Charlie Arturaola Forum Exportwine

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Responding to Millenials: The Role of Wine Education, Social Media and PR in the US Market By Charlie Arturaola Sommelier-Global Wine Educator


What We Know 330 million cases sold in US 2010* US is now largest wine market* Most imports to US by country Italy, Spain, France, Argentina,Chile, NZ What grapes are the biggest sellers? Chardonnay, Merlot, Pinot Grigio, Cabernet Sauvignon, Sauvignon Blanc and Pinot Noir *Wine Institute report prepared by industry consultants Gomberg, Fredrikson & Associates


Challenges


The US Market is: Crowded 100,000 brands were approved for sale in 2010 Diverse Each state has it’s own laws and tax rates 18 are control states, alcohol sales managed by government Expensive, large companies have big marketing budgets


Consolidated at the Supplier level

Top10 wine companies, sell 75% of the cases sold in the US

Annual U.S. Case Sales 1. E&J Gallo Winery -- 70,000,000 2. The Wine Group -- 58,000,000 3. Constellation Wine -- 50,000,000 4. Treasury Wine Estates -18,000,000 5. Trinchero Family Estate15,400,000 6. Bronco Wine Company -12,000,000 7. Ste.Michelle Wine Estates6,000,000 8. Diageo Ch. & Estates - 6,000,000 9. Jackson Family Wines -- 5,500,000 10.Brown-Forman Wines -- 4,500,000

Large wine companies have huge marketing budgets to support their sales effort


Consolidated at the distributor level 50 companies control 75% of the wine and spirit distribution in the US. Some of the largest are: Southern Wine & Spirits of America

Republic National Distributing Co

Charmer Sunbelt

Glazier Wholesale

Small brands are lost in huge distributors Large distributors are not looking for new brands


Consolidation at the Retail level

Large discount stores like Costco and BJs are growing Chain sales are growing Independent retail is shrinking Chains prefer nationally known brands and private labels Costco and big box stores have many fewer skus Less shelf space for new brands


US Demographics 70 million Millenials, 17-34 years old 16 million under 21 years old 44 million Gen Xers, 35-46, years old 76 million Baby Boomers, 47-65 Growing Hispanic population, 50 million, 50% of US population by 2036


Top Wine Sales California Florida New York Important Markets to Target Boston New York Texas Chicago San Francisco New Mexico San Juan Puerto Rico Arizona


Tools Winery Plan Wine Education Public Relations campaign Social Media New Trends


Winery Plan Define identity Develop Brand’s story Define audience Utilize strengths Exploit points of difference Know your SRP Maintain consistent pricing


Millenials and the Winery Plan Frequent Wine drinkers growing by 5% annually Modern image Willing to experiment Varietals, packaging, country of origin Drawn to unusual venues


?

Which is your label This one...


The classical..�absolutlely the label is not only the voice of your wine, the voice of winemaker and winery as well. Pride, Creativity in every Vintage�


Innovations, like this.....or


Tanya Scholes discovered that a wine label doesn’t tell any story but specific ones, about history, farming practices, winemaking philosophy, personal anecdotes, environment and, as she said, the “heart and soul of the people, places and experiences behind each vintage.”


Importance of Wine Education Use influential speaker/face/ ambassador to introduce new varietals Promote indigenous varietals, exploit points of difference Explain how the winery reflects the region


Speaker should know terroir, culture, history, gastronomy of the region in order to explain the winery’s strengths and relevance. Consistent message is imperative Message must be reinforced, repeated in markets to be effective


Educate about DOP and EU New Laws Speaker should have proper pronunciation or region, grapes, etc. Speaker should be multilingual to address diverse markets Hispanic population, 50 million


Social Media Facts As an Industry we Can’t Ignore Digital! Facebook has 8 Million Users 14 million online wine conversations on Facebook and Twitter! Who are the New Parkers-WS? Who do the Millenials follow online?


Millenials and Social Media Blogging, community leaders, acknowledged authorities, friends Facebook, friends endorsement Twitter, information stream and friends endorsement You Tube, information, diversion Website, must be frequently updated


Public Relations What company should you hire? Identify your key markets and find a company with deep connections in those areas PR company should match your campaign Events, seminars, press mentions, tastings Develop strategies for different groups Trade, Media, Consumers


Wine Education

It is a Challenge, no doubt! The Economy is still in crisis

PR Company Find a company that meets your needs

Duplication of the Product When making a wine list Unique Blends, Oak vs.Stainless Steel, (Roble,Crianza,etc)

The Puzzle. Boutique Wines, appealing Grapes profiles and terroirs,engaging Speakers, steady PR campaigns = Success!!


New Trends Less oak!! Millenials like Fruit Forward Wines Digital Platforms: webpage, twitter, widgets, facebook Continual updating is a must Environmentally driven:Organic,Certified Bio!Go for it!sales are up! Increasing Global Wine Education (USA, Canada, Brazil, China, India) POS: Use Wine Competitions Enter as a place to promote your wines and new vintages, a Gold Medal is always welcome! IWSC, Decanter Wine Magazine, L.A.International Wine Competition, Asian Wine Competition,Concours Mondial de Bruxelles, Selections Mondiale du Vin, Lone Star International Wine Competition Don’t give up!, The US is the world biggest consumer of wine! Promote, Travel to Wine Fairs, Market and Sell, but don’t Loose your essence!!


Some New Packaging Innovations


Charlie Arturaola “El Camino del Vino”



Charlie Arturaola “El Camino del Vino”


Wine Education! Bring a Story behind the label!America Loves That! A knowledgeable Speaker when dealing with the Trade is a must! The speaker should know the terroir and the Culture Trade Education is still short! Taught to speak Cencibel! In Minnesota or Winnipeg! What are we selling? Indigenous Grapes? What price? where is made? Be consistent! Your Label should be clear! D.O., Tierra de Castilla, Pago Few fine examples below!


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