The future of the [UK] wine industry

Twelve years ago, if someone told you that European wineries would be snapping up vineyards in the UK you would have thought they were crazy. The UK’s wine industry was famous, for the variety of wines you could access from around the globe – but not for their home-grown wines.

Now, some of the most recognised wine brands in the world are producing world class wines in the UK, and its terroir is becoming increasingly important for the future of the industry.

(Thanks Vranken-Pommery Australia Pty Ltd )

For those who don't already know, the aim of "Rethinking the Wine Industry" is to share ideas and knowledge within our wine community, to help each other and grow together. We live in the most exciting time in history, and I want to bring together a community of like-minded wine professionals to ensure we make the most of every opportunity.

Every month I will post one of my own articles, then one from somebody else in the community. Everyone who believes they have something valuable to share is very welcome to publish an article to this newsletter. Think of this as TED for the wine industry – please send an email to [email protected] to be part of this project. I will share your name and contact details with the article so people can get in contact with you directly if they wish.

Today's guest author is...

In this edition, we hear from Jason Davies (aka Jason Davies ), about what he’s seen over the last 12 years in the UK wine industry, and what he sees for the future.

I believe there are big implications from what’s happening here. What are your thoughts? Are there any lessons or insights here, that could be applied in other places? Join the discussion below – we’d love to hear your opinion.

But first, let’s hear from Jason…

The future of the wine industry

I’m no clairvoyant, nor am I a time lord. But what I can say is my experience in the UK’s wine industry over the last 12 years has seen a monumental change.? I started out working in one of the world’s many wine merchants and fell in love with all things wine. In that time, I have seen things become popular, unpopular, and popular again. One thing that’s always been evident is the UK’s reputation. In the 80 and early 90’s the UK wine scene was ridiculed for its amateurish attempts at winemaking.? Today, not only are we seeing English and Welsh wine on the world’s stage, but they are staying there and increasing in status. A change in fortune you might say. A further benefit of the awareness of British wine is the problem we are having with global warming. For wine, this is a good thing in the UK.?

Today, not only are we seeing English and Welsh wine on the world’s stage, but they are staying there and increasing in status.

In 2018 we saw a quite warm season ( a very British understatement ) and our bottle production went from approx. 5m bottles in 2017 to approx. 15 million. Figures are just in for 2023 and that has gone to a new high of 23 million. That in itself causes problems as, because the costs of storage, in the UK scene we do not really age our wine. With every problem comes a solution. Our grapes are German varietals whereas a nearby region, Champagne, has the royal grapes ( Chardonnay , Pinot Noir and Pinot Meunière ). Champagne is fighting with natural acidity and the warmth, whereas our grown grapes adapt to the heat very well.?

With an excess of that many bottles, what will happen to all the extra wine?? Expect the UK producers to be inventive- integrated into spirits, dessert wines etc.?

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So the future of the UK wine industry has always been in a perilous situation. A super successful industry in recent years, yet successive British governments have been slow to support this success. In effect, alcohol and cigarettes are a ‘cash cow’ for any government, you would think that you should nurture such an industry.?

The industry over the years since the 80’s has always been dominated by stuffy, arrogant, pompous male individuals.? We don’t put them in the stocks and throw tomatoes at them anymore for their sins - but they are becoming an outdated species. Largely seen frequenting in old smoky members clubs reading, drinking claret and eating fois gras. ?

The future of the wine industry will change as technological advancements happen. Shifting consumer preferences ( buy less quantity but pay more - that’s already happening ! ), environmental concerns ( global warming, for example, has an effect on the natural acidity of champagne - so winemakers have to intervene more in the winemaking process). The most important change might be what happens on the economic and political markets.?

Over the last few years I have heard that sustainability is firmly in the consumers’ minds. They want to know that’s important from their producers, that they love and that they are taking care of the environment. Carefully planned, this has a knock-on effect in organic and biodynamic sales and, as such, has seen the markets reflect this. ?

The most important change might be what happens on the economic and political markets.

Advancements in technology, including precision viticulture, data analytics, and automation, are likely to play a significant role in the future of winemaking. The UK has seen its first drone geomapping and crop spraying devices - saving time and money. ?

All this helps vineyard management, improves grape quality, ease of efficiency and ultimately reduction in costs.?

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The trend in the UK for under 25’s is to be healthy. Low-alcohol wines, natural wines, and alternative packaging formats such as cans and bag-in-box have all become popular in recent years. Demands change the direction of supplies!

The rise of e-commerce and direct-to-consumer sales channels has the potential to reshape the way wine is bought and sold. This is a new phenomenon in the UK and is something I’m currently working on at the moment.?

Online wine sales are expected to continue growing, and wineries are likely to place more emphasis on building direct relationships with consumers through online platforms and wine clubs.

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The global wine market is constantly evolving, with changes in consumer behaviour, trade policies, and economic conditions influencing the industry. For example, the impact of Brexit on European wine exports, the potential for new trade agreements, and the continued growth of wine consumption in emerging markets are all factors that could shape the future of the industry.

As consumers become more health-conscious, there may be increased demand for wines with lower alcohol content, as well as wines that are perceived as having health benefits. This could influence the development of new wine products and marketing strategies.

The continued growth of wine consumption in emerging markets are all factors that could shape the future of the industry.

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Overall, the future of the wine industry is likely to be characterized by a combination of tradition and innovation, as producers seek to meet evolving consumer demands while also respecting the unique characteristics of different wine regions and grape varieties.

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The great thing with the UK industry is that it is a fledgling operation small enough for growth and big enough to allow consumers the right of choice.? So far, the UK has come a long way since the ridicule of the 80’s and all this uncertain future leads to exciting times.?

I know our industry is excited for the future. I just hope our government is!?

Jason Davies

TheGrapeWizard.com ?

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