CEO of Half-Billion-Dollar Wine Business Nails Reason for Wine Industry Problems
There has been no shortage of experts with theories to explain why wine isn't selling or being consumed. One business leader who has seen revenues fall by nearly 75% has a clear answer.
“We’re growing more and more distant from our consumers… We haven’t created products that genuinely meet their needs, or consumption scenarios they enjoy, or delivered emotional value that resonates with them.”
Which wine company Chief Executive had the courage to say these words? The head of Treasury Wine Estates, the Wine Group, Constellation, or a family-owned European producer?
The answer is none of these. The speaker was Sun Jian, General Manager of Changyu, China’s biggest wine producer which, a decade ago was selling some 150m bottles of wine under 700 labels.
Today, however, sales have fallen to just 26% of their peak 2019 figure and, as Mr Sun told shareholders at the end of May, revenues in 2024 alone, dropped by 25% with net profits sliding by 43%. This was the context for his frank admission that the company
