Monthly Archives: September 2007

Oculus, British Columbia’s Pricey Red Wine

Expensive red wines from France, Italy and Napa are commonplace but one of the latest high-priced wines comes from British Columbia. Mission Hill Family Estate Winery has announced the 2004 release of their Oculus wine, a high-end red modeled after fine Bordeaux wines. The Globe and Mail reports that the wine is listed at $70 but could go higher in the provinces. The wine is priced $10 more than the 2003 vintage and it is expected that the wine will hit $100 in 2010 right around the time that the world’s eyes turn to B.C. for the Vancouver Olympics. Oculus is just the most expensive of reds from wineries in the area.

Mission Hill Family Estate Winery
has an interesting history, the owner Anthony von Mandl, is the man behind Mike’s Hard Lemonade. He used his alcopop cash to invest in the finest equipment for his winery such as $1,000 French-oak barrels, automated grape-sorting tables, stem-removing conveyors and computerized basket presses. Oculus is named for the circular hole at the top of Rome’s Pantheon and is a small amount of Mission Hill’s output – just 3,000 to 3,500 12-bottle cases depending on the year.

Source: www.luxist.com

Make a wine rack out of mailing tubes

wine-rack.pngNeed a place to store all your bottles of vino? Try ReadyMade’s quick wine rack project made out of cardboard mailing tubes. You can find these pretty cheaply at your favorite office supplies store; the fastest way to accomplish this project would be to plug the tubes into the bottom of a bookshelf – instant wine storage on the cheap.

Bottle Pocket

By Wendy Boswell.

Winning Wine Brands

“I think, in general in the wine business, people don’t understand the need to build brands. That will become more and more of a problem among mid-sized wineries.” – David Higgens, Brown-Forman Beverages Worldwide Wine Group President.

According to brand valuation consultancy Intangible Business, brands are playing an increasing role in a number of categories. In wine, the importance of country or origin and grape variety is diminishing in favour of brand. Laroche, for example is a classic old world French Chablis which is building a brand around its heritage.

Yellowtail is another good example. Yellowtail is a relatively basic wine but at a good price point and with a good brand image. Whether Yellowtail’s growth is sustainable will be the challenge for the Casella family. Maintaining its relevancy as people’s wine tastes develop will be instrumental in ensuring Yellowtail’s longevity.

You will know that your brand is winning in the marketplace when…

The brand is mentioned to customers and potential customers, and they brim with enthusiasm in their response.

Your brand’s external messages “ring true” with all employees.

Employees are enthusiastic and consistent in recounting what makes their brand special.

The brand’s market share is increasing.

Competitors always mention your brand as a point of reference.

The press can’t seem to write enough about your brand.

Your CEO has a strong vision for the organization and its brand. He or she talks more about the vision than financial targets.

Your organization’s leaders always seem to “talk the brand” and “walk the brand talk.”

Adapted from Winning Brands by Derrick Daye.

By Mike Carter.

Prooftag, A New Way To Combat Wine Fraud


Wine fraud has been in the news lately. First there was the story in the New Yorker on the infamous Jefferson wines then an article in Slate questioned just how big a problem wine fraud was. Now Decanter reports on a new solution for the problem of wine fraud.

A seal called Prooftag is being used by a few producers. The seal is a small strip that runs from a metal capsule onto the glass bottle. Once the seal is broken the capsule is destroyed. The seal has both a reference number and a plastic square with a unique pattern, both of which can be doublechecked on the web to assure the buyer they have bought the real thing.

As the article in Decanter mentions, the price per bottle is still a bit high (between €0.20-€1 per bottle) and may be putting some winemakers off but it is expected that as more people adopt the system the price will go down.

Source: www.luxist.com

Wine Marketing’s 4 P’s

In the early 1970’s Phillip Kotler created the concept of the 4 P’s of Marketing, Product, Price, Place, and Promotion.  I have marketed and sold many products, and I have found the 4 P’s relevant with all of them.  So what does this mean to the wine industry.  Let’s look at them each individually….

Product – You need to have a realistic, objective view of the quality of your wine.  How does it compare to your perceived competition?  Does it reflect your wine making philosophy?  Are you getting the most from the raw materials you have to work with? 

 Price – How does the price you are asking for your wine reflect the position you are looking for, and the quality of your wine? Under pricing wine is as bad as over pricing.  As a baseline, there is a certain return you need from the wine relative to your investment.  Does the end product justify that return?  If priced to high, the wine will not sell, and you will have dead inventory to deal with.  Is it priced too low?  If you are selling out your offering quickly, think about raising your price.

Place – This refers to distribution.  What are you doing to get the product in front of the consumer?  Do you have distributors?  are you making market visits to promote your wine?  Do you have a good website, with a shopping cart?  Are you managing your mailing list?  Do you have a club?  Have you tried to sell direct in the self distribution states?  These are all elements of distribution.

Promotion – What can a small to medium sized winery do to promote their product?  There are the obvious tactics, enter wine competitions, wine makers dinners, shelf talkers, etc.  What about the not so obvious…Direct promotions, such as special offerings, to your club members.  Creating unique bundled offers in your tasting room, or using your newsletter to educate the consumer.

Bottom line is that making great wine is rarely enough.  You must be a marketer, and sticking to the basics, the 4 P’s, is a firm foundation to build on.

By mitch.schwartz

Stormhoek’s Blue Monster Reserve for Microsoft arrives on the Cluetrain

With as many as 1,200 wines on shelf, how do you get consumer to buy yours? Stormhoek Winery does no advertising. Sales will top $5 million this year. It got there on the Cluetrain.

microwine.png

Normally, a winemaker with $5 million in sales would spend at least 10 percent on advertising and deeply discount its wine to retailers. Stormhoek charges twice as much as other wines in its category, and does no advertising whatsoever and no discounting. Yet this morning, it became the little winery that could by launching Blue Monster Reserve label, created for Microsoft and its employees and friends.

The Blue Monster is the brainchild of my friend and colleague, cartoonist/blogger and marketer Hugh Macleod. About a year ago, he gave the Blue Monster cartoon to Steve Clayton, chief technology officer at one of Microsoft’s UK affiliates and a nine-year veteran of the company. The backstory is here

Dear Big Companies: Social Media Marketing Works
micromonster.pngIt’s a brilliant marketing move for Stormhoek, and a conversation starter for Microsoft. I’m a big fan of both Macleod and Stormhoek, and have no use for Microsoft. Having switched to Mac a year ago in sheer frustration over Dell Hell and Microsoft’s unpleasant software, I don’t believe the wine will ultimately change anything about Microsoft. They, undoubtedly, will still suck.

But I do believe that Blue Monster Reserve will encourage people who work there to try harder to be innovative, and perhaps even to leave and form a new company that is not too big to change.

What’s important is that a lone blogger with a good idea was able to get a huge company to listen to him and to adopt one of his fairly radical ideas. It shows that social media is a viable force for change, for marketing, and for the new media than a lot of big companies may now finally begin to take seriously.

The Coolness Factor
Stormhoek spends “practically nothing on marketing,” the winery’s founder Jason Korman told me in an interview. Instead, the winery relies solely on social media marketing, bloggers, and word of mouth “to make the wine so cool that Stormhoek doesn’t have to do what everyone else in its industry does.” And, he said, sales will top 140,000 cases in 2007.

Korman and cartoonist/blogger and marketer Macleod got together in 2005. “I didn’t have a vision per se to begin with,” Macleod told me. “The vision came ONLY after we messed around with a lot of marketing experiments. After a while, we realized that it was the experiments that informed the brand. In other words, the way to have a cool brand is to do cool stuff. Having a great product qualifies as the latter, but it’s not the only criteria.”

Bonus link: Here’s an interview I did with Hugh in 2005.

By B.L. Ochman.

What Wine Business Doesn’t Need To Be Online?

According to Alex Burmaster, internet analyst at Nielsen/NetRatings, South Africa has seen phenomenal internet expansion – growing by around 50% in each of the last two years. There are nearly four million people online in South Africa. This represents a huge opportunity for wine marketers.

Gary Vaynerchuk, a keynote speaker at the recent Wine Industry and Technology Symposium (WITS), noted in his remarks, (highlighted from the Santa Rosa Press-Democrat):

The wine industry is missing a huge opportunity to forge deeper relationships with consumers using new technologies such as Web videos and wine blogs.

That was the blunt message delivered to wine industry executives in Napa on Tuesday by a young, outspoken New Jersey wine retailer who said the industry needs to embrace change or die.

“Ninety-nine percent of the people in the wine business are really blowing it,” said Gary Vaynerchuk, director of operations for the WineLibrary, a Springfield, N.J. wine store with a popular interactive Web site.

Citing blogs specifically as a customer acquisition tool, Gary Vaynerchuk, as noted in a recent Inertia blog post, is something of an Internet sensation with his video blog and Josh Hermsmeyer, owner of Capozzi Family Winery and the blog Pinotblogger.com is building his wine business before releasing a single bottle of vino. Hermsmeyer gave a presentation on the power of blogging for wineries at WITS. His presentation is posted at his site, found here.

Source: ReThink Wine Blog

Marketing Wine: Gender, Generation or Knowledge?

Can we make assumptions about who feels most comfortable ordering or buying wine? At first glance, findings of a recent Harris Interactive/Robert Mondavi Private Selection study point to a generation and gender gap, but I say – look a bit deeper.

Damon Musha, the marketing director for that brand wisely made this point in the press release: “These generational and gender differences may be more a matter of knowledge than of age, sex or taste,” noting that the study also found that 69 percent of wine drinkers either strongly or somewhat agree that they would like to learn more about wine. The education/information-needing factor should probably have been the main focus of that study, but who’s quibbling?

The reality is that something much more significant is going on – beyond the thought that women and youngsters just can’t seem to grasp the subtleties of wine. Thank goodness.

Like so many other industries, there is a knowledge gap that transcends gender or generational differences in wine appreciation. A lot of people – young or old, male or female – just haven’t studied up on wine, so it makes them uncomfortable ordering it, buying it, or knowing how to pair it with certain foods.

The same would go for consumer electronics or financial services. Some people have been inspired to learn more and others haven’t yet made the leap – no gender about it.

Take me, for instance: I am definitely learning a lot from very wine-savvy friends, but up until maybe 10 years ago – I didn’t really have an interest, plus, I’m a woman (big surprise there). I don’t think the generation “gap” theory applies in my case because I didn’t automatically “know” about wine when I hit 40, somehow.

Also, I have plenty of guy friends who are as uncomfortable with it as I am. I have noticed no real gender gap, and I think many like me might default to our comfort zone – beer – so we don’t have to embarrass ourselves in beverage selection situations.

But, back to wine marketers: If they mistakenly took a feminized approach based on the supposed gender gap results of this study, that wouldn’t really serve men or women, would it? Rather, clever, humorous, common ground sharing, storytelling style marketing campaigns that even slowly educate would likely be a big hit for ALL of us with less knowledge.

As male and female roles merge and morph in this twenty-first century, highlighting gender differences should no longer be the easy answer for marketers. Instead, a marketer’s first steps should include understanding the level of industry/product knowledge that segment their customers.

By Andrea Learned, Learned On Women.

Think Pink: Resurrecting Rose

For the French, rosé is a pink-colored wine synonymous with dry, light wine and sunny Southern France. For Americans, rosé is mostly known as “blush” wines popularized at the end of World War II by inexpensive, sugary sweet wines such as Mateus Rose from Portugal and later White Zinfandels from Northern California. For Asians, “pink” wine is nothing more than a blend, and therefore has virtually no positive associations for a variety of reasons.

According to historians, it all started a few thousand years ago when the Phoenicians arrived in what is now Marseille (as well as other French towns) somewhere between 500 and 600 BC. With their arrival came the cultivation of grape wines used for winemaking. As the people prospered so did the vines, spreading throughout the Mediterranean thanks to the trade success of the port town of Marseille.

By the 13th century, Provence had become the famed maker of rosé wines that were, by order of the Duke of Bourgogne (Duke of Burgundy to English speakers), reserved for the King of France and none other than the Pope. The “first juice of the grapes” became equated with royalty, while today’s beloved red wines were reserved for the serving classes. White wine, at the time, was nearly non-existent.

But after centuries of tradition and prestige, a great branding calamity happened. By the twentieth century, rosé wines not only lost their luxury status, but had become the symbol for cheap wine fit only for casual local French consumption. The blame, some wine experts say, was in part due to Bordeaux’s international rise in fame for red wines. While rosé remained over the years a staple of local French consumptions, the virtuous pink wines found little awareness outside of France.

Today, rosé wines still account for 80 percent of wines produced in Provence, of which 90 percent are marketed and consumed in France and ten percent sold abroad to Canada, the United States, Great Britain, Holland, and Japan. With 2,600 years of history behind Provence rosé wine making history and equity, it’s indeed amazing that the rosé “brand image” would take so many years to turn a new leaf.

In the 1980’s some French wine makers, such as Chateau Simone and La Commanderie de Peyrassol, believed rosé wine should be taken seriously once more, and subsequently started increasing the quality of pink wines. Since the beginning of the new millennium, other French rosé producers have been looking at exports for growth, targeting primarily the US and UK.

According to Evelyne Lejeune-Resnick, a wine marketing consultant based in Paris, these aspirations have provided mixed results. “It works well for the UK because they have a tradition and taste for pink wines. They were the major market for pink wines in the past centuries, and they’ve kept that taste. For the US it’s more difficult because a lot of pink wines are produced in the US. They’re mostly blush or White Zinfandel, so they’re very sugary and very sweet—totally different from our dry pink wines….I would say that the taste for Americans is more of an acquired taste—not something they’re used to.”

“Righting The Wrongs of Rosé”
On any given day in the Napa Valley, Jeff Morgan, an American winemaker, author, and winery co-owner, is busy espousing the virtues of dry rosé wines. After playing music professionally in France in the 1970’s and 80’s, he came to enjoy the lightness and versatility of the pink wines that had appeased royalty some centuries before. So much so he eventually decided to start his own commercial winery, with the help of business partner Daniel Moore, based in Napa Valley dedicated solely to “pink wines.” Dubbed SoloRosa (“only pink” in Italian), the beginning was 1000 cases and a heck of a lot of conviction.

“People thought we were out of our minds to start a winery based on rosé. I said, ‘Maybe we are, but this is what I love to drink, and it goes with so many different foods… I’m sure we’ll find a market for it.’”

Not only did Morgan find a market, but through the efforts of his and others’ rosé passion, a grassroots, viral marketing campaign of sorts was formed in the States through Morgan’s promotion of his own cookbooks, including the first book on rosé wines from around the world. Also, his organization RAP (Rosé Avengers and Producers) produces “Pink Out” events in New York and San Francisco to further evangelize rosé wines from around the world. Morgan attributes rosé brand evangelism through the press and trade and public events to the rise of American consumer demands for dry rosé wines, also citing increased competition from the “big boys,” such as Gallo and Clos du Bois, for rosé shelf space as further proof.

Back in Provence, James de Roany, manager of French winemakers PGA Domaines and Secretary General for the Conseil Interprofessionnel des Vins de Provence (Provence Wine Producing Interprofessional Council), is well aware of increased competition and busy with his own evangelizing for wines out of Provence. “French wine trade people are not very keen on marketing. They prefer to promote their ‘terroir’ rather than a brand. They believe that the terroir [dictates] the wine, and that the wine shouldn’t compromise and adapt to the consumer needs. I believe the later is a great mistake… We have had the idea to brand a region with the hope that people will think of ‘Rosé de Provence’ as they do with Carmenere from Chile or Sauvignon Blanc from New Zealand… Provence has been doing rosé wines for 26 centuries, so there are some good foundations to work on.”

Indeed, Rosé de Provence is a branded effort now sanctioned by the French government to promote the best of several terroirs and appellations to consumers—especially those new to wine tasting. As of 2007, the organized efforts of PGA Domaines, which manages three wineries in the Coteaux d’Aix-en-Provence Appellation, have led to French policy making that now allows “Rosé de Provence” labels to appear on wine bottles. The move is “based on the idea of wanting to highlight the intrinsic quality of Provencal wines, of using the outstanding international reputation associated with this region that brings to mind an ideal lifestyle, dreamy holidays, and the dolce vita.”

Now that’s one reason to drink and “think pink.”

by Alycia de Mesa