Emerging techniques for navigating fine wine obstructions in the distribution channel Damien Wilson Damien Wilson Hamel Family Chair with the Wine Business Institute As the fine wine market veers towards overflowing and the slow decline continues in wine consumption per capita in the US ID: 629295
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Slide1
Consumers Love Bulk Wine
Emerging techniques for navigating fine wine obstructions in the distribution channel
Damien WilsonSlide2
Damien WilsonHamel Family Chair with the Wine Business Institute
As the fine wine market veers towards overflowing, and the slow decline continues in wine consumption per capita in the US, what can the bulk wine market do to penetrate the interests of consumers? While new tools are not the wine sector’s savior, they are an essential prerequisite to gaining power over the distribution channel. Understanding how, and what, to use as a means to sell bulk wine is the key to success in the modern market.Slide3
Synopsis of the Wine Market
Fine v Bulk wine language
Sales Strategies by distribution channel
Today’s ScheduleSlide4
Let’s give you a chance to interact
…Time to contribute to the presentation at Sli.do event #U478Slide5
First task is to answer my question …
Your Responses will Appear on My Screen Search for sli.do in your smart device browserClick on the event field, and type in
#U478Click join
Type your answer(s) to the poll
on ‘Which responses do you experience in your efforts to sell bulk wine?’
I’ll give you a couple of minutes to post your answers
….
Your answers will help me focus on what you want to hear from this presentation...Slide6
Once you’ve responded to that poll…
Then You may post questions Throughout the Presentation…Click on the Questions tabType your question to me under the question tabVote up the questions you want
I’ll look over the questions at the end of the presentation
So let’s get going on that wine market illustration…Slide7
Synopsis of
the Wine MarketWine ImportsMarket TrendsInsights
Source: Wine and VinesSlide8
Wine Imports
Sources: BW166US Wine Market grew from US$37-Billion to US$44-Billion [+18.9%] between 2011 and 2016 (Euromonitor)
Wine Imports to the US grew in value from $4.2 to $5.5Billion [+31%], between May 2011 and May 2017 (BW166
).What do these values tell us? Slide9
Bulk Import Implications
Insights: Wine Business InstituteLet’s look over the bulk wine import marketFirst peak – 1996-98
Supplement supply shortfalls due to rapid demand growthSlide10
Bulk Import Implications
Insights: Wine Business InstituteSecond peak – 2004-06Australia overshoots the markGrowth overestimates lead to flooding of supply and plummeting prices
Why did 2008 see a decline?Slide11
Bulk Import Implications
Insights: Wine Business InstituteThird peak – 2011-12GFC RecoveryThe bulk market is better established to supply demand increases as fine wine
premiumizes faster than consumer progressSlide12
To the Retail Wine Market
….
Source: Nielsen Total U.S. All Outlets (xAOC + Liquor Plus + Conv + Military); 52 w/e 6-17-2017 (Bubble = Annual $ Size); Total Wine Slide13
Note Rosé’s location
…
Source: Nielsen Total U.S. All Outlets (xAOC + Liquor Plus + Conv + Military); 52 w/e 6-17-2017 (Bubble = Annual $ Size); Table Wine/SparklingSlide14
Insights for Bulk Wine
Implications from bw166 & NIELSEN Wine Business InstituteRosé has been touted as a savior for more than 10 years.These, Sparkling, Red Blends and Sauvignon Blanc all driven by demand for new styles
New consumers, and economic
contraction both result in apparent trading downMacroeconomic impacts drive the bulk wine market
Bulk wine supply is best placed to cater to these trendsSlide15
More and More bulk wine is being brought into the US than ever before
…Slide16
Language used by wine consumers
Observations by the Wine Business InstituteSlide17
But language used by wine trade…
Observations by the Wine Business InstituteSlide18
Language for bulk wine consumers
Implications from the Wine Business InstituteTech-speak doesn’t attract wine consumers. We’re speaking another language to them…Yet volume consumed continues to grow
But new consumers outpacing those ‘trading-up
’Consider p
roducts like flavored wine, which appears effective for ‘on-boarding’ new consumers.
New consumers rely on consistency and familiarity
Avoid ‘trade terminology’.
Consumers begin with color, style, variety
Focus on frequency and frivolity of wineSlide19
So how do we sell it?
Luckily, the market wants it
Supply can’t keep up with demand
But fine wine advocates beg to differ
Because this is who
many of us
deal with
…
Isn’t
premiumization
the enemy of the bulk wine sector?
How do bulk wine producers counter this perception?
Let’s look at your
sli.do
responses
…Slide20
No-one ever wants to pay more moneySlide21
Not your style?Slide22
Not
enough
product?Slide23
Unheard of?Slide24
The
Macroeconomy drives much of the activity in the Bulk wine market
Use national trends to make product decisions
Focus on larger distributors and retailersTurnover and margin potential in growing demand
Use buyer resistance responses as product strengths
To Conclude
Presenter
Damien Wilson
:
Hamel Family Chair
of the
Wine Business InstituteSlide25
Let’s
close
with
your questions…
D
amien.Wilson@sonoma.edu
Presenter
Contact Details
Damien Wilson
:
Hamel Family Chair
Social
Networks: @
WineBusProfSlide26
Founding PartnersSlide27
Media PartnersSlide28
Sponsors and Partners