BEYOND THE CELLAR DOOR
Continuing our series on fine wine investment, Suzanne Denevan-Brown looks at how the fine wine market needs to bridge the gender gap and welcome more female collectors
In our investing series, we have been examining the factors that create a broader, more accessible path to investing in wine. In this article, we investigate the participation of women in wine investment. Evidence suggests that the entry points into this lucrative market – fine wine retail and collections – might be subtly dissuading women from participating.
The investment world, with fine wine as no exception, has long been male-dominated, although a 2020 McKinsey & Co paper already heralded "Women as the next wave of growth in US wealth management." This historical precedent has not only influenced who participates in wine investment but also how women perceive their place within this sector. The echoes of past exclusions reverberate in the present, shaping perceptions and opportunities.
Social networks play a pivotal role. Wine investors were primarily the elite clients of fine wine merchants and auctioneers. These networks were essential for gaining insider knowledge and opportunities. Even today, with the advent of online platforms and global wine investing access, these networks remain critical access points for investors. In 2022, the total auction market for wine was just over $500 million, and the two largest auction houses (Acker, Merrall & Condit and Zachys) are also retailers. Additionally, Berry Bros. & Rudd, a highly esteemed wine merchant in the UK, runs its own “exchange” – enabling collectors to buy over 8,000 wines from one another.
Given the inherently social aspect of wine connoisseurship, it’s unclear if the online platforms for investment will recruit more women into the investment pipeline. Most of the new investment platforms tout welcoming a younger, more global consumer – not necessarily a female one.
The future is female
Women wine drinkers already are a large and profitable client base. Across luxury wine purchases, women identify as the sole decision-maker over 70 percent of the time. Further, at the highest income bands ($500,000+), wine-drinking skews more female than male. And wealth is rapidly shifting toward women, as highlighted by a 2022 research paper by Gallo Luxury Consumer Understanding. In 2020, American women controlled about $11 trillion in assets. That control is estimated to nearly triple to approximately $30 trillion by 2030. A sizable wealth transfer that is nearly equal to the GDP of the US.
TODAY, WOMEN IN THE UNITED STATES CONTROL $10.9 trillion IN assets
Source, McKinsey & Co, 2020
Note: Figures may not sum, because of rounding. Source, Federal Survey of Consumer Finances; $100,000+ in wealth and 25–75 years old; McKinsey analysis; n=9,434 ($100,000+ in investable assets and age 25–75); women n=2,889, men n=6,545
Those who can welcome women by addressing their passion for it as a lifestyle will likely have a competitive advantage in winning this cohort. Women and men share a desire for learning about wine, however women are less confident in defining the wines they already like.
To bridge this gap, there’s a growing need for the fine wine market to evolve its marketing and engagement strategies. The industry must adopt more inclusive practices that recognize and target potential investors across genders. For instance, offering education that addresses women’s interests in building their discernment skills without being patronizing. Additionally, increasing availability of education in categories that have historically welcomed women and correlate to their spending, such as Champagne. Savvy wine retailers and asset managers will grow their business by focusing on capturing the attention of women investors.
WINE INTEREST
Source, Gallo Luxury Consumer Understanding, 2022 fieldwork
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