I walked through my neighborhood liquor store yesterday. They had quite a selection of wines and spirits. The store had a decent number of wines from wineries in Wisconsin along with whiskey, brandy, gin, and vodka from regional craft distilleries. It was nice to see regional wines and spirits on the shelves. However, I also noticed that the range of prices was comparable to the selection.
Some wines and spirits from regional vintners and distillers were priced similarly to some of the larger makers of those beverages. Others cost more–some significantly more.
Mind you, it’s not my business to tell an owner of a winery or distillery what to charge for their products. But then again, there are plenty of pressures in today’s economy working against the wine and spirits industry on a local regional level.
The country, depending on how you choose to view it, either remains locked into a pandemic mentality or is on the verge of exiting it. These past 18-24 months have presented challenges unseen by most people living today. On top of that challenge, everyone is experiencing rapidly increasing prices not seen in more than 40 years. Consumers are tolerating it for the moment, but cracks are forming.
At some point, consumers will need to make hard choices. And if you’re not prepared those hard choices will have a snowball effect on your winery and distillery. Those hard choices will include deciding how to spend their money.
Will they look at your wine, or your whiskey, and then look at a larger national brand that can charge less for their product while still making a profit? Will the consumer feel the pressure to reduce the number of purchases of your products to extend the paycheck? Could consumers be forced to make the really hard decision between buying a staple, such as food, instead of your wine or liquor?
Sadly, this is a real possibility.
Research over the past decade discovered that consumers who visited a local winery or distillery liked the idea of buying local or supporting small businesses. That sentiment still exists. However, if inflation creeps higher with no end in sight and other factors weigh on the economy, all the good feelings toward supporting local small businesses will give way to the mentality of making my money work its hardest.
Don’t get me wrong. People will still buy wine and liquor; but from who? You?
It is possible—if you approach it the right way. History has shown that the businesses who learn to keep their products top of mind with the consumer can weather practically any economic storm. Want to learn more?
Watch this blog in the coming weeks for more information on making your winery, distillery, or winery and distillery successful even in difficult economic times.