Report: “U.S. wineries must adjust to a $50 ceiling.” Is whisky to follow?
Decanter magazine reports here about a new study which shows the effect of the current recession on wine prices. One quote from the report says:
Wineries need to adjust to a ‘new normal’ of reduced spending power – among the very consumers who have driven recent growth in the market. For that segment of Baby Boomers who have seen their net worth drastically reduced and who have been the prime target of wine marketing for nearly 20 years, a US$50 bottle of wine is now permanently out of the question for a normal purchase.
It goes on to advise:
wineries to focus more of their marketing on the under-40s, pointing out that those aged 45-54 have seen their net worth fall by 45% over the past five years.
So, this leads me to wonder if the whisky companies will take the same approach to the products they produce and sell. Will we start seeing more lower-priced whiskies on the market? Will they ramp up their marketing efforts to a younger crowd who supposedly haven’t seen their net worth fall so much?
Or is the whisky industry more immune to the recession?