Why the wine industry is (mostly) stupid

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A few slides to illustrate why the wine industry has difficulty persuading people to buy its better products.

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  • By the way, I very much enjoy reading your blog Joseph
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  • I appreciate the presentation and point of view but feel it oversimplifies the wine packaging process. As Hyundai tries to copy the Mercedes design and will never be a Mercedes it's following a course for a reason (wait and see). The branding war is a long term one and a well thought out and consistent packaging desing strategy (no matter how insane it may seem) can eventually deliver victorious results.
    Cheers,
    Javier Romero
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Why the wine industry is (mostly) stupid

  1. 1. Why the wine industry is stupid.
  2. 2. Formule 1 Motel, Montmartre, Paris - €33/night Georges V Hotel, Paris – €915/night
  3. 3. Rolls Royce - $250,000 Ford Ka - $10,000
  4. 4. Cheese and Ham Sandwich - $5 Cheese Soufflé - $20
  5. 5. In each of these cases, there’s a visible difference anyone can recognise between the cheaper and more expensive item. (Even if one might question the magnitudes of the differences)
  6. 6. Ribera del Duero wine Ribera del Duero wine
  7. 7. Ribera del Duero wine - €175 Ribera del Duero wine - €1.80
  8. 8. Which other industry packages its cheapest product in almost precisely the same way as its most expensive (75cl glass bottle; capsule; cork; label; appellation)? And expects consumers to educate themselves to understand why one costs more than the other.
  9. 9. Note: I happened to choose a pair of Ribera del Dueros. The same rules apply to a long list of other European regions – as well as to bottles of the same grape variety. The US and Australia are exceptions to this rule (there are very few cheap Napa or Oregon wines, and most of Australia’s cheapest wines come in bag-in-box or “cask” form). Maybe that’s why these countries’ wine industries are less broke than Europe’s
  10. 10. Intelligent solutions 1) Stop selling supposedly “premium” wines at discount prices. 2) Stop packaging cheap wines in ways that mimic premium ones 3) Package genuine premium wines in a way that sets them apart Chances of any of these happening: zero

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