Tuesday, December 11, 2012

Q&A on the SVB Wine Report


SVB Wine Industry Report Plus Video Chat & Q&A

The 2013 Wine Industry Report is out with the first ever Live Video Conference linked above. Joining me on the panel were industry luminaries Paul Mabray, Founder & Chief Strategy Officer of VinTank, Tony Correia, Founder Correia-Xavier Inc., and Mary Jo Dale, Chief Consumer Direct Officer of KLH Consulting.
If you haven't seen the report or the video, you can get them both in a choice of formats here: [Wine Report] If you would like to read through the video chat from the conference, see responses to the questions by the panel, and continue to discuss some of the findings you can do so in this forum and the panelists and I will answer. Also - since this was the first ever Live Video Conference, I would appreciate any critique, feedback, or ideas for potential future programming.

Worldwide Greetings

9:25 AM  JennB: Hi Rob, is there any way to test volume, is there anything playing as of yet?
9:26 AM  JennB: awe. i hear it now. thanks.
9:26 AM  VineBuzz: Great elevator music. ( http://www.vinebuzz.com/ )
9:26 AM  raub26: I'm up and running as well.
9:27 AM  doug: does this start in a few minutes..??
9:27 AM  DuckGal: Thanks! Same here. I now hear the tunes :)
9:27 AM  SLOWine: swanky!  Love it!
9:27 AM  Bob: yes
9:27 AM  Kelly Kel: We will begin shortly
9:27 AM  Haydon: Good morning from Haydon in the UK
9:27 AM  Joel: me too
9:27 AM  doug: great!!
9:28 AM  Guillermo: I hear it too
9:28 AM  sstone1: is there a way to make this a full screen?
9:28 AM  RP: Artie Shaw
9:28 AM  PaulF: That's not elevator music! That's Artie Shaw!
9:28 AM  DC Vino: Good music to enjoy a glass of wine with
9:28 AM  Elaine: Good morning from CA
9:28 AM  NeilMc: Hello from Neil in Malibu
9:28 AM  GotVino: Go to View tab and Zoom
9:28 AM  GVJ: Its a little early for wine ...
9:29 AM  GeorgeP: Good morning from George in Hawaii
9:29 AM  punky: hello
9:29 AM  Bluxome: Nice Music
9:29 AM  dnewlin: David Newln signing in...
9:29 AM  JennB: a glass of wine, boy that sounds good...too bad this report isn't being given in the afternoon huh?
9:29 AM  WineDuoBri: Morning from Napa, Ca
9:29 AM  Roni: Good morning from cold CA
9:29 AM  WineDuoBri: Will Baileys and Coffee suffice?
9:29 AM  Dave: Good Morning
9:29 AM  LeslieBacchus: hi leslie from encino
9:29 AM  GotVino: Take 5, I miss him....
9:29 AM  Bluxome: Peter Chouinard signing in - from San Francisco
9:29 AM  Portugeis: Good morning. Ros Portugeis here
9:29 AM  Bob: Brubeck -- fabulous
9:30 AM  Haydon: Bribeck rules!
9:30 AM  Mark S: 11:30 here in Texas
9:30 AM  WineDuoBri: Take 5
9:30 AM  Larry from Utah: Frigid Utah here
9:30 AM  Chris G: Gorgeous day for a glass of wine in Lake Oswego
9:30 AM  SLOWine: Can we do a virtual tasting? :)
9:30 AM  Roni: Nice tribute to Dave
9:30 AM  Dale S: Dale Stratton joining from SF
9:30 AM  Susan: Susan from Washington State - COLD!
9:30 AM  Marc: Hi, will there be a dial in number, as well? Note: Going to this live video format versus a webinar removed the dial-in component.
9:30 AM  cflanders: Chuck Flanders joining from Berkeley
9:30 AM  LMRONE: Paul Desmond,actually
9:30 AM  Lisa O: Sunny in Seattle
9:30 AM  Portugeis: oh, yes. Ross Portugeis from San Francisco by the way
9:30 AM  Dr Ferreira: Virginia Tech is present
9:30 AM  JordanO: Good morning from Lexington, KY
9:30 AM  2Lads: After noon in Michigan so, cheers!
9:30 AM  GotVino: Take 5 from Dave Brubec means to increase pricing 5% in 2013..
9:30 AM  RichardH: Hi from London - also cold! (http://www.wineintelligence.com/)
9:30 AM  Dave: Dave here from Incline Village, NVe
9:30 AM  OEMV: Hi Rob from madrid. Nice sound ( http://www.oemv.es/esp/-oemv.php )
9:30 AM  Elaine: sunny but cold here in Sonoma county CA
9:30 AM  Sherie: Sherie in Gaston
9:30 AM  Haydon: Philip Goodband says hi to all.
9:31 AM  Cindy: Cindy from Napa
9:31 AM  wine gal: Champagne is always good in the morning, or a mimosa ;-)
9:31 AM  Bob: Mountain View CA here
9:31 AM  SVB Host: Good Morning All!
9:31 AM  1WineDude: Brubeck!!! Nice! ( http://www.1winedude.com/ )
9:31 AM  tonybogar: Take 5 - 5% - excellent idea
9:31 AM  adamburck: Sunny and cold in Chicago
9:31 AM  Magdalena: Thanks for presenting this!
9:31 AM  Georgia: Good morning from sunny cold CA
9:31 AM  Larry from Utah: Morning SVB host
9:31 AM  Bluxome: 'Morning SVB Host"
9:31 AM  rwmorris: Robert from Punchdown Cellars
9:31 AM  Barbara: Barbara from Cowhorn signing in. COLD as well!
9:31 AM  SW2013: Christian from Healdsburg checking in.
9:31 AM  King: King
9:31 AM  Victor: Hello from San Francisco
9:31 AM  Sue: Good Morning from Wine Clubs Online in St. Helena, cA
9:31 AM  mitchbakich: Hello all from Chilly Templeton
9:31 AM  King: Estate her
9:31 AM  Magdalena: Nice music, too :)
9:31 AM  adamburck: Take 5 - alternate take
9:31 AM  Lisa O: Hi Magdaena
9:31 AM  austinlgallion: Good morning from Austin and the Vineyard 29 team.
9:31 AM  MarkAtRidge: Good morning from Ridge Vineyards
9:31 AM  PNgrower2: Wendy from Russian River Valley, CA
9:31 AM  Larry from Utah: It was 5 below last night and 15 below the night before. No more complaints from youse guys
9:31 AM  GotVino: Inspired to TAKE  FIVE % increase
9:31 AM  Mark: Mark from Destiny Bay
9:31 AM  JIM: Hi from Mendoza, Argentina
9:32 AM  wine gal: Good morning from SF Bay area
9:32 AM  asatchify: Hello from Michigan
9:32 AM  DanaTims: Hello from Portland
9:32 AM  Portugeis: hola
9:32 AM  Will S: Good Morning from Napa
9:32 AM  scm0808: Hello from Wilmington, NC!
9:32 AM  Scott: Delicato Vineyards here
9:32 AM  doug: doug here from Paso Robles...hammersky
9:32 AM  Georgia: Hi Wilmington!
9:32 AM  LE: La Encantada Here
9:32 AM  Alexandra_OGorman: Good morning.
9:32 AM  SteveHov123: Good morning from Steve in Paso Robles CA
9:32 AM  LizC: Good Morning from chilly Rutherford
9:32 AM  PaBaut: Patrick from Opici NJ here
9:32 AM  Linda: Hello from Wine Realty
9:32 AM  scm0808: Hi Georgia : )
9:32 AM  Ashley P: Hi Ashley from Foley Family Wines!
9:32 AM  Brianrg: Brian;  Hello from Calgary Canada Hello Calgary back .... drop the puck! Finally there is life because there is hockey!
9:33 AM  Sass Winery: Sass Winery is in - Hi!
9:33 AM  cellarrat: or camera left :-)
9:33 AM  Adam: Adam, Vintners Alliance
9:33 AM  2Lads: Hi Satchify!  Old Mission Peninsula signing in also!
9:33 AM  luxurywine: JB - Good Morning from St.Helena
9:33 AM  rachelnewell: Hiya
9:33 AM  gormanmcadams: Hi, Mary from NYC here
9:33 AM  Huber: Christopher here from Hanzell Vineyards, good morning!
9:33 AM  Kingpin: Hello
9:33 AM  JasonC: Listening from Santa Rosa, CA
9:33 AM  Douglas: Good Morning from Landmark Label!
9:33 AM  dbromley: Good morning from high on chilly Mt. Veeder
9:33 AM  rachelnewell: SF
9:33 AM  The Wine Economist: Hi
9:33 AM  RutherfordDust: good morning
9:33 AM  Solterra: Good morning from Paso Robles
9:33 AM  Monica: Hi from Miami!
9:33 AM  Lee: New Haven, CT checking in
9:33 AM  FWC: Cold here in Sacramento
9:33 AM  JudyB: Good day from Vancouver BC Canada !
9:33 AM  Kerri: Hello from downtown Sonoma
9:33 AM  epicuria: Howdy
9:33 AM  WineDuoBri: Coffee's on , Morning
9:33 AM  Dick Wollack: Next year the intro music should be "Heard it on the Grapevine"
9:33 AM  AaronFein: Hi from Petaluma
9:33 AM  mcharris: Stanford
9:33 AM  Denise: Good Morning from Benziger Family Winery in CA
9:33 AM  LodiWine: Good morning from beautiful Lodi California
9:33 AM  Vince Marotto: Good Morning
9:33 AM  Schatzi: Morning, SVB Team!
9:33 AM  Freddy: Quincy washington
9:34 AM  Dev@cakebread: Good Mornign from Cakebread Cellars!
9:34 AM  Jodi: Good Morning from Stack Wines in Orange County, CA
9:34 AM  KenMS: Good Moring from Santa Rosa
9:34 AM  Larry from Utah: Cedar City Wine Club here
9:34 AM  Fervines: Kurt from Ferrington Vnyds
9:34 AM  CalSino Wines: Hi from Calsino Wines!
9:34 AM  Immersive Development: Tim Goodwin @ Immersive Development in Walnut Creek Ca
9:34 AM  Ctopper: Colleen from Goosecross
9:34 AM  Swino: Good Morning from Paso Robles
9:34 AM  Kingpin: Good morning from Stinson Beach, California!!!  It's cold at the beach this morning!!!
9:34 AM  Bill B: Morning
9:34 AM  sstone1: Good morning from Schug Carneros Estate
9:34 AM  NeilMc: Hello from Neil McNally in SoCal
9:34 AM  DavidR: Hey Feddy @ Cave B!
9:34 AM  Adam: Hi Colleeen
9:34 AM  US Wine Abroad: Hello from London
9:34 AM  Dotty: HI from Terra Bella Vineyards
9:34 AM  BPM Santa Rosa: good morning!
9:34 AM  AaronFein: Heron Wines in the house!
9:34 AM  CraigR: Greetings.
9:34 AM  US Wine Abroad: Good evening
9:34 AM  jodiaz1: Diaz Communications here
9:34 AM  adamburck: "Tuesday Morning Live!"
YOU ARE ALL LATE. PLEAE GO TO THE OFFICE AND GET A TARDY SLIP.
9:35 AM  Lando: Sam Lando from Oeno Vaults checking in!
9:35 AM  MartinC: Hello from Argentina
9:35 AM  MarkTNorman: Good morning from Connecticut
9:35 AM  Hof: Morning from Hoffman Family Cellars
9:35 AM  David Goldfarb: good morning from Los Gartos, CA
9:35 AM  Adriel: Hey Sam!  Adriel here from Memento Mori!
9:35 AM  chuckpifer: Greetings from Laguna Beach, CA
9:35 AM  MChandler: Greetings from the Great State of Lodi!
9:36 AM  PhilippeT: Good morning
9:36 AM  stonella: Steve Tonella.  Good evening from Barcelona..
9:36 AM  PhilippeT: Good morning
9:36 AM  stonella: Steve Tonella.  Good evening from Barcelona..
9:36 AM  francly: Francly from St. Helena
9:36 AM  MonksGate: Good Morning from Carlton, OR
9:36 AM  sbowden: Good morning from my 45 degree office in Rutherford
9:36 AM  JPCanleFerreira: Joao Paulo Canle good evening from Portugal
9:36 AM  BenMcWilliams: Good morning!  Frosty morning on Westside Rd in the RRV!
9:36 AM  Dacia: Good morning from Sacramento!
9:37 AM  Lando: Hey Adriel!
9:37 AM  nperdiew: Loving this format.  G'Morning everyone.
9:37 AM  SteveT: Steve from Napa
9:37 AM  Storm: Good morning from Rosati Family Winery-Danelle
9:37 AM  Swino: Good Morning from Eberle WInery
9:37 AM  FrankWine: Good morning from New Orleans, all.
9:37 AM  WFEMarketing: Good AM from Wente Family Estates
9:37 AM  wineprof: David from Livermore Valley saying cheers!
9:38 AM  charlescomm: Hello from Charles Communications Associates in San Francisco
9:39 AM  vcantu: Virgilio from Houston... Good morning
9:40 AM  Bob: Hello Bob Brown, Sales Systems Development, Inc.
9:41 AM  Mo412: Mo from Napa
9:41 AM  Sean: Sean Gallagher from O-I Good morning
9:41 AM  bmwhitaker: brett whitaker from O-I as well, good afternoon/morning
9:42 AM  jtrinidad: Good morning from Napa.  John from  Dickenson,Peatman & Fogarty.
9:42 AM  rwmorris: Morning John!
9:43 AM  WhitneyR: Good afternoon...Whitney from North Carolina
9:44 AM  WineAppraisal: Hello from Brawley
9:45 AM  Jonjie: Good morning from Intervine!
9:46 AM  Dougan: Good friend running a French-based enotourism website: xhttp://www.winechictravel.com/en/
9:46 AM  Cindy Reynolds: Good morning from Somerset Ridge Vineyard & Winery
9:46 AM  KOConsulting: Hi from KO Consulting up here in Oregon
9:48 AM  Michelle: Good Morning from Inman Family Wines in RRV, CA
9:49 AM  GotVino: John here from PrecisionWineSales@gmail.com
9:50 AM  Larry from Utah: larry@cedarcitywineclub.com
9:43 AM  Dougan: Good evening from Paris.
9:50 AM  Douglas: Douglas here from Landmarklabel.com
9:51 AM  alexanderiii: Alex: Shadow Mountain Vineyards, Warner Springs, CA
9:53 AM  CentralCoastAgAppraisal: Good Morning from Templeton!!  The Central Coast is definately busy these days!
9:54 AM  patmerr: Good morning from Merrill Research-San Mateo, CA
9:54 AM  fweibelwines: Good Morning from Weibel Family vineyards and winery, Mendocino County.
9:56 AM  AndrewFON: Good morning from Force of Nature Wines in Paso Robles 9:56 AM  pdolim: Good Morning from Merryvale Vineyards, St. Helena

Questions and Comments

9:37 AM  rachelnewell: Yet Millenials have no problem throwing down for hi-tech...I think it's about a mind shift and values.
I don't agree Rachel. Millennials will buy necessities or their families which include phones and computers as thats the way they communicate. They don't posess the means to include high priced luxury wines in their budgets and frankly, like age groups preceeding them, are more into beer once they become legal.
9:37 AM  doug: what is exactly is the millinal??
9:38 AM  rachelnewell: Youth market
9:38 AM  Steven: who are the guest?
9:38 AM  Kingpin: Yes, what exactly is a Millennial ?
9:38 AM  Stark Wine: Millenials are 21 - 35 yo - also called Gen Y
9:38 AM  PJB: I like the defibrillator on set! That is the flux-capacitor, without which there can be no time travel and our predictions for 2013 would all be suspect this year.
9:39 AM  VineBuzz: My wine consumption hasn't tailed off with age.
Everyone has a special purpose or special gifting.
9:40 AM  Phil: Is there a phone number for audio.
9:40 AM  TrentG: good morning
9:40 AM  Kelly Kel: @ Phil please be sure the speakers and volume on your computer are on and up
9:40 AM  Phil: I do not have speakers on my computer.
9:41 AM  MarkTNorman: is the dropped off by boomers across all boomers or the ones that are active as a core wine drinker?
Mark - Boomers are hitting retirement age 10,000 a day. Core wine drinkers can be expected to remain wine drinkers, but they can also be depended on to start to watch their purchases more closely, particularly when Social Security and Medicare is in question.
9:41 AM  Steven: would be great to identify speakers Steven - you were late to class and we covered that already. Now you are repeating yourself.
9:41 AM  Carla: You can plug in your phone headphones
9:41 AM  rachelnewell: Tasting rooms like Bluxome, holding events  - mixed with the art scene etc....a good way of tapping a new market.
9:41 AM  Aldo: TD from Oak Park, CA@Phil There should be a volume icon on your computer somewhere and be sure it is not on mute. The sounds will come through the computer
9:41 AM  Sue: Rob McMillan, Paul Mabray, Mary Jo Dale
9:41 AM  Kelly Kel: @Phil There should be a volume icon on your computer somewhere and be sure it is not on mute. The sounds will come through the computer
9:42 AM  JennB: Through these talks I've started to lean toward millenials not impacting the fine wine arena much....Will they become more influential when they hit that affluent stage or 35 and above?
Yes that generation will, just like those preceding them evolve their tastes probably away from beer to wine. They will have the forward spending capacity or hope to want to buy some little luxuries. Since wine is a social beverage and this cohort is social, I can guess that pattern with some degree of confidence. What is still in question is what we are doing as a US Wine Business to keep their palates and pocketbooks tuned into domestic wines. We can just as easily see them opt for foreign wines when they are able to buy those wines.
9:42 AM  Chris: See the box below the vide tled "About this Channel" for the speaker names.
9:42 AM  Larry from Utah: good point, Paul. So many new customers you don't focus on existing customers
CRM is critical for wineries. The most important sale isn't the first one. Its the second one. The most expensive sale is the first one. If you don't pay attention to client relationships with your existing buyers, you will cycle through new ones and have a higher cost structure. How do you ensure the second sale?
9:43 AM  jtrinidad: Hey @rwmorris! Hope new year is treating you well!
9:43 AM  rwmorris: Same to you!
9:43 AM  MChandler: Wine tourism in Lodi is very bright! Lots of tasting rooms in the vineyards, and 10 downtown. No clients there, but Lodi has indeed done a great job of defining itself and increased its relative place in the wine world and in price per ton over the past 20 years.
9:43 AM  sbowden: Awesome -- I'm originally from KC
9:43 AM  LodiWine: We look forward to folks visiting Lodi - the best region you may not
9:43 AM  vtwinemedia: Wine clubs have traditionally been about commitment.. Maybe that's at odds with gen M promiscuity. I am going to have to do this live video business next year with a 5 second delay to censor Paul.
9:43 AM  VineBuzz: www.ThirstyGirls.com help wineries extend their digital footprint
9:44 AM  Dave: and loyalty to a winery
9:44 AM  Lando: They sure do.  Thank goodness for the thirstygirls!
9:44 AM  GeorgeP: how does this differ by price point?
George: Ask the question again here on SVBonWine so I can understand the context
9:44 AM  wineprof: websites, social media, tasting rooms, ALL contribute to brand success as a whole
9:46 AM  jakes9: On tasting rooms in town/city centers - They have traditionallyhad some difficulties.  Are their plights improving?
I think Paul answered the question in the Video. My own belief is it really depends. Washington has vineyards well to the east in many cases so they have to take a different approach and many wineries have consolidated tasting rooms in Woodinville which is shouting distance from Seattle, but not a urban area...... taking the winery to the customers. The economic principle is called an Agglomeration Effect. What it means is if there is one tasting room in a town, that will have a hard time attracting tourists. But if there are several wineries in a planned area with the right vibe, that will attract more people because of the number of options available. True urban tasting rooms I'm not sure about. There are so many competing interests in a big city. Tasting rooms in a rural area have appeal to tourists anxious to get out of the urban area. Tourists coming to a large city like San Franciso don't show up and ask the concierge at the hotel where they can go wine tasting. They go to the hotel bar, have a nice meal and go to a show. The next day they get in a car and go to wine country.
9:47 AM  Lisa O: I would be interested in the future of urban tasting rooms as well.
9:47 AM  LodiWine: @jakes9 we have a booming downtown tasting room scene here in Lodi and are proud of the experiences our visitors find in both the downtown and rural tasting room experience
9:47 AM  Bluxome: Lisa o - Check out www.bluxomewinery.com - SF Urban winery in historic wine district In my mind, I separate the urban tasting room versus the urban winery. There can be a quirky charm for residents of an urban area to have their own winery in an urban area. Not sure thats a tourist attraction, but its got pull from the local scene I believe and that means getting the second sale and establishing a relationship.
9:47 AM  Kingpin: Yes, what are the "urban" wine industry / tasting room tends looking like?
9:48 AM  GOSAndrew: Do folks think that urban tasting rooms will work best for local wine or also be able to focus on imported wines?
9:48 AM  Haydon: Lodi is a good example & does a good job
9:48 AM  rachelnewell: Bluxome is awesome, and using some great techniques for growing their reach.  I'll be attending an event there this weekend with ForageSF.
9:49 AM  Hof: Was the mass influent element just a disguise for frivolous business spend?
Mass Affluent is a term synonymous with Aspiring Affluents. I mentioned it in the Video but essentially its the middle class living above their means on credit.
9:49 AM  Haydon: Eurozone exports likely to increase as quality rises there
Quality isn't the problem. Its price and access to US Markets and consumers. 
Guessing the chart was pointing out the Euro hasn't changed much in 12 months?  ..... well ignoring the weakness in the center of the chart. The Macro of the EU is the part to focus on. Mario Draghi said he would do "whatever it took"  ..... and the market decided that meant whatever it took to support the price of the Euro. But he was discussing the survival of the EU Treaty, not the support of the price. Europe still has many years of distress ahead. The US is further along. Europe survives with exports so they want and need to weaken the currency. We on the other hand don't mind consuming the worlds cheaper goods and keeping our inflation down. Timing the drop is at question because its political, but I think the Euro is slated for a drop below 1.20:1 at some point in the next 18 months.
9:49 AM  Magdalena: Challenge is finding buyers for eurozone wines
9:50 AM  adamburck: @Hof Maybe On-Premise, but not at grocery
9:50 AM  Magdalena: buyers = importers..
9:50 AM  Mo412: mass affluent
9:50 AM  adamburck: @Hof Maybe On-Premise, but not at grocery
9:50 AM  GOSAndrew: @Magdalena Right on!  Already present great values, but bottleneck in supply/dist chain.
9:50 AM  Stark Wine: what exactly is mass affluent spending?  how is this group defined?
9:50 AM  OEMV: Euro has to decrease but probably will not because of the German monetary policy
That is at the core of the EU Treaty. It depends on France and Germany now to float the debt guarantees. But the votes aren't based on size of the economy and that puts Germany at a disadvantage in trying to demand more austerity. And in a bit of an odd way, they kind of want the Greeks and other weak currencies in the EU because without them, the Euro becomes a reserve currency and their exports suffer. 80% of their economy is export so its a little bit of a quandry for them.
9:50 AM  Mo412: boomers with lots of discrentionary spend
9:51 AM  WineAppraisal: Hey Erin
9:51 AM  jodiaz1: Millennial generation is so plugged in to social options... Paul Mabray is the only one with his laptop functioning. Just an observation. This demographic should be huge 4 enjoying wine in the future.
Paul is no doubt the biggest propeller head on the panel, but the computer and cell were put there because he was in charge of the Q&A streaming. The rest of us had to turn off our widgets because they create interference on the sound mix........ so much for the conspiracy theory.
9:52 AM  rachelnewell: @jodiaz1 agreed
9:52 AM  2Lads: And his smartphone out and right beside that!
9:52 AM  Steven: Lower Euro posses potential preasure on domestic wineries as imports become cheaper. Is this potential threat real?
Yes. But don't forget other countries like South Africa, Argentina, Chile, and Austalia.
9:52 AM  jodiaz1: Yeah... that's our Paul.
9:53 AM  mitchbakich: @jodiaz1 good observation
9:53 AM  declusin: follow up on urban tasting centers - do they follow a retail market strategy?  or do wineries openly provide wine with a cut to the operators of the tasting room.  this assumes many wineries in 1 tast
Please ask for the panels response in the Blog Chat. I don't have a great answer.
9:53 AM  Lisa O: there seems to be so many tasting and pairing apps available, online daily deal wine sites, facebook pages....what other tech solutions do you see on the  horizon
Clearly a question for Paul and MJ
9:53 AM  jodiaz1: @mitchbakich, thanks. (Nice to see you here.)
9:53 AM  Cyril: Hi Rob: How is the financial condition of wineries in 2013 going to be different than it was for wineries in 2012?
On the one hand there is sales growth and wines are largely in balance which is good. On the other hand, we will see much higher costs passing through the income statements in 2013 so lower gross margins and profitability.
9:54 AM  Huber: I live in Healdsburg and I see lots of tourists carrying glasses and a bottle, not multiple bottles (not to say they're not shipping). Curious what JCB and La Crema and Stark, etc see?
9:54 AM  declusin: what is happening with consumer trends around varietals?
9:54 AM  Sue: We focus on marketing wineries' Wine Clubs on our website www.wineclubsonline.com
9:54 AM  datagirl: this is definitely jazzy
9:54 AM  GOSAndrew: Do the panelists see increasing market share for imported wines given economic environment?
Yes. If the dollar strengthens, we will see more bulk wines for sure, and increased pressure from bottled wine imports.
9:54 AM  jakes9: Can we get a link to a copy of the deck ??
9:55 AM  Kelly Kel: To download the presentation slides, please copy and paste the link below into your browser:www.svb.com/wine-report-2013-presentation/
9:55 AM  OregonR: don't skip on economics!
I'll be speaking in February in Portland at the Oregon Wine Symposium during the general session again. I promise I'll spend a little more time on the economics at that point.
9:55 AM  wine gal: hi Kelly, thank you for the link.
9:55 AM  Sue: exactly OregonR
9:56 AM  datagirl: Millenials are much more price aware and conscious through on-line reviews, with increases in variety and suppliers, how does this play into innovation and distribution?
Paul and MJ questions here
9:56 AM  Vineclub: do there stats break out for small wineries vs the Coke nd Pepsi sized guys?
The survey we run has statistically significant representation from all production sizes and price points. Since most wineries are smaller, that means the survey tilts to smaller wineries. Its pretty well spread out over the west coast but some areas like Paso, Santa Barbara and Mendocino regions are not as well represented as I'd like to see. Survey repondents get all the data, chats and drilled down analysis in exchange for their 10 minutes of time in answering the annual survey. If anyone wants to participate in 2013 when we get there, let me know and we'll add you to the participation list.
9:56 AM  jakes9: thanks kelly
9:56 AM  GotVino: PrecisonWineSales@gmail.com = builds national brands with trendsetting accounts.
9:56 AM  LaurBreu: baby boomers are the fastest growing demo in digital but are they worth the time for a wineries social media? Me thinks not...
Its a good place for MJ and Paul to respond, but SM is mixed into other consumer direct strategies by many if not most wineries. Its almost a buzz word for all things not email. Social is just one portion of an outbound digital stratgy. 
9:57 AM  Cyril: I like figure 7 in the report - Can you comment on how wineries can improve their margins in 2013? 
Nope. They can't really raise price to cover higher grape costs and the price is already in the cellar and capatalized into inventory. The only thing we might see is a continuing decline in promotions and allowances for distributor accounts, but thats not going to help alot.
9:57 AM  patmerr: Agree with yiou Laur
9:57 AM  EDW: Great report - Yorkville Cellars, Mendocino County
9:57 AM  KOConsulting: Great question datagirl.
9:57 AM  SW2013: I see alot of 1 and 2 bottle purchaces at Stark. Not sure if this is consistent with other in town. What about wineries outside of town?
9:57 AM  jakes9: what is level of planted non yeilding acreae in CA, WA and OR?
Check out the CASS Grape Acreage Report. The new one will come out in the spring for CA.
9:57 AM  wine gal: Laur & Cyril: it's hard to say about boomers, I know many that may not necessarily be affluent, but are willing to spend $50+ for a good bottle of wine
9:58 AM  Larry from Utah: boomers aren't as connected to social media as others. they use it, but it's separate from their lives.
9:58 AM  Lindsay: Great question Cyril
9:58 AM  wine gal: they are seeking quality, and when they find a quality wine, they are loyal to it
9:58 AM  MartinC: boomers? definition please
9:58 AM  patmerr: Most use social media-but very few use to seek info about wine
Agree with Pat on this point. But the implication shouldn't be to dump social, a digital strategy or go back to a fax machine to market. Each winery has to find their way and spend the right amount of time in this emerging communication and search vehicle. Its why I encourage a consultant to go through and help develop the right social strategy. Its money well spent.
9:58 AM  LaurBreu: @winegal, I know what you mean, but communications and voice aren't right for them. use traditional methods for them and adapt platform for the new fans
9:58 AM  Stark Wine: Interested to know if SVB see in terms of the distribution model changing?  With DTC?  Seems much like book publishing, wine distribution will see big changes in the future.
Its continuously changing. There are thousands fewer distributors than a decade ago but distributors spend more time trying to maintain the 3-tier rather than respond fully to market needs. To be fair, there is a price issue involved as well so they can represent every 3000 case winery out there even if they wanted to. My long range guess is someday when DtC is settled, they will by DtC.com and run it as a separate division and cost effectively serve smaller wineries that way. Thats a long way out.
9:59 AM  Huber: boomers = born after 1963
9:59 AM  MartinC: thanks huber
9:59 AM  Magdalena: ... you mean born BEFORE 1963?!
9:59 AM  Larry from Utah: Boomers were born earlier. After WWII
9:59 AM  LaurBreu: boomers are after 1946 right after the war, no?
9:59 AM  Dave: look at prices in the grocery chains..and this is with a shortage?
9:59 AM  Larry from Utah: 1945
9:59 AM  christophesmith: isn't the boom of planting around 1997 more of an issue of AxR1
Covered in the report so look there for more detail, but the planting boom was both because of much higher demand and the need to replant.
9:59 AM  chasm: boomers + born BEFORE 1963
10:00 AM  Chris: Boomer - 1946-1964
10:00 AM  Mo412: boomers till 1963, then Gen X, then Mills
10:00 AM  christophesmith: the failure of that is
10:00 AM  Georgia: 1946 to 1964
10:00 AM  Joe H: 1946-1963
10:00 AM  JennB: isn't that because we don't have the non-bearing acerage?
10:00 AM  GotVino: Just remember DTC = less than 10% of wine sales, need to seduce the customer with your brand with  trade accounts tactics
10:00 AM  Huber: Yep, till '64; sorry, had it backwards
10:00 AM  CentralCoastAgAppraisal: Hi Tony! Smile! If water or land use issues become a limited factor for new plantings, will wineries turn to imports?
Tony will I'm sure answer this in the Blog comments section.
10:00 AM  Mo412: DTC = 10% revenue, much lower % volume
10:01 AM  Huber: I just caught the corner of boomers :-(
Hope you didn't hurt yourself?
10:01 AM  Mo412: average bottle price is much higher for DTC, $36 per ShipCompliant Direct has to be higher bottle prices because of shipping. I've yet to see a model that is able to compete selling wine less than $100 a case.
10:01 AM  tonybogar: GotVino, true DTC is small %age but power of loyalty and advocacy make them more important now
10:01 AM  Joe H: Sorry 1964
10:01 AM  jakes9: Distributor political power coupled with highly regulated industry both on federal and state levels makes alcohol beverage distribution much different than books where barriers to entry were very low
10:01 AM  Villa Ragazzi Napa: Boomers = 1946-1964
10:02 AM  VineBuzz: Why is output in Europe dropping?
10:02 AM  The Wine Economist: Great analysis of vineyard values.
10:02 AM  sweetandfortified: Good Morning from the Sweet and Fortified Wine Association
10:02 AM  jkv_napa: @jakes9 but we're making huge headway in DTC shipping!
10:02 AM  RichardH: Europe's 2012 harvest was short - France was down 19% (OIV) - Richard, Wine Intelligence
10:03 AM  Kelly Kel: To download the presentation slides, please copy and paste the link below into your browser:www.svb.com/wine-report-2013-presentation/
10:03 AM  Mo412: Consumers have to have strong desire/connection for DTC wines.  It's both the plus and minus side of DTC.
10:03 AM  Craig Tordsen: Iowa Farm Land sales are ranging from $15,000 to $21,500 an acre for corn growing
10:03 AM  Joe H: With land and per ton costs escalating how will sweet red producers continue to sell at below $10? You know I read this 3 times and kept seeing sweet red potatos. I'm just about to send you to the Boise Farm Advior. You are pointing out what's been happening for 20 years now in wine. We are exporting low priced wine production to other countries. Take a look at the back of a generic wine next time you're in the store and look for its country of origin.
10:04 AM  stonella: To the panel & attendees: What are the short and long term strategies successful wineries are employing to benefit their top line? Trends/Legal challenges etc.  Loaded but important question. Incredibly long answer would be required because there are so many different models in the business and the strategy in one doesn't work for the other. What is clear is you have to pick a path - high volume low cost producer selling cheaper wine, or high cost high price low volume. You can't get stuck in the middle selling 2,000 cases of $25 Napa Cabernet. Once you get the path decided upon, then its a matter of maximizing the returns given the capital, skill sets, unique assets, brand, etc. Developing a strategic plan and an annual operating plan is really important. For what its worth, we spend time with clients who desire, and vet their ideas and strategies against our experience and that often can save time and money in execution. For the life of me I can't figure out why everyone wouldn't bank with SVB on the West Coast.... but maybe I'm biased. 10:04 AM  Haydon: Should be noted that 2012 is the first year in memory that wine production and consumption in balance!
10:04 AM  francly: The last marketing order featured the Dog that drank beer! Lets not do that this time.
10:04 AM  MChandler: Last CA marketing order was 1986-89 Thanks Mark. If I recall correctly, the Order fell apart because it was funded by the larger producers who were often at odds on strategy with smaller producers and I think thats when Family Winemakers started? There is no question there are pilitical obstacles to implimenting either a Federal or State order. Not everyone sees the opportunities the same. If we could recognize imports are flooding our shores and conditions ahead suggest even more bottled imports competing with out domestic wines, we would have a better chance of getting something going. Doing nothing because our values aren't perfectly aligned is like opening the gates and putting out the welcome matts.
10:04 AM  stonella: my question was in terms of DTC strategies. dang ......Wish I would have read a little further before typing the prior drivel. I will leave that to MJ and Paul to answer.
10:04 AM  Haydon: I meant world wide (OIV)
10:04 AM  CentralCoastAgAppraisal: What are your feelings on trends for non-California (even non-Western states) wines? All wines are improving in quality as terrior and plant material are better understood. There is an obvious difference between wines made in Western Regions and Eastern/Mid-Western climates, but thats not necessarily a total negative. Each state now has a wine presence. Regionally they are very proud of their wine making efforts and thats the crux of wine tourism. Its not JUST whats in the bottle that allows a winery to make a profit. In truth, the small family wineries on the West Coast are starting to look more like the non-West wineries with the lack of distributor attention. That used to be the main difference; seeing total regional focus and direct sales (even weddings for gawd sakes). Everyone has their own spin but the separtion in models has narrowed in the last
10:04 AM  Lisa O: i second stonella's question on short and long term strategies
10:04 AM  CindyVale: Cindy: Generational differences chart. http://www.everettcc.edu/uploadedfiles/Faculty_Staff/TLC/Bridges_Across_Generations_Teaching_Lab/GenerationalDifferencesChart.pdf
10:05 AM  adamburck: Below $10 is very easy. Look at value per liter for BiB and other jugs - that will be squeezed and go to imports
10:05 AM  charlescomm: Water is the new oil A shame I can't back my car up to a garden hose and drive on Hydrogen.... some day.
10:05 AM  vtwinemedia: Does brand consolidation on the winery side of industry have a parallel in the vineyard ownership? I think that was answered by Tony in the session, but my answer is yes. There are large and small producers who are acquiring new properties to scale their businesses to proper dimensions with their sales strategy.
10:05 AM  wine gal: great chart! thanks, Cindy
10:06 AM  Mo412: thanks Cindy! Yes thanks Cindy and others responding to questions. We were overwhelmed but will have that figured out next time by adding 4 senior people under their own names to help respond to questions. I loved the interaction on this first attempt between participants though and hope it continues on the next one perhaps later this year. One of the participants said he captured a couple new tools to use through this exchange. Thats an unintended benefit.
10:06 AM  Linda: As grape source information/education becomes more readily available to the consumer demand will drive prices on wines made from grapes as these vineyards will be in fixed or limited supply
10:07 AM  rachelnewell: Increased competition.  All the more reason for wine brands to differentiate and figure out their messagin.
10:07 AM  DK: Can a Supplier bring wine into CA from another country and label it Domestic? Not exactly. But domestic producers can bring in a foreign wine in bulk into the US and put it inside their domestic label and mark on the back its a "Product of XXXXXX [not the USA}]". For instance, if you go look at the back of a Sutter Home Moscato, there is a strong chance the wine is a product of Chile.
10:07 AM  CindyVale: Ain't Google grand... I thpought so until I discovered the CIA funded the whole thing and they are sending robots through the internet to remain resident in computers and they are sucking my braing now.
10:07 AM  Larry from Utah: What will the impact be if China ever figures out how to produce good wine? Pretty sure I responded to this one live.
10:07 AM  Stark Wine: Consumers pay more for brands they love.  Hard to build big wine brands for a small winery when profits (overall) in wine industry generally narrow.  Perhaps the answer is a 'got milk?' like campaign. Yup. Thats the point of a marketing order discussed in the report. Domestic wines are under threat from imports both bottled and bulk imports. The threat is because of a strengthening dollar (my forecast) and greater information and access to foreign wines than ever before. The Millennials who will become material to the Fine Wine Busiuness somewhere after 2020 are the first digital generation and are experimental. If we allow foreign wines to get a toehold with that consumer, we could hurt our business for the long term when they decide they really like Malbec more than Pinot, Chardonnay, or Cabernet. We as producers have lived with Americans used to American wines for a long time. We have American pallates. Can you imagine a situation where we have to work our marketing magic on the domestic consumer to convince them to experiment with US made wines? I can.
10:07 AM  Villa Ragazzi Napa: China needs to feed itself first
10:07 AM  vtwinemedia: Thanks for that information Tony
10:07 AM  Craig Tordsen: Good wine can be produced anywhere. If the anywhere is in low cost areas, high priced production will lose out.  Economic rule.  Buy low, Sell Hi.
10:07 AM  mbrown4931: Isn't it the large domestic player that are bringin in offshore product to balance production capacity and capital requirements between northern and southern hemisphere It's really all about price. If the landed cost of a generic bulk wine of comparable qualitu is less than that which can be vinified here, it will be imported. Its again why a marketing order is important. Domestic production costs in land and labor are more expensive.
10:08 AM  Vineclub: uk wine consumers bought a few california vinyards through Naked Wines
10:08 AM  2Lads: It was a Michigan State Univ professor with that infographic... It was kind of cool, but I got dizzy looking at it.
10:08 AM  Six Sigma Ranch: Amen on the Marking Call!
10:08 AM  The Wine Economist: Here's the graphic url http://zoom.it/GSer Thanks for posting that W/E
10:09 AM  DanR: Good point about China...how about the Chinese presence in Lodi and other areas? There is world wide interest in US wine properties. Not just the Chinese. In a strange twist to the imports of foreign wines, many of my clients have established wine operations in Mendoza. Guess why?
10:09 AM  2Lads: Good stuff mweb
10:09 AM  Larry from Utah: What China needs to do and what they will do may not be the same thing.
10:09 AM  Mo412: Yes, please comment on China
10:10 AM  Dev@cakebread: land values up, grape prices up, with no ability to raise prices is difficult economics
10:10 AM  Villa Ragazzi Napa: Lacks arable land and water for its own needs
10:10 AM  francly: Raise prices of ultra-prem from the 2011 vintage? bet not much
10:10 AM  PaBaut: Any China factor in vineyard prices? I'll let Tony take that one.
10:10 AM  Steven: Flash sales sites - what is the outlook? We covered that in last years report and again on this video conference. In short, they have to learn how to be retailers instead of selling only on price, or they will go broke.
10:10 AM  Larry from Utah: China is huge. And they are trying to do it. If their wine gets better, the might start to sell it and that will increase production.
10:11 AM  jakes9: So will wine quality at the 20-30 range go down becuase of the removal of excess inventory? It already has happened in US produced wines.
10:11 AM  xolden: With all the “smart money” coming into the agriculture space including vineyards, how should one look at cap rates and buying power with the expectations of interest rates rise? That is a Tony question
10:11 AM  KOConsulting: What is a recommended approach for entry into the Chinese and Asian markets? DIgital and otherwise? Long answer to that one. But to shorten it, getting in-market representation is key, and supporting the price of the wine in the local currency is also as important. Digital doesn't have as much place country to country if there are language barriers. It can be effective in promotion and sales depending on the country. But getting the right group selling your wine is the first step.
10:11 AM  Stark Wine: Any thoughts or anyone having success on Amazon Wine? Personally I think its going to take some time for that vertical to take off for them. A close read of the contract for instance has you signing over your brand and trademarks for them to use as they deem fit. If you decide to stop selling on their site, there is nothing that keeps them from placing a "sold out" sign on the wine when you order it, and say "If you like that wine - you will really like this one." That approach might work on other products but if my wine brand was left up like that and a sales source I used in the past was later selling against me ..... I'd be pissed. That is one of many issues that they will have to adjust to. Will they be successful? I can say with a fair level of confidence, I have no clue.
10:11 AM  jakes9: xolden - great question !
10:11 AM  xolden: Also, with the brand growth, have you seen strategic relationship with wineries in securing grapes and these “smart money” investors who want to own the vineyards in the flight of capital? Tony question.
10:11 AM  patmerr: in late 2012, we see wine consumers ($12+ buyers) feeling better economically and expecting higher wine prices vs 2011. Thanks Pat. I'm guessing that you are looking at survey data? Thats like Consumer Confidence which is ticking up all the while CEO confidence, earnings, and sales growth is going the other way. My own forecast is the first half of the year is going to be difficult. Fine wine consumers and distributors will likely want to move in to the 2012's early making some discounting a possibility on the 2011's. Thats two lines pointing toward each other - downward pricing early in the year, and lower economic growth as well. Add to that the Government questions and I believe the consumer will probably get a shock at some point early this year and consumer confidence will start to drop too. Either way, its also not going to surprise me to see improving GDP and job prospects later in the year and 2014 being a real recovery as the housing situation stabilizes.
10:12 AM  wine gal: question similar to Stark Wine: any information on the popularity (or lack) of online wine sales? Its the largest sales growth opportunity but its also the smallest base. Its a critical part of more wineries futures than ever.
10:12 AM  Vineclub: digital customer acquisition from amazon or any other third party agrigator is here for real The 5th Column is here and for real. Customer acquisition via digital is evolving and I belive is here forever too. Paul may have some other thoughts.
10:12 AM  Steven: Channel shift is right Paul!
10:13 AM  JennB: RE PRICING: we justify price increases, watching consumers drop off...are we really weeding out customers that can't afford the fine wine...or are we just losing good customers? You'll never know unless your winery asks why people leave a wine club. Shocking how few wineries do that or have a strategy to retain someone when they leave a club.
10:13 AM  rachelnewell: Distribution.  How about creating a wine CSA?
10:13 AM  rachelnewell: Draw paralllels with specialty food
10:13 AM  tonybogar: We all should be scouting out new channels
10:13 AM  jakes9: Based on the thought of higher margin through alternative channels - shoudl small and mid size wineries abandon the distributors? More likely its a cobbled together bunch of some distributors who do want your wine and you can sell profitably, and others who you dump.
10:13 AM  Linda: Great concept Rachel
10:13 AM  adamburck: @JennB You're losing market share, those buyers buy something else.
10:13 AM  Mo412: will be interesting to see % sales per channel.  should be in WMC report that's coming out on Friday.
10:13 AM  declusin: talk about the 3 tier market over the next 10 years - where is it going?  away? Never. Its a good business and a needed service.
10:13 AM  Vineclub: just dont say multi channel marketing in front of your distributor Wow .... you are an evil person to even think that kind of thing!
10:13 AM  Portugeis: what about "sustainable" packaging (e.g. cartons, twist caps) to lower cost of production/distribution and appeal to "sustainability" trend? Happening in some ways. Ausies are ahead of the US.
10:14 AM  ESwain: I dont see the Margin from a lot of direct to trade beeing any higher than distribution, due to high marketing fees and shipping costs. Agreed.
10:14 AM  datagirl: DTC increases overhead greatly, make sure to cost-benefit the break even on the increase to overhead
10:14 AM  Huber: rachelnewell: that's a very interestin
10:14 AM  Joe H: Earlier mentioned wine clubs declining now saying sell through wine club? Confused? Not sure I heard that. Could have been a difference between traditional wine clubs where you ship whatever wine you have 2x a year vs an evolved wine club or loyaly program that used CRM to create an experience and give the customer what they want. Old style wine clubs are dying. Loyalty type clubs using CRM are needed.
10:14 AM  Dougan: Pretty good wine flash sales club: http://www.sommpicks.com/
10:14 AM  charlescomm: This chat is really resourceful thanks all for sharing such great info, the wine business is really a generous one
10:14 AM  Linda: The consumer pays well for CSA, know your farmer...know your vintner
10:14 AM  JennB: At what point does the fractioning of brands stop? When the new brand doesn't sell.
10:15 AM  Sue: @Dev@cakebread You are right on.
10:15 AM  rachelnewell: @ Linda - exactly.  Building brand loyalty too.
10:15 AM  Linda: CSA has profitability built in through direct sales
10:15 AM  jakes9: the distrivution costs for CSA are very high....
10:15 AM  tonybogar: NakedWines is similar to the CSA idea, though maybe not the direct personal connection
10:15 AM  JennB: the Fine Wine pie is so small, how do these small brands continue to pop up? You have to distinguish between a small brand and a business. I can sell 300 cases of a new brand to my friends. Nobody will ever care.
10:15 AM  Huber: CSA pick up site is Location Location Location
10:15 AM  adamburck: Does the GM& include price promotion? Yes. It doesn't include depreciation however.
10:16 AM  Mo412: sorry... CSA?
10:16 AM  Linda: small down right has profitability remember profits and profitability are different
10:16 AM  declusin: flash site = oversupply, not much of a problem now
10:16 AM  patmerr: Packaging is key for small brands Pat - would you not agree that packaging is key for all brands?
10:16 AM  WLV Winehound: CSA pick up may have licensing issues
10:16 AM  rachelnewell: CSA - Community Supported Agriculture Thanks Rachel - I didn't know that term either. Great to learn new things. I must not be an old dog yet.
10:16 AM  Mo412: thx.
10:16 AM  Stark Wine: Any CSA's anyoone recommends in SF area?
10:17 AM  Chris: PANEL - MJ, restate again please you cut out. Thats an MJ question. MJ - can you please repeat what you said?
10:17 AM  Linda: We do CSA here at the farm in Sonoma it is very successful
10:17 AM  Linda: main corridor locations are beneficial for CSA due to visibility of the farm
10:17 AM  Larry from Utah: Discounting can train people to never buy at full price
10:17 AM  LMRONE: CSA is a compliance nightmare for wine.
10:18 AM  datagirl: @Larry It can also grwo innovation for someone who doesn't have large trade budgets to do so
10:18 AM  declusin: brand strength is solidified through story - how do we tell that story, effectively, through a digital medium? MJ and Paul please respond to this question.
10:18 AM  jakes9: Comment on the possibility of "flash" sites morphing into the channel by whihc wineries can effectively cut out the distributor channel.  Share the margin savings with the comnsumer That is the idea.
10:18 AM  Steven: So wine supply domesticly cant sustain Flash but what about Europe, South America, etc? Its really more about retailing wine and not retailing wine. Flash is just selling on price. Its hard to evolve that culture. An evolved e-tailer uses means other than just price to sell.
10:18 AM  Larry from Utah: Why don't wineries realize that a customer who buys at the supermarket is just as much a customer as a DTC one. They do. Getting information on that customer isn't easy. MJ and Paul may have something to add.
10:18 AM  patmerr: Flash sites are dominated by imports in the US-esp Bord.
10:19 AM  Mo412: rachel: are you based in SF?
10:19 AM  Steven: Larry Utah- they do just a less profitable consumer
10:19 AM  WLV Winehound: @Utah, albeit one that may not be profitable
10:19 AM  Georgia: @LMRONE explain CSA  compliance nightmare for wine?
10:19 AM  jakes9: will the chat feed be available after the broadcast ends? Yes .... it was and next time we'll be better at announcing that before hand.
10:19 AM  Larry from Utah: yes, but they don't make an effort to relate to them.
10:19 AM  Huber: PAUL: What's been the metrics on % of sales completed via smartphone?
10:19 AM  Larry from Utah: Convert them to DTC or market anyway. It's still a sale, even if less profit.
10:20 AM  Steven: Larry Utha- they can't relate to them because of the 3 tier system
10:20 AM  rachelnewell: @Mo412 - yes.  twitter @rachelnewell
10:20 AM  Larry from Utah: But they can encourage them to buy more of their wines 3 Tier
10:20 AM  Mo412: Naked is like crowdsourcing for wine...
10:20 AM  patmerr: Sorry, what is CSA?
10:20 AM  Larry from Utah: QR codes to get the customer on their list. offer recipes, talk of their other wines
10:21 AM  Huber: CAS= Community Supported Agriculture
10:21 AM  patmerr: Thank you
10:21 AM  Dave: like crushpad used to be..
10:21 AM  Steven: Sure Larry- Utah but at a high cost, and wholesale, retail often do not support winery branding.
10:21 AM  JudyB: So why are so many wineries such laggards to adopt more innovative DTC and digital marketing practices?  Is it just due to older decision-makers at wineries who don't "get" what it's about ?? Paul and MJ please?
10:21 AM  CentralCoastAgAppraisal: Any legislatative issues that will affect values or growth? There are many that are being discussed. I worry most about sin-taxes but there are others too numerous to annotate here.
10:21 AM  SVB Host: We'll answer as many questions as we can in the Q&A session at the end of the broadcast. If we don't get to your question, we'll send an answer to any participants who identified themselves. (See ........ we didn't lie. Its been a little creative to get to here though. Its a first for us so we are learning by doing.)
10:22 AM  vtwinemedia: Any sense about how much of the current capitalization in the domestic wine industry is coming from Venture capital interest versus existing industry players? Almost no professional investment in the wine business outside of real estate that has been hit and miss.
10:22 AM  Sue: Many States still ship in or out.  Kentucky is still a felony state.
10:22 AM  Portugeis: What % of cost of wine is related to packaging/distribution/transportation? Totally depends on the size of the company.
10:23 AM  Steven: Social is Key but needs IRL support from product, experience, and principals.
10:23 AM  Steven: May approach Social from an anti-social prespective (hidding behind the device)
10:24 AM  rachelnewell: If social - we need to reach consumers socially.  Grassroots, digital, PR etc. Needs to be part of the mix.
10:24 AM  jakes9: to SVB - Instead of just sending answers to the questioner could you please create a site and post answers there?  Thanks Yes ......... and hopefully you noticed that we sent out the link to this site to allow continuing discussion on my personal Blog.
10:24 AM  Steven: many not MAy
10:24 AM  patmerr: Very few wine drinkers make wine purchased based on Socioal media Paul or MJ - do you want to challenge Pat on that?  (I really don't have a clear answer personally. Mixed information for me.)
10:24 AM  KOConsulting: Couldn't agree more about customer information. Any thoughts on CRM use in small wineries? Paul and MJ please.
10:24 AM  Larry from Utah: How do you know this, patmerr?
10:24 AM  wine gal: patmerr: I agree. I notice recommendations influence
10:24 AM  patmerr: Perhaps there is a long term ROI there, but not short term
10:24 AM  LaurBreu: @patmerr maybe not their first purchase but social media engagement will make them customers for life
10:25 AM  Steven: Sure Mary Jo but technology solutions for winery makes it hard!
10:25 AM  Stark Wine: Our research with Gen Y says they do chose wine based on friend referrals.  Live Focus Groups in NYC with 20-somethings.
10:25 AM  Dougan: recommendations can't happen via social media? You are in-correct sir.
10:25 AM  Larry from Utah: people may not specifically say "I read about this from X" but may be aware of the brand
10:25 AM  patmerr: We conduct thousands of consumers surveys a month
10:25 AM  patmerr: Among wine drinkers
10:25 AM  Haydon: At Last Understanding the consumer is the first and most important aspect of sales.
10:25 AM  Larry from Utah: what do they say the source of their information is?
10:25 AM  datagirl: @patmerr what do you do with the data
10:25 AM  Mo412: China
10:25 AM  patmerr: Word of mouth and prior tasting
10:25 AM  KOConsulting: Talk about CRM
10:25 AM  DanaTims: Any thoughts on Oregon in particular? Not sure I understand the context. But I do like hazelnuts.
10:25 AM  patmerr: get em to taste
10:26 AM  Larry from Utah: word of mouth may include social media
10:26 AM  Cyril: whats the financial outlook for 2013 for us wineries? Sales growth of 4% - 8%. I also predict that tonight it will be dark.
10:26 AM  francly: Yes talk about CRM?
10:26 AM  Steven: FYI - Trial is still the main driver of purchase
10:26 AM  CentralCoastAgAppraisal: Tony, can you comment on the influence of China on winery values?
10:26 AM  JennB: How do we increase traffic in the tasting room? MJ?
10:26 AM  bmw74: Do you find wineries searching for CPG-groomed talent to get access to this discipline around understanding customers, etc? Paul and MJ?
10:26 AM  Joe H: Earlier mentioned wine clubs declining now saying sell through wine club? Confused? See earlier resonse.
10:26 AM  Debra: Would love recommendations on an excellent data platform for our customers. Paul and MJ?
10:26 AM  patmerr: think about customized hospitality Pat - thanks so much for all your contributions.
10:26 AM  Haydon: China is currently leading the plantings world wide. #5 Producer worldwide now, just passing Argentina I believe.
10:26 AM  JudyB: So why are so many wineries such laggards to adopt more innovative DTC and digital marketing practices?  Is it just due to older decision-makers at wineries who don't "get" what it's about ??
10:26 AM  Magdalena: @patmerr True, in part. It seems that people use SM to share drinking of trophy wines, which do not necessarily interest me. But, I actively use SM to find places to go get wine - retail or on-trade.
10:26 AM  RutherfordDust: wineries don't pay for CPG groomed talent
10:27 AM  JennB: is increased traffic a good thing, what's the best ratio of staff to visitor? Take a look at Wine Business Monthly. They have an annual Tasting Room report and I believe that stat was in there. We do a survey but that is reserved just for participants of the survey itself.
10:27 AM  Magdalena: (I'm a Millennial) I was one of those once. My Millennial days were wasted on my youth.
10:27 AM  Immersive Development: China will be taking talent from USA/EURO to cultivate their wineries They have been for some time. It still takes a lifetime to adjust plant material to product truly great wines ..... or unbelievable luck.
10:27 AM  patmerr: Debra-happy to discuss
10:27 AM  jakes9: MJ - How do you suggest getting more info about your customers or potential customers?
10:27 AM  adamburck: Can you comment on how the levl of price promotion has trended? Started down in 2012.
10:27 AM  TBV: Tony, can you tell us about vineyard values in the Paso area? They've been depressed for so long, are they improving?
10:27 AM  Cyril: what's up with winery turnover ratios? Dont understand the question Cyril. 10:27 AM  AndrewFON: Any good sites for twitter searching? Paul and MJ?
10:27 AM  wine gal: I, personally, really like social media. Has there been any research on how social media influences ONLINE wine sales? lynne@wine-gal.com @winegalLynne Paul and MJ?
10:27 AM  KOConsulting: There are a lot of CRM tools out there, but only a few understand what the wine iindustry needs, especially small wineries... please talk about the importance of CRM That's been one of my constant dronings and has been covered in the Report at various times. It is a critical element for success and not just about software.
10:27 AM  BReth27: A better question mght be how do US wineries adjust to the changing Chinese tastes.  Can we predict their next move as we watch Bordeaux fall out of favor and Burgundy rises. There are many who are working that very thing today. They are segmenting themselves out is the short answer. Like all consumers, they aren't homogenous. There are some devloping a taste for fine wine, some who wont touch it, some who want to move from sweet wines to something more complex. Not just about the people is the point. Has to be a segmentation strategy.
10:27 AM  Debra: Patmerr: how can we start that dialogue?
10:27 AM  CentralCoastAgAppraisal: TBV...the answer is Yes...tremendous value increases over last 12-18 months.
10:28 AM  cellarrat: Andrew, sign up with vintank or monitoring social Note: Vintank has a free platform for monitoring this. I can't understand why everyone wouldn't sing up for something useful that was free, over not monitoring social chatter.
10:28 AM  Mo412: please includ chat log in on demand download afterwards
10:28 AM  patmerr: Im w/ Merrill Research-San Mateo
10:28 AM  patmerr: certainly share what i know
10:28 AM  SVB Host: @jake09 We'll try to aggregate the questions and post them on the website.
10:28 AM  AndrewFON: @cellarrat - will do thx
10:28 AM  patmerr: thanks SVB
10:28 AM  cellarrat: Andrew, sign up for Vintank for monitoring social
10:28 AM  Larry from Utah: This is a terrific session. You should do more of them! With the great feedback on this one, its a certainty.
10:28 AM  Adam: Digital marketing allows the winery to be at the right place at the right time and the right customer.
10:28 AM  MikeJ: Short/long term role of private labels with key retailers?
10:28 AM  Kelly Kel: Please remember to identify yourself or your company when you ask a question so we can follow up with you if we do not get to your question.
10:29 AM  Bluxome: = peter@bluxomewinery.com
10:29 AM  Lee: What retail price point do you see as having the greatest growth over the next 2 years Since I'm predicting the US Mass Consumer will start to come back in the second half, I'm guessing the $15-$20 segment.
10:29 AM  KOConsulting: Thanks SVB!
10:29 AM  Mo412: mo412 = mo@wineharmony.net
10:29 AM  Magdalena: @Kelly Kel: Magdalena RAHN, French Trade Office - Ubifrance, wine and spirits dept for North America
10:29 AM  Bluxome: Thanks SVB
10:29 AM  Stark Wine: Any idea what a smart % of SEO is of a winery's overall marketing budget? Paul & MJ?
10:29 AM  Steven: what are the 10 P's ? MJ?
10:29 AM  AndrewFON: andrew@trbwines.com
10:29 AM  patmerr: Lee-I'd say $15-$20 Hey how bout that! You and I picked the same band and I didn't even look. That means its almost inevitable its going to be the $2-$5 wines that will grow and the $15-$20 wines will drop through the floor.
10:29 AM  Kelly Kel: You can also send any unanswered questions to mmenard@svb.com or kcaviglia@svb.com
10:30 AM  Villa Ragazzi Napa: Villa Ragazzi: kids@villaragazziwine.com
10:30 AM  PRidge: = sonia@prwinery.com
10:30 AM  Haydon: Waht are your 10 p's of marketing?
10:30 AM  Magdalena: magdalena.rahn@ubifrance.fr
10:30 AM  KOConsulting: katie@ko-consulting.com
10:30 AM  Larry from Utah: larry@cedarcitywineclub.com
10:30 AM  JennB: jenn@strykersonoma.com
10:30 AM  TBV: thanks Central Coast Ag Appraisers. That's encouraging.
10:30 AM  Debra: Patmerr: I can be reached at:  eagle@vom.com. Thanks! Is there an address where I can reach you?
10:30 AM  patmerr: pmerr@merrill.com
10:30 AM  Swino: stacy@eberlewinery.com
10:30 AM  Bluxome: What are the aspirational metrics for a DTC business (Mary Jo?)
10:30 AM  charlescomm: kcharles@charlescomm.com
10:30 AM  LizC: 10Ps?  Thanks - liz.cohen@rutherfordwine.com
10:30 AM  patmerr: opps  pmerrill@merrill.com
10:30 AM  Chris: 4 Ps - product, price, placement and promotion. I think MJ's 10 points were simply 10 KPIs.
10:30 AM  Sue: @winegalLynne We work with that at Wine Clubs Online.
10:30 AM  Bob: bob@salessystems.net
10:30 AM  Lindsay: lindsay@retourwines.com
10:31 AM  Stark Wine: Marketing Ps: people, price, promotion, place, placement
10:31 AM  DC Vino: dnrcallis@charter.net
10:31 AM  Kelly Kel: You can send any unanswered questions to mmenard@svb.com or kcaviglia@svb.com
10:31 AM  jakes9: great panel - can you do it quarterly?
10:31 AM  2Lads: Can't forget "people" as a crucial "P"!!
10:31 AM  Huber: What are trends and predictions for smartphone usage to buy wine? christopher@hanzell.com
10:31 AM  wine gal: thanks Sue!
10:31 AM  charlescomm: Let's do these quarterly..very helpful
10:31 AM  Portugeis: thank you very much. Good presentation.
10:31 AM  US Wine Abroad: Yes, what about CRM?
10:31 AM  adamburck: Agree, Quarterly!
10:31 AM  francly: very good thank you all from st. helena...
10:31 AM  Mo412: This should be a quarterly call with focused topic discussions.
10:31 AM  Adam: adam@vintnersalliance.com
10:31 AM  LizC: Great presentation - look forward to the next time!  Many thanks.
10:31 AM  pdolim: pdolim@merryvale.com
10:31 AM  wine gal: Thanks, SVB... great webinar, looking forward to more
10:31 AM  Huber: Thanks SVB and crew!
10:31 AM  Dr Ferreira: Great presentation. Thank you,
10:31 AM  Lindsay: Yes, quarterly would be great.
10:31 AM  Guillermo: Thanks for everything!
10:31 AM  Kingpin: Thank you...great webinar!!!!
10:31 AM  nperdiew: Very well done everyone.
10:31 AM  AaronI: aaron@romililly.com
10:31 AM  GotVino: IIf you are a winery owner, and sell through the three tier network, I have a sales management system that zeros in on the best accounts that sell your varietal & price. Cost effective.
10:31 AM  Mileva: Thank you for the presentation - Mileva
10:31 AM  Roni: Thank you very much! Roni@topspeeddata.com
10:31 AM  Mo412: Thanks everyoone.
10:31 AM  Will S: Thanks - good session
10:31 AM  TrentG: What are your "10P's" of Marketing, Trent of Heibel Ranch Vineyards.
10:31 AM  patmerr: Thanks Rob and all!
10:31 AM  Douglas_Landmark: Thank you!!
10:31 AM  Linda: Good presentation Thank you! Linda@WineRealty.com
10:31 AM  AndrewFON: Thanks SVB!  Great discussion please do more of these!
10:31 AM  Stark Wine: Thank you!  Also like the chats.  Thanks everyone!
10:31 AM  JennB: Great job, thanks panel!
10:31 AM  US Wine Abroad: ccln2012@gmail.com
10:31 AM  Sue: Thanks everybody.  Sue@wineclubsonline.com
10:31 AM  heatherslowine: Thanks all--please send questions and answers as we would love to share them with our team: heather@slowine.com
10:31 AM  Sherie: this new format is great; go for 1 1/2 hrs next time
10:31 AM  Dacia: What a great session....would love to see this go quarterly.
10:31 AM  CG: Thank you! carolyn@bellawinery.com
10:31 AM  francly: langreed@sbcglobal.net
10:31 AM  SW2013: christian@starkwine.com
10:32 AM  AaronFein: aaron@heronwines.com Great! Thanks SVB
10:32 AM  Elaine: Thank you all very much ecrane@topspeeddata.com
10:32 AM  wineprof: Terrific guys! already looking forward to next year's SVB report!
10:32 AM  Steven: coggenfuss@cadewinery.com
10:32 AM  Page: Page Knudsen Cowles of Knudsen Vineyards in Dundee, Oregon. Would love to have a session about Oregon in the future.
10:32 AM  Dacia: daciakate@yahoo.com
10:32 AM  GotVino: precisionwinesales@gmail.com
10:32 AM  PaBaut: Thanks SVB. Great info!
10:32 AM  Dave: dave@myvino.com
10:32 AM  GKS: Great event.  Thanks SVB.  Staglin Family Vineyard from Rutherford
10:32 AM  Bob: Thank you for an informative session
10:32 AM  Lisa Oelsner: GREAT JOB! Lisa Oelsner  lisa@cuvee-consulting.com
10:32 AM  OEMV: Thanks SVB direcion@oemv.es
10:32 AM  Sass Winery: Thanks, Rob and pals! Sass Winery: SassWinery@aol.com
10:32 AM  adamburck: Follow me on twitter @adamburck
10:32 AM  Joe H: Thank you, interesting discusion.
10:32 AM  rachelnewell: rachel@schoolofthought.com
10:32 AM  GotVino: Thanks - precisionwinesales@gmail.com
10:32 AM  TBV: Very informative, thank you from Terra Bella Vineyards (TBV)
10:32 AM  RutherfordDust: Great job lady and gentlemen
10:32 AM  Page: page@knudsenvineyards.com
10:32 AM  Immersive Development: tgoodwin@immersivedev.com... thanks
10:32 AM  SDM: steve@murrillvineyards.com
10:32 AM  bmw74: great discussion, thank you
10:32 AM  rachelnewell: Very informative
10:32 AM  Sean: Thank you, Sean.Gallagher@O-I.com
10:32 AM  CentralCoastAgAppraisal: jwall@centralcoastagappraisal.com
10:32 AM  epicuria: Merci from Tom Merle
10:32 AM  GotVino: Brand building nationally - precisionwinesales@gmail.com
10:32 AM  rachelnewell: Kudos to SVB
10:32 AM  christophesmith: csmith@titusvineyards.com
10:32 AM  MartinC: thanks!
10:32 AM  Haydon: Thank you all at SVB and studio guests
10:33 AM  Joe H: jhurliman@herzogwinecellars.com
10:33 AM  gormanmcadams: Thank you. Great discussion
10:33 AM  1WineDude: nice work!
10:33 AM  Brianrg: Thanks.
10:33 AM  Bob: Distributor management sales process training @ Sales Systems Development, Inc.-- 30 yrs experience
10:33 AM  MartinC: martin.coscia@hess-family.com
10:33 AM  sweetandfortified: sweetandfortified@att.net  Very interesting.  Are there just too many wineries fighting for a very small portion of the market?
10:33 AM  GotVino: Trade analysis - precisionwinesales@gmail.com
10:33 AM  chasm: thanks...good cast
10:33 AM  gormanmcadams: gormanmcadams@mac.com
10:33 AM  Larry from Utah: Thanks. Terrific hour.
10:33 AM  RutherfordDust: Thank you!
10:33 AM  PRidge: Thank you SVB and guests - very informative
10:33 AM  Chris G: Nice work!
10:33 AM  GotVino: precisionwinesales@gmail.com
10:33 AM  Magdalena: oh no, chat record only keeps past 20 minutes!
10:33 AM  Haydon: www.philipgoodband.com
10:33 AM  Magdalena: Thanks for this very informative session!
10:33 AM  dnewlin: Thanks Rob, MJ, Tony and Paul...great conversation!
10:33 AM  Susan: Thank you so much - very informative!  susan@bunnellfamilycellar.com
10:33 AM  Mo412: just discovered the sam thing.
10:34 AM  Southport Wines: Enjoyed this diane@southportwines.com
10:34 AM  Georgia: Informative. Thank you
10:34 AM  MChandler: Great job. mark@markchandlerwine.com
10:34 AM  Haydon: @ mary Jo..Please say what your 10 p's are.
10:34 AM  Susan: Can SVB post the chat record somewhere?
10:35 AM  punky: Can SVB post the chat record somewhere?that would really helpful
10:35 AM  DC: Thanks, allocate more time next year.
10:35 AM  Douglas_Landmark: email dburnet@cellotape for complete chat transcript (Ok, pretty complete)
10:36 AM  Douglas_Landmark: cellotape.com
10:36 AM  PeteinWindsor: thanks SVB, very informative
10:36 AM  stonella: would be great to see this report quarterly or bi-annual
10:37 AM  stonella: in terms of the video conference.  Thanks
10:50 AM  NeilMc: Much thanks 

There you go. Please join the site for updates to this blog and join in the discussion.Happy for critique on the session and thoughts on topics or panelists for future presentations too.

20 comments:

  1. Missed parts of this, now I have homework!

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    1. Let us know if you find something interesting.

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  2. Hello to so many people I can recognize (VineBuzz, dnewlin, Larry from Utah, 2Lads, RichardH, 1winedude, tonybogar, King Estate, Alexandra_OGorman, Ashley P, cellarrat, Huber, dbromley, Dick Wollack, Cakebread Cellars, jodiaz1, Lando, nperdiew Storm, charlescomm, wineprof, jtrinidad, vtwinemedia, Cyril, and other friends I couldn't distinguish from their handles) and to everyone that joined! 

    A bit of background, though I was there answering questions I wasn't in this chat room so I am really glad to see such a vibrant conversation occurring in parallel to the show. Rob has had the luxury to answer inline (and maybe he'll add mine with a different color as well).  So I'll clock the time and question first and then answer.

    9:37 AM  rachelnewell: Yet Millenials have no problem throwing down for hi-tech...I think it's about a mind shift and values.
    >>>Let's not forget that technology is an investment into an asset, not a consumable luxury.  When you buy your tech you use it for an extended time.

    9:43 AM  MChandler: Wine tourism in Lodi is very bright! Lots of tasting rooms in the vineyards, and 10 downtown.
    >>>MChandler - My statement about Lodi was not derogative, just factual that it has not yet achieved the tourism success of the other major CA regions.  The three regions that have not yet achieved critical mass are Lodi, Sierra Foothills and Mendocino which has no bearing on their wine quality or beauty, just the maturity of their tourism.

    9:43 AM  vtwinemedia: Wine clubs have traditionally been about commitment.. Maybe that's at odds with gen M promiscuity
    >>>I don't think we know the answer to this yet.  I would guess that is correct but remember most wine clubs include wine over $20 which is the category we know Gen M is not buying en masse (yet).  So understanding Millennials club behavior is still 5-15 years out.

    9:52 AM  2Lads: And his smartphone out and right beside that!
    >>>I was definitely "two screening" it.

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  3. While Boomers are the laggards in social media adoption it does not change that they use it, are influenced by it, and some choose to use it to communicate with brands.  That being said, it's myopic to think that your only customers are Boomers and not look to cultivate the tools that the next generations of users will leverage to communicate with your brand.  

    10:00 AM  GotVino: Just remember DTC = less than 10% of wine sales, need to seduce the customer with your brand with  trade accounts tactics
    >>>I agree that Trade tactics are key but in reverse, trade (on-premise and limited off premise) is to fulfill the promise to customers at time of purchase.  There are other ways, many not created yet, that you can seduce the customer.

    10:04 AM  stonella: To the panel & attendees: What are the short and long term strategies successful wineries are employing to benefit their top line? Trends/Legal challenges etc.  Loaded but important question.
    >>>Stonella,I think that the investment in infrastructure and resources are where you are seeing wineries that succeed.  Full time e-commerce managers, full time digital marketers, CRM systems, CRM processes, better DTC software, better DTC processes, CPA (cost per acquisition), business development (many failures for few successes).  The best example of late is J Winery just hired the first VP of Digital in the entire wine industry (and she is a woman)!  You can't make money without spending money and as Rob says, you may not lose it in costs if you don't invest but you will lose it in sales.

    10:10 AM  Steven: Flash sales sites - what is the outlook?
    >>>As Rob and I predicted years ago it will be an implosion and a few key sites will survive and flourish (there is always a need for these types of channels) but most will have to evolve or die.

    10:11 AM  Stark Wine: Any thoughts or anyone having success on Amazon Wine?
    >>>I think Amazon is going to have a lot of maturing to do before it is successful.  Some brands will do great and others not at all.  The good news about Amazon's entry into the wine business is two-fold: the more mainstream site participating is the category means more consumer acceptance for buying wine online, and that the marketing agent (the only model that can fully liberate the industry) has hope.

    10:12 AM  wine gal: question similar to Stark Wine: any information on the popularity (or lack) of online wine sales?
    >>>Online wine sales are one of the fastest growing channels in the industry but from a low base.  Online wine is the last frontier of e-tailing and has yet to be solved by wineries or retailers but I anticipate in the new few years to see major evolutions in this category.  It will be exciting times.

    10:12 AM  Vineclub: digital customer acquisition from amazon or any other third party agrigator is here for real
    >>>  #amen

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  4. 10:19 AM  Huber: PAUL: What's been the metrics on % of sales completed via smartphone?
    >>>I recommend looking at Vin65.com's presentation and stats.  http://www.vin65.com/blog/Mobile-Ecommerce-and-the-Wine-Industry

    10:21 AM  JudyB: So why are so many wineries such laggards to adopt more innovative DTC and digital marketing practices?  Is it just due to older decision-makers at wineries who don't "get" what it's about ??
    >>>I think there are a LOT of reasons starting with the fact that (sadly) DTC is the least funded department in the business.  As any DTC executive (less than 10) or even DTC manager what their marketing budget is . . .  Regarding digital I still adhere to the fundamental belief that our failing in digital is a result of four key factors: our success in tourism which makes it so we do not have to focus past our winery walls, the tasting room usually represents 50% of DTC sales with an additional 30% from club acquisitions at the tasting room making those more relevant than phone and ecom, that cash intensive nature of the business and our need to recoup that cash quickly vs. over a prolonged period (hence why so many wineries still focus 3T with less margin but more cash quickly), and that we are inherently a manufacturing industry, not a sales and marketing industry.

    10:24 AM  patmerr: Very few wine drinkers make wine purchased based on Socioal media
    >>>Patmerr: I don't think you can make this statement.  We don't know yet.  What we do know is that SM does influence buying (an anecdotal story here: http://www.vintank.com/2012/03/hey-wine-industry-youre-looking-at-wine-bloggers-all-wrong/).  We also know that over 13 million people have talked about wine on social media in the US (approximately 1/9th the drinking population) and that figure grow by an avg of 450K people per month.  I think we just don't have the tools to correlate sales with SM yet especially proxy sales (which is the majority of SM).   Also SM is not being used appropriately by wineries/e-tailers to help maximize sales results.

    10:26 AM  bmw74: Do you find wineries searching for CPG-groomed talent to get access to this discipline around understanding customers, etc?
    >>>That has been the way for some time within the big wine organizations.  I think this has some key challenges.  First and foremost most CPG industries have access to real consumer data.  This is a huge gaping whole within the wine industry.  Secondly most CPG industries are not as multi-channel in their sales efforts so their view is generally one dimensional.  Clorox direct?  Clorox Bleach Club?  Thirdly most CPG companies do not have the luxury component.  You don't market Mondavi like you market Cheerios.  Finally, wine marketing and consumer insights in this industry behave like no other market.  So when CPG people come to the wine industry they spend the first few years learning the nuances of the industry (a major reason there seems to be an 18 month turn over for major wine company's brand managers).

    I think we should hire from two different places: luxury marketers OR start pulling talent from silicon valley/seattle online DTC sale and marketing.  This will be transformational for our industry.

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  5. 10:27 AM  jakes9: MJ - How do you suggest getting more info about your customers or potential customers?
    >>>I think the first place is creating an infrastructure (CRM) to store that data.  Secondly I'd devote the $ to the culture of CRM (even more relevant than the technology). Most of first part of the data is derived (sales and resulting additional data like location, birthday, etc) but if you have a culture of CRM the staff will capture additional items while having interactions with your customers like wine preferences, personal details, etc).  Lastly you can layer data including social, etc to get other data about the customer then using tools to highlight the relevant data (Paul likes technology, his family, pinot noir, and his son's name is Finn).  Again, that ancillary data is only useful if you have a culture of CRM so you can leverage it in 1:1 interactions, segmentation, macro and micro BI, and micro-cast communications.

    10:27 AM  AndrewFON: Any good sites for twitter searching?
    >>>I would like to throw vintank.com in as a key tool (and it's free for brand mentions).  Aside from that Twitter has its own search and there are lots of expensive but powerful tools like Radian6.com.

    10:27 AM  wine gal: I, personally, really like social media. Has there been any research on how social media influences ONLINE wine sales? lynne@wine-gal.com @winegalLynne
    >>>Nothing meaningful . . . yet.  We plan to release this soon.  Right now we are completing our exclusive integration with Vin65.com so you can correlate lots of behaviors with social.  For example, does it influence sales (aka do my socially active customers have a higher LTV than my other customers), does it extend the LTV of a customer, and can it be an early indicator for wine club attrition?  There are 100's of other questions we are analyzing in the data as well so wineries can analyze their ROI of SM for their business.

    10:28 AM  Adam: Digital marketing allows the winery to be at the right place at the right time and the right customer.
    >>>Can I get a "Hallelujah."

    10:29 AM  Stark Wine: Any idea what a smart % of SEO is of a winery's overall marketing budget?
    >>>I would only spend 3-5% of my marketing on SEO but I would spend 30% on SMO (social media optimization) which will result in better SEO results as well.

    I would spend 20% of my marketing dollars for SEM on "local search" for wineries with a tasting room.  
    Unfortunately For 99% of wineries they spend $0 on any digital marketing.

    *apologies for any grammatical, spelling or logic errors.  Typed from my iPad.

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  6. Tony here. Several questions about China's influence on winery and vineyard markets. We have seen some Chinese buyers acquiring some wineries, but not enough to be any real influence. And I have yet to see any acquisitions of just vineyard properties. The vineyard market today is dominated by large wineries acquiring future fruit sources. We have seen some dramatic increases in vineyard values in the Central Valley, and experience teaches us Big Valley vineyards respond more dramatically to grape pricing changes, so we may assume coastal vineyard values will follow. As Joann at Central Coast noted, we have already seen some sizable bumps in Monterey and San Luis Obispo markets, so Sonoma and Napa would appear to be next.

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  7. MarkTNorman: is the dropped off by boomers across all boomers or the ones that are active as a core wine drinker?
    Mark - Boomers are hitting retirement age 10,000 a day.

    Rob: Core wine drinkers can be expected to remain wine drinkers, but they can also be depended on to start to watch their purchases more closely, particularly when Social Security and Medicare is in question.

    MJ: In addition (as Rob has said so well—so many times before) these drinkers will be replaced over time by younger core wine drinkers without the same purchasing power the Boomers enjoy. Another trend for us to watch is that the new potential wine drinkers of the future have a greater mix of ethnicity—and so far the wine industry is not connecting very well with Hispanics. MJ

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  8. MarkTNorman: is the dropped off by boomers across all boomers or the ones that are active as a core wine drinker?
    Mark - Boomers are hitting retirement age 10,000 a day. Core wine drinkers can be expected to remain wine drinkers, but they can also be depended on to start to watch their purchases more closely, particularly when Social Security and Medicare is in question. In addition (as Rob has said so well—so many times before) these drinkers will be replaced over time by younger core wine drinkers without the same purchasing power the Boomers enjoy. Another trend for us to watch is that the new potential wine drinkers of the future have a greater mix of ethnicity—and so far the wine industry is not connecting very well with Hispanics. MJ

    JennB: Through these talks I've started to lean toward millenials not impacting the fine wine arena much....Will they become more influential when they hit that affluent stage or 35 and above?

    Rob: Yes that generation will, just like those preceding them evolve their tastes probably away from beer to wine. They will have the forward spending capacity or hope to want to buy some little luxuries. Since wine is a social beverage and this cohort is social, I can guess that pattern with some degree of confidence. What is still in question is what we are doing as a US Wine Business to keep their palates and pocketbooks tuned into domestic wines. We can just as easily see them opt for foreign wines when they are able to buy those wines.

    MJ: The goal is to make domestic wine hip and cool—just like American movies or music are perceived domestically and internationally . Hey—if the Queen of England can appear in a video for the Olympics and present herself as hip and cool (“skydiving” out of plane) then we American wine enthusiasts can surely do the same for our brands! MJ

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  9. Rob: True urban tasting rooms I'm not sure about. There are so many competing interests in a big city. Tasting rooms in a rural area have appeal to tourists anxious to get out of the urban area. Tourists coming to a large city like San Franciso don't show up and ask the concierge at the hotel where they can go wine tasting. They go to the hotel bar, have a nice meal and go to a show. The next day they get in a car and go to wine country.

    MJ: Agreed—wine tasting is not top of mind for most urban residents or visitors—though wine bars are a part of their day.

    Rob: In my mind, I separate the urban tasting room versus the urban winery. There can be a quirky charm for residents of an urban area to have their own winery in an urban area. Not sure thats a tourist attraction, but its got pull from the local scene I believe and that means getting the second sale and establishing a relationship.

    MJ: Urban wineries do have quirky charm, especially for the younger core wine drinker that more likely resides in urban centers The good news is that this target demographic is more likely to also buy online after the visit and stay connected with social media.

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  10. Lisa O: what other tech solutions do you see on the horizon

    Rob: Clearly a question for Paul and MJ

    MJ: I am interested in how technology will help wineries and wine businesses better connect with the consumer enjoying wine purchased through indirect channels. If they enjoy the wine—they can use an app on their smart phone to identify the wine label and link back to the winery website for additional purchase or for more information on winemaker or brand.

    Apparently there are some new development on the horizon : http://www.appbrain.com/app/vivino-wine-scanner/vivino.web.app

    Maybe Paul can help us all figure out how to make sure the direct channels for purchasing the wine pop pretty high on the list presented by vivino's example.

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  11. datagirl: Millenials are much more price aware and conscious through on-line reviews, with increases in variety and suppliers, how does this play into innovation and distribution?


    MJ: Not sure I understand the question completely—happy to discuss with you directly mdale@klhconsulting.com

    In the meantime I think the primary difference is ease of access to data with millennials who are on line all the time. (their price sensitivity will hopefully improve with time and employment). The winery and wine business needs to make sure they align their direct and indirect strategies (pricing and special offers) so that the customer does not feel cheated in one venue or the other. In addition—innovation is likely to come through a differentiated onsite or online customer experience. What can you offer you customers that stands out from the competition, makes your brand fun for the millennial crowd and has a high edutainment value.

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  12. LaurBreu: baby boomers are the fastest growing demo in digital but are they worth the time for a wineries social media? Me thinks not...

    Rob: Its a good place for MJ and Paul to respond, but SM is mixed into other consumer direct strategies by many if not most wineries. Its almost a buzz word for all things not email. Social is just one portion of an outbound digital stratgy.

    MJ: Social media is an important part of the DTC toolkit--but needs to be part of an overall strategy.

    As for boomers and social media--they are beginning to use these channels with great energy. Once a consumer (of any age) is fluent in a particular social channel –facebook, pinterest, twitter, linked-in-- of COURSE they are worth targeting!

    Connect with customers wherever they are spending time and wanting to engage with your brand. Paul is the master here—so look forward to his comments as well.

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  13. declusin: brand strength is solidified through story - how do we tell that story, effectively, through a digital medium?

    MJ: Telling a story digitally or face-to-face is not so different—I think the issue usually is that many brands do not stop and think about what makes their story truly unique and then build on that. Sasha Strauss has written some good articles on story/brand in the January addition of Wine Business Monthly

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  14. JudyB: So why are so many wineries such laggards to adopt more innovative DTC and digital marketing practices? Is it just due to older decision-makers at wineries who don't "get" what it's about ??

    MJ: Most wine businesses have a hard enough time just executing on the DTC basics (most know how to be hospitable at events or in the tasting room). Even something as basic as an interesting website with an easy to use mobile webstore eludes them.

    My clients that are executing the basics well are very much interested in expanding their skills digitally and are investing here—but only after they get the basics right.

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  15. Thanks to Mary Jo Dale, Tony Correia and Paul Mabray for their hard work in responding to all the questions this past weekend.

    I acknowledge this is a little messy to negotiate but for those willing to invest the time I hope you'll find the effort worthwhile.


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  16. Thanks for a great discussion. I enjoyed the education into a changing industry.

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  17. Rob, I posted an article about "grassroots" Millennial marketing on my blog...small wineries growing awareness via events etc. I'm a novice about the wine industry, but see parallels between wine and other industries experiencing market change (ie Automotive).

    http://brandinginbalance.com/2013/01/31/bottling-it-the-changing-face-of-wine-marketing/

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  18. Does the survey take into account wineries who sell via allocations from wineries who don't? I would expect a different wine club commitment profile, and life-time value of the customer.

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