Welcome to Q4 – Let’s Get to Work
In 2023, the wine and spirits industry experienced a decrease in growth.
In the first half of the year, executive recruiting experienced a slowdown as companies postponed new and replacement hiring initiatives. It was no shock that the summer period tends to be a slothful period for business activities. But NOW is the time that organizations restore balance by addressing their objectives and team structure to enter 2024 ahead of the competition!
“We anticipate a notable surge in [hiring] demand come September. This expectation stems from the diminishing concerns of an impending recession and the URGENT need for companies to address the backlog of delayed positions that require filling. This change in sentiment is projected to lead to a substantial increase in the number of approved open positions,” says Gary Erickson of Hunt Scanlon Media.
The number of searches and roles on my desk for Alcoholic Beverage companies and brands has increased 100% since the last week of August!
What Happened to Alcohol?
As a result of the pandemic, alcohol sales went through the roof. Companies had to hire more talent to keep up with demand as well as to stay ahead of their competition. This includes the mass influx of new brands that entered the market over the past 3-4 years.
Yet 2023 was a different story — inflation and an uncertain economy ushered in a climate in which many companies’ org charts were now too robust to be sustained.
SipSource attributed the declines for Q1 2023 to “soft comparables in 2022” and the impact of inflation on consumer spending habits — especially in the on-premise sales. Danny Brager, an expert in Beverage Alcohol industry analysis and former leader of Nielsen’s Beverage Alcohol Practice, noted volume declines spread broadly across mainstream product segments. He noted that it’s likely that the very high growth rate of the category over the last two years has simply caught up with us.
We’re Back, Baby!
Not to fret — Brager’s prediction is that spirits will return to growth as the second half of 2023 will crucially indicate the “trajectory and health of wines and spirits.”
The IWSR‘s recent Drinks Market Analysis predicts that alcohol eCommerce will contribute an extra $10 billion to the sector between 2021 and 2026. Furthermore, it estimates that the RTD value will increase at a Compound Annual Growth Rate (CAGR) of +7% between 2022 and 2026, driven by its convenient packaging.
Next Steps For Wine and Spirits
Strategically analyze your company and assemble an all-star team of leaders. People are the most important part of an organization – don’t you think they’re worth investing in?
After almost seven years with Metro NY’s largest Wine & Spirits distributor, and over five years leading Wine & Spirits recruiting at another executive recruiting agency, I joined Protis Global early this year with twelve years of industry experience and expertise.
I have so much love and passion for with wine and spirits industry and take a consultative approach when leading an executive search. With my trusty team of experts (sincerely awesome people), I want to discuss your company’s hiring needs and land you the best talent to elevate the strength of your brand.
Connect with me on LinkedIn or email me directly to take your talent to the next level.