Every industry has winners and losers. The winning companies have developed a brand. The losing companies sell products.

The wine industry is over-saturated and competitive as ever. There is no shortage of high quality wines. If you want to be successful, you have to stop thinking of your company as being in the wine business. That forces you to think of yourself as a manufacturer of a product. Instead, you need to focus on developing your brand.

Author Ryan Moran writes in his inspiring book 12 Months to $1 Million that:

“A brand is trust. A brand is an expectation that the customer will be happy with his or her purchase. A brand is something built by creating a group of products that all serve the same person.”

The issue I am seeing in the wine industry is that companies start with a great product (wine) and then develop a plan to sell it. The problem is that everyone is selling the SAME THING and relying on quality to be a differentiator. Quality is NOT a differentiator. 

Everyone’s target market is the same: wine aficionados that are 40-65+ years old with disposable income. Unfortunately, we are running out of this target market as Baby Boomers age out. Companies that sell products are left fighting over the same limited customer pool. This will create a race to the bottom on price and force the product to become a commodity. 

If I was to start a winery tomorrow, I would not make my target market wine aficionados. It’s too general. Instead, I would find a specific community of people and create a brand for them. Moran sums it up perfectly: 

“People are what make you money, not products. Think of it this way. A product is a one time transaction. But a brand says something about a person. It tells a story that goes beyond the product. That kind of power leads people to buy multiple products and tell their friends about them. If you’re just selling random products, you’re robbing people of that story—a story about themselves. You’re getting sales rather than getting customers.”

Please read that two more times and let it sink in.

Most companies struggle to convert a customer the second time. Yet, if they did, their business would grow exponentially. The reason is that a one-time customer was interested in trying a new product, not purchasing from a brand. 

My biggest fear for the years ahead in this industry is that wineries will continue to develop new products (release new wines) instead of developing their brand. The key to unlocking more sales is not launching a new varietal. It’s the folly of many winemakers. 

Use the next 12-months to become obsessed with your customers. People want to feel seen. They are desperate for connection— it’s what drives humanity. Do not take your customers for granted. Reach out to each of them individually and ask for their feedback and thank them for their support. Find out how you can make their lives better by becoming part of their story.

If you successfully change your mindset, then the growth will happen naturally. Customers will come back for their next order, they will refer customers, and momentum will build. 

I worry too many wineries are headed down the wrong path, but it’s not too late. You can develop a brand. You can achieve your goals. 

If you feel inspired, but are not sure how to develop a brand, feel free to reach out to me personally to set up a consultation. At our DTC wine marketing agency Highway 29 Creative, we’ve worked with wineries of all sizes and maturities to develop their brands and execute strategic marketing plans to help them grow. We’d be honored to have the opportunity to partner with you.