XChateau - Navigating the Business of Wine

Making wine in California, France, and even Serbia, consulting winemaker Julien Fayard has a broad view of the winemaking world. His constant monitoring, evaluation, and investment in winemaking technology benefit both his own and his clients' wineries. Julien offers insight into winemaking technology on both sides of the Atlantic, as well as some of the specific technologies he utilizes. Detailed Show Notes: Julien's background: French, came to the US in 2006 and worked for Phillipe Melka, started his consulting practice in 2013, built two wineries and manages three others; mostly Napa (~85%), but also makes wine from Sonoma, Sierra Foothills, Provence, Bordeaux, and SerbiaUses trial & error to evaluate new winemaking technologyUsually, a trigger that causes each tech adoptionHears about new tech from travel and conversations with other wineries and tech companiesFrench tech is mostly involved with wine contact (e.g., yeast, oak treatment), the US is mostly logistics, mechanization, automation of labor, and CA is slow to mechanize vineyard workMonitors the slowly evolving knowledge base in winemaking - most tech innovations are slight derivatives of existing knowledge (e.g., sulfur automation)To buy into a new tech: other people using it, company viability (and ability to scale), practicality of solution (e.g., barrel door for fermentation did not take into consideration time and the challenge to move between barrels)ROI calculation includes cost savings, risk assessments, and quantity or quality improvementsGenerally does not implement things that could move costs more than 10-20%The most significant variable cost driver is when volume drops (e.g., waste, accidents, filtering, bulking out wine) - each tank is ~$100k of wineFruition Sciences did a lot of sap flow analysis, but never got mass adoptionWell monitoring technology is happening, and may be required soonCommunications modules for sensors are getting much cheaper, enabling more techVinwizard (NZ) - wall winery automationStarted with pumpover automation (temp, speed)Can control to avoid peak energy hoursCan set times for tanks to make temp-sensitive additions easierAlarms for glycol system outagesArkenstone was 1st Napa winery to adopt, learned from them, a solution more complete than TankNetMin ~$50k costInnovint - winery SW management systemCreates all work orders, does costing, compliance, and traceabilityClients, CPAs, and compliance can see everythingA communication tool, very user-friendlySentia - hand wine analyzer (VA, malic, alcohol, SO2)$2k/machine

Exactly five years ago, Robert and Peter published the first episode of XChateau! To help us reflect on how the wine market has changed in the last five years, XChateau's most frequent guests, Amanda McCrossin and Charlie Fu, return to discuss the changes in wine influencing and social media, the wine market upheaval occurring now, wine marketing done right, and wine drinking trends. Detailed Show Notes: Changes to being an influencerAM: did not think TikTok would be big for wine in 2020, built it up in 2021, and created more “snackable content” (

Spraying for powdery mildew can be ~25% of the cost of farming a vineyard and be one of the key elements of a grower's carbon footprint. Sarah Placella, Founder and CEO of Root Applied Sciences, has taken her deep research in microbes and created a data-driven solution to monitor the air for mildew and spray only when needed. Root can cut ~5 sprays per season, and growers have an average 5x ROI using the system.  Detailed Show Notes: Root Applied Sciences (“Root”) - airborne pathogen monitoring for farmers, like an “early warning system”Founded in 2018, 1st work with/ growers in 2021Powdery mildew (“PM”) is a big problem for vineyards in CA (March - August)Currently only markets to vineyards, done work with/ strawberries, leafy greens, can do anything with/ DNA and small insectsNapa, Sonoma, Central Coast todayHW enabled SaaS model - Root owns and maintains devicesDevice in the field, just above the canopySend data (battery status, device status, temp, humidity) to the cloud over LTEM connectionSW to see the dataThe grower collects samples from devices 2x/week and sends them to the labGrowers can share data with/ each otherHas an automated prototype in processWill not need a grower to collect and send samplesFundraising “seed” round for an automated system~25% of operational costs are spent managing PM6-16 pesticide applications/seasonConventional growers have fewer applications, but spend more for each oneOrganic may be spraying every weekPM takes 7-10 days to enter plants. See 2 peaks of PM before growers can see it, once PM exists, it's hard to controlRoot can cut 20-80% of sprays (~5 sprays/season), lengthens spray intervals when low risk~$100/acre spray cost per application, ~$300/acre if need to spray by hand (e.g., steep slopes)2024 - saw PM on Mar 29 in Carneros, growers planned 1st spray 4/16, moved up 1st spray to 4/2; cut sprays and more clean fruitRoot data enables more biological sprays (have shorter efficacy windows, are more environmentally friendly, and data gives more confidence to try them)Other benefits of RootClean fruit - faster fermentation (5 days faster), higher quality, possible increase in yieldsEnvironmental (less sprays, tractor use) - less diesel use, lower soil compaction; for 1 grower, 1 spray is a 13% reduction in carbon footprintFarmworker health - fewer chemicals in the airPricing$3,000/season/monitoring station all-inAvg grower has 4 stations, 1 every ~30-50 acresPrecision growers or rolling hills, 1 station every ~10 acres~5x ROIBarriers to adoptionRisk aversionNo access to a carrier to send samplesGrape prices down (budgets)More adaptive sprays can make operational scheduling harder for vineyard management companiesOther PM solutions“Spray and pray” (~90% of growers) - calendar-based systemWeather-based tools don't work well and may be impacted by climate changeSpore trapping tools (e.g., spinning rods, roto rods) have sticky material that reduces sample size and efficacy, UV light exposure degrades PMImage-based analysis (new) - lots of data to send, samples ~2L air/min vs 400L air/min Root, does not specify type of PM present (~40 types)Product roadmap - more power efficiency, integrating a solar panelHas done work with/ downy mildew, botrytis, vine mealybug, and can detect them, but does not add a lot of valueExcited about growth in microbial mildewcides (biologicals) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With over 1,000 kosher wines from across all major winegrowing regions, Royal Wine is the largest importer (and producer and distributor) of kosher wine in the world. Gabe Geller, Director of PR & Wine Education, discusses the market for kosher wine, how and where it is made, and how Orthodox Jews hear about them.Detailed Show Notes: Gabe's background, at Royal Wine >9 years, wine industry for 16 years (retail, consulting, marketing)Royal Wine - world's leading importer, producer, distributor of kosher wineIn US, carries >1,000 kosher wines from every major wine producing regionOwns Kedem, Herzog, and other brandsCan't taste kosher wine, similar to other winesProduced only by Sabbath observant JewsNo non-kosher ingredients or processing agents (e.g. - fining agents)Has kosher certification on the bottleMevushal (“boiled”) - for some kosher wines, uses flash pasteurization which is also used by some non-kosher wineries; tend to taste more approachable initially, but ages longerIsrael #1 producer of kosher wine (~5M cases), USA (~350k cases; mostly Herzog), France (~350k cases across many wineries)Kosher wine marketObservant Jews drink kosher wine year-roundJews use wine in almost every religious ceremony, considered the “holy beverage”Passover 1st night dinner (Seder), every adult is required to drink 4 cups of wine (can by any kosher wine or grape juice), each cup symbolizes 1 way God saved Jews from slaveryJews who don't do kosher normally will for Seder40% of kosher wine in the US is purchased for Passover (used to be 60%, declining as more quality kosher wines available, so more is being bought year-round)Top markets - Israel, US (NY/NJ #1, FL, CA - CA Jews drink less wine than East Coast Jews), FranceIn top kosher markets, large retailers (e.g. - Total Wine) will have a kosher selection, some kosher wine stores, and online retailers (e.g. - Wine.com) also carry kosherOf the 15.7M Jewish people (2023), only a small portion keep kosherSome kosher wines sold to the general market (e.g. - Bartenura Moscato #1 imported Moscato the past 15 years, most don't know it's kosher; Jeunesse semi-dry wines have a distinct consumer appeal)Israeli politics / Gaza war have lead to people buying more to support IsraelMarketing to the Orthodox communityIdentify sects with stricter mevushal rules (e.g. - 101F vs 105F) and promote specific brands that meet thosePrint advertising big (English, Yiddish), many do not use as much internet, none on Sabbath, take in news via printWhatsapp #1 social media for Orthodox Jews (or Telegram) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Though one of the oldest wine-growing regions in the world, Israel is still exploring its potential after Muslim rule after World War I. Victor Schoenfeld, Head Winemaker, and Walter Whyte, VP of Sales for Yarden Imports, explain how Golan Heights Winery has set the bar for the quality of Israeli wine and spreads its wines globally, both within the Jewish community and beyond.  Detailed Show Notes: Victor Schoenfeld - CA native, went to UC Davis, recruited to Golan Heights Winery in 1991Walter Whyte - managed officers' clubs in the military and learned about wineGolan Heights Winery (“GH”) backgroundFounded 1983 to export wine of high quality26% exported today (production to increase 30%, primarily for export)NE Israel, Syrian border, 33rd parallel (like San Diego)Volcanic plateau, Mediterranean climate, high elevation (1,200-4,000 ft)19 varietals, known for traditional method sparkling, Yarden CabernetZelma Long, former consultantPrice points range from $15 (Mt Hermon) - Yarden Cab ($50) - $80+ - $1,000 (Cru Elite)Manage 40% of vineyards (to increase), rest on long-term contracts500 vineyard blocks, harvested & vinified separatelyHas two propagation vineyards and a nurseryIsraeli wine historyJournal of Science (2023) - identified two winegrape domestication events 11,000 years ago - Caucasus (Georgia) and Western Asia (Israel)Discovered ~30 ancient wine artifactsGolan Heights is the coolest climate region in IsraelMuslim rule 738 - WWI - old varieties died outIsraeli war impactsMinimal grape growing impacts (1 missile fell on vineyard), but emotionally challengingSupport in the US for Israeli wine, reduction in sales in Europe after Oct 7, 2023 eventsIsraeli wine marketGH demand > supply in IsraelPer capita consumption is low; a large segment does not drink due to religionThe food scene has exploded in the last 20 years, but many restaurants do not serve Israeli wineTop 5 markets - US, Canada, Europe, Far East (Japan)Top US markets - NY, NJ, CT, FL, TX, IL, CAHistorically, wines went to religious markets, expanding into secularinternationally marketed as high quality, not as kosher; Angelo Gaja distributes in ItalyDifferentiating GH“Oldest new world winery in existence”Marketing messages: World-class wine, kosher, then from IsraelHigh elevation, volcanic soils on 33rd parallel (Etna is 37th)MarketingGrass roots, get people to taste the wineActive in Jewish organizations, ads in Jewish publications, tasting events sponsored by Jewish groupsStrong presence in Kosher wine storesAll GH wines are kosher2 types - Mevushal (cooked/pasteurized) - required for some, esp Kosher restaurants (catering, weddings, bar mitzvahs); Non-mevushalMany wineries do bothEverything used in winemaking needs to be certified kosher (e.g., yeast)Can't use things like isinglassGH's whole facility is kosher“Could double business if made mevushal,” but will not to maintain qualityFood and wine pairing is not typical. Traditional Middle Eastern cuisine, “mezze,” has a lot of different flavors at oncePassover dinner is coursed, and every adult must drink four glasses of wine (or grape juice)Yarden Cru Elite - $2,000 per pair265 pairs related, including NFT, sold directly from wineryCelebrate the 40th anniversary with collectorsCabernet Sauvignon, single vineyard, single block, two single barrelsLaunched at an Israeli restaurant in Singapore Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Tracking vine trunk movements down to the 0.5-micron level, Phytech is leveraging technology to optimize vine irrigation. Cody Ashurst, Director of Vineyards, and Lex Palmer, Marketing Manager, discuss how their solution optimizes and automates irrigation today and how it can be extended to optimize fertilization, harvest dates, and much more. Detailed Show Notes: Phytech - a global SaaS company that optimizes agricultural irrigationTechnology includes dendrometers, irrigation pressure switches, soil moisture probes, and frost & weather stationsCrops include nuts (biggest), citrus, pears, getting into row cropsVineyard solution primarily West Coast / CA, pursuing Portugal, Spain, Italy, Chile, Mexico, TexasDendrometer - digital devices mounted onto vine or tree, measures expansion and contraction of plant trunks at the 0.5-micron level (70 microns = 1 human hair)Vineyard solution includes a dendrometer, soil probe, website, and mobile app with wireless comms and data loggers connected via cellular, satellite, or wifiThe solution can be adjusted based on the type of farming (e.g., quality or quantity), rootstocks, clones, soil typesTracks trunk size and soil moisture to signal irrigation needsOptional: pump/value control for irrigationCan schedule up to 2 weeks of irrigationCan monitor fertilizer inputs (cost of fertilizer up 600% last 5 years)Benefits:Don't promise water savings, but see up to 60% less water useImprove quality by knowing when veraison happens and when vines stop growing or are stallingOptimize fertilizer, diesel, and electric pump costsReduce labor for irrigation if automatedThe system logs data, enabling knowledge transfer when people leaveCase study: High-end Napa vintner got WE94 points 1st vintage, then used Phytech in a heat wave year and got WE97 w/ tailored post-veraison irrigation; other growers had a 30% loss, the winery had a 3% lossCase study: one ranch was expecting a 50% loss, but down to 3% with irrigation changesPricing - depends on # of sites in a blockThere is a small upfront fee for installationMonthly SaaS fee (~$50-80/acre/year), includes maintenanceWeather station ~$700/year (vs ~$3,500 to buy)Case studies (videos on website)Ultra premium Napa winery NeotempoLarger Mendocino grower Bonterra Marketing most through word of mouth/referralsDigital media, video testimonials, trade shows & panelsVideo in digital media has been the most valuableConnecting 1:1 is very helpfulPhytech is more holistic than other solutionsThe most significant barrier to adoption is technophobiaThe subscription-based model eliminates “tech graveyard” growers haveProduct roadmapPredictive brix/pH model (growers input brix, system tracks weather, vine response) to predict harvest date by blockGDD (growing degree days) monitoring tracking temperature and humidity in the field at the block levelAI Advisor to look at past data and current practices and enable recommendationsOther exciting innovations - Autonomous spraying and tractors (Guss, Monarch), optical arrays for vine health (Scout), microalgae for soil health (MyLand) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

After struggling with tracking vineyard data firsthand, Shawn DeMartino, CEO and Founder of Sentinel, decided to create a solution with his partner. Enabling vine by vine mapping and data collection that could stand the test of time enables vineyard managers to increase the lifespan of a vineyard, manage viruses, and effectively create a “medical record” for each individual vine.  Detailed Show Notes: Shawn's background - winemaking, viticulture, now general managementSentinel was a Covid project that became real, software that collects individual vine information over time“Patient medical system of record for vines”The solution includes a mobile app, desktop platform, and high-accuracy GPS (receivers that clip onto phones)Maps all the vines in the fieldConfigurable data collection formsAvailable in 5 countries currentlyMapping the vineyardCreate a 3D model with lat/long and elevationBasics (variety, clone), images, comments, discrete statuses (e.g., life stage, virus status)The vineyard mgmt team populates data, can walk up the vines and recordWork with/ Sentinel to put in bulk metadata (e.g., block info, varietal)A client mapped 100 acres in 1 weekWork order functionE.g., irrigation can be recordedRoguing, planting, and grafted statuses can auto-update when the work order is completedCore benefitsExtend the life of the vineyardsVirus/disease management, see the program more clearly, identify asymptomatic vines in hot spots (case study: ~10% of vines asymptomatic) Optimize pick areas (through mapping flavor profiles)PricingMostly software, hardware costs smallAnnual subscription based on acres, not users (

With the recent launch of a new $300 retail icon wine, Boulder, Kaiken continues to explore the potential for luxury wines from Argentina. Building on the last 15 years of Kaiken's other icon wine, Mai, Anita Correas, Commercial Director, and Gustavo Hormann, Director of Winemaking, discuss the global market for luxury Argentinian wines, how they approach launching them, and the brand-building impacts for the Kaiken brand.  Detailed Show Notes: Kaiken backgroundFounded in 2002 by Aurelio Montes (Chile)"Kaiken" is the name of a wild goose that crosses between Chile & ArgentinaExports to 60 countriesWinery in Vistalba, Mendoza (28ha), vineyards in Agrelo (60ha) & Los Chacayes, Uco Valley (150ha)60% on-premiseFrances Mallmann restaurant at the wineryRecently launched new luxury tier/icon wine - "Boulder"$300 retail price, 3,700 bottlesDeveloped over the last 10 yearsUnique 3ha block in Los Chacayes due to overflow of Arroyo Grande, full of big rocks/bouldersMalbec (64%), Cabernet Franc (28%), Petit Verdot (8%)Boulder launch planLaunched in Buenos Aires, Hong Kong, Korea, Brazil (São Paulo, Argentina's #2 export country), USBrazil's event had a more direct impact on salesMostly press/trade events that are smaller, in-personLikely less on-premise than Kaiken overall, more hand-selling to collectors and Michelin Star restaurantsVR w/ Google Glass to see the vineyard up close and go inside the soil has gotten positive feedback, but it is more expensive than a regular video (required 3 days of video shoots and a special camera)Mai - prior icon wine$100 retail price, 12,000 bottlesLaunched in 2009 from a 120-year-old vineyardMarketing more "maintenance" now2021 - redesigned packaging, got 98 pts and Top 100 from SucklingPrimarily sold in Argentina, then UK, US, Brazil, Japan70% of Argentinean wine is consumed domestically, delaying the need for exportsAverage export ~40% higher price than Chile (export-focused market, ½ the population, 2x wine production vs Argentina)More high-end wineries in Argentina vs ~5 in Chile>$100 market for Argentine wine - "not a huge market"Big domestic market - much of Mai, Boulder sold domesticallyConsumers looking at super high-end often do not look at the country of origin but more at the concept of the wineValue Prop for Argentine luxury wine - not influenced by oceans, high altitude, dessert wines, driven by the AndesReturn on Boulder is more than sales, but brand building for KaikenFocused on relationships with importersWant long-term relationships as they represent the brand globallyReach collectors through import partnersHas affiliated importer in ArgentinaMontes relationshipWas helpful on launch to piggyback on Montes brandNow Kaiken is more independent and only shares importers in a few countries (it used to have the same ones)Kaiken Ultra ($26) awarded Wine Spectator Top 100 (#30, highest Argentine wine)Wine drinkers can graduate from Ultra to Mai and othersKaiken's focus for each range of wines is to over-deliver for the price point vs linking the winesGood press in 2024 for Kaiken - #1 New World Winery from Sommelier Awards, Boulder rated best Argentinian red blend by Patricio Tapai (wine critic), Estate Malbec was Wine Spectator's best value wine Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With many macro headwinds for the wine world, Gino Colangelo, founder of Colangelo PR, felt the negative and often poorly fact-checked press around alcohol and health posed an existential threat. Teaming with Karen McNeil of The Wine Bible and fellow PR leader Kimberly Charles, they founded Come Over October, a campaign to create a positive narrative around wine. With freely available media assets and over 120 partners, the movement, in its first stretch, has shown the power of focusing on the positive elements of wine.  Detailed Show Notes: Macro wine challenges include marijuana, Ozempic, and RTDs, but “no alcohol is healthy” messages from WHO and other gov't organizations potentially pose an existential threat to the industryCome Over October (“COO”) foundingCampaign to advocate for wineCommission research - 60%+ 21-39-year-olds would change consumption if alcohol health guidelines changed, 60%+ participate in Dry January or Sober October (which equates to 17% of the year)Karen McNeil, writer of The Wine Bible, got backlash over post against Dry January and ideated Come Over OctoberKimberly Charles, owner of an SF wine PR firm, joined as co-founderStarted the company in spring 2024 (Come Together, a Community for Wine) as a mission-driven company to advocate for wineFundamental principlesHad to reach consumersNo negativity towards other alcoholic beveragesInvolve everyone in the wine worldThe goal for success: turning the narrative around wine positive (e.g., more articles on the social benefits of wine)Measured by impressions of negative vs. positive articles about wineIn a battle for hearts and minds vs just getting the facts rightAsked for two things from partnersModest check - $1-10k to pay for campaign, website, social media, media asset creationActivation - use campaign assets (free to all) to run a COO campaignExample activationsTotal Wine - in-store signage, direct marketing, social media postsConstellation Brands - bought in-store radio ads for 800 Kroger stores under the COO banner (promoting Kim Crawford, Meiomi, & The Prisoner with Karen McNeil doing voiceover) and reversed negative sales trends in storesJackson Family - free tasting, events, cash support for COOCampaign success metrics120 companies participated>1,000 retail stores engaged (e.g., Kroger, Total Wine, Gary's)~$100k donated media (e.g., Wine Enthusiast, Vinepair, Wine Spectator)Next Campaign - Spring 2025Focus on the food messageDifferentiate wine as food vs alcoholContinue togetherness messageBring in chefs, restaurantsThen roll back into OctoberWould like to hire a Director to run the companyHealth debateLoneliness epidemic - 30% of males don't have close friendsWine has a unique ability for positive wellness in bringing people togetherDoes the industry need a positive health message/research to turn things around truly? (e.g. - wine → better relationships / friendships → stress reduction → better health)60 Minutes show on The French Paradox (1991) changed the wine world and led to 30+ years of growthNot yet seeing health impacts of marijuana usage as it has only been legal recentlyContact info: info@comeoveroctober.com or gcolangelo@colangelopr.com Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With a second year of volume declines, 2024 has been challenging for the wine industry. Digging deeper into what trends are shaping the wine industry's malaise, Cathy and Chris Huyghe, founders of sales analytics software platform Enolytics, have uncovered important insights into the US DTC wine market, including the decline of women and the divide between the affluent and middle class in wine purchasing. Enolytics has also developed a free service for the industry called EnoInsights, which is worth checking out.  Detailed Show Notes: Enolytics launched b/c no one in wine knew what to do with their data Builds sales analytics software for the wine & spirits industry for both DTC and wholesale depletion dataCustomers primarily small (

Having “taught a computer how to taste” and using that data to help winemakers improve their processes, Tastry has turned to leveraging AI and their consumer preferences and wine chemistry databases to help wineries sell wine.  Katerina Axelsson, CEO, and Charles Slocum, Chief Business Officer, discuss Tastry's Sales Accelerator Ecosystem, which includes the Wine & Consumer Insights Report, which gives wineries, distributors, and retailers tools to help them sell more wine.  Tastry has provided an example report for listeners. Detailed Show Notes: Tastry overview - see Ep 157 for a deeper diveTagline - “taught a computer how to taste”It has two unique data sets - wine chemistry, US consumer taste preferencesHelps improve winemaking, predict and react to changing consumer preferencesWorks with wineries, retailers, and distributorsTastry commercialization history1st 2 years - establish trust with winemakersLast year - focus on helping sell winesSales Accelerator EcosystemTakes data from 3 areas (winery input metadata, wine chemistry, Tasty validated wine market data) to feed accelerator (AI system)Consists of Wine & Consumer Insights (“WCI”) report, Sales Accelerator platform app, & integrations into other platforms (e.g., e-RNDC)Has AI search and chat functionalitySalespeople use data to sell to on/off-premise accountsSometimes, consumer-facing in-retailer displaysWCI - 2-page report to help sell winesUsed to train salespeople, it can be a leave-behindP1 - for the category buyer; P2 - for servers, staff to educate themWCI Components: Top left - bottle shot, label zoom in (helps for retention); name of wine; varietal; appellation; price (what it is actually sold for in the market); wine category (AI curates category to be highest scoring on Tastry score)Category Score - 200 point scale, 100 is average for the categoryNot a critic score>100 is better than the average,

With 600 acres, a polo field, a lake dock, and even a zebra and camel onsite, the Folded Hills Winery and Farmstead in Santa Barbara is able to create unique and memorable experiences. Kim Busch, Founder and Co-Owner, and Kylie Enholm, Director of Operations, discuss how they bring this vision to life through the platform of Rhone varietal wines. From hiring for the “hospitality gene” to having a full-time events manager, Folded Hills is creating memories they hope to get people to tell their friends and add to their wine club program. Detailed Show NotesFolded Hills founding - intended to grow and sell grapes, vineyard manager convinced the Busch's to start a label, Folded Hills ties into family historyHeritage labels - e.g., Lilly Rose after Lilly Anheuser (grandmother)Photo labels (reserves) - mostly from photos the Busch's took themselvesFolded Hills overview600 total acres for Homestead, Farmstead, private ranchSouthernmost winery in Central Coast, right off 101The urban tasting room in Montecito, Homestead (winery tasting room), and Farmstead at the wineryRhone varietals (Grenache, Syrah, Clairette Blanche, Marsanne, Grenache Blanc)~5k cases/year98% DTC, would like to increase wholesale to 10% for more exposureHas its own polo fieldVisitation~8-10k visitors/year total~2.5k in Montecito (more club members, a “Cheers” vibe), rest at HomesteadMainly from Santa Barbara, Ventura, San DiegoCreating memories through events differentiates Folded HillsSparkling rose launch party in Montecito - brought in a mini horse with a unicorn hornLaunch vinyl nights (Thurs, Sun) in MontecitoDoes 1 large event/month at estate Homestead - e.g., polo games, tailgate contestOktoberfest - beer & wineAnimal feeding (including zebra, camel)Prices events to primarily cover expenses (range from $15 - 195 winemaker dinners)The focus is on creating memories vs selling wine to create word-of-mouth buzzAndy's dad said “making friends is our business.” - he created beer and baseball while owning the St Louis CardinalsHospitality differentiation through events and experiencesHas a full-time events managerEnabled by lots of land (600-acre ranch), private lake dock, ATV group tours in the vineyard, animals to feedHomestead appeals to families (w/ Farmstead - U-pick fields, animal feeding)Hires people w/ the “hospitality gene”Wine club benefitsWine is the biggest draw (“purity” of wines believes does not lead to “stuffy nose” or “headaches”)Word of mouth around Folded Hills taking care of club members (access to private lake, private ranch)~10% of club members are local (live w/in 1 hour), next largest group from St Louis (does ~2 events/year, launched brand in St Louis)Get 15% off organic produce at FarmsteadPlan to relaunch farmstays on a adjacent private ranchFarmstead - “heart of soul” of brandBest sellers - animal feed, ice cream, baked goods~30% of visitors go to both Homestead and Farmstead, increasing as tasting room visitors now given free bag of animal feedSanta Barbara wine region differentiation - diversity, 75 varieties grown; unique climate (transverse mountain range) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With the health and wellness and moderation trends booming, the non-alcoholic wine market has been growing quickly off a small base. Launched in 2019, the Giesen 0% range has solidified its position as one of the leaders in the NA wine market. Duncan Shouler, Director of Innovation, explains how the 0% range was developed, the critical elements of non-alcoholic wine, the current market conditions, and what it will take for the non-alcoholic wine market to succeed.Detailed Show Notes: Duncan's background - was in marine biology and shifted to wine ~20 years agoGiesen - family owned, 40 years old, large winery (crushes ~20k tons/year), a broad range of wines from large scale to single vineyardStarted non-alcoholic (“NA”) range 5 years ago (2019)~17% of production today, growingHas a more significant reach and impact on the market vs. regular winesThe creation of the NA range came from a fitness challenge in 2019, when he could not drink alcohol for 1 month and discovered there were no good choices in the NA space. Spinning cone technology (good for quality as it uses lower temps than other processes) also became available in NZ at that timeNA winemaking process - create regular wine, then remove alcohol; for red wine, you need to balance the tannins (need ripe, soft tannins)More expensive to make - costs 15-20% moreNeed to replace ~25% of volumeNeed to go through spinning cone technologyLower cost from no alcohol excise taxesNA taste - loses some of alcohol's texture, body, heatNA wines age similarly to regular wine (except in cans)NA wine markets - still in growth mode, needs higher quality wines to succeedThe US is ahead of most markets, and the UK is slower with more traditional drinkersMainland Europe is booming, and NZ is behindMost off-premise, some growing pains (e.g., Boisson closed its stores), mostly bought where people buy alcoholOn-premise still embracing category (Giesen launching super premium range to target on-premise)Most large players (e.g., Constellation, Treasury) are looking at NA wineNA wine drinkers - originally abstainers driving growth, now people substituting wine driving growth from moderation trend; broad market from boomers to legal age Gen Z; 35-60 females largest cohortPrice points aligned with regular wine ($9 low end, up to $18/bottle, some products ~$55/bottle)Removed alcohol of high quality can be used for other things (e.g., gin, biofuel)NA wines can have up to 0.5% abv, Giesen wines 0.4-0.5% abvYou need to consume 5 bottles of NA wine to get 1 glass of 13.5% ABV wine.45% abv similar to ripe bananas, some fruit juices, breadNA wine should still be kept away from children as it is still a wine experienceMarketing NA winesLow calorie is significant; Giesen is low in sugar (drives calories), which plays into the health and wellness trendMost effective - social media and influencers - play well with Millennial and older Gen Z's, essential NA wine growth categoryOlder consumers know Giesen from regular wineNutritional and ingredient labeling - mandatory for regular wine in the EU; NA is a food product and requires itGiesen back labels specific for each wine, the main driver of differences are in sugar contentNutritional data has some positive elements (e.g., potassium)Large serving size (12 ounces, ~½ bottle) driven by US FDA, looking to change back to a 5-ounce glass Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Having struggled to manage and maintain distribution for her family winery, Cheryl Durzy, CEO of LibDib, decided to start her own distributor. In comes LibDib, a tech-enabled distributor that lets any alcohol producer have distribution in most of the key US markets. Cheryl provides background on the US 3-tier system, the role of a distributor, and how LibDib is helping producers get distribution, enable wine sales, and become a tech platform for other distributors. Detailed Show Notes: US 3-Tier SystemPut in after prohibition to keep one tier from owning alcohol distributionTiers - producer, distributor, retailerUS distribution heavily consolidated into 3 large ones, lots of smaller specialty distributors vs. many distributors in the 70s/80sDistributor functionHelps consolidate suppliers for trade accounts; accounts don't have resources to manage each supplier separately (e.g., invoices, checks)Pay taxes, do complianceLogistics (heavy, fragile product)Customer service (mistakes, breakage, returns, samples)Sometimes act as a winery's salesforceGetting a distributor2024 - distributors are shedding brands vs. taking on new onesTypically - look for fit w/in a distributor's portfolio, pick someone with a good reputationDistributors will ask - what will be your investment in the market? How often will you be here? Do you have feet on the street?LibDib - enables wineries to sell themselves, a tech-enabled distributorStarted as a wholesaler in 2017 (CA, NY), enables distributor for any producerThe platform enables rich content and e-commerceHas license in 9 states, enabled through RNDC in 6 states (e.g., Texas)~1,500 suppliers w/ active accounts, ~700 wineries w/ ~450 actively sellingOriginally focused on spirits, wineries have increased by ~50% in the last few yearsUses FedEx to send wine, integrated API to track status, negotiated good rates

As the pioneer of Vitis Vinifera in the Eastern US, Dr. Konstantin Frank is one of the key leaders of the Fingers Lakes region in New York. Meaghan Frank, a fourth-generation vintner, has been leading the charge to evolve its hospitality program to create brand ambassadors for the winery and the region. Its 1886 Wine Experience has won Best Wine Tour by USA Today in the last two years. Meaghan breaks down their hospitality program and its impact on their business. Detailed Show Notes: Finger Lakes region, NY - 150 wineries (of 400 in NY), NW NY State - 5 hrs from NYCSkinny, deep lakes that moderate weatherGlaciers left diverse soilsTourism-driven, seasonal visitors (spring to fall) for lakes, hiking, close to Niagara Falls, Corning Museum of GlassDr. Konstantin Frank - PhD in Viticulture from Odesa, Ukraine; a grape scientist; fled to NY during WWII35 years of cold climate grape growing experience when moved to NY1st to plant vinifera in Eastern USPlanted experiment station in the 1950s - 68 varieties, including Furmit, Pedro Ximenez, and Touriga Nacional) to research what would work bestDr. K Frank Winery17 vinifera varieties → 40 wines60% wholesale, 40% DTC40 states, 9 export markets (5%, incl Japan, Aruba (lots of NY visitors), UK)DTC 60% e-commerce (driven by wine club), 40% hospitalityHospitality programThe goal is to create brand ambassadors and loyalty, get the word out about the Finger LakesInspired by Australian hospitality programs - private, educational~40k visitors/year (#1 PA - 1 hour away, NJ, OH, NY core markets) - all seated, paidPre-pandemic - ~80k visitors/year for free bar tastingsMoved to an experience-driven program with wine educators, take advantage of lake viewThree experiences: Eugenia's Garden - modeled after great grandmother's garden, most casual, can do a la carte glasses/bottles/flights; enables people to enjoy the day; targets a younger demographicSignature Seated ($15pp) - most popular, educational, 1 hr, 6 wines, 5 different themes that are part of the winery's story (e.g., traditional sparkling, Riesling pioneer, groundbreaking grapes, red wines)The 1886 Wine Experience ($75pp) - only May-Oct, 2-2.5 hrs, led by wine educator, a tour of the vineyard, sparkling and still wine cellars, seated tasting of 4 wines with bites, followed by additional tastings; won best wine tour by USA Today last 2 years; lots of 1st-time visitors book 1886 due to unique natureLessons learned - used to do 6 wine flight w/ bites, which was too many; did themed months (e.g., sparkling) - did not work with mostly touristsDifferentiators - spend lots of time, has a separate private space for 1886Wine club evolutionUsed to have people pay upfront for the year - bigger barrier to signing up, always feel like “playing catchup” to ensure value delivered, concentrated work during shipment periodsMoved to more subscription model - quarterly, 3 wines w/ default package, fully customizable, no upfront fee, 20% discount on wines, and get free tastings (no limit)8% club conversion - the only way to get free tastings now, used to waive w/ 4 bottle purchaseLocals small portion of the club - pickup option only 10%, PA #1Avg tenure 1.5 years, seeing it extend with the new club modelPopular winesHospitality - Rkatsiteli #1, traditional method sparklingWholesale - #1 & #2 - dry & semi-dry RieslingRiesling 60% of production, traditional method growingIncreasing issues around climate change - 2023 had the largest spring frost in history, increasing water issues Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With ~2M monthly sessions on their newly unified commerce and media website, Wine Enthusiast continues to be a beacon for the wine industry. Jacki Strum, President of Wine Enthusiast Media, details their new wine review platform and global wine travel directory, democratizing access to wine and wine experiences globally. These initiatives help bring more people into the world of wine, including the younger generations, a critical part of building a vibrant wine industry.  Detailed Show Notes: Covid altered the business model, led to re-structured organization and unified media and commerce divisions on wineenthusiast.com2022 - WE paused reviews for emerging wine regions to recalibrate systemsExisting tasting process1 of 2 publications that review every wine blind (high cost), taste in flights w/in region and price bracketsNeed to store, archive, organize wines, set up tastings (in paper bags with numbers), and hire reviewers50% of reviews are done at HQ (imported wines), and West Coast wines are done locallyThe manual process of filling out a pdf and putting that into the box with wines, manually inputted into J Guide (legacy system, 20 years old), then stored and organized for tastingNew tasting platform (Sept 2024) - anyone can submit a wine for review and all will be reviewedNew digital platform - bar code scanners, printed tabs, can track shipments and deliveries, a more fluid databaseReduces large volume of questions from people submitting wine (can track digitally)It has the same # of reviewers, but a more flexible infrastructure can allow for more wines to be tasted$65/SKU processing fee - all reviewers charge in some way (e.g., require subscription, membership, or advertisement)6-month processing time (same as before) - hope to reduce this over time, based on the schedule of reviewersPrinted reviews selected by the tasting dept, all scores published online for freeTasting platform benefits for new and small wineries Opens up reviews to all regions across the globeThe US market is still heavily score-driven for distribution (some major retailers, e.g., Costco, Kroger, Albertsons, require scores from major publications)Helps with tasting room and local distribution salesMedia trendsPrint is still doing well (e.g., books outsold movie tickets last year), and magazine subscriptions are increasing (free tote bags help)Advertising up slightly Digital media is growing, with a targeted advertising focusEvents - biggest growth area - launched Sip of South America, Sip of Italy, and biggest event is Wine Star Awards (25th Anniversary in SF this year)TikTok now allows alcohol advertising, getting Gen Z engaged with wine knowledgeNew travel division for WETasting room directory, partnered w/ Tock - 1st agnostic travel global wine travel guideLeverages Tock's wineries as launching list (~1,200 wineries, CA focused), building out globally with WE relationships (~100 wineries reached out in 1st month to be included)The 2nd most trafficked page on the siteWE revenue mixCovid - led to explosive commerce growthToday - back to 2019 levels, ~80% commerce / ~20% mediaGetting Gen Z engaged with winePrint enables content absorption without ad bombardment (e.g., book reading bars in NYC)Need to change content for each channel to target audience (e.g., Google as people's “secret diary,” article on how to hold a wine glass became a top 5 article)Influencers, infographics, video - bring in new consumers (e.g., wine & potato chip parking article led to major influencer doing every pairing on TikTok) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

During a career sabbatical from wine PR at a yoga teacher retreat, Morgan Perry tried combining wine education and yoga with great success. Her classmates practically forced her to found Vino Vinyasa, which has blossomed into six cities. With a focus on creating great experiences rather than selling wine, Morgan has created a platform where people learn about wine and end up seeking out the wines featured in classes. Detailed Show Notes: Morgan's background - wine PR, been in wine for ~15 years, became a yoga teacher in 2017Wine & Yoga synergiesBoth are about mindfulness - yoga and the wine tasting processNot for hard-core wellness or yoga peopleVino Vinyasa For the yoga teacher exam, the teacher encouraged something different, tried yoga & wine, and got a fantastic reception6 cities - NYC (2017), Austin (2018), Nashville, Chicago, LA, HoustonVino Vinyasa programming45 min Vinyasa yoga (all levels), followed by wine tasting of 2 winesTaste wine after yoga - people are relaxed and have “yoga brain” in a quiet, focused environment → people may be better tastersEmbed wine facts during yogaA comparative tasting of 2 wines, usually themed (e.g., Rose, Sauvignon Blanc)All instructors have a wine background (min WSET 1)2-3 classes/month, 20-25 people/class for intimacy (capped at 30)~30 classes/themes developed to dateVery intentional class structure, certain poses not suitable for teachingBusiness modelThe core business is to get people to do more classes and events, not be overly salesy with wineDo private events (90% are bachelorette parties)Sell swag (t-shirts), co-branded bottlesLook to be good value (avg class price $30) vs. regular yoga classes (avg ~$20-25, range from $10-35 for drop in class)Students often seek out wines after classesWine selection for classesVenue dependant, venues carry liquor licensesCity Winery (NYC) - chooses the wines based on their selectionOther venues - can get wines donated for classesPrivate events - Customers can select wines/themesHave worked with PR clients for winesSome wineries sponsored virtual classes during CovidMarketingPR background has helped and got early press (e.g., digital Good Morning America), mostly wine marketEmail newsletterIG is the best channel, does some boosting, and is focused on growth during Covid (~11k followers)Digital marketing has focused on both wellness and wine people~15-20% of people have attended multiple classesPrivate eventsBachelorette parties, birthdays, corporate events (e.g., Binny's in Chicago)The focus area for growthSame format as classesWellness & wine marketOther wine + yoga classes are not educational; some are tied to multi-level marketing wine programs that have long sales pitchesSees more yoga at wineriesThey have been approached by a couple of spas for partnerships, but the economics were not favorable yet (i.e., yoga teachers often are not paid well, ~$30/class) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Taking over an iconic estate can be both exciting and terrifying. When EPI purchased the iconic Brunello di Montalcino producer Biondi Santi in 2017, they asked Giampiero Bertolini to take over as CEO. Giampiero was excited to join the “Champions League” of wine but also had to convince the local community that this outside investment would be good. He delves into how Biondi Santi has been pushing toward creating more value for the brand while maintaining its core essence.  Detailed Show Notes: Biondi Santi's historyFamily invented Brunello di MontalcinoFounded in 1888 - Ferruccio Biondi Santi had a vision of quality wine with longevity during a time when people focused on quantity with wine as part of the dietBottled in Bordeaux-shaped glass (a sign of quality) vs. standard Tuscan fiascoTancredi Biondi Santi - one of the top consulting winemakers of the time, was asked to write appellation rules in 1967Franco Biondi Santi (“the doctor”) - selected the BBS11 clone in the ‘70s and organized a 100-year vertical tasting (1888-1988) in 1994 with important wine writers that boosted the image of Brunello. One writer gave the 1891 vintage 100 pointsLa Storica (wine library) - has all vintages since 1888, releases one old Riserva with a current Riserva each yearPath to Iconic StatusThe vision of the family - be good winemakers, high-qualityIn the global market regularly → elevated the Biondi Santi to a different levelThe wine offered to Queen Elizabeth II in 1967 was a favorite of Frank Sinatra'sEPI acquired Biondi Santi in 2017 and installed Giampiero as CEO; the community was skeptical of French owners for an iconic estate had to convince neighbors by being transparent about what they were doing at the estateBefore the takeover, prior 20 years, the business was not run wellRebuilt global distribution, did not have US distributionRe-connected with trade, critics, and consumers/collectorsWhat they kept the sameReinforced market positionStyle of the winesWhat they changedNew vineyard philosophy (regenerative), replanted vineyards to improve quality, conducted soil studiesIncreased communications and more selective to the right people and thproperht channelsManaged pricing to reposition the brand to increase demandKeeping the brand freshwant s to be closer to the trade and consumer, spend more time in the marketStorytelling of what is happening at the estate, not just the history, but today's actions that protect the futureLa Voce di Biondi Santi - started 3 years ago, selects one word each year that is part of their philosophy (this year is “respect”); creates novel/audiobook based on a keyword (e.g., Joanne Harris, author of Chocolat) and podcasts with winemaker and Giampiero around the keywordThe most effective initiative so far - repositioning the brand by increasing price → gave higher credibility and put the brand up another step, old vintages increasing in price on the secondary market, high demand on Liv-ex (one of few growing while price increasing), one of the top 35 wines in the world on Liv-exGrowth for Biondi Santi = value growth; volume is complex to growValue-driven by increasing distribution globally to rarify the brand further, not just taking price, but increasing value, which is a consequence of many conditions, and not rushing value creation in the marketBiondi Santi is now in 2.0 after 1st five years, and the next step is to increase the quality of its presence in the world and be closer to partners and consumers Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

In part 2 with Stevie Kim, Managing Director of Vinitaly, she explains how parent company Veronafiere invested in the various Vinitaly products and allowed her to experiment.  Stevie also dives into her prolific content strategy, including the Italian Wine Podcast, which has over 2M downloads to date and where she sees value in marketing.  Detailed Show Notes: Italian Wine PodcastInitially created to develop content for VIA candidatesSomething different every day - up to 9 episodes published / weekExample shows: Ambassador's Corner - Italian Wine Ambassadors go deep with their favorite Italian producer; US Market Focus - different perspectives on the US wine marketNow ~2,000 episodes, they had to switch podcast distributors to Megaphone (Spotify) as most only host up to 500 episodesAudience - early on, was ~80% US & English speaking countries (the podcast is in English), and VIA students~6M total downloads with a broader audience than Vinitaly attendeesFunding the Vinitaly complexSignificant investment by Veronafiere, which is majority-owned by the city of VeronaItalian Trade Agency subsidizes some events - e.g., pays for transport for judges for 5 Star WinesSome ticket sales and sponsorship revenuePodcasts funded by Stevie personallyVeronafiere saw value in investing in Vinitaly productsWanted to become more internationalAllowed Stevie to experiment with new products and invest in themStevie's team has a large staff of content producers (video, social media)Document everything they doCreate tons of content, of which only ~50% is usedStevie believes in being prolific - promotes discoveryMarketing productsNever advertise on LinkedIn - it is too expensiveInstagram - sometimes does advertising, conversion doesn't happen on IG, try to drive to the website to convert, more for attention vs. conversionFacebook - most wine producers on FB, more effective and efficient, can get ~$100k subscription revenue from ~$5k ad spendLess concerned with “vanity” metrics like views and engagement, more interested in conversionsLooking forward - wants to bring more people to Italy and Vinitaly - it is the best way to convert people to Italian wine Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the world's most prominent Italian wine fair, Vinitaly attracts ~4,000 producers and turns the entire city of Verona into Vinitaly {.  As Managing Director of Vinitaly, Stevie Kim has built a vast, international community around Vinitaly and its many other products surrounding it, becoming a "Vinitaly Marathon." Stevie goes into depth about why each product was started and how it plugs into the entire Vinitaly ecosystem in part 1 of this 2-part series. Detailed Show Notes: Stevie's background: born in Korea, grew up in New York, married an Italian, and moved to Italy; Veronafiere recruited her to lead VinitalyThe Vinitaly "Marathon" (2025 schedule)Vinitaly Int'l Academy ("VIA") - 5 days 5 Star Wines - 3 days (April 1-3)OperaWine - 1 day (April 5)Vinitaly - 4 days (April 6-9)Also, do events outside of Verona (New York, China, Hong Kong)Vinitaly - established in 1967 in VeronaIt started as ½ pavilion, now 14 pavilionsLargest Italian wine event, primarily B2BThe entire town of Verona becomes VinitalyVinitaly in the city events for consumers~4k wineries (~60% of export market), accessories, winemaking equipmentAbout building long-term relationships - "the Italian way" - not just about doing business vs. Prowein's more business-orientedOperaWinePartnered with Wine Spectator as the most influential entity for Italian wineThe winemaker or principal must pourBy invitation only, each producer chosen (130 producers) gets 10 invitesVIA1,300 candidates so far, 398 certified Italian Wine AmbassadorsUsed to do Vinitaly tours and masterclasses globally, now transformed to VIADeveloped based on Stevie's experience building a medial master's program that created a deep communityFaculty - Sarah Heller MW, Attilio Scienza - vine geneticistDifficult exam, deep and wide syllabus primarily based on grape varieties, uses Italian Wine Unplugged 2.0 as the textbookHas a course that includes 4 days of tasting ~300 wines before the examRequires a group video project to ensure ambassadors can speak about winesCreates a big community around candidates and ambassadors - more important than the material itself5 Star Wines (fka Vinitaly Int'l Competition)Gets international judges & VIA community opportunity to taste and rate Italian winesHelps producers - 90+ scores get a diploma during Vinitaly to display, which helps attendees navigate boothsDid a masterclass for producers w/ top scoring wines on why they scored highly, which helped them understand quality betterEvery tasting panel has an enologist, enabling the international community to connect with Italian winemakersWine2Wine business forum (Nov - after harvest, before Christmas)The goal is to help producers better prepare for VinitalyHistorically, they had 40-70 workshops on business topics2023 - did tastings where wine critics taught how they assess and rate wines2024 - getting an overhaul, no parallel session, 8 plenary sessions, 6 tastings, new structured networking - rooms led by specialists w/ 10-12 attendees Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Written by the Biondi-Santi family in 1967, the appellation rules for Brunello di Montalcino are some of the strictest in Italy. This has led to Brunello vineyard land becoming some of the most expensive in the country and led Brunello on the pathway to becoming one of the world's iconic wine regions. Giampiero Bertolini, CEO of Biondi-Santi, explains the terroir, regulations, and market for Brunello di Montalcino and his belief in pursuing value and quality over quantity. Detailed Show Notes: Giampiero's background - studied economics, worked at Procter & Gamble, entered the wine industry by chanceBrunello di Montalcino - hill in Tuscany, b/w coast and Apennine mountains, protected by mountains and with altitudeThere are lots of different soils, and each location on a hill is differentSangiovese - only appellation in Italy with only one varietal, >150 clones (Biondi Santi uses 46 clones)1967 - 78 producers; today >250Quality has improved over the last 20 years, with more emphasis on viticulture1970s - Franco Biondi Santi trialed 40 clones and chose BBS11 for their soilRegulated production systemCreated by the Biondi-Santi family in 1967Limited yields (Brunello - 8 tons/ha; Rosso - 9 tons/ha)Strict aging requirements - barrel min 12 months (Rosso), 24 months (Brunello, Riserva); bottle min 4 months (Rosso), 24 months (Brunello, Riserva); Brunello min 5 years totalSamples tasted by the Commission panelAppellation expanded ~20 years ago, now frozen at 2,100 ha2023 - Rosso appellation expanded (550 → 900ha)Biondi-Santi has a target style for their wines and matches vineyard lots to create style (~60% Brunello, 25% Rosso, remainder Riserva when made)Some producers make single vineyards now (both Rosso and Brunello), but Biondi-Santi is not focused on thatThe most expensive vineyard land in Italy ~₠1M/ha, a significant rise in 2015 when the 2010 vintage was releasedForeign investors (France, Brazil, Belgium, Swiss) are increasing the value of the landMarket for BrunelloThe biggest is the US, developed by producer BanfiOther vital markets: Switzerland, the UK (higher-end wines), Hong Kong, ItalySales ChannelsRosso - more casual restaurants, wine bars, BTGBrunello - 50/50 on and off-premiseRiserva - mostly high-end retail as it is for collectorsFuture of Brunello - hopes the focus is on value and quality and not higher volume Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Making natural wines right out of university, Arianna Occhipinti, founder of Azienda Agricola Occhipinti, has quickly built a strong following globally, particularly in the US. Discovered by Louis/Dressner at a natural wine show around Vinitaly, Occhipinti's focus on expressing terroir through natural farming and winemaking and doing everything with passion has led to continued success.   Detailed Show Notes: She finished university in Milan, started making wine in 2004, and is interested in natural wines that speak of terroirBased in Vittoria, Sicily, she makes wines from reds (Frappato, Nero d'Avola), whites (Albanello, Zibbibo, Grillo)Started w/ 1ha farm in Fosso di Lupo (Frappato, Nero d'Avola)Cultivates a pluricultural farm for biodiversity - vineyards, orange, pear, wheat, vegetable garden2006 - built a small winery2013 - moved to another farm in BombolieriTerroir - limestone (lots of fossils), red sand, 250m above sea level, 8 km from the sea, 8 km from mountains, windy and dry -> lead to low pH wines1st meeting with Louis/Dressner in 2006 at a Vinitaly adjacent natural wine fair1st presentation of winesKevin McKenna tried the wines and got Jules Dressner to try them, where they immediately asked if they could import themStill working together, they are “very pure people”One of the 1st Italian producers that Louis/Dressner represented1st trip to US (“Real Wine Tour”) - Louis/Dressner organized a young group of producers, with a lot of energy that toured the USTraction partly from being an early mover in the natural wine movementAt the time, San Francisco (and Paris) were leading the world for natural winesNatural wine bars (e.g. - Terroir Wine Bar)Leading restaurants (A16, Bar Agricole)LA (Domaine LA) and NY followedSommeliers promoted the wine and created strong relationshipsTraction was a combination of wine quality and consistency, restaurant promotion, and good communicationsConvincing people who know a lot about wine (e.g., sommeliers) helpedIn the US market ~1x / yearLouis/Dressner did a great job of selecting wine producers and having good relations with their clientsAdvice for others - do everything with passion, potentially spend more time on trips to spend more time with people Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the 26th generation family member to run Marchesi Antinori, Alessia Antinori, VP and Winemaker, knows the benefits of being a family-owned business, particularly around transmitting family values from generation to generation. These insights and values are shared as members of an elite group of family-owned wineries, the Primum Familae Vini. Alessia digs into the structure of the PFV, its purpose, and its activities to promote family businesses globally. Detailed Show Notes: Antinori Family - started in wine in 1385 as wine merchants in Florence and became a producer in the Chianti Classico regionAlessia is part of the 26th generation, the 27th generation also in the companyFather was part of the important 25th generation - in the 60s/70s changed towards a quality mindset vs. quantity focus for most of Italy, e.g., launched Tignanello (1st Super Tuscan)“Blending tradition and innovation”Family members are not obliged to join the company but grow up around the wineryPrimum Familiae Vini (“PFV”)Founded in 1993 by Joseph Drouhin and Miguel Torres wineriesCurrent members include Vega Sicilia, Pol Roger, Chateau Mouton12 members, family-owned, old world (the exception was Opus One w/ Mondavis and Mouton Rothschild)When a family sells, a new winery is invited, often from a missing region (e.g., Jaboulet replaced by Beaucastel to keep a Rhone producer), look for high quality, shared values, and families get along (including children)Exchange one case of wine with each other every ChristmasFamily businesses are important to: Transmit values from generation to generation (e.g., for Antinori - passion, integrity, obsession for quality)Can make decisions for future generations (long-term mindset)Two committees in the PFV - marketing & technicalMeet 3-4x / year virtually or in personMeet at least 2x/year (1 annual meeting - 2024 in Oregon hosted by Drouhins)Annual MeetingUp to 100 people, several generations per familyBusiness meetings, lunches, dinnersEach year, a different family hosts an event and then becomes President of PFV for the following yearTopics - technical (Torres often has good topics), issues in family businesses, sales, legal issues, future PFV planningMostly, internal PFV presentersPromotion/marketing events2024 - after Oregon hosted a press tasting in NapaUsually, press, charity, or walk-around tastingsPFV Family Prize - “the most beautiful company of the year”Family-owned businesses, not only wine, must have 3 generations working in the businessReceive financial and market support/cross-promotion1st year was a Belgian violin companyGiven every two yearsDo an event together with the press to present the awardPFV is funded by an annual fee from membersCollector CasesHaute Couture case - 1 back vintage, iconic wine from each winery, only for charity, includes the PFV Passport, which is an invitation to visit each winery with lunch or dinner with a family member (many wineries closed to the public)Limited Edition case - 1 recent vintage wine for each winery can buy for €25kAdvice for other family wine businesses - be very passionate about the work, be curious and passionate Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With 100+ years of history, many accolades, and distinctive mountain-grown sparkling wines, Ferrari Trento is still often confused with the car maker Ferrari. Matteo Lunelli, President and CEO, explains how Ferrari Trento leverages partnerships, including Formula 1, The Emmys, and others, to tell its story and grow its audience globally.  Detailed Show Notes: Ferrari Trento overviewFounded in 1902 by Giulio Ferrari1952 - Bruno Lunelli (Matteo's grandfather) acquired the wineryTrento DOC in NE Italy, in the middle of the Alps, famous for the Dolomite mountainsA leading brand for luxury sparkling wine in ItalyMethodo Classico - 2nd fermentation in the bottleMainly Chardonnay, Pinot NoirMountain sparkling wine - gets sunlight, but big diurnal shift to keep acidityPioneer of Trento DOC, started denomination, now 60 wineriesWon Sparkling Producer of the Year several timesAll estate vineyards are certified organic, winery carbon neutralIl Ferrari (masculine, the wine) vs La Ferrari (feminine, the car); separate companies, no familial relationFormula 1 (“F1”) partnership - “Official Toast of F1”Started as a dream, Matteo passionate about F1A team member who used to work at Heineken, which sponsored F1, started the conversation in 2019Share common values of search for excellence, tradition, and innovationStarted in April 2021Jeroboam used to celebrate wins on the podium, served in Paddock Club (hospitality)F1 exploded with Drive to Survive movie on NetflixNew races started in Miami and Las VegasFormerly used Champagne, 1st Italian wine used to celebrateROI is measured by growth in international sales (US sales 3x, TX 10x, Las Vegas huge growth since 2020), increased attention from key international accountsKey benefits of F1 partnership: Visibility - social media key, particularly pics with drivers showing bottles during the celebration (easier to do for sparkling wine)Paddock Club - >5,000 guests in Las Vegas, serves fine dining during race weekends, high-end clientele experience Ferrari Trento, fine dining, and F1Create customer experiences - invite some customers to F1Race weekend activations - organize and partner with events around the race weekend, replaced prior market workBest article - Financial Times “Why there will always be a Ferrari on the podium of F1”F1 label series - limited, special editionsBig interest in Jeroboams, celebrate like F1 championsF1 Editions - dedicated to some of the iconic Grand Prix, the shape of the racetrack on the label, very successful in race markets (e.g., Suzuka in Japan had a long time to buy wine)Creates a collectible wineEmmy Awards sponsorshipEnded w/ Covid, sponsored for ~5 yearsServed at Governor's Ball just after the show, ~5k guests, black tie in LAHelped in the CA market and positioned Ferrari as a lifestyle brandTimed well w/the rise of importance of TV (e.g., Netflix/streaming movement)Only 1x/year vs 20 races/year w/ F11st non-Champagne organized blind tastings w/ prior sponsorsCreating value w/ partnerships requires activation and communication; the rule of thumb is to invest at least 1x sponsorship fee in activationsMass market partnerships like F1 benefit Non-Vintage more than vintage/reserve winesVintage/reserve wines sold mostly to collectors, highly limited supply (only 60k bottles of Giulio Ferrari/year), and need different communication channels Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With 88% of their wine exported, 93% of which is white, white wine is a big deal for New Zealand. Charlotte Read, General Manager of Brand for New Zealand Winegrowers, explains how they have been focused on promoting white wine globally. This includes campaigning for a white wine emoji, focusing on the the month of May with Sauvignon Blanc, Pinot Gris, and Chardonnay days, and focusing on their motto - “NZ wine, all together unique.”Detailed Show Notes: Charlotte's background - dairy industry, lived in Asia and the UK, in wine for the last 20 yearsNZ WinegrowersEst 2002,1,400 members (50% wineries, 50% growers)Only unified winemaking and grape-growing organizationFunded by compulsory leviesMission: to enhance the reputation of NZ wine5 key workstreams: Brand, Environment, Efficacy, Research, PeopleTagline - “NZ wine, all together unique”Supports the 10 wine regionsNZ exports 88% of their wine to 100 countriesTop markets - US (~40% of exports), UK, AustraliaFocus markets - Canada, ChinaFocused on white wine (93% of exports) for May - 3 events, Sauvignon Blanc Day, Pinot Gris Day, and Chardonnay DayWhite wine emoji - leading a campaign over the last few years to have this implementedKendall Jackson previously campaigned for itChanged the glass shape to focus on white winesGotten great pressReached >20M people in 2022, 79M in 2023NZ has significant wine diversity - >50 grape varieties planted, SB #1, Pinot Gris, Pinot Noir (largest red, 3% of exports)NZ wine style - purity of fruit, backbone of acidityMarketing metrics used - estimated advertising value, reach and engagement, social media engagement, toolkit downloadsLighter Wine Research Project - 7 years, $16M project w/ 18 wineries and government, led to the early launch of no and low alcohol wines (e.g., Giesen 0%, Kim Crawford Illuminate)Overall, wine imports to the US are down, but NZ has outpaced the market; premium price ($15+) grew 15% in 2023Targeting a group of “Generation Treaters” (mostly Millennials) - 1/10 of drinkers, but ⅕ of spendCan cross-promote white wines - 63% of SB drinkers drink Pinot Gris, 67% of SB drinkers drink ChardonnayNZ as innovators - moved to screw caps early (early 2000s), fast adopter of concrete eggs, experimenting with green tea as a preservative, no alcohol wine residual alcohol used for ginHighest impact marketing - influencing the influencer (e.g., a WSET partner, work with Sommelier associations)Major eventsHas a booth at ProWein and Vinexpo Hong KongHosts International Sauvignon Blanc Conference every 4 years (2027)Hosts Pinot Noir Conference in between (Feb 2025)Sommit - summit for sommeliers, a master class settingTrends to watchSustainability (NZ has 96% of vineyards certified sustainable)Packaging innovationGrowing wine tourism Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With insurance costs skyrocketing, having a good understanding of the types and amount of coverage needed for wineries and vineyards is becoming essential. As a broker for Country Financial, as well as the host of the Wine Crush Podcast, Heidi Moore describes what is necessary vs. optional for winery insurance and the changes happening in the industry. Detailed Show Notes: Insurance trends - very volatile now, Covid supply chain issues, wildfires / other natural disastersRates are soaringFL/CA - natural disasters happening more, impacting insuranceIf >5 mi from a fire station, insurance premiums can be doubleWinery insurance is a niche market, so it is better to have expertiseLeakage & contamination are a big issue - often wineries do not have enough coverageGeneral liability and liquor liability are base levels of coverageRest is optional - a winery should look at what will break the business if it happensPremiums based on gross sales, inventory, and assets (e.g., buildings, barrels)Range of costs - small wineries ($1,500-2,000/year), larger wineries ($50-60k/year)CA - many companies have stopped writing businessSometimes, there is state coverage for catastrophe-only coverageInsurers often value inventory based on “final destination” (e.g., DTC vs. wholesale)A wine library with increasing value should be looked at annually to see if coverage needs to be adjustedVineyard insurance is different from wineryFarm policy for an agricultural commodity (e.g., for runaway tractors)Crop insurance, which is federally subsidized, covers annual crop value and covers against smoke taint, fire, etc…; often can insure at different value levels of the cropCan buy specific coverage for vines and equipment in vineyardsClimate change mostly impacts crop insurance vs farm policyBase level of insurance needed for winery w/ vineyardWinery policy - covers tasting room, production, buildings, the commercial businessFarm policy - covers vineyard, buildings, farming operation, home autosDepending on assets - umbrella policy to cover assets (e.g., drunk driving accidents are expensive)When to stop buying insurance?  Need a good agent who is your advocateValue of a broker vs. direct from the insurer - can provide different options of insurance, the downside is they do not know policies as deeplyWine Crush PodcastShare stories of winemakers, encourage people who do not drink wine regularly to try itMostly OR wineries, expanding to WA, IDKey trends for wine insurance - circling in on natural disasters and how they affect policies Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With 27 years of research on the US wine consumer, the non-profit  Wine Market Council is a critical industry resource. Liz Thach MW, the new President, dives into their most recent research on which wine consumers are buying, why, and how they buy. Members can get even deeper insight and access to the industry's most robust database on US wine consumers. Detailed Show Notes: Wine Market Council (“WMC”) - non-profit, formed in 1996Mission - provide cutting-edge research on the US wine consumer purchasing habits, trends, and attitudesMembers use WMC data for marketing and brand strategiesUS wine salesFrom 1934 - today - there have been several declines in consumptionThe last decline - 1990s - showed similar factors, increased anti-alcohol groups, large excise taxes; catalysts to growth (French Paradox, introduction of new products - e.g., White Zinfandel, wine spritzers, Merlot getting popular)Growth for 20+ years from the late 1990s, peaking during Covid2022 - decline in volume sales, 2023 - decline in volume (-9%) and $ salesWMC does a benchmark segmentation study of wine consumers every 2 yearsHas done 19 over 27 years, the largest database of wine consumer trendsBoomers - drinking less (61% cutting alcohol, faster than expected)Millennials - finally coming to wine, took until they were in their 30s (have children, bought homes, settled down, more financially stable); spend more on wine (often $20+)Gen Z (oldest is 26) - had high wine adoption initially, but in the last 3 years, it has declined (“cool to be sober”); 9% of Gen Z drinks wine, though only 33% are of legal drinking age; concerned about transparency of products (saw food scares, recalls), climate, and social equityWine drinkers are 60% married, 71% own homes, 53% live in suburbsEthnicity diversification making progressBy 2050, the majority of the US will be non-whiteToday's wine drinkers are 66% White (vs. 77-78% in the past), 15% Hispanic, 11% Black, and 5% AsianSignificant progress with Blacks and Asians, but less with Hispanics, which are the fastest growing population in the USCeja an example of a successful Hispanic owned winery, links wine and Hispanic cuisine and been successfulOther ways to enhance diversity - ads that look like “us,” diversity in the workforce, pop up events where the consumer is (e.g., a Mexican wine importer did pop-ups at Hispanic events with taco trucks)Premiumization is still happening, people drinking less, but better$20+/bottle drinkers are now ~7-15% of the total US populationYounger people (21-30) purchasing more high-end wineBoomers dropping buying more expensive winesWhere people buy wineSupermarketsWine shopsOnline now 12% vs. 5% pre-Covid29% buy on their phone93% of wine consumers on social media#1 Facebook (Boomers)YouTube - 61% useInstagram - 55%TikTok - 40% (wineries can't advertise, but influencers can post)X/Twitter - went from #2 to #6Wine apps - 17%2024 trendsAnti-alcohol movement Talking about the benefits of wine (illegal for alcohol brands to discuss health) - WMC launched a social campaign called “Wine is…” (e.g., wine cocktails, family dinners…)Transparency/ingredient labeling (e.g., 50% of Americans believe wine has added sugar)Low / no alcohol movement - 40% of wine drinkers drinking less (of those, 40% drink non-alc spirits/cocktails, 35% NA beer, 34% NA wine)RTDs / single serving sizes Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Having gotten bitten by the wine bug young and with deep wine retail experience, Devon Magee, founder of Offshore Wines, decided to start a small wine importer. Inspired by Kermit Lynch, Offshore focuses on small, artisanal brands making high quality, yet affordable wines. Devon shares how he bootstrapped the company and is finding his way as an importer. Detailed Show Notes: Background - mostly wine retail, did harvests in France (Vieux Telegraph, Chandon de Brialles in Burgundy - 2012-2014)Inspired by Kermit Lynch, he was interested in writingOffshore Wines PortfolioChristian Knott of Chandon de Brialles started a new project, Domaine Dandelion, and asked him to import them2017 - 1st shipment - 4 cases of Domaine Dandelion, 20 cases of Champagne Charles Dufour15-20 producers nowGoal: find high-quality wines made in an artisanal way from lesser appellations that are “affordable”“Affordable” = $30-100 in US retailStarting an import businessHe did it on his own, with no lawyers~2 months to get a license, ~$1-2k in feesNeed a licensed warehouse to receive wines (uses CA Wine Transport)Self-financed 1st shipmentCash flow is challenging2-3 months for wines to land in warehouse (from France)Restaurants/retailers get 30 days termsPayment to wineries varies - most ~60-day terms from shipment, while others want payment upon shipment or 50/50 terms (upfront and on delivery)Lifestyle is fun, traveling and visiting rural areasChoosing winery partners - a lot is timing, being at the right place, getting to know communities, and very relationship-based; most wineries are referrals from existing relationshipsOffshore differentiation - speaks the winemaker's language (French, Spanish), worked production, and is building deep personal relationshipsWineries are exclusive to CA, and only market Offshore works, though they sell to a small distributor in COFocus on small producers precludes needing to be in all 50 statesOptimal portfolio size ~25 wineries to be able to respond and represent wineries wellGets wine out for people to taste them, prefers personal connections over social mediaShares other aspects of what people are doing (e.g., got and gave away bags of coffee from a producer experimenting w/ carbonic coffee bean ferments, giving away sweatshirts from Domaine Hausherr with an artistic word game on the back)Devon is the only salesperson now, and he would ideally like 1-2 salespeopleOther salespeople have opened doors for him to help himBuilding small brandsMany people struggle with name pronunciation He tries to share wines, stories, and pictures of brandsHe doesn't agree with the need for scores and tasting notes; he uses email to share stories, wants to publish a newsletter eventuallyThe new style of wine writing can help small brands - e.g., Alice Feiring, Ray Isle's new bookAdvice for others - be able to sell the wines Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As part of the importer series, Yi Xin Ong, Managing Partner of KOT Selections in Singapore, provides an international perspective. From Singapore's 2-3,000 active importers for the small island to the impact of international media, Yi Xin describes how KOT navigates the importing, distributing, and retailing of its portfolio of winegrowers.  Detailed Show Notes: Background Founded KOT in 2011 - they couldn't get the wines they were buying in Singapore, three partnersWork w/ 57 winegrowers, mainly in Europe, 6 in the USSingapore wine market (~6M population, ~20% Muslim - don't drink)No 3-tier system, no gov't monopolyIt is a pretty open market, like the UKMany players are vertically integrated - import, distribute, retail - with lots of captive distributors and retailersVery low barriers to entry - founded KOT in 2 months for S$200 to get licensing and paperworkHorizontally spread - ~2-3,000 active importers (in 2011, ~700 importers, mainly focused on Australia/NZ with either big brands or high-scoring wines)Two casinos / integrated resorts provided the spark for other wines (e.g., Marina Bay Sands opened in 2011)Generally, 1-1.5 generations behind the UK and US wine marketsTook inspiration from other importers - Kermit Lynch (CA), Louis / Dressner (NY), Yapp Brothers (UK Rhone Specialists) - importing wines others were notYapp - focused on winegrowersDressner - spent a lot of wine visiting growers, good storytellingKermit Lynch - newsletters (1970s) were key to storytelling for the wine growersStorytelling is critical to standing out in a crowded marketSourcing strategy - most wineries they bought from personally (90%) were not represented in SingaporeInformal rule - 5 visits to winegrowers between the three partners before they importBroad portfolios - easier to serve clients and fulfill their needsFocused portfolios - clearer story and differentiationOptimal portfolio size - ~50-70 to give each winegrower ~1 week/year of focusKOT differentiationMarket knowledgeLinks to trade, client baseTrust of the people (have only signed one contract, mainly handshake deals, exclusive relationships) -> been burnt occasionally with generational changeBuild brands in Singapore - a very organic approachGet the right people to taste them - professionals, and influencers / Key Opinion Leaders (“KOL”)Host tastings every year, even for highly allocated wines (e.g., Pierre Gonon)KOLs can drive demandInt'l media have a strong influence - English is the primary languageMore important than local mediaOnly the top few have an impact - The Wine Advocate (Robert Parker), Jancis Robinson (less emphasis on scores, more on editorial content)Robert Parker had a big impact on the local market; a Singaporean bought the company100-point scores can drive sales spikesConsumer data/reviews can start trends, increasingly importantVivino, Wine-Searcher, CellarTracker, Instagram75% wholesale, 25% direct-to-consumer sales (mainly e-commerce)Private clients saw KOT through the pandemicTrade is vital for tourist demandSingaporean wine trendsNew regions increasing, Japanese and Chinese winesValue increasing - ~$20-30 retail, ~$5-10 FOBThe low/no alcohol trend is not a thing yetRose has never been a trend Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With a portfolio of luxury wineries, including Domaine de la Romanee-Conti and Biondi Santi, Wilson Daniels has developed deep expertise in marketing luxury wines. With allocations, deep tracking of where wines go, and a heavy event schedule, Shannon Coursey, EVP of Sales & Marketing, describes how taking great care of the wines is critical. Detailed Show Notes: Wilson Daniels (“WD”) overviewFounded in 1978, they started as a domestic wine brokerage, In 1979, they were asked to represent Domaine de la Romanee-Conti (DRC) and became an importerRepresents 37 families with ~50 producers, ~⅓ France, ~⅓ Italy, ~⅓ New WorldOwns distribution in 5 states~35 sales managers, sells ~600k cases/yearImporter roleCurate portfolioDistributor management - make sure strategy is executedCreate messaging with the wineriesPricing - for WD, keep consistent around the countryEducationChannel mix - on/off premise, national accounts, chainsWork with pressKeeping wineries top of mind in trade - does a lot of eventsSourcingSources wineries with estate vineyards, some with the ability to scale (~⅓ of the portfolio), look for regions where they will not take away from existing producersAt optimal book size now, additions could be grower Champagne or 1-2 new Burgundy producersGrew portfolio a lot in recent years - ~20/37 families added in last 8 years, ~10 in last 3 years (including Gaja, Faiveley)Distributor managementWith RNDC and Breakthru in ~50% of statesCreate groups within the portfolio to help distributorsManage pricing, inventory, programming (sometimes)Does not allow wine closeouts, prefers to buy backFast Start program - incentives for new placements, not volumeWholesale Manager Bonus - for distribution managers, often trip-basedOther support methods - ask to be on focus, market work, getting the producer in marketMarketing winesCrafting messaging is critical, and some producers already know what they want (e.g., Gaja wants to be known as 4 different wineries)Does a lot of grassroots marketing - events around the country at top restaurants, visibility of on-premise placementsA lot of trips to wineriesIconic brands - taking care of the wine from start to finish, the allocation process is essential (~⅔ of brands are allocated)Lesser known brands - more about visibility, messaging is critical, can target a broader base (e.g., use more social media)Luxury - 3 key segments - sommeliers, collectors, criticsFor larger brands, does some consumer marketing: e.g., Bisol Prosecco - did 15 city tours, wrapped an Alfa Romeo car in Bisol green, did press, consumer, and trade events; went from 7k cases (2015) to 120k cases (2024)Process for building brands in the USCreate messagingEducation - WD wholesale team, WD national team, distributorsPR launch kit and sales kitIdentify channel mix, including target account listEvents (very different for each producer - e.g., vintage tastings for Biondi Santi, Faiveley; Gaja - white launch, Tuscan properties, Sicilian tasting)Re-establishing brands that had poor marketing (e.g., Biondi Santi, Dal Forno)Need to work through inventory in the gray marketDon't lower prices to match the gray marketMake a splash on new vintage releasesDal Forno - launches in the US 6 months before the rest of the world, helps reduce gray market activityPrivate client group / direct-to-consumer~300 people by invitation onlyExperience-drivenMembers support the entire WD portfolio Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

In part 2 of our series with Nick Ramkowsky, Owner of Vine Connections, Nick describes how he builds brands in the US market, striving to turn “annual” brands into “perennial” ones. Partnering with distributors both directly and working independently with consistency helps create a virtuous cycle of long-term relationships. Nick also covers his interest in sake and how it overlaps with sales strategies for wine.  Detailed Show Notes: Two types of brandsPerennials - brands where accounts grow in value each vintage; very few become thisAnnuals - need to sell the same case to a new account each year; everything starts hereThe goal is to build brands into perennialsGetting to perennials includes having value in the bottle, packaging (VC has three designers on staff), relationships (finding the right spots/customers for brands and supporting the accounts (staff trainings, consumer events)), identifying champions on the distributor sales team, and pressCreating brand value as an importer - consumers believe in the importer's book through consistent producers and quality across the portfolioConsistency helps develop brandsMarketing strategies to build distributor demandPress (primarily critics)Effective distributor work withs (distributors need confidence importer will support them)Creating credibility in the marketplace (trade events, work withs, samples, incentive/launch programs)Can't outspend more prominent importers for incentives, need to create unique ones - e.g., one supplier affiliated w/ custom made shirts, created incentive around the shirtsSetting suggested retail price (“SRP”)Through tasting, looking at the competitive set, and where the winery wants to be$1 in home country becomes ~$3 at retail in USSales strategiesVC has ten salespeople across the USDo work withs with distributors, but also on their own to not overwhelm distributor repsPartner with reps, sending recaps for follow-upSake - started in 2002He went to Japan to work in a brewery to study the processHad to make more accessible - standardized back label, 1st to put English names on front labelsThey use the same distribution network as winePlace importance on education; VP of Sake Monica Samuels is a great educatorNow, 20% of the Japanese imported sake marketRecommends drinking sake from a wine glass, at cellar temp, or warmed to order for hot sakeKome website is more focused on the style of sake (e.g., fruity/floral vs. round/rustic) vs. grade now46 prefectures brew sake - lots of expression of placeGluten and sulfite-freeWine importing trends - people drinking less, but better (Gen Z - less alcohol, and non-alc drinks, believes they will look at wine more as they age; value premium products that are authentic, smaller, good stewards of land) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

After falling in love with wine through a year abroad in Burgundy in high school, Nick Ramkowsky, Owner of Vine Connections, has built a premium national importer of South American wines and sake. Nick discusses the types of wine importers in the US, how he thinks about building a brand portfolio, and the keys to success as an importer in part 1 of this 2-part series.Detailed Show Notes: Vine ConnectionsA national import and marketing company based in CA and has a retail licenseFocus on regions with winemaking history but not globally recognizedStarted as a broker and distributor (when Nick was 25)Worked with Billington Imports and met Laura Catena, went to Argentina, and fell in love with winesEstablished 1st premium portfolio of Argentine wines (1999-2000) - least expensive wine was $24 retail2002 - imported sake2013 - 1st premium Chilean wine portfolioHas wholesalers in all 50 states, including RNDC (#2 in the US), Breakthru (#3), and other smaller ones30 people today, from 2 originallySplit company in 2 - Kome Collective (Japanese), GeoVino (wines)Types of wine importersAll importers are also distributors in their stateSales Geography - can be state, regional, or national; Vine Connections is national for control over brands all the way through, exclusive for all 50 states, contracts w/ producers outline the responsibilities of importer and producerPortfolio Focus - world or specialized; Vine Connections is specialized in S America and sakeRole of importerBring wines in, warehouse, sell to distributors, & work with sales teams to sell to various channels (on-premise, off-premise, chains)Work with press, do consumer events, lots of training and educationSourcing winesLooks at people first, then property, and consistency in product and pricingNew wines don't cannibalize the current portfolioComplementary driven by a sense of place and identity, even if the same region, varietal, price pointLooking at expanding to more regions to take advantage of the distribution networkOriginally specialized to have more of an identity as an importerOptimal book size - has ~120 SKUs in portfolio vs. ~900 at some importers and ~10,000 for RNDC as a distributor; optimal size varies by business model (e.g., focused on chains vs. independent stores/restaurants)More in not better - high cost to inventory and more challenging to prioritizePricing winesIn general, SRP is fixed, but each state is different (based on freight & tax differences, distributor margins (larger tend to work on lower margins), and retailer margins (some take less margin)Selling winesUsed to self-distribute in CA, now uses wholesalers (couldn't service all the accounts, wanted to focus on national sales)Distributor salespeople don't have time to focus on everythingImporter needs to generate interest in brandsKey elements for successFind good partners - share the same philosophy (quality, value, consistency), support each otherVine Connections doesn't add new wineries often (only one new Chilean winery); only one winery left in 20+ years$1M revenue/employee benchmark for successVine Connections differentiation - good communications, both in transfer and transparency (e.g., sales by state), consider Vine Connections an extension of the winery Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

To give their customers the ability to trade up and a broader selection than what's inside their 1,900+ grocery stores, Albertsons Companies have launched Vine & Cellar. Curtis Mann, MW, Group VP of Alcohol, discusses the greater selection, wine description and storytelling, and flexibility Albertsons has with Vine & Cellar to complement their in-store offerings. Detailed Show Notes: Curtis' backgroundWorked at IRI / Circana (database of retail scan data)Worked in retail wine stores and restaurantsWas head of beverages at Raley's (grocery) before AlbertsonsAlbertsons Companies1,900 stores that sell wineA lot of value wine, some specialty stores (e.g., Pavilions, Hagens) sell fine wineWest Coast - more domestic (~40% import, 60% domestic), East Coast - more importsVine & Cellar (“V&C”) online wine storeWine only now, no beer & spirits yetCA only now will expand to others (e.g., WA, IL)Extension on top of the grocery store websiteHas a larger selection of wines (2,300 items vs. average 800-1,000 at typical stores, up to 1,500 at some stores) - e.g., Super 2nd Bordeaux, allocated CA Pinot NoirWines are only available to ship via UPS (vs. in-store pickup or delivery)Can use the same checkout process for groceries and V&CBenefits for consumers of V&CCurated wine selections that are representative of their regionsBuy groceries and V&C wines and checkout togetherMore flexibility - can do wine dinners, in-store tastings, wine clubsGoals of V&CLet customers continue to explore and trade up on wines and not trade out of AlbertsonsDon't cannibalize in-store, but more add-on, incremental purchasesCapture a portion of the wine DTC marketOnline vs. in-store buyingMore imported wines onlineBroader selections vs more volume of the same wines in-storeAvg bottle price is $10 higher on V&C than highest in-store~½ V&C customers buying iconic wines (e.g., Silver Oak), ~½ exploring (e.g., Burgundies in the $50-100 range)V&C customer is both existing Albertsons and some new customersYou can put a lot more details/descriptors of wines onlineOnline buys in 6 or 12 packs to economize on shippingMarketing V&CQR codes inside storesVinecellar.comSome ads on the website, V&C wines come up during a search for wines if they are not offered in-storeEvents / PRNapa Safeway has V&C featured wines in-storeSome paid search, Wine-SearcherLoyalty programs - now Albertsons customers get promo codes for V&CWine trends - less high-end wines, people focused on value / high QPR Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

2023 wrap-up for the wine businessTopics we covered in 2023Sustainability (8-part series that had Drew Bledsoe to CEO of Silver Oak David Duncan and across the world from the US to Spain to Bordeaux)State of the Wine Collector (LA, Dallas)Leveraging non-gov't organizations (VDP, Grand Pagos) to promote wineRevenge travel Post-Covid move back to in-person / offices -> delivery of wine -> reduced visitors to wine country and people buying wine to stock and drink at homeAmericans Took Record-Setting Vacations In Summer Of ‘Revenge Travel' - 32.8% of households went on vacation (a record since data kept in 2015)Online retailer issues - Underground Cellar (April 2023), SommSelect (July 2022), Winc (Nov 2022, 1 year after going public) all went bankrupt, others struggling back to 2019 or even lower levelsMore missing bottles w/ Sherry Lehman (~Mar - Aug 2023), Chelsea wine storageInflation / economic slowdown globally and impact on wine marketBleak outlook for 2024 as fine wine buyers narrow their focus - Liv-Ex indexes down double digits year to date; “flight to quality” - Bordeaux benefiting, Burgundy, Champagne downInflation is used as the “reason” many wineries increase wine pricesBBC article on wine pricing increasing - glass, labor, fruit - all getting more expensive and wineries increasing price; and burgundy/napa/champagne got very expensive, consumers starting to pull backMany napa wines taking prices up to $300+ (Memento Mori - $225 -> $300)Chinese consumption is as low as 1996 levels, - the peak of 19.6M HL in 2017 to 8.8M HL in 2022 (#8 globally) vs. US in the top slot at 34M HLGlobal health/wellness; Millenial/Gen Z slowing down alcohol consumptionWHO says no alcohol is good for you (released a statement Jan 2023)Gen Z drink 20% less than Mill, who drink less than prior generations - college-age abstainers went from 20% -> 28% in the last 20 years (to 2020) Better non-alc and low-alc alternatives (kombucha, pot, mushrooms, better no/lo options for alcohol)Is wine part of the good life? Wine, particularly fine wine, is used differently than beer & spirits; it is also better from a health perspective The Wine Access interview re-emphasized - the experiences with wineThe Italian lifestyle / holy trinity of the good life - cheese, wine, & bread Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the podcast space matures, it becomes a more meaningful channel to market wines to consumers and create new experiences.  3rd time guest Amanda McCrossin, Host of the Wine Access Unfiltered Podcast, and AJ Resnick, CMO of Wine Access, explain their rationale and experiences in launching and building the podcast and associated wine club.  From celebrities crying on the show to creating a 360 experience with their wine club and podcast audio and video, the Unfiltered Podcast continues to build traction, make wine more accessible, and build Wine Access into a loved wine brand. Detailed Show Notes: Wine Access backgroundLaunched in the late '90s, it hosted wine retail websites and described wines2004 - offered wines on their platformCurate wines (team includes an MS), tell the story behind every wine, excellent customer service, and technology (powers wine clubs like Michelin Guide, Sunset, Decanter, and Williams Sonoma)Goal - to be a loved wine brandWine Access Unfiltered podcastLaunched in 2020A wine podcast w/ conversations around wine w/ wine, but not about wineReleased every other week, 45 min - 1 hour show lengthThey have done podcast ad buys and have seen successFormat - Season 1 - talk about wine stories, mostly with celebritiesSeason 2 - off more value add, more thematic (e.g., wine regions), added a wine club to drink the wines w/ the show (full 360 experience)Has IG (>10,000 followers) and YouTube (>300 subscribers) channelsListener baseThey assumed it would be the same as Wine Access customersThey found it to skew younger and less wine-savvy, but very curiousAnother way to connect with membersTraction>100,000 cumulative downloadsPast episode performance increases with new listenersHolds people's attention for an extended period of timeMost podcasts fizzle out after five episodesGetting celebrities on the show“Do you want to drink wine with us?” worked during the pandemicThey did a lot of cold calling, worked with a few producersMore prominent celebrities didn't always have the best performanceBert Kreischer's episode was very successful; he cried on the show and then mentioned it and FaceTimed Amanda while on 2 Bears, 1 Cave podcastWine ClubFour wines for four episodes, sent every other month, curated by Amanda10% off all Wine Access purchasesIncludes shipping, can add wines w/ free shipping to shipmentSome wines exclusive to the wine clubQ3 2023 - Unfiltered Wine Club had more new members than any other club that Wine Access runsROIThe wine club helps cover the costThe goal is more brand awarenessRetention through connecting w/ members in a different wayContent creation (audio, video) that can be reusedPodcastingSpotify is bringing new energy to the space with a better listening experience (went from 15% -> 30% of Unfiltered listeners)YouTube has a podcast sectionRepurpose clips for social media is a best practice Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

From an outsider's perspective, Jason Wise, director of the SOMM movies and founder of SOMM TV, has been able to find stories in the world of wine that interest a broad audience. To control more of the content pipeline and how the shows are distributed, Jason founded SOMM TV. Using "Somm" as more of a curator, SOMM TV has wine at its core and covers food, travel, and other alcohol, making it appealing to a broad (and younger) audience. Learn more about the business of wine films in this episode of XChateau! Detailed Show Notes: SOMM movie (2012) - Genesis of the movieMade when he was fresh out of film school (where he didn't focus on documentaries)Met Brian McClintic, who asked him to watch their tasting practiceJason found the practice similar to a sporting eventMet Ian Cauble and found his determination to become a Master SommelierThe success of the filmThe obsessive personalities made the filmBuilds to an actual event (the MS exam)The wine industry was ready for something like the movieNot a "wine film," a different way of looking at wineIntroduced a new group of people who can tell you what to drink (vs magazines)Documentaries became popular with NetflixNot made by wine people, the outsider perspective made it enjoyable for outsidersMedia business modelMovies usually have a distributorTheaters are a big marketing arena for wineiTunes - make a % of revenueNetflix - pays the distributor a fixed fee; if put on the 1st page, it can reach millions of people. It often pays based on what it costs to make. They can own rights outright or rent the filmAmazon - get paid 6+ months after it's up, get a tiny cut of incremental revenueYouTube - don't make any money onCreated SommTV to control more steps in the business model - more control of content pipeline, partnerships, and a place to premiere new films (e.g., SOMM 4)Before Covid - events were a big part of the businessMedia platformsHulu - Jason's favorite, takes the biggest swings in contentStars - has the best moviesNetflix - very careful; content is very similar to each other; often licenses something then makes their version if it works (e.g., Uncorked is a similar series to Somm)Cost of making filmsBig range - SOMM 2 ~$100k vs ~$850k for another wine film made by someone elseDocumentaries - can be millions, when there's real music, at least $500kDo not pay people to be in the filmSommTV business modelEmployees on salary, which is unusual in film90% original contentIt started with originals and, now, trying to license other contentFocused on wine, food, and alcohol; food is going to be a big partIt started the streaming service because it's an underserved audience, and wanted to super-serve themContent pipeline - they would ideally love to have new content every dayHundreds of thousands of subscribers (as of Jan 2022) - believes the potential audience is in the millions"Somm" is defined by Jason as someone who curates - wine at the center, but food, travel, etc…surrounding itPricing - $6/month, $50/yearLower cost doesn't necessarily mean more subscribersTechnology - a mix of own-developed and 3rd party apps; the goal is to bring the technology in-houseSommTV subscribersYounger, usually 24-37 years old (~70%), middle classScreenings/events - more varied audience52% male, 48% female - women growing fastKey markets - US largest by far, UK, Brazil, Nordic countries (not allowed in Iran or China) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Frustrated by a lack of understanding of consumer taste preferences and a lack of data-driven decision-making about winemaking, Katerina Axelsson, CEO and Co-Founder of Tastry, built an AI and chemical analysis system to solve this. With custom-built algorithms that take chemical analysis and develop flavor profiles and a database of consumer taste preferences that map to the US's 248M adults, Tastry is paving a new, innovative way to use data to make and market wine.Detailed Show Notes: Tastry was founded around 6 years ago, but 1st 4 were more of an R&D project, officially launched Dec 2021The wine industry is trying to anticipate what consumers wantNew wines have an 85% failure rate in the 1st yearPeople describing flavors in wine doesn't correlate with if they like itTastry uses AI and Machine Learning with chemical analysis to break down a wine's flavor2 databases - wine's flavor profile and consumer taste preferences that are matched togetherWine databaseAnalyze 10,000's of wines/yearChemical analysis is done in-house on standardized equipment but with proprietary softwareThe Top 2,000 wines based on IRI annually are analyzed to build a baseline data set as wineries' samples are proprietaryConsumer taste databaseDid double-blind tasting panels, asking consumers if they both liked or did not like wines; the negative preference is important for the flavor profile buildingConsumers also asked analog questions that became the Recommended by Tastry quizUse algorithms to relate data and predict preferences for the rest of the population (248M taste profiles)Can now predict individual consumer taste profiles if they take the Tasty quiz with 93% accuracy in how they would rate the winePalates are very unique; the largest cohort is only 13 peopleDemographics don't show a lot of differences in taste preferencesCustomers - work with >100 wineries, 22 of 25 largest wineriesWinemaker use casesComputational Blending - uses simulation to match profiles from different blends and adjustments; winemakers set parameters on what they are trying to achieveWinery had to switch from barrels to adjustments to 5x production and used blending to get a similar profileNavigating smoke taint (3k tons, $10M worth of fruit) - came back with a recipe that solved the issueMaintaining year-over-year consistencyWinery marketing use casesRecommended by Tastry plug-in for wine clubsLook more at finished wines and at competitive sets and overlap of consumer preferencesRetailer use casesRecommender helps get more niche brands discoveredThere is more traction for e-retailers now; pilots with big box retailersDec 2023 - Tastrt will announce a scalable way to access a broad # of winesStrong ROI - 44-215x, benefits mainly cost savings, increased revenueBusiness model - Vertical SaaS with consumption-based modelSubscription to dashboardLab analysis of samples provides ~$3,000 worth of analysis for a $370 list priceCompublend - per simulation chargeAccess to competitive data sets from the Top 2,000 winesPricing is the same for winemakers, marketing, and retailersRaised ~$10M in funding from individuals, early stage VC's, and strategic investors (wine, AI, retail) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the first iconic wine of Chile, Don Melchor has paved a path for many others to follow. Enrique Tirado, CEO and Technical Director, explains the vision behind Don Melchor, how it became an instant icon of Chile, and how it stays on top of its game.  Detailed Show Notes: Enrique's background - studied agronomy and enology, joined Don Melchor in 1993, became winemaker in 1997, in 2011, Don Melchor Winery was created and became CEODon Melchor overview:One specific vineyard in Puente Alto on the north bank of the Maipo River at the foot of the Andes Mountains1st vintage - 1987127ha, 151 parcelsMainly Cabernet SauvignonUses ~60-70% of the vineyard for Don Melchor wine~12-15k cases of 1 wine produced each year“One unique history, one terroir, one wine” is the ethos behind Don MelchorThe remainder of the fruit goes to other wines in the Concho y Toro portfolio (e.g., Marquis de Casa Concha)Becoming an iconic Chilean wineIt was 1st to create an “icon” wine in ChileIt was the most expensive Chilean wine on initial release1988, 2nd vintage, was in the Top 100 of Wine Spectator - the only Chilean wine and a big deal at the time which established Don Melchor's statusA string of critical praise - WS Top 100 9x, 3x in the Top 10, 100 points from James Suckling, Best of the Best from Robb ReportExport 90% of the wine to 70 countries; main markets include the US, Brazil, ChinaBecoming iconic todayIt is easier for other Chilean wines as Chile's reputation is more establishedThe country's image is critical and requires collaboration with other producersConsistency of quality is critical for both winemaking and the commercial sideAdd value to the wine world - e.g., come from a unique place, have a unique expression and personalityMay create a 2nd wine in the futureStaying on topRequires a singular focus on quality and consistencyNeed to focus on communication and optimizing the best routes to marketWine critics are still important, and they make consumer communication fasterCustomized routes to market by country (e.g., US, Brazil) and have offices in different countriesSold by the Concha y Toro sales forceHave a specific team for premium winesNot on La Place de Bordeaux  Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the #2 global wines & spirits company, Pernod Ricard seriously emphasizes promoting its brands globally. One method of doing this is its global network of Brand Ambassadors (“BA”). Fabyola Soares, Global Senior Wine Education Manager at Martell Mumm Perrier-Jouët, describes her team of 30 Brand Ambassadors, their mission, their role, and what traits make them great.  Detailed Show Notes: Fabyola's background - studied to be a sommelier in Brazil, joined Pernod Ricard in 2013 as 1st Champagne Ambassador in Brazil, now oversees global education program and Champagne & Provence Brand Ambassadors (“BA”)Pernod Ricard (“PR”) is #2 worldwide in wines & spirits, >200 premium brands (e.g., Absolut Vodka, GH Mumm, Perrier-Jouët)Pernod Ricard has a range of Brand Ambassador programsPrograms overseen by brand ownerThe oldest program is for Jameson Irish Whisky, founded in 1991 with 80 BAs in 15 markets worldwideBA programs don't span multiple categories but could represent similar ones, e.g., 2 Champagne housesThe scope varies by market - e.g., Hong Kong BA represents Champagnes and Provence, France - different BAs for each house, US - 1 Sr BA for ChampagneChampagne & Provence Brand Ambassador program30 BAs, 15 international marketsBrand Ambassador rolesTargets trade and passionate consumersMission - “to win hearts and minds”Engage in brand education, trade activation, business development, interact with media/journalists, organize cellar master visits, and teach wine certification programsCollaborates with marketing and commercial teamsDon't sell wine - commercial teams (Private Client Directors, Prestige Sales Teams) responsible for sales across the portfolioCareer paths - can be promoted to senior BA or join global market and strategy team (7 former BAs work there)Rare wine offers - mostly sold via auctions (e.g., 1874 Perrier-Jouët sold at Christie's in 2021 for a record £42,875) or private client directorsKey Brand Ambassador traitsNeed to be credible and respected by experts - focus on formal wine training, launched WSET in-house and developed Champagne Specialist Course with the Wine Scholar GuildMust embody house essence and be an effective spokesperson4 key characteristics PR recruits for - passion for wine, strong communications skills, adaptability/resilience, and spontaneous charismaMust be able to personalize interactions and customize messaging to meet customers' interestsPrior relationships are a plus, depending on the level being recruited forBuilding relationshipsPR founder often said, “Make a new friend every day” - key for BAsCommercial teams will make introductions to local customersConnect with as many people as possible, often surprised by who brings in new business opportunitiesBenefits of relationships with BAs - e.g., invitations to curated events and experiences such as the Belle Époque Society by Perrier-JouëtSocial media is more important in some markets (e.g., Brazil) than othersPR also has Lifestyle Ambassadors (part of the Marketing team) who have social media as a KPI Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With the aim of safeguarding the wines of personality from special vineyards (or “pagos”) from across Spain, the Grandes Pagos de España is a private group of wineries on the forefront of Spanish wine. President María del Yerro, of Alonso del Yerro, and VP Enrique Valero, CEO of Abadía Retuerta, discuss the history, objectives, how to join, and their new Terroir Workshop Series.  Detailed Show Notes: María's background - was a translator, husband took over family winery in Rioja, 2002 - bought a 56ha vineyard and started Alonso del YerroEnrique's background - worked at Diageo and Gonzales Byass, became CEO of Abadía RetuertaGrandes Pagos de España (“GPE”) history2000 - 5 wineries established Grand Pagos de Castilla2003 - included other wineries from Spain and renamed to GPE35 wineries, all single vineyardsPago is defined like “terroir”, a vineyard with different characteristicsCommon Goal: produce exceptional wines that reflect unique terroirInspired by VDP and French concept of Grand Cru, but adapted to Spanish contextGoals & Objectives of GPEPromote and safeguard “diversity and personality” of winesFoster research and innovationConduct educational and promotional activitiesCriteria for joiningMost wineries apply to be a memberCriteria - single vineyard, 100% estate fruit, min 5 years of internationally recognized quality, must pass internal tasting committee that assesses the personality of the vineyardMost vineyards ~50-75haSome wineries may produce wines that are not Grand PagosMember benefits and requirementsFees based on quota system by # of bottles produced (3 levels - 150k bottles), no winery is >500k bottlesNetworking w/ other wineries; e.g. - winemakers meet 2x / year to share learningsPromotion of wines domestically & internationally (e.g. - wine fairs, education)No logo on labelPriority marketsSpain is the primary market4 international focuses - USA (include for broader influence of press and blogs), Mexico, UK, SwitzerlandGPE wines at least 4-5x more expensive than avg price of Spanish wine (~$40-300/bottle in the US)Wine tourism program - many GPE wineries will showcase other GPE wineries in their tastingsKPIs for GPE include # of people at events, PR/comms results, results of last 10 years of new applicant tastingsMarketing GPEBuilding CRM of trade / sommeliers from tastings to keep in touchPartner w/ wine influencers, somms, other associationsHighest impact initiatives: US - big tastings; Spain - tastings w/ sommsLaunching a new Terroir Workshop SeriesMain push for the next 3-5 yearsGlobal education program for concept of pagos and 35 GPE wineriesStarting in US, Mexico3 brand ambassadors chosen and trained - help bring a 3rd party voice and local perspective on GPEPartnered w/ Gregory + Vine - helped clarify messaging and identified brand ambassadorsDesigned primarily for wine tradeNext priorities for GPEClimate changeGlobal competition - need to maintain a high reputationSustainability and social responsibility Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Having existed through the glory and the doldrums of German wine, the VDP, the association of top wine growers in Germany, has set out to re-establish German wine as one of the finest in the world. With 20 years under its belt, the Grosses Gewachs (“GG”) system has elevated the status of dry German wines in a short time. Theresa Olkus, Managing Director, and Steffen Christmann, President, discuss the history, goals, and role of the VDP and how the GG classification is bringing quality back to dry German wine. Detailed Show Notes: Verband Deutscher Prädikats- und Qualitätsweingüter (“VDP”)“P” standards for quality, those looking to produce top wines from top vineyardsThe goal is to bring the global recognition of German wines back to when the wines were considered some of the best in the world201 members (2023), up from 160 members (1990)10 regional associationsVDP historyStarted end of 19th centuryA movement to counter the industrial winemaking trendCreated quality requirements (e.g. - estate bottling, wine was sold in auction by the barrel and bottled elsewhere; no additions except sulfur, sugar was added before)Post WWI/WWII - cheap, sweet wines became popularGerman Wine Law of 1971 - created quality classification based on must weights, varietal agnostic, leading to consumer confusionThe late 70s/early 80s - German wine quality sank (yields too high), and the law created consumer label confusion, leading to VDP revamp, focus on vineyard sitesJoining the VDP1990-2023 - 130 new members, 1-2 new members/yearMust fulfill criteria, blind tasting, vineyard, and cellar inspectionYou can't apply or buy a membership; a region must invite a wineryBenefits for VDP membersKnowledge sharing Leveraging the VDP brand (eagle logo) - an international sign of qualityVDP events and marketingExporting expertise - 27% of VDP wines exportedLeaving the VDP1-2 members/year leaveMost coached to leaveMostly leave post generational change - don't want to follow VDP rules, quality not at the top levelDry German winesTraditional style before 1900Germans drink as much dry as anywhere else in the world, and the reputation for sweet wines is an international perspectiveHistorically - 2-3% potential abv difference between entry-level and best wines. Today, due to climate change, the sugar levels are the same; only the yields and quality of site create differences~60-70% of VDP members don't make sweet wines, Mosel/Nahe most make sweet, Rheinghau ~20-30% do sweetGrosses Gewächs (“GG”)2002 - implemented in all regions, started w/ Rheingau 1994/5, Pfalz 1996Created positive brand for dry German wines - increase in the average price of GG wines - 2002 - €16, 2023 - €40 (range from €25-150+)German market response was positive, creating pride in German winesUK pushback - writers thought dry German wines were too sour and lacked quality; last to adopt the new style, only in the last 5 yearsScandinavia - a hot spot for German wineElements for GG success - wineries can only make 1 GG wine from 1 Grosses Lage site; wines have gotten betterSignificant markets for GG - used to be Northern Europe, Asia (China, S Korea, Thailand, Singapore)Africa/India/S America - not strong for German winesMore than Riesling - Pinot Noir, Pinot Blanc, SilvanerThe next priorities for VDPRenewing German Wine Law, potentially moving VDP classification into lawSustainability/climate change Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the wine director and partner of the Lettuce Entertain You restaurant group, Richard Hanauer oversees ~100 restaurants' wine programs. Seeing beverage sales grow from single digits to ~20% of sales, Richard discusses the role beverage plays in restaurants, sommeliers, the elements of good wine programs, and his newest wine country themed concept, Oakville Grill & Cellar. Detailed Show Notes: Lettuce Entertain You ("LEY")~100 restaurants in Chicago/IL, CA, NV, FL, TX, VA, DCPartitions of different culinary groupsBeverage impact on sales - can be 0% - 50% of salesFine dining and wine sales used to have a positive correlationMore casual concepts w/high-end beverage programs (e.g., luxury whiskey w/ casual BBQ)LEY - Wine was single digit of sales, now high teens-20% over the last 20 yearsThe volume of sales driven through by the glass ("BTG") programs (e.g., RPM Seafood sells 4-5x Pinot Grigio vs. Sancerre, which is 2x the price)Wine program drives return visits vs. initial visits - people come back for the person who recommended the bottleDefinition of a good wine programUsed to be verticals of great traditional producersNow, more about how the wine program fits into the restaurant (e.g., Piedmont wines w/ Piedmont food)Need good stemware; not great stemwareWines at the right temperature and match the menuRole of the SommelierOperations - wine binning/storage, ordering, tasting, building wine menusWhen not involved in wine, they should be "hospitalians," helping with everything elseBest somms build relationships with wineries (get access to unique wines) and guests (getting them into the right bottle, not the most expensive -> brings customers back)Average fine dining ratios - 24 tables, 1 somm per 12 tablesSomm turnoverPre-Covid - average tenure 18 monthsRe-training takes 6-12 monthsLEY - tries to retain employees, treats them well w/ 401k, benefits, opportunities to grow career w/in LEYRestaurant pricingRent is the most significant expense -> increases COGS for everything, including wineFood/cocktail ingredients are blended together, but wine is not, making pricing a more significant issueGoal - keep COGS down while holding price (sometimes achieved through relationship w/ wineries)Try to get less available wines - have less price transparencyMarkups lower on higher-end wines - standard markups would make the wines unsellableOakville Grill & Cellar - opened April 2023CA wine area themed restaurantNapa inspiration - "Never pretentious, never formal…very comfortable, pleasurable, elevated service & quality of food, rarely decor"The entire wine program is from CACellar Door - tasting studio w/in Oakville Grill6 person suitePartners w/ different winery every monthRe-creates the winery tasting list down to vintage and wine pricingGets training from the wineryGuests can sign up for winery, take home wine~500 guests/month capacity (4 seatings/night, 5 days/week)Winery requirements: right pricing (not low or high), interesting tasting list, pedigree, make sense w/Chicago's seasonality, open to all of CAAlso, BTG in Oakville Grill and usually on the wine list before and afterTrends for RestaurantsAuthenticity - e.g., Aglianico w/ Neapolitan pizzaWine getting more expensive -> The cost of building a cellar is higher, which leads to more focused wine lists Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

In a valley of ever-increasing prices, Malek Amrani of The Vice, is trying to bring value and discovery to Napa.  Producing 18 varietals from 16 sub-regions, The Vice showcases the full spectrum of Napa Valley at $29 a bottle.  Malek is “going against the grain” in many ways - focusing on value, discovery, and underserved markets to build The Vice brand for the long run.  Detailed Show Notes: “The Vice” named after Malek's main vice of wineFocused on value and discovery of Napa ValleyProduction27k cases total~65% house tier, ~30% single vineyard tier (~20 wines/year), ~5% ultra-premium#1 SKU is House Napa Cab - ~11k casesThey make 18 varietals, from 14-16 sub-regions w/in Napa, a little bit of Russian River Pinot and ChardonnaySources both fruit and bulk wineCost mitigation measuresSecure better pricing through pre-paying for grapesBeing proactive - purchasing fruit from southern Napa vineyards in 2020 that weren't impacted by fires, talked to 12-15 glass distributors to mitigate the 200-300% price increasesFocused on the wholesale channel (~80% of sales)Spends ~75% of the time outside Napa working marketsIn 2020, traveled every month except April working w/ retailers -> 100% success rate, added 400 retailers in NYCFL/TX buy more single vineyard wines; NY/NE - very House tier driven, CA/CO - good mixFL - a red wine state (driven by Boomers), NY - big in orange wine, nearly outsold House Cab in spring 2023Customer demographicsEqual split - Baby Boomers, Gen X, Millennials / GenZOrange wine (~3,500 cases) - 75% Millennials / GenZ, ~25% Gen XSingle vineyard Cabs - ~85% Baby Boomers & Gen X, Millennials focused on lower price pointsAppellations important primarily to Boomers who grew up with Napa becoming famous, Gen X sees Napa as a symbol of status, Millennials/GenZ appellation less critical, more price-drivenBelieves Napa will remain important, driven by tourism - 4M visitors/yearOrange vs. RoséSwapped production of rosé wine for orange wineBelieves rosé hit the ceiling in 2019 - rose a more social drink, also very vintage driven with closeouts on prior vintages damaging brandsSpirits vs. wine marketingSpirits has lots of product innovation, e.g., many flavors of vodka -> led to The Vice producing many different varietals and Napa sub-regionsSpirits spend millions on advertising -> likely would not work for wine; better for the brand to be built account by account w/ gatekeepersConsumer awareness of The Vice2020/2021 - spent heavily on Google, FB/IG ads, had to shift when Sept 2021 privacy laws changedAwareness from a lot of referrals and through retail placementsSome social media, in-person visits, and press/media - ratings are still importantPair wine w/ other vices - e.g., cannabis, candy, ice creamThinks about pairing w/ the senses - e.g., vision (most important), hearing, smell (linked to memory and emotion) - instrumental hip hop, sex toys for a bachelorette partyWorks under targeted regions - e.g., Staten Island and the Bronx retailersLikes to go against the grain - be more value-oriented vs. higher end Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Coming from a long career in technology, Kia Behnia, Founder of Neotempo Wines, was galvanized by the 2017 Napa fires to create a more sustainable path.  This started in the vineyard, where he's utilizing technology and leveraging real-time data to improve quality and decrease cost.  Kia maps opportunities he sees in weeding, irrigation, mildew prevention, & automated crop evaluation as part of the foundation of a new “Smart Farm.”  Beyond the vineyard, Kia has redesigned what sustainable packaging means for wine for Neotempo to address the most significant shortfalls of the industry today.  Detailed Show Notes: Neotempo overviewReplanted vineyard (Kiatra), sold fruit, and now starting a winery2017 Napa fires - nearly lost property, vineyards acted as a fire break, became the catalyst to focus on sustainability leveraging tech and innovationCreating a brand for modern times, responsible and sustainableLaunching Fall 2023 w/ Kiatra Cab Sauv, ~$250/btlWe will roll out less expensive wines in the futureTech in the vineyardCan help solve the labor shortage (cost of labor in Napa up 38% in last two years)Large opportunities - weeding, irrigation, mildew prevention, automated crop evaluationThe use of data in the vineyard is low; data is available but not integratedVineyard Tech examples: 1) VineView - scans the vineyard to monitor vigor2) Phytech - monitors soil temps for irrigation; installed 30 sensors across 4 acres / 4,000 vines; measure the stress level of vines to inform watering vs. scheduled wateringUsed 25% less waterAble to do pre-watering for upcoming heat stress events (in a morning of high heat, 3-hour events) -> only lost 5% of the crop in 2022 vs. much more at other vineyardsGets real-time data at 3ft and 1ft under the soil and at canopy levelExtending to misters in 2023 to control temp and hydration more3) Crop Evaluations - establish the health of the vineyard at individual vine levelMapped and graded each vine 0-6 (0=blank, 1=rootstock only, 2=dead vine…6=healthy vine)Graded during the 7 stages of the growing cycle, including 1 week before harvest -> helps determine the replanting scheduleIt also uses grape samples and lab analysis (phenolics) as inputsExported all data into the analytics platform to do more reporting and analysisNo vineyard farming platform yet, mainly just products and featuresROI of vineyard tech - only invests in positive NPV projectsThe cost of farming went slightly upBelieves innovation will reduce labor requirementsWill create new capabilities - e.g., disease preventionChallenges to moving forwardLack of entrepreneurship culture in farmingLack of fundingLack of openness of farmers to adopt new technologiesNeotempo packaging - building architecture for sustainable 750ml wine bottleDesigned own lightweight, high-end bottle (550g, 40% lighter than alternatives, 100% recycled glass)Temp-controlled styrofoam alternative, no plastic - every component recyclable or compostable Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Continuing our two-part episode, William Kelley, Deputy Editor of The Wine Advocate, expounds on the evolution of the business elements of Bordeaux. From La Place de Bordeaux to wine critics' score compression, Williams shares his view on how these institutions are changing and evolving their place in Bordeaux and how that impacts big and small chateaux. Detailed Show Notes: La Place de BordeauxLatour's leaving the en primeur system, but not La Place, did not have a meaningful impact, outside of when the wine is delivered, and did not tempt anyone else to leave en primeur or La PlaceFocused on the Top ~50-150 Bordeaux winesNow represents several non-Bordeaux wines, giving a bit more glamor for negociants to sellMore consolidation is happening in the negociant spaceNegociants now do not have the time nor capital to care about "petite" chateauxSeveral business models emerging, including high margin or high turnover with less inventory keptNot a great way to build durable customers (e.g., may sell in Korea one year and Costco in Wisconsin the next)Petite chateaux - need to differentiate and find direct distribution to be successfulImplications of health trends, consumers drinking lessWine with great personality continues to benefitBulk wines, lower-end wines struggling (e.g., lower-end Bordeaux wines, petite chateaux)Wine CriticsScores are getting inflated and compressed - lots of new critics are coming around and pushing scores upWilliam believes a more credible review is more worthwhile than high scores on their ownE.g., Burgundy doesn't get high scores, yet sells very wellWilliam publishes en primeur scores before the 1st release, therefore can't tell if they have any impact on pricingNext for BordeauxThe 2019 vintage had lots of good deals with Covid impacts and price increases of Burgundy, making people interested in Bordeaux againThe region needs to get people back to Bordeaux who have given up on it Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Deputy Editor of The Wine Advocate, William Kelley, who recently took over reviewing Bordeaux, as well as Burgundy and Champagne, amongst others, and former guest on E62 (Evolution of the Wine Critic) and E68 (Burgundy), takes a deep dive into the current state of Bordeaux in this two-part episode.  First, William tackles the history of Bordeaux and how it achieved greatness as one of the top wine regions globally to its recent decline relative to Burgundy.  Detailed Show Notes: Bordeaux was William's 1st love of wine, part of its charm being its everywhere and always accessible relative to Burgundy's scarcityThe Rise of BordeauxFrance's most successful “commercial” wine - Bordeaux is a trading port city on the Atlantic, commerce is key to its identityWine was mostly an export product vs Burgundy was drank mostly by nobility, was also harder to travelRobert Parker was a big supporter of Bordeaux vs. Burgundy, which was less of a focusBordeaux's downfallLost commercial influence over the past 20 yearsConversation of wine has been around “terroir” and the Burgundian modelAggressive pricing (particularly of 2010 en primeur campaign) also drove away many traditional customers - many wines still not worth what they were sold for en primeur from the 2009 and 2010 vintage campaignsWorries that 2022 may have a similar fateBordeaux strategiesSome are trying to replicate Bordeaux scarcity (produce less Grand Vin, more 2nd / 3rd wines) - the region/producer may be too big for this strategy to workTrying to copy other successful wine region styles (e.g., Napa, Super Tuscans; Int'l Sauvignon Blancs for whites)William believes the best path is to keep what's unique about the region but improve quality to make wines more approachable (e.g., more precise block harvesting, canopy management, etc.)There's an overreliance on vintage for Bordeaux; many great wines are made in lesser vintagesWinemaking trendsSince the 1982 vintage, new prosperity led chateaux to invest in new wineries, the focus was in the cellarRecently, the push has been for vineyard improvements, promoting soil health and rooting systems, canopy management, and rootstocks and clones, though these take generations to implementSales focusSalespeople in Bordeaux are not winemakers vs. Burgundy, where they are vigneronsCritics often taste at negociants, not at wineriesWilliam was one of the 1st critics to walk the 1st growth vineyards in decadesLa Place de BordeauxSuitable for big chateaux w/ pre-existing reputations, not small onesPetite chateaux - struggling and hard to surviveM&A - can increase top chateaux production, especially of 2nd wines, where they can often get 2-3x the price of former wines Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Accidentally filling the big shoes of Michael Broadbent and Steven Spurrier, Jane Anson, wine critic, author of Inside Bordeaux, founder of janeanson.com, and former Bordeaux correspondent for Decanter for nearly 20 years, is one of the world's foremost experts on the wines, history, and region of Bordeaux. Having lived in Bordeaux since 2003, Jane shares her deep insights into how Bordeaux became as famous as it is, how the systems of La Place de Bordeaux and En Primeur work, and the complex terroir of the region. She gives us insight into the content of janeanson.com and how it will be a unique look into Bordeaux, focusing on the drinkability of the wines and many of the unique features to be released. Detailed Show Notes: Bordeaux OverviewA port city far enough inland to be a safe port12th century - duchy of the English crown, wines were sold in the London marketThe system of chateaux, merchants, and negociants was built for exportTerroir is very complex (which may be why it's not talked about much), e.g., of the 61 wines in the 1855 Medoc classification, all of them are on 2 specific gravel terraces (#3 & 4) of the 6 terraces of the MedocMostly clay underneath with gravel on topLots of micro terroirsSt Emilion - has pure limestone, clay, and gravelIssues that have hurt BordeauxEvery vintage is not great, though Bordelais often say thatFrustrate people based on the prices they ask (e.g., 2009/2010 vintages - many people who bought lost money)Advantages of La Place de BordeauxBusiness to business, sell to merchants that sell to consumersVirtual marketplace - enables access to 10,000 clients globallyIncludes chateaux, brokers, and negociantsSells wine into every level of the food chain - has specialists for on-trade, off-trade, hotels, corner shops, supermarkets, etc.It doesn't build your brand but makes sure it gets everywhereGood at giving the illusion of scarcityCan use La Place for specific markets - La Place has expertise in the Asian markets (e.g., China, Vietnam, Japan)Disadvantages of La Place de BordeauxCreates a very competitive environment - low-end wines compete with each otherIt protects Bordeaux well, and merchants need to buy in bad years to get allocations in good yearsNo direct contact with consumers for wineriesLess effective for small guys that aren't established brandsNon-Bordeaux wines selling on La PlaceGone from nothing to 60 wines 5 years ago to 90 wines in 2021Provides access to global markets - shows wines next to the great wines of BordeauxOpus One - the 2nd non-Bordeaux wine on La Place (after Almaviva), has sold wines since 2004 and opened an office in Bordeaux. Barriers to joining La Place - need enough volume to get everywhere, need to do your own brand-building work, and meet customersThe increase in overseas wines has hurt smaller Bordeaux estates -> negociants have limited budgets and drop themEn PrimeurFrom the early 1980s, Parker injected excitement into the En Primeur systemPeople used to make money, but now they are often better off waiting until wines are in bottle with certain exceptions (e.g., tiny production Pomerols)No longer has the same sense of urgencyTranche system - release a small amount of wine at one price, then release more later at higher pricesnon-Bordeaux wines price more consistently than Bordeaux winesLatour dropping out of en primeur, they wanted to store wines and release them when best for consumersChateau Palmer - sells 50% en primeur, 50% 10 years later Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Checking in on how collectors are weathering current economic conditions, John Jackson (IG: attorneysomm; YouTube: attorneysomm) provides insight into the Dallas, Texas wine market.  From their wine clubs to how collectors learn about new wines and buy them, John delivers deep insight into the Dallas market as of May 2023.  John also details some of his journey on social media with Instagram and YouTube.Detailed Show Notes: John's backgroundAttorneysomm on Instagram (27k followers) and YouTube (7,000+ subscribers)Dallas based collector, lawyer, WSET DiplomaCellar is ~2,000 bottlesDallas Wine ClubsLike a country club for wine loversEach club has ~100-125 membersAnnual dues (~$1,500-2,500/year) and must meet a minimum wine spend through the club's retailIncludes a wine locker (48 bottles), hosts winemaker and distributor tastings, sells wines through distributors and brokers wine collectionsDriven by TX wine laws - restaurants w/ full bars are not allowed to do corkageGraileys - more focused on celebrities and athletes nowRoots and Water - John is a member, currently 2 locations55 Seventy - opened 1-2 years agoCollector demographics are becoming more female over time from heavily maleDry January is relevant, but interest in wine is increasingRegional buying focusTop 4 regions - Bordeaux, Champagne, Napa, BurgundyIn John's collection - he buys the most Champagne, but California is #1 in the cellar (due to large prior buying), with Bordeaux and Rhone nextSpain and Italy are relevant but smallerPichon Lalande is popular in Dallas - more expensive in Dallas than in other marketsIntroductions to new wineriesPrimarily through club distributor tastings & winemaker visitsVisits to wine regions (collectors go ~2-3x/year)Social mediaWine pricingIncreases have made people more selective w/ purchasing; some have paused and drinking down cellar, waiting for pricing to come downSome prices are double what they were before, especially BurgundyAuction house reached out soliciting wine to sell, claiming the market is at all-time highsPrice increases in bad vintages (e.g., 2017 & 2020 Napa) are negative buying signalsWine buyingFrom club - ~33%, mostly at distributor tastingsOnline sources - ~33%, for older bottles, back vintages (e.g., Benchmark wine); collectors drinking mostly ‘90s Bordeaux and earlierWinery direct - ~33%, for domestic wines, mostly mailing list/allocation systems, don't like clubs b/c no control over what they receive; John was in ~15-16 mailing lists, now ~4-5); people culling their lists“Cellar Defenders” - wines to drink that protect wines in the cellar; e.g., Willamette Valley, Rioja (Lopez de Heredia), Châteauneuf du Pape (Pegau)Harder to get older wines than before (e.g., Champagne, Napa)Social mediaInstagram - spends less time engaging and more preparing content; posts more high-end winesYouTube - active wine community, tends to be more value-focused, took a long time to reach critical mass (1st 3 months - 100 subscribers; +6 months to 1,000; 15 more months to 7,000); people want to know what wines to buy (e.g., Top 10 wines under $50)Influencers now need to be more proactive in finding opportunities vs. being actively approached during the pandemic Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Trained in chemistry and born blind, Hoby Wedler, an entrepreneur and sensory expert, has trained his palate to pick up aromas and nuances in wine more acutely than most.  Hoby describes how he does "Tasting in the Dark," which helps wineries connect with buyers and his thoughts on accessibility in the wine industry. Detailed Show Notes: Hoby's backgroundBorn blind, studied history and chemistry (Ph.D.)Francis Ford Coppola asked him to design a blindfolded wine experience, which became "Tasting in the Dark"Went into food & beverage, consulting on product development, comparative set tastings, and aligning wines with wine critics' palatesTasting in the Dark structureTry to make people feel comfortable under blindfoldUse eye masks to change attention away from sightPrime the aromatic vocabulary w/ samples of aromas found in winesCreate memories through a truly blind tastingMost impactful for trade teams, distributors, buyers, and for higher-end wines w/ 3-tier distributionE.g., Coppola did tasting for Safeway Group (grocery w/ wine stewards) and saw a significant increase in sales at Safeways for 5+ years afterwardReasons people buy wineLike the labelRead about the wineLike the story, particularly for premium wines ($20+)Most consumers don't know what they're looking forBlind tasting helps imprint a story with the wine in people2018 - Thomas Keller used Tasting in the Dark to train front-of-house staff to enable them to describe food and drinks betterAligning w/critics' palatesMostly aligned on aromatics and mouthfeel, abv levelsWineries can adjust when to send certain wines to criticsSometimes helps wineries w/ blendingWine & accessibilityChapoutier is classic example w/ braille labelsAccessible websites importantQR Codes put in the same place can help bring people to accessible websitesThis can lead to unexpected benefits; e.g., wheelchair ramps were found to be useful to many more than those in wheelchairs Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Fueled by the pandemic, grocery stores have made significant investments in selling digitally, with wine being an essential growth category for online sales.  With estimates of ~$6B in wine sold through online grocery by 2025, Jessica Kogan, Chief Growth & Experience Officer of Vintage Wine Estates, gets into the trends, key success factors, and the opportunity that online grocery represents.  Detailed Show Note: Vintage Wine Estates (Ticker: VWE)11th largest wine holding company in the US12 wineries, a couple of digitally native businesses, 12-15 lifestyle brandsHeavy focus on DTCOnline grocery trendsBy 2025 - 22% of Americans will buy groceries online (i.e., anything not in-store and digitally enabled)Alcohol is the fastest growing segment for online grocery - by 2025 - $5.97B in wine online from

Grocery stores are one of the biggest sales channels for wine. Curtis Mann, Group Vice President of Alcohol of the Albertson's Companies, gives us the inside scoop on buying trends, how to sell into Albertson's, and the rise of the use of digital. Learn about the dynamics of the grocery wine market and what makes Albertson's “locally great, nationally strong.”Detailed Show Notes: Grocery as part of the wine marketMulti-outlet wine market ~$12-13B / yearTotal wine market ~$60-70B / year (multi-outlet ~20% of the total market)Albertson's Companies' wine overview~25 different grocery brands, ~2,000 storesWine is a key element of business - it drives sales and customer loyalty, some customers come to stores because of the wine selectionSome stores have up to 3,000 wine SKUsStores with more premium selections are correlated with location (high socio-economic demographics) vs. grocery store brandThe focus is more on the “premium” price segment ($9+ based on IRI)Top brands - Barefoot, Kendall Jackson, up-and-coming brands - Butterl Josh, but wine is very diversified, big brands are still a small part of the marketPremiumization helping imports, including New Zealand Sauvignon BlancWine buying trendsConsumers are called to authenticity - they want to know what's in their wine, the appellation, sustainability, and organicConvenience - cans, seltzer, ready to drink Premiumization - $10-20/bottle, $30-50/bottle, up to $100/bottle (e.g., high-end Bordeaux, Napa Cabernet) ranges all doing well, some categories accelerating with potential out-of-stocksWine customer demographicsGen X & Baby Boomers - still buying a lot (more in bulk and volume), but less than beforeMillennials are the new customers - buying more, less loyal to wine vs. other drinks, and have less expendable income; their preferences are different from Gen X and Baby BoomersTo meet the changing demographics, Curtis looks forward 3-5 years to develop his shelf set/selections of winePromotions/discountingLimited brand loyalty in wine, customers often default to pricePromotions are very importantNeed to work between price and product to optimize sales and not over-rely on priceWine selectionWhat does it mean to customers? Each wine must have a purpose vs. the other ~1,500 SKUs on the shelfTagline - ‘locally great, nationally strong'; try to give local stores more voice (e.g., Portland stores have more Willamette Valley Pinot Noirs)Flagship Stores (e.g., Andronico's, Pavilions) - higher-end, eclectic offeringsSteps to sell into Alberston's - have the 4 P's put together - distribution network, pricing, product, and where you fit on the shelfGenerally need to place wine 4-6 months in advanceNeeds a UPC code on the bottlePrivate Label/“Own Brand” winesThe goal is to provide the best price to value for customersThe intent is to drive loyaltyNot a dominant part of the businessTrying to create wines that are a draw and get good scoresSelection is built around education, the desire to learn about the wine category through own brandsSuppliers have connections to maintain supply, which can help Own Brands overcome supply challenges (e.g., 2020 Napa, 2021 New Zealand)Core elements of success for the grocery channelThe selection keeps people in the storeRelating the wine to the food in the store (food-wine pairing)E-commerceConvenience (e.g., ready to drinks) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.