A Call to Action: The Wine Industry Can't Afford to Wait Any Longer

The headlines have been saying it, all parts of the wine supply chain are affected.

The SVB 2025 State of the Wine Industry report delivers a sobering but ultimately actionable message that every wine professional needs to hear: doing nothing is no longer an option.

Like a lot of you, I had hoped the next generation would just grow into wine, the way I did. But let’s be honest, that’s not happening. Doing nothing and hoping for the best? That strategy isn’t cutting it. SVB’s forecast doesn’t see a bottom out until 2029 and the industry may not recover until as late as 2037.

The message is loud and clear: if we want wine to stay relevant, especially with the 30-45-year-old crowd, which is our strongest hope since the boomers, we’ve got to invest. In real marketing. In building community. In showing up where beer and spirits already are: speaking to health-conscious, budget-conscious, experience-driven consumers.

To be clear, I’m not saying we need to convince non-drinkers or pretend wine is a health product. I’m talking about connecting with millennial drinkers who already like wine, but are choosing other options more often. Wine has soul. It has depth. That’s why I care so much about this industry. But we have to make it feel accessible, relevant, and aligned with the values that matter today, authenticity, connection, experience.

From what I’m seeing in the field, lighter harvests, cautious production, tons of inventory, there’s both urgency and opportunity to try something new. If you have the means to invest in smart marketing or creative partnerships, now is the moment.

I believe this is a turning point for all of us.

Learning from History

Thinking of.. “as history repeats itself” the parallels to the 1980s are instructive. As the report notes: "During the last demand retraction in the '80s, the French Paradox and other health-related studies showing some health benefits with moderate consumption were the activation points that drove more boomer consumers away from spirits and beer and towards wine."

But here's the challenge: only 8% of consumers today believe that moderate alcohol consumption is healthy. I'm not saying we need to "health-wash" wine again, but as an industry we need a collective campaign that the target market of 30-39-year-olds will resonate with, since the marketing of the early 1990’s that helped turn the tide then, is not working any more. Individuals who drink, will continue to drink even if they dont think it's healthy - but light beer and tequila have already been in the "healthier" side of alcohol business for years. The French paradox is no longer cutting it, for wine.

Why the 30-39 Demographic Matters

The data is compelling: "The 30-39 age band and the 60-69 age band are the two age ranges with the highest population of consumers with a stronger preference for wine comparatively. The younger population, however, has seven million more consumers. That's seven million more potential wine consumers but they currently prefer spirits and beer to wine. '“

The report's conclusion should guide our industry's approach: "If we present a product that hits their value points, 30-45-year-old consumers will choose wine more often." It's not about making people drink more - it's about giving them a reason to choose wine over other options. Wine has historically been a beverage that is around celebrations, an elite status symbol, and luxury. The children of the boomers are the ones that are still interested in wine, but their parents have shown them its something to “aspire to” just like owning a home.. Idk about you, but my priority (as fitting in this demographic) even as a wine lover is buying a house, over investing in wine or blowing my bonus on a fancy bottle.

Market Realities Create Opportunity

From my direct work with grape growers and winemakers, I can confirm the report's forecasting: 2024 was the smallest grape crush since 2008 in California, with over 50,000 acres across the USA estimated to be in surplus. Bulk markets will continue to offer ample purchasing options for the rest of the year and likely the next few. Several grapes will be left on the vine again. This is showing that wineries are being more cautious in their production amounts.

This inventory situation, while challenging, also creates unprecedented opportunities for innovative marketing approaches, value-driven offerings, and strategic partnerships that can reach new consumers without breaking the bank... I have a few ideas personally for this and looking for the right partners on it!

The Path Forward

The wine industry stands at an important inflection point. We have steady business health, ample inventory, clear demographic targets, and proven historical precedent that strategic marketing works. What we need now is the collective commitment to thoughtful action.

Millennials are not waiting for us to figure this out; they're making beverage choices every day. The question is whether wine will be part of that conversation or whether we'll continue to cede ground to spirits and beer.

The report makes it clear, this isn’t the time to sit back. Collaborative marketing and strong regional partnerships aren’t just nice to have anymore, they’re essential if we want to turn this ship around and build real momentum for the future. There’s no better time to invest, especially in a strategy and parnership with someone you trust. That’s exactly what I offer through Own Rooted Hospitality: thoughtful, values-driven strategies built to connect with today’s consumers in a real way.

The Business Case for Strategic Investment

What's particularly encouraging about this moment is that, while demand has softened, the overall business health of winery owners is remaining steady. (I question this...) However, if those do have the financial capacity to invest in marketing when it's needed most - they will see its positive impact.

The report confirms what many of us have been advocating: "The downturn in demand is reversible if the industry collaborates on solutions to target 30-45-year-old consumers. Aggressive category marketing and promotions will shorten the length and depth of this downturn and will lead to better growth once supply and demand rebalance."

Understanding Consumer Motivation is Key

The report nails a fundamental truth: "Consumers buy any good based on need, personal values, convenience, the inherent worth of the good, projecting an image for older people or fear of missing out for younger people, among other factors." Finding ways to connect with consumers based on their current values and in an accessible way is the name of the game. That's exactly what we focus on specifically within our partnership strategy offerings at Own Rooted Hospitality.