Sheri Hebbeln
February 5, 2014 | Sheri Hebbeln

Wine vs Craft Beer

Although online wine sales are high and Americans are buying fewer 12 packs of mass-produced beer, the wine industry may be facing another strong competitor: craft brews. Wines & Vines reported specialty beers may be encroaching on wines' market share.

Craft beer sales are up 23 percent in volume and 20.6 percent in value. Some regions, like San Francisco and Portland, have experienced increases as high as 30 percent. However, craft beer is the one bright spot for this beverage segment because overall beer sales are gradually declining. As specialty brews become more popular, consumers have more options.

In fact, craft brewers may be following some examples from wine marketing efforts to promote their products. The research indicated that there was a similar spread of craft beer in the 1990s, and it didn't excessively threaten the wine industry. However, wineries should pay attention to the growth of specialty beers and adjust their marketing strategies if necessary. So how can you maintain a high level of online wine sales?

It may be time to improve your wine club
Wine club membership is a consistent source of online revenue, and these people may represent your most loyal customers. The majority of wine club members joined after visiting a winery, so the impressions customers leave your tasting room with, matter a great deal. In fact, 35 percent reported high levels of satisfaction with their memberships, and more than half planned to stay in their clubs indefinitely, Wines & Vines said.

Fifty-seven percent of members are part of the baby boomer generation. Only 11 percent are millennials, though this group may become more important in the near future. Since millennials are among the top consumers for craft beers, offering a high-quality wine club experience could prove to be a competitive differentiator.

How to boost e-commerce revenues without breaking your budget
Whether craft beers end up as a serious threat to the wine industry or not, this may be a good opportunity to make adjustments to your online wine store. Especially if you are just starting out with online wine sales, it may be more beneficial to target existing customers - such as your wine club members - than focusing solely on attracting new shoppers, Practical Ecommerce said.

There are two primary ways to do this: by boosting conversion rates and increasing average order size. Even a 1 percent rise in conversion could potentially lead to a 50 percent boost in online revenues. Many online retailers seek to gain new traffic with pay-per-click advertising, but this can sometimes prove to be more expensive than it's worth. Improving site usability can ensure that more returning customers make purchases.

Adding some new features to your website can boost conversion. Because wine shipping is often prohibitively expensive, generating a shipping estimator as shoppers add items to their carts can reduce customers' nervousness about the final total. This can decrease shopping cart abandonment rates. All e-commerce solutions should have the necessary security protocols to guard customer information. Highlighting security can build shoppers' trust. Make sure to clearly state your return policy as well. If this information is included in a place where customers are likely to see it, it can prevent questions and confusion. 

Increasing order sizes can help you grow revenues as well. You can accomplish this by providing incentives for bigger orders, like discounted shipping. Customers will feel like they are getting a better value. In addition, you can market your wine club to maintain a consistent revenue stream. Another idea is to create upsells and target product recommendations for shoppers. 


ParkerSmith's Gravatar
@ Jul 15, 2014 at 2:29 AM
I am definitely bookmarking this page and sharing it with my friends. Very outstanding web. The content here is truly important. I will share it with my friends.

Add A Blog Comment
E-Mail me when someone comments on this post
Leave this field blank:

Stay Connected

Sign Up For Our Newsletter

Stay informed of upcoming events and direct sales news.


Learn More About WineDirect's End-to-End Solutions

Our full suite of services will help you sell more wine DTC.

Learn More

© Copyright 2017 WineDirect . All Rights Reserved.