The path to a profitable business in the wine world begins with a clear definition of the business model. Will it be a boutique winery, an online wine shop, or a wine tourism experience? However, Defining the niche and the target audience is something as obvious as it is rare in the industry.
And this first step towards differentiation is key in a competitive and completely atomized market. Figures from the National Institute of Viticulture show that domestic consumption has remained relatively stable in recent years, with more than 800 million liters annually, but diversification is key to capturing different consumer segments.
The need for professionalization, a pending issue
Once the business model has been defined, professionalizing the project is the next crucial step. This is where business management tools such as financial analysis, resource planning and the implementation of digital marketing strategies come into play. It is essential not to lose sight of the fact that, although wine is a passion, the wine business requires efficient management.
And perhaps this is where the biggest doubt lies: many of the projects arise motivated by the hobby but lack the technical elements that allow them to be profitable. This is the common point that we found 11 years ago at BRAGA Academia – marianobraga.com where we train the largest community of Spanish-speaking wine professionals.
An omnichannel strategy
According to a study by Wines of Argentina, wineries that adopted digital strategies experienced a 35% growth in online sales in 2022, demonstrating the importance of being present in the digital world.
These tools are still little explored in retail businesses, especially outside of large cities, where many entrepreneurs remain tied to physical space and local customers, without understanding the enormous potential that lies before them today.
On the other hand, developing a brand is essential. This does not only involve investing in design but, perhaps more importantly, the story behind it. Putting together a different offer and escaping the idea of competing on price, where every small and medium-sized player plays a game that inevitably leads to losing.
Change, the constant
There are few other industries that are more changing than the wine industry, and so business setup must necessarily be based on innovation. From learning international benchmarks in a winery to exploring new retail sales channels, such as e-commerce platforms (which saw a 50% increase in wine sales during pandemic times), it is essential to stay ahead of the curve.
So, yes. Turning a passion for wine into a profitable business is possible, although not probable. There are a huge number of success stories, but they are not the majority. To achieve this, a comprehensive approach is required that combines solid strategy, professionalism and, above all, action.
In a constantly evolving market, only those who can balance their passion for wine with a clear business vision will be positioned to achieve success.
Sommelier, chosen by The International Wine And Spirit Competition (IWSC) among the most influential wine communicators. Director of BRAGA Academia
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
