Wine Industry Lags 15 Years Behind in Tech Adoption, Experts Warn at DB Conference

Wine retailers who fail to modernize their technology and embrace digital transformation are facing a difficult future, according to industry leaders who spoke at the recent DB Conference. Danny Cooper, who joined Virgin Wines as chief information and digital officer in July 2024, said the drinks industry is “way behind the rest of the e-commerce market” in adopting new technology. Cooper, whose background includes roles at meal kit retailer Gousto and online fashion retailer Net-A-Porter, said he was surprised by how far behind the wine sector is compared to other industries.

Cooper pointed out that while other sectors have developed advanced mobile shopping apps and sophisticated data analytics, the drinks industry has not kept pace. He recalled launching a mobile shopping app for Net-A-Porter 15 years ago and said he has yet to see a comparable app in the wine sector. He argued that wine retail is “massively behind” in using data insights and understanding consumer behavior.

Not all wine retailers are lagging. Karen Coates, chief operating officer of The Wine Society, said her company has undergone a significant transformation over the past five years by focusing on data. She explained that analyzing customer data has changed how The Wine Society interacts with its members, tailoring communication to different age groups and preferences. Older members still prefer printed information, while younger customers are more engaged through social media. Coates emphasized that “one size does not fit all” and that technology is helping to provide better customer care.

Charles Waud, managing director of Waud Wines, said social platforms have become a key sales channel for his business. He noted that WhatsApp has been particularly effective for reaching customers, as people are constantly checking their phones. Waud also highlighted the growing role of artificial intelligence in wine retail, saying he has been impressed by its effectiveness in certain areas.

Cooper stressed that technology should not be adopted just for its own sake. He said the focus must remain on improving the customer experience, maintaining strong brand values, and connecting with customers in meaningful ways. He warned that businesses that ignore these changes risk falling behind as consumer behaviors evolve.

The Wine Society is exploring how AI can enhance its relationship with members without making the experience impersonal. Coates said the goal is to use technology to create an “additive experience” that strengthens the personal connection with customers.

Jonny Inglis, co-founder of Winedrops, agreed that improving the customer experience should be at the center of any retailer’s use of technology. He said effective social media marketing starts with understanding the customer’s needs and building creative campaigns around those insights.

Cooper acknowledged that investing in technology can be expensive, especially for smaller businesses. However, he warned that the future is approaching quickly and that customers will soon expect to use AI agents to find and purchase wine, rather than searching manually online. He said supermarkets, with their greater resources, are likely to lead this shift, putting smaller wine retailers at risk if they do not adapt.

Cooper concluded that the wine industry must recognize the need to modernize and accept that consumer behaviors are changing. Without significant investment in technology and a focus on customer experience, many wine retailers could find themselves left behind as the market evolves.