Wine Growers May Need to Think More about the Prices of Their Products

American Farmland Owner has been exploring the reasons that wine grape growers have been suffering along with the overall alcoholic beverage industry. Much of the decline in consumption of alcohol has been blamed on changing consumer trends, especially with younger consumers.

There have been numerous reports about how people socialize differently since the onslaught of the COVID-19 pandemic. Other reports point to Americans’ greater focus on health and wellness following heightened concerns about the country’s rising rate of obesity and other chronic diseases.

That newfound focus on health has led millions of Americans to try GLP-1 weight loss medications, which suppress hunger and convince users to better prioritize which food and beverages they consume for their more limited caloric intake.

Food Dive featured a new report by Deloitte, one of the world’s “Big 4” accounting firms which also advises companies on research and strategy, showed that the price of alcoholic beverages could also be a factor in decreased consumption.

The firm found that “value-seeking” consumers have been especially focused on reducing their spending on alcohol. The company considers about 4 in 10 shoppers in this category and reported that these consumers reduced their spending on alcohol for home consumption by 20-40% compared to other groups.

They look for even greater reductions when they are dining out and report cutting their spending on alcoholic purchases in half.

The “value seekers” are not just those with lower incomes. Deloitte reported that nearly 25% of households earning more than $200,000 considered themselves in that category, a potential warning for the wine industry as it seeks way to entice consumers.

RELATED: This is how current political decisions may have contributed to expected delays in lower borrowing rates and may cause the Fed to increase rates later this year.

What is a ‘daycap?’

Food & Wine reported on a trend that it said has surfaced with younger consumers, including those who drink wine. More people report drinking earlier in the day as they shift their consumption.

“This late-afternoon moment has been dubbed the ‘daycap,’ a reference to its late-night counterpart the ‘nightcap.’ In addition to cracking a can of beer before the sun sets, consumers are increasingly going home earlier, ordering lower-alcohol drinks, and being purposeful with their drink decisions. A trend toward drinking earlier in the day has been tied most closely to Gen Z, though it’s a movement that extends beyond just one generation,” Food & Wine reported.

Can the wine industry tap into the “daycap” trend?

The wine industry is part of the professional life of Alan N. Greenspan, who serves as the Executive Vice President and Chief Legal and Compliance Officer for Southern Glazer's Wine & Spirits. The company is the largest wholesale wine and spirits distributor in North America.

But the financial industry had been the longtime focus of another American named Alan Greenspan.

Alan Greenspan dead at the age of 100

The latter Greenspan chaired the Federal Reserve for 18 years, the second longest tenure of anyone in history. Greenspan served under four presidents – both Democrat and Republican – during his time in the position. He died at the age of 100 on Monday.

--NBC News reflected on Greenspan’s influence in becoming one of the world’s premier financial voices for years.

--Bloomberg News followed his famous line of “irrational exuberance” to how he responded to the 2008 Great Recession.

--The Atlantic looked at what could be current threats to diminish the Fed’s long-cherished independence from political influence.

--Reuters examined how current Fed Chair Kevin Warsh may follow some of Greenspan’s priorities.

RELATED: Fed policy can divide people who have different political or fiscal policy priorities. This industry leader tries to unite people over the potential of this form of energy production.