Winecast 61: Michael Wangbickler and what comes next for wine

Michael Wangbickler: The pandemic exposed a lot of a weaknesses in the wine business

Michael Wangbickler, who runs Napa’s Balzac Communications, is one of the most clear-eyed people in the wine business — no wishful thinking, no this is going to happen because we want it to, no rose-colored glasses. This is one reason why Balzac is one of the premier marketing companies in the wine business. So who else better to talk to about what comes next for wine in the post-pandemic, young people aren’t interested, and hard seltzer days we’re in?

I’ve known Mike for years; he was one of the people who made Drink Local Wine work when we changed the way the world thought about regional wine. And yes, I’m jealous of his beard. We talk about it, as well as the future of wine marketing and wine criticism, on Mike’s “Hit the Bottle” podcast — complete with production effects. It focuses on trends in the wine business, so our discussion is quite detailed for those of you so inclined. And, not surprisingly, I am critical of the Winestream Media.

In this podcast, we talked about the changes on the way for wine, good and bad. Plus, we learn I didn’t drink when I turned 18:

• The pandemic did spur innovation among many producers, who recognized they couldn’t sell wine the same way they had for years. For one thing, many have 21st century websites in the 21st century.

• Direct to consumer — buying directly from wineries — will continue to grow, and despite the legal difficulties. Mike thinks it’s one of the few ways smaller producers can replace the business they lost when restaurants shut down for a year. And he’s not optimistic about the return of the restaurant wine business.

• He also isn’t optimistic about big changes in three-tier, despite reforms made during the pandemic. Change will come gradually, depending on the political climate in each state. That has much to do with the biggest producers and the biggest wholesalers, who have the political clout to prevent wholesale changes.

• Don’t expect a wine boom coming out of the pandemic. People were drinking less before the pandemic, so why would they drink more now? Premiumization, though, will continue — younger consumers drinking more expensive wine as they drink less. They’re also going to drink so-called “healthy” wine — Mike thinks that’s a key trend.

Click here to download or stream the podcast, which is about 15 1/2 minutes long and takes up about 10 megabytes. Quality is excellent — have I finally figured out Zoom?