Man the guns! Batten down the hatches! The wine industry is under assault from all sides. Executives have to balance discipline in the face of further declines and innovation to capitalize on growth, should growth eventually return to the battered wine business. Two leaders from The Wine Group, John Sutton, CEO, and Jen Evans, CFO, join us for a broad discussion about the state of the wine industry and the difficult and exciting steps they are taking to set themselves up for future success. The episode includes an update on the performance of their recent acquisition of Meiomi, Woodbridge, Cook's, and more from Constellation Brands, how they are planning for the next cycle in grape supply (shortage so soon?), and the uphill battle midsize brands face in the wake of Republic National Distributing Company's collapse.
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Relevant time stamps from the conversation:
4:27 - Did the wine industry's obsession with premiumization limit its appeal or ability to offer value?
14:59 - Setting your operation up for success in the face of sustained volume declines
34:49 - Private label, excess supply, and wine producers' race to the bottom
41:50 - Should wineries start signing contracts in anticipation of future shortages?
43:10 - Is California finished as a source of affordable wine?
51:05 - The rise of brokerage agreements, distributor indifference, and the terrible squeeze facing mature, midsize wine brands
01:04 - Integrating Meomi, Woodbridge, Cook's, and the rest of the Constellation Brands acquisition and future innovation and M&A ambitions
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