Tim, I love your analysis on this. In addition to the challenges you have highlighted mostly regarding DtC and hospitality, wineries also face an uphill battle navigating the increasingly complex distribution quagmire. Over the past decade, Southern/Glazers has dominated the distributor landscape, creating a stronghold on many aspects of the business. If aligned with them, the struggle involves vying for attention among their immense portfolio, including the huge and well-funded spirits brands (these spirits company's influence permeates SGWS even if your wine brand is in a different "sales division"). If not partnered with them, your chosen distributors inevitably face an uphill battle against this growing behemoth. Even gaining traction with a distributor doesn't guarantee success, as the retail landscape, influenced by Total Wine, is swiftly changing. Then, the once-reliable on-premise channel, especially for premium wines, has been severely impacted by Covid-induced changes in that channel. There are undeniably turbulent times ahead—some will endure, but sadly, some will not make it through.
BTW... I just subscribed after reading yet another great article. Thank you!
Tim, I love your analysis on this. In addition to the challenges you have highlighted mostly regarding DtC and hospitality, wineries also face an uphill battle navigating the increasingly complex distribution quagmire. Over the past decade, Southern/Glazers has dominated the distributor landscape, creating a stronghold on many aspects of the business. If aligned with them, the struggle involves vying for attention among their immense portfolio, including the huge and well-funded spirits brands (these spirits company's influence permeates SGWS even if your wine brand is in a different "sales division"). If not partnered with them, your chosen distributors inevitably face an uphill battle against this growing behemoth. Even gaining traction with a distributor doesn't guarantee success, as the retail landscape, influenced by Total Wine, is swiftly changing. Then, the once-reliable on-premise channel, especially for premium wines, has been severely impacted by Covid-induced changes in that channel. There are undeniably turbulent times ahead—some will endure, but sadly, some will not make it through.
BTW... I just subscribed after reading yet another great article. Thank you!
Doug. Thank you. Sounds like we need you to write an article on this for Napa Valley Features.