Profitability in the wine trade: change, courage, and customers

I wasn’t in the room, so I can’t say with certainty that everything I’m about to relay is accurate – apart from what I gleaned by reading post-event writeups following the latest  DB conference – but here’s what seems clear (and what I’m left wondering).

The good news is that there is recognition that change is required in the wine trade. The question now is: do they have a plan, and does that plan include doing the right thing?

The event’s theme was “profitability in the wine trade” and that’s no small task in today’s climate. We all understand the economics: to grow profits you need both expansion and cost-control. But from the media coverage, it seems the emphasis may be leaning heavily toward costs (and speaking to merchants just every week, I feel their pain!). And we know that obsessing over cost cutting alone can backfire: squeeze too hard, and you risk hollowing out your operations or degrading the customer experience.

I hope that as more post-event commentary appears, we’ll see deeper insight into what businesses are actually doing to grow – not just pruning expenses, but rethinking models, innovating, and diversifying. Because the truth is: there are many ways wine merchants can drive revenue but doing so usually requires bold moves, not just belt tightening, and some investment. At the end of the day,  focus must be on the customer.

What the wider conversation is already pointing toward
In exploring recent articles (including my own writings), few recurring themes and ideas emerge. These are not just trendy buzzwords; they hint at how wine businesses might break free from stagnation:

Social Buying / Group Purchase Models
Cobuyr’s research found that 86 % of consumers said they’d like the option to buy wine online together with friends, family, or wine-club peers. This concept of social buying enables inviting co-buyers to split costs and portions at checkout, instantly multiplying the reach of every transaction.

If wine merchants adopt this tactic, they can turn each customer into a micro-ambassador, expanding sales through networks rather than ads or costly events.

AI-Driven Personalization
Many merchants already hold rich first-party data such as purchase histories, preferences, email engagement but often underuse it. AI tools can transform that data into real value: recommending wines, suggesting group buys, and surfacing the right upsells at the right moment.

In a crowded market, intelligent recommendations can help guide consumers through choice overload while boosting both satisfaction and spend. This data can also inform marketing and salea team to focus on the right customers at the right time.

Selling the eperience, not jut the wine
Successful wine brands are embedding wine into broader experiences – “beyond the bottle,” as Cobuyr describes it. That might mean storytelling around provenance, vineyard events, curated tastings, or immersive digital content.

The best merchants don’t just sell products; they craft moments that resonate emotionally. The best sell an experience first, the wine last.

Bundles, packaging & new revenue streams
Cobuyr also highlights the potential of curated bundles: wine + food pairings, wine + experiences, or flexible packaging formats. These can increase average order value and deepen loyalty. Subscription models, themed tasting packs, or local collaborations all open new doors to profitability.

Beyond caution: the case for risk and reinvention
If there’s one thing the wine trade could learn from other industries, it’s that incremental change rarely delivers transformational results. The industry has, for too long, relied on traditional distribution models, predictable marketing, and familiar customer segments. But the market has shifted.  Younger consumers are discovering wine differently, digital platforms are rewriting buying habits, and competition for attention has never been fiercer.

That means it’s time to take some calculated risks. Not reckless gambles, but bold, forward-looking experiments: trying new formats, testing new pricing models, investing in digital storytelling, exploring AI-driven curation, or even collaborating with competitors to build shared consumer platforms. Profitability won’t come from doing what’s always been done – it will come from doing what’s next.

At the same time, the industry needs upskilling at every level. From retailers and importers to hospitality teams and marketing staff, there’s a growing gap between what traditional training covers and what the modern marketplace demands. Data literacy, digital communication, customer engagement, and e-commerce fluency are now as essential as tasting notes and terroir knowledge.

Investing in people, not just processes, will be critical. Imagine a retail team that can use AI tools confidently, analyse purchase data for insights, or create short-form video content that captures the story behind a bottle from the wine maker or consumer. That’s where the next wave of profitability lies: in human capability empowered by technology, though the latter isn’t the sole answer, and it needs purpose, and that’s giving what customers want – more.

Because at its core, the wine business isn’t just about bottles on shelves; it’s all about personal connection. Those who can blend technology, creativity, and customer focus will not only survive but shape the future of wine retail.

The Courage to Evolve
The conversation about profitability shouldn’t be about survival. It should be about progress. The businesses that thrive will be those willing to take risks, embrace innovation, and invest in their people. In doing so, they will create a unique brand experience that will drive business success.