Afleveringen
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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 region
Alessia 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)âBlending tradition and innovationâFamily members are not obliged to join the company but grow up around the wineryPrimum Familiae Vini (âPFVâ)
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 & technical
Meet 3-4x / year virtually or in personMeet at least 2x/year (1 annual meeting - 2024 in Oregon hosted by Drouhins)Annual Meeting
Up 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 events
2024 - after Oregon hosted a press tasting in NapaUsually, press, charity, or walk-around tastingsPFV Family Prize - âthe most beautiful company of the yearâ
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 members
Collector Cases
Haute 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 âŹ25kAdvice for other family wine businesses - be very passionate about the work, be curious and passionate
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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 overview
Founded in 1902 by Giulio Ferrari1952 - Bruno Lunelli (Matteoâs 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 relation
Formula 1 (âF1â) partnership - âOfficial Toast of F1â
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 âWhy there will always be a Ferrari on the podium of F1âF1 label series - limited, special editions
Big 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 sponsorship
Ended w/ Covid, sponsored for ~5 yearsServed at Governorâs 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 activations
Mass market partnerships like F1 benefit Non-Vintage more than vintage/reserve wines
Vintage/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 episodesHosted on Acast. See acast.com/privacy for more information.
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Zijn er afleveringen die ontbreken?
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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 - âNZ wine, all together unique.â
Detailed Show Notes:
Charlotteâs background - dairy industry, lived in Asia and the UK, in wine for the last 20 years
NZ Winegrowers
Est 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 - âNZ wine, all together uniqueâ
Supports the 10 wine regions
NZ exports 88% of their wine to 100 countries
Top markets - US (~40% of exports), UK, Australia
Focus markets - Canada, China
Focused on white wine (93% of exports) for May - 3 events, Sauvignon Blanc Day, Pinot Gris Day, and Chardonnay Day
White wine emoji - leading a campaign over the last few years to have this implemented
Kendall 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 acidity
Marketing metrics used - estimated advertising value, reach and engagement, social media engagement, toolkit downloads
Lighter 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 2023
Targeting a group of âGeneration Treatersâ (mostly Millennials) - 1/10 of drinkers, but â of spend
Can cross-promote white wines - 63% of SB drinkers drink Pinot Gris, 67% of SB drinkers drink Chardonnay
NZ 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 gin
Highest impact marketing - influencing the influencer (e.g., a WSET partner, work with Sommelier associations)
Major events
Has 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 watch
Sustainability (NZ has 96% of vineyards certified sustainable)Packaging innovationGrowing wine tourism Get access to library episodesHosted on Acast. See acast.com/privacy for more information.
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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 disasters
Rates are soaring
FL/CA - natural disasters happening more, impacting insurance
If >5 mi from a fire station, insurance premiums can be double
Winery insurance is a niche market, so it is better to have expertise
Leakage & 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 business
Sometimes, there is state coverage for catastrophe-only coverage
Insurers often value inventory based on âfinal destinationâ (e.g., DTC vs. wholesale)
A wine library with increasing value should be looked at annually to see if coverage needs to be adjusted
Vineyard insurance is different from winery
Farm 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, etcâŠ; 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/ vineyard
Winery 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 advocate
Value of a broker vs. direct from the insurer - can provide different options of insurance, the downside is they do not know policies as deeply
Wine Crush Podcast
Share 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
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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 industryâs most robust database on US wine consumers.
Detailed Show Notes:
Wine Market Council (âWMCâ) - non-profit, formed in 1996
Mission - provide cutting-edge research on the US wine consumer purchasing habits, trends, and attitudesMembers use WMC data for marketing and brand strategiesUS wine sales
From 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 years
Has 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 (âcool to be soberâ); 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 suburbs
Ethnicity diversification making progress
By 2050, the majority of the US will be non-whiteTodayâs 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 âus,â 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 wine
SupermarketsWine 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 canât advertise, but influencers can post)X/Twitter - went from #2 to #6Wine apps - 17%2024 trends
Anti-alcohol movement Talking about the benefits of wine (illegal for alcohol brands to discuss health) - WMC launched a social campaign called âWine isâŠâ (e.g., wine cocktails, family dinnersâŠ)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 episodesHosted on Acast. See acast.com/privacy for more information.
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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 Portfolio
Christian 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 âaffordableââAffordableâ = $30-100 in US retailStarting an import business
He 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 challenging
2-3 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 areas
Choosing 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 relationships
Offshore differentiation - speaks the winemakerâs language (French, Spanish), worked production, and is building deep personal relationships
Wineries 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 salespeople
Other salespeople have opened doors for him to help himBuilding small brands
Many people struggle with name pronunciation He tries to share wines, stories, and pictures of brandsHe doesnât 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 Isleâs new bookAdvice for others - be able to sell the wines
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As part of the importer series, Yi Xin Ong, Managing Partner of KOT Selections in Singapore, provides an international perspective. From Singaporeâs 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 couldnât 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 - donât drink)
No 3-tier system, no govât 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 not
Yapp - 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 Singapore
Informal 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 differentiation
Market 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 approach
Get the right people to taste them - professionals, and influencers / Key Opinion Leaders (âKOLâ)Host tastings every year, even for highly allocated wines (e.g., Pierre Gonon)KOLs can drive demandIntâl media have a strong influence - English is the primary language
More 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 important
Vivino, 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 trends
New 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 episodesHosted on Acast. See acast.com/privacy for more information.
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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 (âWDâ) overview
Founded 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, ~â France, ~â Italy, ~â New WorldOwns distribution in 5 states~35 sales managers, sells ~600k cases/yearImporter role
Curate 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 eventsSourcing
Sources wineries with estate vineyards, some with the ability to scale (~â 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 management
With 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 wines
Crafting 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 (~â 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 US
Create 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 marketDonât 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 episodesHosted on Acast. See acast.com/privacy for more information.
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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 âannualâ brands into âperennialâ 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 brands
Perennials - 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 perennials
Getting 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 press
Creating brand value as an importer - consumers believe in the importerâs book through consistent producers and quality across the portfolio
Consistency helps develop brands
Marketing strategies to build distributor demand
Press (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)Canât 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 (âSRPâ)
Through tasting, looking at the competitive set, and where the winery wants to be$1 in home country becomes ~$3 at retail in USSales strategies
VC 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 2002
He 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)
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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 Connections
A 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 importers
All 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 importer
Bring 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 wines
Looks at people first, then property, and consistency in product and pricingNew wines donât 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 wines
In 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 wines
Used to self-distribute in CA, now uses wholesalers (couldnât service all the accounts, wanted to focus on national sales)Distributor salespeople donât have time to focus on everythingImporter needs to generate interest in brandsKey elements for success
Find good partners - share the same philosophy (quality, value, consistency), support each otherVine Connections doesnât 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
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To give their customers the ability to trade up and a broader selection than whatâs 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:
Curtisâ background
Worked at IRI / Circana (database of retail scan data)Worked in retail wine stores and restaurantsWas head of beverages at Raleyâs (grocery) before AlbertsonsAlbertsons Companies
1,900 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 (âV&Câ) online wine store
Wine 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&C
Curated 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&C
Let customers continue to explore and trade up on wines and not trade out of AlbertsonsDonât cannibalize in-store, but more add-on, incremental purchasesCapture a portion of the wine DTC marketOnline vs. in-store buying
More 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~œ V&C customers buying iconic wines (e.g., Silver Oak), ~œ 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&C
QR 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&C
Wine trends - less high-end wines, people focused on value / high QPR
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2023 wrap-up for the wine business
Topics we covered in 2023
Sustainability (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-govât 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 âRevenge Travelâ - 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 levels
More missing bottles w/ Sherry Lehman (~Mar - Aug 2023), Chelsea wine storageInflation / economic slowdown globally and impact on wine market
Bleak outlook for 2024 as fine wine buyers narrow their focus - Liv-Ex indexes down double digits year to date; âflight to qualityâ - Bordeaux benefiting, Burgundy, Champagne downInflation is used as the âreasonâ 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 consumption
WHO 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 episodesHosted on Acast. See acast.com/privacy for more information.
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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 background
Launched in the late â90s, 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 podcast
Launched 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 base
They 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 peopleâs attention for an extended period of timeMost podcasts fizzle out after five episodesGetting celebrities on the show
âDo you want to drink wine with us?â worked during the pandemicThey did a lot of cold calling, worked with a few producersMore prominent celebrities didnât always have the best performanceBert Kreischerâs episode was very successful; he cried on the show and then mentioned it and FaceTimed Amanda while on 2 Bears, 1 Cave podcastWine Club
Four 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 runsROI
The 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 reusedPodcasting
Spotify 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 episodesHosted on Acast. See acast.com/privacy for more information.
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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 movie
Made 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 film
The 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 model
Movies 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 platforms
Hulu - 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 films
Big 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 model
Employees 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, etcâŠsurrounding 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 subscribers
Younger, 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 episodesHosted on Acast. See acast.com/privacy for more information.
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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 USâs 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 2021
The wine industry is trying to anticipate what consumers wantNew wines have an 85% failure rate in the 1st yearPeople describing flavors in wine doesnât correlate with if they like itTastry uses AI and Machine Learning with chemical analysis to break down a wineâs flavor
2 databases - wineâs flavor profile and consumer taste preferences that are matched together
Wine database
Analyze 10,000âs 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 wineriesâ samples are proprietaryConsumer taste database
Did 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 donât show a lot of differences in taste preferencesCustomers - work with >100 wineries, 22 of 25 largest wineries
Winemaker use cases
Computational 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 cases
Recommended by Tastry plug-in for wine clubsLook more at finished wines and at competitive sets and overlap of consumer preferencesRetailer use cases
Recommender 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 revenue
Business model - Vertical SaaS with consumption-based model
Subscription 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 VCâs, and strategic investors (wine, AI, retail)
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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:
Enriqueâs background - studied agronomy and enology, joined Don Melchor in 1993, became winemaker in 1997, in 2011, Don Melchor Winery was created and became CEO
Don 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 yearâOne unique history, one terroir, one wineâ is the ethos behind Don Melchor
The remainder of the fruit goes to other wines in the Concho y Toro portfolio (e.g., Marquis de Casa Concha)
Becoming an iconic Chilean wine
It was 1st to create an âiconâ 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 Melchorâs 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, China
Becoming iconic today
It is easier for other Chilean wines as Chileâs reputation is more establishedThe countryâs 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 future
Staying on top
Requires 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 force
Have a specific team for premium winesNot on La Place de Bordeaux Get access to library episodesHosted on Acast. See acast.com/privacy for more information.
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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 (âBAâ). Fabyola Soares, Global Senior Wine Education Manager at Martell Mumm Perrier-JouĂ«t, 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 (âBAâ)
Pernod Ricard (âPRâ) is #2 worldwide in wines & spirits, >200 premium brands (e.g., Absolut Vodka, GH Mumm, Perrier-JouĂ«t)
Pernod Ricard has a range of Brand Ambassador programs
Programs overseen by brand ownerThe oldest program is for Jameson Irish Whisky, founded in 1991 with 80 BAs in 15 markets worldwideBA programs donât 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 program
30 BAs, 15 international marketsBrand Ambassador roles
Targets trade and passionate consumersMission - âto win hearts and mindsâEngage in brand education, trade activation, business development, interact with media/journalists, organize cellar master visits, and teach wine certification programsCollaborates with marketing and commercial teamsDonât 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-JouĂ«t sold at Christieâs in 2021 for a record ÂŁ42,875) or private client directors
Key Brand Ambassador traits
Need 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 customersâ interestsPrior relationships are a plus, depending on the level being recruited forBuilding relationships
PR founder often said, âMake a new friend every dayâ - 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 Ăpoque Society by Perrier-JouĂ«t
Social media is more important in some markets (e.g., Brazil) than others
PR also has Lifestyle Ambassadors (part of the Marketing team) who have social media as a KPI
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With the aim of safeguarding the wines of personality from special vineyards (or âpagosâ) from across Spain, the Grandes Pagos de España is a private group of wineries on the forefront of Spanish wine. President MarĂa del Yerro, of Alonso del Yerro, and VP Enrique Valero, CEO of AbadĂa Retuerta, discuss the history, objectives, how to join, and their new Terroir Workshop Series.
Detailed Show Notes:
MarĂaâs background - was a translator, husband took over family winery in Rioja, 2002 - bought a 56ha vineyard and started Alonso del Yerro
Enriqueâs background - worked at Diageo and Gonzales Byass, became CEO of AbadĂa Retuerta
Grandes Pagos de España (âGPEâ) history
2000 - 5 wineries established Grand Pagos de Castilla2003 - included other wineries from Spain and renamed to GPE35 wineries, all single vineyardsPago is defined like âterroirâ, 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 GPE
Promote and safeguard âdiversity and personalityâ of winesFoster research and innovationConduct educational and promotional activitiesCriteria for joining
Most 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 requirements
Fees 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 markets
Spain 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 tastings
KPIs for GPE include # of people at events, PR/comms results, results of last 10 years of new applicant tastings
Marketing GPE
Building 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 Series
Main 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 GPE
Climate changeGlobal competition - need to maintain a high reputationSustainability and social responsibility Get access to library episodesHosted on Acast. See acast.com/privacy for more information.
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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 (âGGâ) 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 PrĂ€dikats- und QualitĂ€tsweingĂŒter (âVDPâ)
âPâ 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 history
Started 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 VDP
1990-2023 - 130 new members, 1-2 new members/yearMust fulfill criteria, blind tasting, vineyard, and cellar inspectionYou canât apply or buy a membership; a region must invite a wineryBenefits for VDP members
Knowledge sharing Leveraging the VDP brand (eagle logo) - an international sign of qualityVDP events and marketingExporting expertise - 27% of VDP wines exportedLeaving the VDP
1-2 members/year leaveMost coached to leaveMostly leave post generational change - donât want to follow VDP rules, quality not at the top levelDry German wines
Traditional 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 donât make sweet wines, Mosel/Nahe most make sweet, Rheinghau ~20-30% do sweetGrosses GewĂ€chs (âGGâ)
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 - âŹ16, 2023 - âŹ40 (range from âŹ25-150+)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 VDP
Renewing German Wine Law, potentially moving VDP classification into lawSustainability/climate change Get access to library episodesHosted on Acast. See acast.com/privacy for more information.
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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 sales
Fine 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 program
Used 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 Sommelier
Operations - 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 turnover
Pre-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 pricing
Rent 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 2023
CA wine area themed restaurantNapa inspiration - "Never pretentious, never formalâŠvery comfortable, pleasurable, elevated service & quality of food, rarely decor"The entire wine program is from CACellar Door - tasting studio w/in Oakville Grill
6 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 Restaurants
Authenticity - 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 episodesHosted on Acast. See acast.com/privacy for more information.
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