How AI-powered personalisation is boosting wine sales
Why does this matter?
AI personalization tools like Preferabli are driving measurable commercial results for beverage retailers (higher AOV, conversion, retention), showing BevTech founders proven tech strategies for reducing purchase friction in high-SKU categories.
Highlights
A webinar earlier this month explored how AI-powered personalisation is helping the drinks trade by reducing the uncertainty of buying wine online. The digital event, run by AI-driven drinks software provider Preferabli – and moderated by db – focused on how fast-emerging technology is transforming the way wine is sold, benefiting both retail and hospitality businesses. Opening the discussion, panellist Danny Cooper, chief information and digital officer at Virgin Wines, stressed that such tools are about far more than simple collaborative filtering to make bottle recommendations such as, 'customers who bought this, also bought...' Speaking during the webinar on 10 March, he said that in a category defined by overwhelming choice, relevance is one of the most valuable commercial drivers in online wine sales – so you have to suggest wines that accurately fit with what each customer desires. “When I think of personalisation with regard to what we're trying to achieve in this industry, it is relevance; it's how do you make sure what you're placing in front of your customer is relevant to them? – and I think that for most organisations, relevance is king.” AI-driven systems are tackling this challenge by reducing what Cooper described as the “cognitive load” on the customer. Rather than forcing shoppers to sift through hundreds of SKUs, retailers can present a curated range aligned to individual taste profiles. Without this guidance, he noted, “You're putting that cognitive load on the customer to go through your wine selection… we've got 600 wines and it's very difficult for them to know which one is the right fit.” “So for us, it's really about how do we help consumers make that choice when they're parting with, in some instances, quite serious amounts of money… and using AI seems the most natural fit.” This shift is already having a measurable impact. When customers feel confident in their choices, they are more likely to complete purchases – and to trade up. “Customers are typically spending more when you put better recommendations in front of them than they otherwise would,” Cooper said. “We're seeing bigger average order values, selecting wines that they wouldn't ordinarily have chosen because they have more confidence.” Crucially, he said that this is not about aggressive upselling, but about reassurance – giving customers confidence that a more expensive or unfamiliar wine is still a safe choice. The webinar also addressed concerns that personalisation might limit discovery. However, Cooper argued the opposite is true. New AI tools move beyond basic “similar product” logic, allowing retailers to recommend wines that sit just outside a customer’s usual preferences while still aligning with their palate. Such an approach not only broadens discovery, but can also reduce returns and reliance on discounting. Furthermore, once successful in taking customers in new directions, retailers are likely to see both increased spend and stronger repeat business. Summing up Virgin Wines’ approach, Cooper said: “It doesn't matter whether it's on a mobile app, email or SMS — we want every experience to be tailored much more closely to what you are interested in.” “And we want to do that for two reasons: to drive more sales… but ultimately to retain loyalty.” In short, while AI personalisation in wine is still evolving, its commercial benefits are already becoming clear. These include higher conversion rates through reduced decision friction, increased basket size driven by customer confidence, improved product discovery, and stronger long-term loyalty. At a time of tight margins and intense competition in wine retail, such advantages are becoming increasingly important. There is also a softer benefit. As Cooper noted, many consumers feel intimidated asking for advice in-store. “People don't want to feel embarrassed by the fact that they don't have expertise in wine,” he said. “AI just helps break those barriers down — and does so in a very subtle way.”
The Drinks Business
