Issue link: http://winesandvines.uberflip.com/i/210765
w i n e B U S INE S S consumers' likes and dislikes are so quickly and broadly shared with the online community. Identifying hot topics for the next five to 10 years, the survey respondents are most concerned about the effects of climate change, environment-related regulatory pressures and the availability and cost of labor, land and water. Q: What strategies are you adopting to compete with other beverages (craft beers, craft cocktails) with respect to the Millennial generation? ■ The primary activity that you see occurring, particularly in the wine industry, is creation of what I call "pop products" many different flavors and such. We make traditional table wine: Cabernet, Sauvignon Blanc and Chardonnay. I do not want to modify them. We are basically sticking to that type of product. ■ If you make high-end wines, you have got to play to that audience; it is problematic if you try to do something other than that. Likewise, if you make lifestyle wines, it is hard to also make fine wines. ■ There is a desire for education and knowledge on their part, and they may drink beer, they may drink cocktails a portion of the time, but when they sit down to eat, wine is on the table. ■ The 3-liter box wine category is growing. This generation of Millennials grew up with juice boxes, so they kind of get the concept. They grew up with a straw and a juice box in their lunch, so they are very open to alternative packaging: pouches and tetras — all of that— is interesting to them. They are more openminded to it. ■ We came out with a new red blend that is higher in residual sugar, a little sweeter to appeal to Millenials. ■ We have simply taken regular wine and put some flavorings into it. ■ Gallo has bottled interesting "refreshers" that are lighter products. A great opportunity is to experiment with Millennials that are so open-minded and focused on things like authenticity and integrity. They love to discover things. They have this kind of pride, badge, status thing when they find new stuff— especially if it is perceived as a value. ■ We have introduced a new product, which has 3,200 ppm of carbonation in it, so it is more like a Prosecco or something a little less carbonated than you would find in Champagne. ■ We are very involved with putting premium wines in 15-gallon kegs, and started at the very high end of the market. This is the type of restaurant that a Millennial will go to, leading edge, upcoming restaurants that are looking for a better way to deliver quality and be environmentally sound. ■ A few guys are looking to blend Chardonnay with a spirit, a vodka-Chardonnay type thing, so maybe some type of "co-things" there. Q: What are you doing to pursue inter- national sales growth? What geographic areas are you most focused on and why? ■ Some of the big wine consumption markets outside the U.S. are not brandfriendly, specifically the United Kingdom and Germany, and are not that appealing financially. China is a big opportunity, but there are all kinds of stability questions and what they are really doing with the entire wine inventory they have. ■ Right now, to challenge the environment, you have to proceed very carefully, very pragmatically. Unless you have a luxury brand that seems to find or resonate with some of the consumers, the U.S. market still offers a great opportunity in terms of being profitable, and the long- Fine Wine Making with Energy Savings COOL-FIT® Plus Systems! Your pre-insulated piping solution for glycol installations. www.cool-ft.georgfscher.com 2882 Dow Avenue, Tustin, CA 92780-7258 • Phone (714) 731-8800, Toll Free (800) 854-4090 e-mail: us.ps@georgfscher.com • www.gfpiping.com pr actica l win ery & vin eya r d DECEM B ER 20 13 59