It was long assumed that a love of wine runs in the family. Not so, according to new research conducted by ARENI Global on how young consumers get into fine wine. Pauline Vicard, Executive Director of ARENI, gets into the findings of their new study titled “The New Fine Wine Consumer - How People Under 40 Embrace Fine Wine.” From the shrinking middle class to the motivations of wine collectors to what drives women to embrace fine wine, the research and this conversation are chalk full of insights into how wine can attract the next generation of wine lovers.

Detailed Show Notes:

Fine wine trends (March 2026)

• A trend towards more collaboration and consolidation
• Entering the age of precision distribution, after precision winemaking and viticulture
• Shrinking middle class is shrinking the middle sector of wine
• Some retailers in the UK doing well by changing delivery policy (e.g. - free next day delivery at 1 bottle, new events relevant for new consumers)

New ARENI Study: The New Fine Wine Consumer - How People Under 40 Embrace Fine Wine

• Studied several major markets: Paris, London, NYC, Singapore, Shanghai, & Hong Kong
• Research process: expert led roundtables, questionnaires, & interviews / focus groups with consumers and trade
• Did focus groups in Paris & London of wine student groups (e.g. - LSE, Kings College); LSE’s group is 600 members and do 50 events/year with a £400 budget and 50 students attending each one

Study key insights

• Pool of fine wine drinkers is shrinking; demographics driven (less young people, wealth concentrating)
• Routes that create fine wine consumers (e.g. - tech and banking) are replacing internships w/ AI
• Results very similar across markets (a surprise)
• It’s friends, not family that drive wine interest
• Complexity of what’s not understood and the pursuit of knowledge being worthy and fun drives wine interest
• Visibility and ease of access to wine are important
• Restaurants are still important, but the high cost is an issue

Collectors are different from buyers

• Collectors have a reward system (e.g. - dopamine) from the chase
• Everyone has a genetic disposition to collect, but activated in 30-35% of the US population
• Collecting makes people overbuy, which requires a secondary market
• Reducing prices after en primeur can erode the trust in the reason to collect
• The French have a negative association with being a collector
• Young people often spend ~10-15 hrs/week searching and researching wine when they are collectors
• Differences are bigger between genders than nationality; wine collectors defined when 26-35, when women often start a family or build their career and don’t have the time to collect
• Only men reported a benefit from wine knowledge at work
• Events are a good way to test if people can be engaged with the brand
• Collectors learn about producers not regions (Asia different because certifications are important); want to know which producers, why they are important, and where they can be purchased

To trade up in wine, their community needs to trade up with them

Need to sell a community to drink with, not just the wines

Women historically have less propensity to become collectors

• Often have less access to money and drink 3-4x less than men
• Similar at the beginning (44% of <25 year olds engaged in wine, goes down to 7% around 40); it’s not an interest problem, it’s a conversion problem
• Women overindex in education, events, and the importance of community
• They never ask for a female only space, they don’t mind age or gender, but need to share interests (e.g. - similar spending power and interests)
• Successful events have thoughtful placement to create connections b/w people, including to be seen by interesting people; requires knowing all the people who come

Next for ARENI: restaurants business models and consumer expectations for fine wine and an update on US distribution

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Even though it has been making wine for nearly 5 millenia, Israel is a wine region still finding its way in modern times. Josh Greenstein, Director of the Israeli Wine Producers Association (“IWPA”), is on a mission to promote “Brand Israel,” which is all about new discoveries. From winemaker stories to creating new grape varieties to mimic the descriptions in The Bible, Israel is making its mark on the global wine scene.

Detailed Show Notes:

Josh’s background: 5th generation in the wine business, including NY liquor stores and distribution

Israeli Wine Producers Association overview

• ~40 wineries (of 450 total) are members
• Mission is to promote “Brand Israel”
• Founded by the Herzog family, of importer Royal Wine Corp
• Funded by the wineries and Royal Wine Corp

Israeli wine overview

• Making wine for ~5,000 years
• Wines were exported to the Romans
• Growing Israeli food scene has helped
• Grape varieties: Cabernet Sauvignon, Chardonnay, many others including ancient grapes and new grapes, e.g. - Argaman, a genetically engineered crossing of Carignan and Souzao, designed to have a “crimson” color as referenced in The Bible
• Climate: lots of micro-climates, Mediterranean climate, lots of farming
• Soil types: varied, including volcanic, terra rosa, limestone
• Tends to be tech forward in farming and winemaking practices

Wine consumption in Israel

• Growing, consume most of domestically produced wine
• Big use for religious purposes
• Created wine tourism industry to grow wine knowledge in the country
• US is #1 export market by far, majority in the NE (top markets - NY, NJ, Miami (fastest growing), LA, Chicago, TX); followed by Canada, Europe, South America

Total Wine has an Israeli wine section different from Kosher section

“Brand Israel”

• About discovery, stories of the wineries and something different
• Good QPR
• Connects to multiple religions (e.g. - Easter is a large wine consumption event and Easter is about Israel)
• People often respond saying “Israel makes wine?” (e.g. - at South Beach Food & Wine)

All wines in the group are kosher, but kosher is not the focus, just a beneficial attribute

Judaism has lots of holiday and events with wine integrated (e.g. - Shabbat)

Majority of Israeli wine sales in the US are off-premise, trying to push more on-premise

Israeli politics can go both ways, some people don’t buy and others want to support

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Driven by passion, Erni Loosen, Managing Director of Loosen Bros, has spun up countless joint ventures in his career. All with no business plan or goal of making money, but a greater purpose of driving a Renaissance for Riesling and out of passion for Riesling and Pinot Noir. Erni goes into the qualities that make for good partnerships and some pitfalls to avoid.

Detailed Show Notes:

Erni’s background: Managing Director Loosen Bros, Dr Loosen Estate in Mosel; took over in 1987

Loosen Bros overview & history

• ~200 years in the family
• Only Riesling in the Mosel (Dr Loosen)
• 1996 bought Villa Wolf in Pfalz
• 1999 JV w/ Chateau Ste Michelle (Eroica), largest Riesling producer in US
• 2003 founded Loosen Bros USA in Portland OR as an import company for Loosen wines, then imported other people’s wines; desired to have more flexibility (e.g. - deciding on lower margins due to tariffs)
• 2005 Appassionata (OR Pinot Noir)
• 2009 purchased 40 acres in Willamette Valley, planted vineyards, and built winery
• 2015 JV w/ Telmo Rodriguez (a big Riesling fan) in Rioja w/ Lanzaga
• 2017 1st vintage of JV w/ Peter Barry in Clare Valley Australia to see if Oz Rieslings were always limey; tried 3,000L barrels - Wolta Wolta
• 2019 took full ownership of J Christopher in OR
• Burgundy purchased part of Vieux Chateau de Puligny-Montrachet to start Perron de Mypont and started a negoce
• 2023 founded Dr Loosen Int’l China

A great wine starts w/ an idea in your head

For successful JVs, need the right partners with real passion and the same vision

• Need to see the spirit from the beginning
• Has never had a business plan

JVs are not one way, but learnings on both sides (e.g. - Erni learned how to delay ripening in WA)

• Erni’s goal for JV’s was not making money, but trying to create a Renaissance for Riesling, which used to be the most expensive wine in the world ~1900, but got a low quality image w/ Blue Nun and Liebfraumilch

Most partnerships structured as 50/50 and handshake deals (except Eroica is 40% Loosen, 60% Chateau Ste Michelle, which is also the only contract)

• Key challenge of JVs are when two visions don’t fit, had one that went bankrupt

Would love to do an Alsatian Riesling at some point

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