‘WE BELIEVE WE HAVE NOT HIT ROCK BOTTOM’
Wineries are Choosing to Forge Ahead and Not Caving
BY ALAN GOLDFARB
May 7, 2025
“We believe that we have not hit bottom”. The italics are mine but the sentiment is from one of my winery clients addressing the perceived crisis (itals mine, again) that seems to have atrophied the wine industry. The client has taken steps to try and overcome this gnawing anxiety and I think that notion has created a culture that has put a stranglehold on the wine business; and which has enabled the perception to become the reality.
As I resolutely continue to land meaningful and important media “hits” for my clients; as well as adding new wineries – a brand’s alternatives enabling it to go forward in this unsettling atmosphere, are several fold:
Sell.
Battan down and do nothing.
or
Forge Ahead with vigor as if nothing can stop you from continuing your mission of recognition and therefore, success.
I and my client(s) are choosing the latter course, as though our lives depend on it. And in some cases, it does.
The aforementioned client – the one who steadfastly believes it in his bones that the wine industry ain’t dead – asked me if any of my other clients have expressed pain, anxiety or fear – at what has been putting a gag on our business?
A few have expressed some degree of trepidation I told him, but to his point, it was only that, disquiet. I went on to further explain that I thought the anxiety was palpable but minimal and was because I’ve always chosen to take on wineries that are small – 1K-to-10K cases annually. All of them specialize in small batches of wine that are priced reasonably, are well-made, and from vineyard sources that are conscientiously and studiously maintained. And, their overhead and inventories are fairly limited and modest.
In comparison, the big boys – the corporate brands and ginormous wineries and bulk wine producers – are the ones that are and will be, feeling the pressure from the marketplace.
So, in an 11-page business plan, which I’ve taken as a manifesto to stave off the forces of a downward spiral, my client shared with me his strategy to do just that. It was the first time a client had sent me such a comprehensive battle plan.
It shows what the “little guy” – about 2,000 cases – is doing to hold off and try to thrive in the enveloping climate of fear and despair. Here are some of his takeaways, adding that he thought “the bottom may be 18-to-24 months in the future":
- “Own and profitably operate our vineyard for the long-term at a greater than 8% annual rate of return”
- “Position and maintain grape growing as a reliable and quality premium producer with eco-friendly attributes”
- “Provide bulk wine to large wineries as an outlet for grape production and as an alternative for mid-size or specialty wineries like private labelers”
- “Consumer/restaurant direct
- “Most of our vineyard blocks are currently ‘mothballed’ and prepped for a 2-year dormancy”
- “Farming practices valuated and improvements made to reduce cost of production by 25%”
- “Bulk wine sales suspended”
- “Newly developed social marketing increased”
- “Reducing bottled wine inventories”
- “Become known as a long-term and independent niche player” via media relations campaign
- Offer restaurants significant price reductions
- Launch new products aimed at under-45 age group
In other words, keep on keeping on with forward thinking, actionable and positive practices; all to stave off the current downturn and alcohol-averse neo-Prohibitionists. To do nothing or standby while all around seems chaos, is no plan at all. Inactivity might even jeopardize your winery.