Today, we are priviliged to publish an interview with Jessica Kogan who is a partner at Connect the Dots Collective who will share her thoughts with us about the importance of ecommerce in the wine industry and what she believes is the future of wine industry.
How important is eCommerce to the wine industry?
eCommerce in the wine industry is extremely important in the wine industry because it enables an immersive, connected experience that is hard to replicate at the physical shelf.
Ecommerce not only provides the transactional ability, but also the storytelling, which is a huge part of how shoppers connect with wine.
What are key elements to making the experience meaningful for the consumer?
Key elements of a meaningful digital consumer experience include content that is illustrative and provides detailed information about the product; imagery that gives the consumer a sense of place; supportive third-party reviews from consumers that have tried the product; video about the product that brings the product to life, and pairing information for those consumers who are looking for ideas of how to enjoy the product.
How has eCommerce made wine more accessible?
100% YES. For most wine consumers, buying wine at the physical shelf can be agonizing – what do you base your choice on?
The bottle label design?
The promotion?
Most consumers know there is more to it and eCommerce has been central in helping customers find wines they might love in a low stress space, where you can take your time and make an informed decision.
Wine is a discretionary purchase for most and generally one of the more expensive products in the grocery store.
What’s your best guess as to wine sales to American consumers in the next five years?
We will continue to see growth in wine sales. Revenue for 2023 was $37.2B and is expected to grow on average 1.47% annually.
An interesting insight is that by 2025 it is expected that $5.97B of wine purchases will be made on grocery eCommerce websites and $7.97 will be purchased on winery direct websites, which is materially significant.
What is your predication for the next 5 years?
Continued growth in digitally enabled wine sales; focus on sustainable packaging in the ultra-premium segment that moves away from glass and is easy to access (for example wine in a can, wine in Tetra Pak boxes), a move away from corks to Stelvin capsule closures (the production of cork is bad for the environment and the trees), a move away from laminated capsules which are made with plastic, and messaging on wines being an inherently low calorie beverage and wellness benefits compared to RTDs (ready-to-drink).
Do you see current industry trends that will make an impact?
Yes. Packaging and access. Packaging as noted above and access meaning suppliers will be able to ship larger quantities to state than they are currently allowed.
How do you personally keep up with technology?
I am an avid digital consumer that pays attention to UX and in general, I am just super curious about technology, its democratization, enablement, and pitfalls.
Are there any other innovations in digital marketing that you want to put in place?
The automation of predictive display ads and digital tools that connects shoppers to local events that are specific to brands they care about.
