as wine tourism and tasting events, how can wineries continue to evolve their offerings to cater to this demand and create new, memorable experiences for consumers?
This is a bit out of my area of expertise but things like sponsorships or partnerships with other brands might work, as long as they both understand the target demo’s interests. They would need to align their marketing spend with events that overlap, but they can't exist in a vacuum or rely on people just stumbling upon them.
With the rise of RTD cocktails and with increased consumption of them, how are winemakers adapting to this consumer preference shift or how are they combating it?
To an extent, you’re seeing winemakers competing with the visual branding of RTDs with canned wine and spritzers. A producer we work with that has used this approach is Two Shepherds in Sonoma. They make a couple of low AVB-percentage canned wines with fun labels and names like their Natty Pets Sparkling Orange Wine.
Are wine makers still struggling today with supply chain issues related to COVID? How has your company had to adapt to ensure profitability?
Most COVID-related supply chain issues have been resolved but it was a crazy time. Winemakers had issues sourcing everything from glass bottles to bottle enclosures but things seem to be back to normal these days.
It’s always fun to dive into someone else’s world and we are thankful to Mark for sharing his insights to make this happen. Mark's insights illuminate the wine industry's dynamic evolution - from changing consumer preferences and sustainability demands to the growing importance of authentic storytelling and experiential marketing.
For wine brands navigating these shifts, creating meaningful connections with consumers has never been more crucial. At Hart, we specialize in crafting these authentic brand experiences that resonate with today's wine consumers. Ready to elevate your brand's story and create lasting connections with your audience? Let's talk. Schedule a consultation with our beverage industry experts and discover how we can help your brand thrive in this changing landscape.