Eve O'Neill

Just in time for the holiday, I wrote about the emerging regional styles of American whiskey. We're living through a fascinating moment, where the boom in craft distilleries is settling into patterns and, in some places, coalescing into new whiskey identities. Give it another generation or two and I think we'll be discussing these styles in the same terms as Kentucky bourbon. Check out my article for The New Wine Review below! https://lnkd.in/eVuapCjT

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In my latest SOMM Journal Bottom Line column, how to work with (or when necessary, against) distributors to build strong wine programs. Re https://lnkd.in/gptkmwe3 #winelist #restaurantwine #foodandbeverage #sommeliers #sommelierlife

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USA Ratings interviews Stephanie Gallo, GALLO's VP of Marketing, about business strategy and the wine industry's landscape, emphasizing the "total alcohol" business and efforts to democratize wine. For Stephanie Gallo one primary objective seems clear: democratize the enjoyment of wine. Another is to make GALLO, as a company, into a “total alcohol beverage supplier.” This requires an “intrapreneurial mindset” within a very large family-owned firm, which has never lost contact with its strong roots and traditions in California. The direct descendent of Ernest Gallo, Stephanie recently told her alma mater, Northwestern University, that additional “consumers in the United States and throughout the world” should be drinking wine. She added that the potential for expanding the overall market for wine remains substantial. “Only 33 percent of Americans drink wine on a regular basis, and of that 33 percent, 80 percent of the volume is done by 11 percent of the population,” she stated. “So I would argue that our quest to democratize wine still has not been met.” What some might view as dismal numbers regarding the wine market, Stephanie views as yet unconquered territory for expanding sales. As Vice President of Marketing, Stephanie Gallo has tremendous influence in that regard. Gallo produces up to 3% of the world’s wine (that’s a lot). With over 7500 employees, the company accounts for an estimated 13%+ of total US wine industry revenue. As Richard Hemming MW noted several years ago, “It is often said that the world’s largest wine producer” only makes a very small percentage of “the total annual production of wine, which is illustrative of wine’s highly fragmented market structure.” It is within this market environment that Gallo has thrived, but never dominated the wine sector. “By comparison,” writes Hemming, “Coca-Cola owns about 50% of the global soft drinks market, while Anheuser-Busch has a 28% share of the global beer market.” Hemming believes this shows how “the industry [is] highly fragmented, with millions of smaller wine producers around the world each accounting for just a minuscule fraction of total global production.”

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While the anti-alcohol cabal is the greatest long-term threat to the American wine industry, there is actually a more pressing, short-term threat. In this Free-to-everyone issue of the Fermentation Substack Newsletter, I discuss the potential of new tariffs on European wines, how it's likely to happen, and how it will impact the entire American wine industry.

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So many great photographers on this list. What's interesting is how many are shooting vertical these days. When I ask PR for press kits with hi-res HORIZONTAL images, they inevitably ignore the specific ask and send me a folder full of vertical images. Digital pubs still need horizontal due to the way we scroll for content on screens. Vertical eats up too much visual space between words. It's fascinating how social media has manipulated art and artists in that works now need to be ready to share on a phone.

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"Millennials and Gen Z have embraced alternative packaging without questioning the quality. They love the lower entry price for premium wines, the convenience and the sustainability these options bring to the table," writes Sonnay Alvarez in the latest issue of Great Northwest Wine. It's pretty simple math, really. If you want younger generations to buy your wine, make them easy to access, easy to drink, and easy to feel good about their impact on the earth. 🌎 Read Sonnay's full article to learn what winemakers in the NW are doing to attract and retain younger audiences. 🍷 P.S. Older audiences (says this Gen Xer, dying a little inside) like these options, too. https://lnkd.in/gGf4Tnnp

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Do we start trends or do trends start themselves? In my experience, "both." While consumers are eternally fickle, read why, in wine sales, you don't need a weatherman to know which way the wind blows. #restaurantlife #restaurantwine #sommelierlife #sommjournal #winelist #hospitalityindustry #HospitalityManagement #sommelierbusiness #sommelierdreams #winelist #foodandbeverage #foodandbeverageindustry

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Let me know your thoughts on this analysis.

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Among the report’s other findings: - Price discounting is still not common in direct sales. More often, incentives center around discounted shipping; free shipping has lost popularity among producers. (Everyone I know is discounting, so?) - Internet and web sales, after peaking at 16% of sales during the Pandemic, have retreated to 8%, more or less what they were in 2016.  - Wineries are lagging behind their customers in social media use. Just three-quarters use Facebook and Instagram, and the figures are barely into double digits for Twitter/X, YouTube, and the like.  - Lifetime wine club membership value, which rose almost two-thirds from 2014 to 2021, has flattened. Meanwhile, wine club churn rates remain high, with some as much as 25%, and conversion rates fall within a narrow band of 8% to 10%. - DtC prices have increased slightly since 2017, around 2% per year, with a drop in 2020 during the Pandemic and an almost 5% increase the following year. - In 2023, DtC case sales growth generally remained smaller than dollar growth, even in some of the regions where case sales declined. The average for the nine regions in the study was a 0.7% dollar boost and a 1.48% decline in cases sold. Sonoma and Virginia were the two regions with the highest reported DtC sales growth rates. https://lnkd.in/gHumZvM4

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Private equity's involvement in the seafood industry has been a subject of much debate. And by "debate", I mean that most experienced seafood executives have told me over years that private equity is terrible for the industry. There are some success stories out there, but recently, there have been far more failures. Why? I have some thoughts, and have developed a highly scientific ranking of the worst PE-backed deals: the Cringe-O-Meter. Happy Friday, folks. Young's Seafood Peter Pan Seafood Co., LLC Red Lobster Thai Union Group PCL. Nova Austral S.A. Icicle Seafoods, Inc. Golden Gate Capital Bregal Investments Nomad Foods Richard Harrow Glenn Cooke Joseph Bundrant Trident Seafoods American Seafoods Blue Harvest Fisheries CapVest Lion Capital Blackstone Sole Source Capital LLC Beach Point Capital Management Paine Schwartz Partners Altor Equity Partners Bain & Company Permira #privateequity #investments #mergersandacquisitions https://lnkd.in/ghT6AfnT

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A huge thank you to Wine Industry Network for featuring my article on the rising demand for premium and artisanal wines. 🌟 In the article, I delve into the trends and consumer preferences driving this dynamic segment of the wine industry. Check it out to learn more about the trends shaping our industry! #WineIndustry #PremiumWines #ArtisanalWines #WineTrends #winenews #winebusiness

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Part 2 of our post on "Is appreciation of wine as varietals becoming passé?" addresses recent pain and controversy, especially in Napa Valley, wrought by slavish adherence to varietal standards at the expense emerging appreciation of terroir-related differentiations in newer wine regions. Visit https://lnkd.in/gp9yTRG3

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On Tuesday I am giving a virtual talk for International Association of Culinary Professionals about writing. Specifically about what it was like for a pretty good food writer to come face to face with the fact that he was not a very good writer of long-form narrative. What did I do about that? How did I eventually finish a book? What were all the things I did wrong, and the one thing I did right? What is the difference between writing 1,000 words and writing 100,000 words? Why have words and turns of phrase always been so emotionally and psychically important to me? What even is a story? What is the difference between accuracy and truth? How do you develop a "linguistic palate" that guides you toward how to say what you are trying to express? I will try to answer these questions, or at least explore them, honestly, from my own experience. A registration link is in my bio. All are welcome. $20 for IACP members. $40 for nonmembers. I hope you will join me!

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Continuing our chapters from Restaurant Wine Management: In all my years working with chefs, there have been fewer tools as useful in putting together wine and food matches as umami. Breaking it all down here... #restaurantlife #restaurantwine #sommelierlife #sommjournal #winelist #hospitalityindustry #sommelierbusiness #sommelierdreams #foodandbeverage #foodandbeverageindustry #wineandfood #umami

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We chat with Sandro Sartor, President of Wine in Moderation (WiM) Association on his vision for Responsible Drinking. Sandro Sartor, President of Wine in Moderation, has been a driving force in promoting responsible drinking since assuming the presidency in 2020. With a deep-rooted belief in the program's potential to shape the wine sector's approach to moderation, Sandro has steered Wine in Moderation towards a results-oriented path, focusing on education and awareness among professionals and consumers alike. As President of Wine in Moderation, Sandro brings a unique perspective to the table, combining his role as CEO of Ruffino Group with his commitment to promoting responsible drinking. This dual role allows him to leverage his experience and expertise to drive Wine in Moderation's initiatives, aligning them with the current needs and challenges of the wine sector. Education has been a cornerstone of Wine in Moderation's efforts, with a focus on empowering wine professionals to educate consumers about moderate drinking. Initiatives such as the Responsible Service training program have been instrumental in equipping professionals with the knowledge and tools to promote responsible consumption. While often mistaken for a lobbying organization, Wine in Moderation remains action-oriented, collaborating with stakeholders to enhance its effectiveness. Partnerships with trade fairs and other stakeholders have been key in disseminating the program's message and reaching a broader audience. Looking ahead, Wine in Moderation under Sandro's leadership is poised for further growth and impact. Initiatives such as the "Lifestyle, Diet, Wine & Health" Congress and the International Wine in Moderation Day demonstrate the program's commitment to promoting responsible drinking worldwide.

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Today's Substack chapter previewing my upcoming book on managing restaurant wine programs: To paraphrase Cole Porter, "clams do it, lazy jelly fish do it, English soles in shoals do it, goldfish in privacy of bowls do it"... red wine with fish has become even more of a gastronomic norm because of the rapid expansion of food-versatile red wines that go great with increasingly inventive preparations of seafood. #restaurantlife #restaurantwine #sommelierlife #sommjournal #winelist #hospitalityindustry #HospitalityManagement #sommelierbusiness #sommelierdreams #sommeliers #winelist #foodandbeverage #foodandbeverageindustry #wineandfood

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"A new survey from YouGov took a look at Americans’ wine habits, from frequency to preferences to the most-loved wine among wine drinkers. Here are a few of the overall results from the survey: Most U.S. adults (61%) drink wine at least occasionally while 13% drink wine at least weekly. Half of Americans (49%) prefer red wine compared to 36% who would rather have white. The most loved wine in America is red wine with 31% of Americans saying it’s their favorite. followed by 22% who love Cabernet Sauvignon the most, and 21% who have a strong preference for sparkling wine, Half of Americans (49%) are likely to say price is the most important factor when buying wine, with most wine drinkers paying less than $20 per bottle. There’s no point in many wine drinkers spending a lot on a bottle of wine because they say that it would be difficult for them to tell the difference. Most American adult citizens (61%) drink wine at least occasionally. One-quarter (24%) say they only drink wine on special occasions, 12% drink wine less than once a month, 5% drink wine once a month, and 7% drink once every couple of weeks. Few Americans drink wine more often — once a week (5%), a few times a week (6%), or daily (2%)."

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Traditional beer sales have slumped, but non-alc brews are growing by double digits (33% in bars-restaurants and 35% in supermarkets). 45% of Gen Z says they've never had alcohol, and 41% of imbibers are trying to drink less. That's the backdrop for summer, normally the busiest time of year for beer sales. See how the currently-on-fire six-year-old Athletic Brewing Co. plans to tackle this crucial season, how its alliance with country music star Walker Hayes keeps paying off, and why it bought the first round recently for anyone asking for its brand. Check out my chat with CMO Andrew Katz here: ADWEEK #marketingandadvertising #experientialmarketing #sobercurious #sampling The New England Consulting Group Gary Stibel Kendall Toole

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What are some of the macro trends that are likely to impact the U.S. wine marketplace over the next several years? That's the question I explore in this issue of the Fermentation Substack Newsletter. As a hint, think birthrate, Muslims, Ozempic, Cities v Rural and inflation. #wine #winebusiness #inflation #demographics

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