Technologies adopted in the wine industry are growing stronger with different innovation. In the next decade, Artificial Intelligence (AI ) has the potential to change the wine industry forever. Right now, AI ‘s applications to the wine industry are minimal – but AI promises to be one of those immersive technology that is integrated in everything we do, one way or another. According to a increasing number of wine experts, AI could have an effect on everything from how we buy wine, how we produce grapes in the vineyard, how we judge wine.
Dream about how the Internet has revolutionized the wine industry over the last two decades. It affects how we learn about wine, how we order and purchase wine online, and how we sell wine to consumers through social media platforms. So, to think of the Internet as a kind of glimpse of coming attractions – as broadly and profoundly as the Internet has had an influence on the wine industry , AI promises to do almost the same.
From using the robot to harvest the grapes for wine are driven by the Artificial intelligence in the wine technology industry.
We see robots as an efficient solution for the future. ‘As well as helping to make the vineyard practice less arduous and mindful of the soil, it would reduce the reliance on fossil fuels and the damage caused by traditional farm machinery
The fast rate of technical progress is expected to have a dramatic impact on the wine industry over the next decade. In some cases , technology will provide solutions to the challenges faced by grape producers and wine makers; in other cases , technology will revolutionize how we do the package, purchase and drink wine.
Let’s have a look at few technological trends that will impact the future of the wine industry.
Delivering the wine using drones
The direct-to – consumer delivery method might be completely disrupted if low-cost drones were able to distribute packages of wine to customers. Distributing the wine and beer on the same day is already the norm in several major urban cities. So using drones to deliver the wines in those area will be a huge shift in terms of delivery. Some wine-growing insiders say that the almost immediate distribution of wine in 30 minutes or less would become the new standard.
Of course, the thought of using drones to transport goods may sound innovative, but keep in mind that Amazon’s mega-retailer already has a concept called Amazon Prime Air that includes flying drones capable of transporting packages of about five pounds (2.2 kilograms).
Wine vending machines with biometric scanner
Think of how convenient it is to buy a can of Coke or Pepsi from a vending machine. But why not wine vending machines? where people first use a biometric scanner (such as a retina scanner) to determine if they are of legal drinking age and then wave their mobile in front of the vending machine to pay for it. Your mobile has already saved all your personal tastes, and a can of your favorite wine can be dispensed within seconds.
Do you trust the recommendation of an AI-powered robot? Bear in mind that users are asking AI voice assistants like Amazon Alexa to help with food and wine pairings today. “Hey, Alexa, what goes well with a juicy steak and a side order of mashed potatoes? “Imagine a futuristic restaurant where you might ask a friendly robot sommelier to appear at your table and help you make the right pick from the wine menu.
Global wine market
The global wine market is expected to rise with a CAGR of 5.8% over the forecast period (2020-2025).
The wine industry is driven by growing demand for wine, due to its health advantages and the advancement of wine products, along with innovation in flavor and more developed delivery networks worldwide.
Changing tastes and new trends among customers, along with growing demand for new and exotic flavours, such as Riesling wine and other tropical fruit wines, are expected to boost the growth of the wine industry.
Asia-Pacific is expected to see fast development in the projected years. This is attributed to a growth in the number of wine-producing firms in China , India and Japan. The increase in demand for premium wines and the increase in westernization both serve as factors driving the growth of the wine market in this region.
The US wine market
The U.S. has been the world’s largest wine market by volume since 2010 and is the fourth largest wine producer in the world. Wine imports to the U.S. from California, other states and international suppliers rose by 0.3 per cent to 406.4 million cases in 2019, with an overall market value of $75.1 billion. California’s 241.5 million cases exported to the U.S. in 2019 constitute 60 percent of the entire U.S. wine industry.
Total exports of sparkling wine and champagne to the U.S. from all sources of supply hit 29.3 million cases in 2019, an improvement of 6.2 percent. Sparkling wines / champagnes accounted for 7 percent of the U.S. wine industry.
The U.S. is the biggest manufacturer and purchaser of alcoholic drinks in North America, with California , Oregon, Washington, and New York among the highest producing states. The U.S. sector runs 11,496 manufacturing establishments, up 6.6 percent from 10,736 in 2015. The industry is fragmented, though, with 50 large corporations accountable for the majority of the market share.
California accounted for about 85 percent of U.S. total production in 2017 with 4,653 establishments in the state. California distributes fine blends to a variety of markets, including imports to the U.S. and exports to nearby countries. According to the Wine Institute, imports from California to the rest of the United States had an overall volume of USD 34.1 billion in 2016.
US exports to global markets, including Canada, the United Kingdom, Hong Kong , Japan and Germany, reached USD 1.62 billion in 2016. California accounted for more than 90% of its export revenues due to the efficiency, range of types, value and environmental stewardship of its alcohol production.
Table wines are regularly consumed by varieties and are primarily sold by out-of-trade distribution due to the low cost of channel-related goods. Chardonnay is the highest selling blend with a 20% share of volume led by Cabernet Sauvignon and other red blends, including pinot grigio / gris, pinot noir, sweet red, Merlot and white zinfandel / blush.
The global wine sector is segmented due to a large number of domestic firms in different countries. The leading players in the industry are Constellation Brands, Treasury Wine Estates and Accolade Wines. These firms have a large market share due to their wide variety of wine prices. As each region has a number of domestic players with a large distribution chain in the country, international players pursuing a higher market share tend to acquire them rather than launching new in the country. New product creation is another approach adopted by firms, as product differentiation tends to expand the customer base.
In order to face the emerging trends and the challenges of the wine industry, which is much more competitive on a global scale, wine-tech start-ups are more focusing on innovation and digitalization. The technological solutions established by start-ups delivers new solutions for exploring, selecting, preserving, drinking or purchasing wine… and therefore provide real opportunities for growth in the sector.
If you are looking for a perfect wine and food pairing, running out of subscription based gift ideas for your loved ones, or simply to stimulate your own holiday seasons, these wine start-ups will help you to find the right one.
Pairing the wine and artificial intelligence connects the technology and the old tradition of producing the wine in a perfect way.
Are you finding it difficult to find out which is the best wine for today’s dinner?
Not a big deal !!
AI powered virtual wine experts are here to help you to make the best decision.
Solution to your problem :
For decades, The wine industry was striving hard to overcome he discomfort associated with selecting the wine. Now technology has broken those discomforts and now customers don’t have to have an conversation with the wine clerks in the store. Instead, you can turn on to the virtual wine experts to pick the right bottle.
There have been many virtual sommeliers available for some time. However, we are now noticing increased artificial intelligence integrated into these solutions, making them both more powerful and more personal.
Wine Ring, located in Syracuse , New York and launched in 2010, offers one of the most personalized variety of wines available. Unlike other applications that give wine recommendations based on pairing advice or expert reviews, Wine Ring makes recommendations based on your individual tastes. This application uses powerful algorithms to create a personal profile based on your wine ranking and then recommends bottles based on your taste profile. The more you drink and rate the wine, The AI and wine recommendations will be equally better
If you’ve got your recommendation from the Wine Ring, you can move your next step to Wine Searcher, a tool for finding and pricing wine (and beer and spirits) through all online markets. Wine Searcher uses artificial intelligence to identify wines, connecting hundreds of thousands of items and tens of thousands of stores to generate wine tips and prices depending on the search words entered. Wine Searcher also incorporates label recognition techniques and builds a chatbot to enhance user engagement with the web.
Vivino is also using label recognition technology similar to wine searcher to help monitor sales of wine. With Vivino, the user simply takes a screenshot of the wine label they are considering and automatically gives the wine ranking, average price and recommendation from the group of 22 million people. The app then monitors which wines you search and score, but does not give recommendations based on your profile at this point in time
Wine technology involves tech-enabled companies focusing on the production , delivery and consumption of wine. This include e-commerce sites, smartphone applications, wired objects and hardware, among others.
The main product of Coravin is, wine preservation opener. It offers countertop devices that allow consumers to access and pour wine out of a bottle without removing the cork. The aim of this method is to avoid oxygen from entering the bottle, making it possible to pour a single glass of wine while holding the bottle airtight and cork-proof. Corvin markets to customers as well as restaurants and wineries, with items ranging from $200 to $500 +
VinoShipper helps clients to streamline the process of selling wine online by offering them with a forum where they can handle both their stakeholders and clients in one spot.
Winc is a direct-to – consumer wine club that provides personalized wine subscription monthly services. New members answer questions online to assess their tastes, and then Winc uses advanced algorithms to align each month with a variety of wines. As members rate every product, Winc refines and enhances its algorithms. Winc ventures with wineries to produce their own wines, varying from $13 to $40 a bottle.
Depending on how much they enjoy and avoid those flavors (salt, citrus, dark coffee …), winc builds a taste profile of each individual person. Taking into account this profile, thanks to big data, the startup, which recently raised $42 million in capital, sends its subscribers an option of four bottles per month which is customized to meet their tastes.
Created by two French sommeliers, Matcha has developed artificial intelligence algorithms targeted at restaurants and supermarkets that give wine recommendations based on consumer tastes and the food that the wines are meant to match.
Knowing the precise date at which the wine will be at its peak is another factor with a major effect on the quality of the wine-drinking experience. But it isn’t as easy as it appears to be. Sublivin, also from France, has come up with an algorithm to solve this problem, capable of predicting when that time will come. The start-up aims to have a “smart wine assistant” to help wine farmers make the most of their crops at the time they market them.
Wine recommendation application and grapeless wines:
There are a wide range of proposals in the subscription and home delivery categories: from KOL’s 24/7 home delivery service (currently available within Paris and nearby areas), which has now earned more than $1.1 million, to Vinebox’s glass-based delivery service of high quality wines, not by bottle.
A variety of wine recommendation applications are also included in the list, such as WineAdvisor, which helps users to check labels to find out more about a bottle, and 9KaCha, a Chinese start-up that uses image recognition techniques to classify wines and encourages users to rate the wines they try.
In addition to digital sales and consumption models, other startups are finding ways of using advanced biotechnologies to increase the production of wine at its source. Ava Winery, located in San Francisco, is seeking an ambitious objective: making wine without grapes. To this end, in its laboratory, the team of eight scientists work together to imitate the hundreds of chemical components that provide the distinctive tastes, scents and textures of wine. This may sound like religious persecution for some wine lovers, but the company is determined to deliver “a historically exclusive quality that anyone can afford.
Finally, there are other start-ups working to introduce the Internet of Things to the wine world , especially tech-enabled systems that provide optimal storage conditions, vital to the proper preservation of wine.
Start-ups such as Caveasy and Cellier Domesticus in France are designing smart wine racks and storage systems that can track factors such as temperature and humidity and make the necessary changes to hold the bottles in the best possible conditions. Caveasy also helps users to set up the program when their rack is not complete enough to alert them. All is about making the wine lover happy!
Online platform for selling wines:
Selling wine online is not easy: a wine lover would communicate with an expert, a wine merchant, for example, to describe to him or her all the character of the bottle. In this way, e-commerce can use the expectations of the consumer to sell the right wine, with a rating system, feedback from other consumers, labels from local wineries.
Wine industry start-ups are offering several Direct-to-consumer and full-service e-commerce platforms to sell wines.
Why to invest in Wine companies ?
Investing in wine technology yield more profits than ever.Once an attractive market, investing the assets in expensive bottles can generate huge profits. (https://www.bloomberg.com/news/articles/2018-07-19/why-the-best-investment-vehicle-is-one-you-can-drink. Buying rare wines is like investing in a start-up: you need a timeline of 10 years to see the significant returns. Although unlike start-ups, wine is a lot more profitable these days.
Investing in wines will:
- Diversify your investment portfolio or type of assets.
- Manage the risk portfolio.
- Combat any changes in the market. (https://www.vinovest.co/blog/investing-in-wine)
Buying and selling fantastic wines and champagnes might seem like a challenging proposition-like investing in whisky.
Also doing market research on wine companies to know where to invest is also a complex task. You cannot depend on completely to do your market research for investment in wines.
Until now, the wine industry could have been reluctant to embrace modern technological advancements. It was a world of tradition and family secrets handed down from generation to generation. Yet all of this is evolving in the modern age. New developments that are now becoming popular have an influence on the world of wine as well.
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