THANK YOU FOR SUBSCRIBING
Food and Beverages | Wednesday, March 30, 2022
The wine sector is shown its endurance once again in this time of transition.
FREMONT, CA: According to wine industry and research specialists, the challenges facing the wine industry in the coming year and beyond will be similar to those confronting the beverage alcohol industry as a whole and consumer goods in general: maintaining low prices while convincing consumers to upgrade; improving the category's substance as well as image in light of growing government demands for a step-change commitment to environmental and social responsibility, and making the product relevant to the next generation.
The wine sector must compete for global talent:
The majority of people in the wine sector would say that it's a pleasant place to work. Compared to most other businesses, wine may provide an unmatched variety of intellectual challenges. It has attracted brilliant, well-educated, and passionate members of the millennial generation in recent years, attracted by its vast complexity, legacy, diverse job difficulties, and the romantic concepts of working in harmony with nature that wine continues to conjure.
That is encouraging information. The more concerning information is that the next generation of global talent now has many alternative intriguing projects to work on. The battle for their services is gaining new momentum, fueled principally by the rise of global technology behemoths backed by vast sums of investment capital. While working for TikTok does not provide work experience in a field, bottling line, or fancy boutique, the financial benefits can be spectacular. For the time being, the battle for talent is being waged in other sectors—global accounting and financial services firms are seeing their conveyor belt of talent being picked apart by top technology firms, which can offer to start salaries well above US$100,000 per year, according to Payscale research.
While salaries are undoubtedly essential to workers, they are far from the primary consideration. According to surveys of younger workers in the millennial and Gen-Z age groups, consistent employment criteria include being part of an ethical organization, workplace transparency and fairness, purpose, autonomy, and possibilities for development. As is the case with many other businesses, the wine will need to step up its game in 2022, not just financially but also in its capacity to deliver more holistic benefits to its employees.
Wine in cans will evolve into low-alcohol wine flavored waters in cans:
Canned wine made tremendous progress in 2021, both technically and commercially, and this trend will continue in 2022. However, the real innovation will come from the wine industry developing new product sub-categories that address both of the 2020s' emerging trends: wine in a portable, single-serve size and wine with a low-alcohol formulation that transforms it from wine to a wine-based effervescent drink. The continuous expansion of RTDs, particularly in the US, is being driven by an unprecedented wave of innovation in the category, which is on track to expand significantly in 2022, according to IWSR forecasts.