Monday, January 27, 2014

2014 SVB Wine Report Producers Cut


Another year of the SVB Wine Conditions Survey, the Annual State of the Industry Report, and the live video cast is complete. For those of us involved in the production - from my St. Helena Banking Team, the SVB Marketing & PR folks and the Video crew, it’s a labor of love but its also a real grind.

The report starts in late October with planning for the survey, and finishing in middle January with the release of the report and live video cast. The final piece of the report is publishing the transcript from the videocast chat, and answering some of the questions posed which we are doing below. At the end of the transcript, I have posted answers to many of the questions. You are welcome to comment here on anyone's post by logging in and noting the time of the post. You are also welcome to ask new questions and I will do my best to get you the answers. Please forgive transcript errors and double posts which appear often. That’s part of the chat landscape.

 Wine VideoCast Chat: 2014

     Welcome

9:17 AM  Welcome to the 'svbfinancial' room.
9:15 AM  andrew: question, will this be recorded for offline viewing
9:17 AM  Jeff: Please let me know where to find the slides.  Thanks
9:18 AM  andrew changed their nickname to Andrew_young_SWILL.
9:19 AM  SVB_Maria: test
9:21 AM  SVB Kelly Kel: Hi Jeff, the slides are available at SVB.com/wine-report 
9:24 AM  Clay W: Clay here
9:24 AM  SVB_Lindsay: test
9:25 AM  TrentG: test
9:25 AM  Ed Thralls: Hey Clay
9:25 AM  Stryker Sonoma Wine: Sonoma County here  
9:25 AM  Greg Cardey: test
9:26 AM  talkissheep: Good Morning!
9:26 AM  Elin: Elin McCoy: test
9:26 AM  ChristopherCalicott: Good evening from Madrid :)
9:27 AM  SVB Kelly Kel: Welcome wine lovers!
9:27 AM  Peter: hello Lindsay, greetings from Virginia
9:27 AM  Bill: Bill Earle NABI joining from Washington DC
9:27 AM  SVB_Lindsay: Hi Peter. Glad you could join the videocast!
9:27 AM  Blake Gray: HI Elin
9:27 AM  Elin: Hi Blake
9:27 AM  WineTrackMind: Good day from Canada
9:27 AM  gosandrew: test
9:27 AM  Chelsea: Good Morning, Hello from Yamhill-Carlton Oregon
9:27 AM  Adam: Adam Burck joining from Chicago
9:28 AM  Paul Franson: Greetings from a cold Napa Valley
9:28 AM  TinaC: Hi from Santa Rosa Calif.
9:28 AM  Blake Gray: Another dry summer day in San Francisco
9:28 AM  cmdurzy: good morning from the Santa Cruz Mountains AVA
9:28 AM  Adam: Hey Paul, if Napa is cold, Chicago is....?
9:28 AM  Cynthia: Hi from a warm San Jose
9:28 AM  MRW_Chris: good morning form Idyllwild!
9:28 AM  VinAmbassador: Loud and Clear from SoMA San Francisco
9:28 AM  Shige: Good morning from OR
9:28 AM  evalen: Rain please
9:27 AM  Elin: Hi Blake
9:27 AM  WineTrackMind: Good day from Canada
9:27 AM  gosandrew: test
9:27 AM  Chelsea: Good Morning, Hello from Yamhill-Carlton Oregon
9:27 AM  Adam: Adam Burck joining from Chicago
9:28 AM  Paul Franson: Greetings from a cold Napa Valley
9:28 AM  TinaC: Hi from Santa Rosa Calif.
9:28 AM  Blake Gray: Another dry summer day in San Francisco
9:28 AM  cmdurzy: good morning from the Santa Cruz Mountains
9:28 AM  Adam: Hey Paul, if Napa is cold, Chicago is....?
9:28 AM  Cynthia: Hi from a warm San Jose
9:28 AM  MRW_Chris: good morning form Idyllwild!
9:28 AM  VinAmbassador: Loud and Clear from SoMA San Francisco
9:28 AM  Nick: Nick here from Sunny Carmel Valley CA. Mornin
9:28 AM  VinAmbassador: Andr├ęs Martell here, good morning Lindsey, Good morning Clay!
9:28 AM  Jennifer: Greetings from the Napa Valley Register
9:28 AM  Tina: Hello from snowy Cincinnati!
9:29 AM  Geoff Labitzke: Good Morning
9:29 AM  Stephanie: Hello from Oregon
9:29 AM  Renteria: Good Morning from the beautiful Napa Valley!
9:29 AM  Alexandra: Good morning from Ramey Wine Cellars in Healdsburg, CA.
9:29 AM  Jess: Hello from Amador. Beautiful, sunny, and dry.
9:29 AM  Ctaranto: Good Morning from Paso Robles
9:29 AM  Dana: Good morning from Washington
9:29 AM  Scott Moss: Good Morning All
9:29 AM  Adam changed their nickname to Adam Burck.
9:29 AM  Kiley: good morning from North Carolina, everyone
9:29 AM  Kim Kolb: It's is a foggy day here in Beaverton, OR
9:29 AM  TinaMorey: Good afternoon from Virginia Beach!
9:29 AM  Jerry: Good morning from Sass Winery in Oregon.
9:29 AM  David@Buty: Hey Chris!
9:30 AM  Whitney: Hello from snowy MN in the heart of cold climate territory.
9:30 AM  bmcwilliams: Morning everyone.  Ben from Arista Winery
9:30 AM  LarryChandler: Morning from red-rock country Utah
9:30 AM  RachelB: Hello from McMinnville OR!
9:30 AM  SVB Kelly Kel: Please be sure to include your email address with any questions so we can get back to you if we run out of time
9:30 AM  Joe H: Morning all!
9:30 AM  andrew_young_SWILL: hello from NYC!
9:30 AM  Karen: Good Morning from Ventura-warm & sunny
9:30 AM  Malm Comm: Greetings from Napa.
9:30 AM  Shonda: greetings from Carmel!
9:30 AM  Austin: Good morning from Yountville!
9:30 AM  evalen: Hi Miami
9:30 AM  Chris H: hello from Sunny Minnesota!
9:30 AM  SimpleMathConsulting: Morning from Sonoma/Napa Counties!
9:30 AM  Clau: Claudia from Mendoza, Argentina
9:30 AM  Pedro: Hello from S. Calif.
9:30 AM  Tia Butts: Hello from Napa
9:30 AM  Michelle: Top of the Morn! from Russian River Valley
9:30 AM  Clau: Hello
9:30 AM  Almax: greeting from NYC
9:31 AM  Robina: Hello from Connecticut
9:31 AM  AngelinaMLo: Enjoying smooth jazz stylings here in Virginia
9:31 AM  Intervine: Good morning from Intervine in Napa, CA.
9:31 AM  Nicolas: Greetings from Portland
9:31 AM  Andrew: Hello from the ever-cool Sta Rita Hills.
9:31 AM  dannyg: in Boston but affiliated with Healdsburg
9:31 AM  Rebecca: Good Morning from Carlton, Oregon!
9:31 AM  luiscetto: Hello from cold Mexico City
9:31 AM  NickP: Westlake Village here.
9:31 AM  Matt: Hello from Diamond Mountain AVA
9:31 AM  art: hello from Sonoma
9:31 AM  jtrinidad: Good morning from Napa.
9:31 AM  Diana: Good morning from sunny Napa!
9:31 AM  Wino Willie: Hello from beautiful (as always) San Luis Obispo
9:31 AM  Bridgit: Hello from Redmond, WA
9:31 AM  Kris Curran: Hello from sunny Lompoc!
9:31 AM  Pete L: Leelanau Michigan in the house
9:31 AM  Jon: Jon S from Futureshift in NYC - hello
9:31 AM  KateGriffith: Good morning from Lompoc
9:32 AM  jbhinusa: Jess Havill here from BellaGrace
9:32 AM  art: it is past
9:30 has it started yet
9:32 AM  DTC Wine Workshops: Sandra Hess here from DTC Wine Workshops
9:32 AM  Andrew: still not seeing the photos below?
9:32 AM  CruxBrian: Hello - Brian Callahan from Crux Winery in Windsor CA
9:32 AM  Michael Wine Studies: This is a great service to the industry. Michael from the Chemeketa Northwest Wine Studies Center in Salem OR
9:32 AM  Jason: Has the Webinar already begun?
9:32 AM  gonzalojmerino: Hello from Mendoza, Argentina
9:32 AM  Rusty: Hi from the Healdsburg office of Wine Spoken Here
9:32 AM  mdonohue123: 70 sunshine in Los Altos CA
9:32 AM  samweiner: Greetings from the Finger Lakes
9:33 AM  BKBen: Hello. Ben from Brooklyn. NY
9:33 AM  Linne Calodo: hello from Linne Calodo in Paso Robles!
9:33 AM  Paul Franson: It was 30 this morning, supposed to hit 70s later today in Napa Valley.
9:33 AM  timothyjseidel: hello
9:33 AM  Chuck: Chuck from St. Helena here .. don't see photos
9:33 AM  Leticia: Leticia from Phoenix, AZ
9:33 AM  SVB Kelly Kel: Beginning shortly
9:33 AM  slowinecountry: Hello from beautiful San Luis Obispo Wine Country!
9:33 AM  Peter Fraser: Good AM to all
9:33 AM  Whitney: It was 30 this morning. Supposed to hit -1 by tonight. haha
9:33 AM  observatorioespanol: Hello from Spain
9:33 AM  Spencer: Spencer from Mendocino on line
9:33 AM  Ray: Good morning from Ray Johnson at Sonoma State
9:33 AM  Shannon: Hello from Paso Robles
9:33 AM  Monika: Monika Elling from New York
9:33 AM  HardyWallace: Action!
9:33 AM  Mimi: Hello from Trefethen in the Oak Knoll District of Napa Valley
9:33 AM  dylanelliott: Hello from the Stags Leap District.
9:33 AM  RyanCorvalle: Hello from Ryan with Corvalle in St Helena
9:33 AM  JonBjork: Good Morning from Lodi!
9:34 AM  samanthalau: good morning from Newberg, Or!
9:34 AM  SVB Kelly Kel: Welcome wine lovers!
9:34 AM  ElizabethBuehring: Good morning from Vegas!
9:34 AM  Almax: hello wine world
9:34 AM  Jackie: Hi from Ram's Gate Winery in Sonoma/Carneros
9:34 AM  Clay W: Greetings!
9:34 AM  LawCamp: Hello world of wine.
9:34 AM  Ashley Pengilly: Hi, Ashley from FFW apengilly@foleyfamilywines.com 
9:34 AM  Kayla K: Good Morning from Kayla in Clarksburg, CA!
9:34 AM  ChristopherCalicott: Hi from Madrid, Spain!
9:34 AM  Kimberly: Hello from Woodinville, Washington!
9:34 AM  Southport Wines: Hello from Southport Wines - NY I/D, diane@southportwines.com 
9:34 AM  cdjohnston: chris@middleridge.com
9:34 AM  SVB Kelly Kel: Please be sure to include your email address with any questions so we can get back to you if we run out of time
9:34 AM  mdonohue123: Los Altos!!
9:34 AM  Elin: elinmccoy@gmail.com
9:34 AM  Kim Kolb: kimkolb@me.com
9:34 AM  Pedro: cranesroost@gmail.com
9:34 AM  Ian: Greetings from Beautiful Sonoma County!
9:34 AM  Sarahp: Hi from The Hess Collection in Napa!
9:34 AM  dkostelnik: Hello From Early Mountain Vineyards in Madison, Virginia!
9:34 AM  Clau: hello claudia@winesur.com
9:35 AM  ElizabethBuehring: misselizabeth@pureplush.com
9:35 AM  Clay W: claywallin@gmail.com
9:35 AM  Kayla K: kayla@heringerestates.com
9:35 AM  observatorioespanol: begona.olavarria@oemv.es
9:35 AM  Jerry: sasswinery@aol.com
9:35 AM  Shonda: skroll@chateaujulien.com
9:35 AM  gonzalojmerino: gonzalo@winesur.com
9:35 AM  DTC Wine Workshops: sandra@dtcwineworkshops.com
9:35 AM  TinaMorey: Tina Morey tina.morey@protocolwine.com
9:35 AM  LarryChandler: larry@cedarcitywineclub.com 9:35 AM  Bob: Bob Brown, Sales Systems Development, Inc.
9:35 AM  samweiner: sam@quantumloopsolutions.com
9:35 AM  kiwivitchick: good'aye from kerry@giveagrape.org
9:35 AM  Jackie: jackie@ramsgatewinery.com
9:35 AM  Chris H: chris@harozaselect.com
9:35 AM  Paul: Good morning from California's Capitol. paul@familywinemakers.org
9:35 AM  Robert Rex: Hello, Robert Rex, Kenwood, CA
9:35 AM  Ryan Porter: Good morning from Capture Wines! ryan@capturewines.com
9:35 AM  Shokie: Hello from Livermore CA! shokie.lopez@wentevineyards.com
9:35 AM  rchall: richard@cliffledevineyards.com
9:35 AM  Mark Chase Commercial: Good Morning, Mark from Chase in Sacramento
9:35 AM  Robina: robina@awomanspalate.com
9:35 AM  Sarahp: spearson@the hesscollection.com
9:35 AM  sophiep: Good afternoon from Edinburgh, Scotland!
9:35 AM  Melody: Hello from Oakland, California!
9:35 AM  gosandrew: Hello from Virginia
9:35 AM  Rob: Rob Stuart: Hello from Oregon
9:35 AM  Danielle: Hello.  Danielle Ball danielle@pattonvalley.com
9:35 AM  LindsayS: lindsay@staglinfamily.com
9:35 AM  SimpleMathConsulting: christian@simplemathconsulting.com
9:35 AM  Sam: Good morning!
9:35 AM  rebeccahopkins: Rebecca Hopkins from Napa via Toronto!
9:35 AM  Sarahp: spearson@hesscollection.com
9:35 AM  kat: Greetings from NYC!
9:35 AM  WineSmith: Good morning from WineSmith Consulting in Santa Rosa, CA
9:35 AM  Tim: Hello from Tim Olson in Napa Valley! tim@olsonogdenwines.com
9:35 AM  rebeccahopkins: greatings from Napa via Toronto
9:35 AM  Mark Chase Commercial: mark.n.mraule@chase.com
9:35 AM  2LWinery: Good afternoon from Old Mission Peninsula , Michigan
9:35 AM  samanthalau: samantha@atozwineworks.com
9:35 AM  Whitney: whitney.khan@vinocopia.com
9:35 AM  Al Samuelson: Hey Hardy, Al Samuelson here!
9:35 AM  Kayla K: Woot! Paul Marbry!
9:35 AM  Bridgit: Bridgit Griessel: bridgit@betzfamilywinery.com
9:35 AM  gosandrew: aholod@grapesofspain.com
9:36 AM  SVB Kelly Kel: Follow the conversation on twitter at #SVBWine
9:36 AM  Kristin: Mornig from Santa Margarita, CA kmuhly@apwinery.com
9:36 AM  Chuck: chuck@mlgwinelaw.com .. from St. Helena here
9:36 AM  @veraisonltd: Cheers! from Veraison, Ltd, Seattle scott@veraisonltd.com
9:36 AM  broksas: Hello from Erich from Virginia (erich@earlymountain.com)
9:36 AM  Almax: chris@lesaffrewines.com
9:36 AM  rebeccahopkins: rhopkins@foliowine.com
9:36 AM  Colin: Hello from Portland -- Colin Hunter, chhunter@stoel.com
9:36 AM  Mimi: Paul - love the iphone app for vintank.  Thank you
9:36 AM  AllieMerrick: Good morning! alliemerrick@gmail.com
9:36 AM  LiocoMatt: j
9:36 AM  LiocoMatt: .
9:36 AM  Leskup: j skupny from sunny st. helena!
9:36 AM  SVB Kelly Kel: Tweet #SVBWine
9:36 AM  Tia Butts: tia@tiabuttspr.com
9:37 AM  Gene Frassetto: Gene Frassetto eafrassetto@stoel.com
9:37 AM  Chuck: Morning John Skupny'
9:37 AM  kroneo: Hello from snowy Northern Michigan
9:37 AM  La Encantada: hello from Andrew (andrew@laencantadavineyard.com)
9:37 AM  wineybob: Hello from NC
9:37 AM  Mackenzie Winery Services: G'day frm beautiful downtown Napa!
9:37 AM  keith@v2winegroup: Hello from V2 Wine Group
9:37 AM  Jerry Q: Hello from Jerry Quirk in Santa Rosa, CA. gttquirk@gmail.com
9:37 AM  jim_collins: Jim Here from Napa, CA
9:37 AM  Grace: greetings from Portland (tari@grace-studio.net)
9:37 AM  Bobcatvines: Good morning from Dry Creek - bob@bobcatvineyards.com
9:38 AM  jim_collins: jim@millikencreekvineyards.com
9:38 AM  WineTrackMind: Great day from WineAmerica!
9:38 AM  jbhinusa: Report is just under the video!
9:38 AM  Karn: Good afternoon from Devonian Coast in Nova Scotia
9:38 AM  Nedda Bakhshi: Hi! Nedda Bakhshi from Pristine - DTC & Anticounterfeiting. Nedda@drinkpristine.com
9:38 AM  rachelnewell: Hello from School of Thought
9:38 AM  Bill C: Bill from Lauren Ashton Cellars, Woodinville, WA
9:38 AM  Karn: knnichols@devoniancoast.ca
9:39 AM  Cynthia: xx
9:39 AM  punky: Lot18 says hello
9:39 AM  mitchbakich: Good Morning from Donati Fa
9:39 AM  judgelew: Hello from Santa Ynez,  Royce Lewellen. Judgelew@aol.com
9:39 AM  enonni: Hello from NYC. - Erica Nonni
       
Comments and Questions
 
9:39 AM  Blake Gray: Mario, can Eberle successfully become a 150,000 case brand when everyone knows Gary's not running it?
9:39 AM  @JulieLumgair: Cheers from Sonoma County's Russian River Valley
9:39 AM  SVB Kelly Kel: Tweet #SVBWine am: Hello from OHIO
9:40 AM  sactoboy: Good Morning from Cabana Winery Sacramento
9:40 AM  Paige Wilcox: Hi from Healdsburg, Paige Wilcox
9:40 AM  @BrittanPinot: Greetings from the Willamette Valley, OR
9:40 AM  glenorapres: gene@glenora.com
9:40 AM  jim_collins: Will this video be podcasted to be reviewed in the future?  jim@millikencreekvineyards.com
9:40 AM  lasso: Good morning from Lasso (www.lassoit.com) same day wine & cheese delivery service.
9:40 AM  Cynthia: Greetings from Santa Cruz Mountain Vineyards in the Santa Cruz AVA, Calif
9:41 AM  zoeldar: Eberle = dubious, IMHO
9:41 AM  Kiley Evans: great question, blake.
9:41 AM  Adam Burck: adamb@evergreen-equity.com
9:41 AM  sophiep: what happened with eberle?
9:41 AM  mitchbakich: @Blake, great question
9:41 AM  noblewines: here from NY and Long Island
9:41 AM  Martha: Good morning from Sausalito, CA
9:41 AM  SVB Kelly Kel: Follow the conversation on twitter at #SVBWine
9:42 AM  Wilson Daniels: Good Morning from Wilson Daniels in Napa
9:42 AM  kcasale: please discuss the multiples you just mentioned in more detail?
9:42 AM  HardyWallace: Are the sales due to distress / over-extending or cashing out?
9:42 AM  Aaron: Good Morning from Petaluma afein@banfi.com
9:42 AM  SVB Kelly Kel: Welcome to our worldwide wine lovers!
9:42 AM  Almax: what are the multiples for fine wine EBITDA
9:43 AM  Kiley Evans: are there any signs of tightening supplies based on the drought conditions?
9:43 AM  SVB Kelly Kel: #SVBWine
9:43 AM  DPW: Hi all!
9:43 AM  Alison_Crowe: Good morning from sunny Napa acrowe@wgimglobal.com
9:43 AM  Goldilocks412: Buenos Dias! Will the Suntory purchase of Beam impact wine multiples? are their women on your panel?
9:43 AM  WineTrackMind: What is the prospect for export expansion? Which markets?
9:43 AM  SVB Kelly Kel: Please be sure to include your email address with any questions so we can get back to you if we run out of time
9:43 AM  andrewpimentel: Greeting from Healdsburg! @Sbragiafamily Vineyards
9:43 AM  WineTrackMind: And yah, where are the women on your panel?
9:44 AM  Adam Burck: What can nurseries tell us about future plantings? adamb@evergreen equity.com guessing a big part of the wine demographic:-)
9:45 AM  Stryker Sonoma Wine: What strategies are DTC wineries implementing to position the sale of increased inventories from 2012 and 2013? Jenn@strykersonoma.com
9:46 AM  Peter Willmert: Good morning from Red Car Wines in Sebastopol
9:46 AM  1WineAcolyte: Hi, joining from Pasadena, CA
9:46 AM  Kayla K: What strategies are DTC wineries implementing to position the sale of increased inventories from 2012 and 2013?  kayla@heringerestates.com
9:46 AM  SVB Kelly Kel: #SVBWine
9:46 AM  noblewines: will the Euro vs Dollar for import markets get some coverage today?
9:46 AM  imacneil: Greetings from Rodney Strong, Sonoma County
9:46 AM  HardyWallace: Or are people selling off portions due to avail capital?
9:47 AM  HardyWallace: (lack of) ges going to impact West Coast wines and beyond?
9:48 AM  TinaMorey: I understand the Cali drought has been ongoing for many years, at what point does this play a significant role in how we move forward? tina.morey@protocolwine.com
9:48 AM  Stryker Sonoma Wine: jenn@strykersonoma.com
9:48 AM  Stryker Sonoma Wine: can i get the answer on the above question also?
9:48 AM  Ryan: just wrote a blog post on this topic 1WineAcolyte: http://blog.ridgewine.com/2014/01/16/out-out-damn-drought/
9:49 AM  AGG: Good info we are always listening
9:49 AM  Vintroux: Good AM from Sebastopol!
9:49 AM  Cynthia: Tina, good question. Water has always been and always will be an issue in Calif.
9:49 AM  SVB Kelly Kel: Tweet #SVBWine
9:49 AM  sophiep: Interested in the social media drive in US wine - coming from a European, big tasting rooms are a weird concept, let alone social media. US wine industry leading the way on linking product to consumer.
9:49 AM  Cynthia: The state is primarily desert.
9:49 AM  sophiep: sdpicheta@gmail.com
9:49 AM  Clay W: I concur: the Vintank iPhone App enables social profiles stitched together. A HUGE development for DTC
9:49 AM  Goldilocks412: @Tine & @1Wine - great questions. Food prices are definitely going up. Will be interesting to see if that higher food bills cut into wine sales or avg. price per bottle.
9:50 AM  rebeccahopkins: how to take Vintank new tools 9esp Delectable & LBS) into consumer adoption?
9:50 AM  Whitney: Can you remind us who we're watching and where they're sitting? Or put up name titles?
9:50 AM  Kiersten: kiersten@robertcraigwine.com
9:50 AM  SVB Kelly Kel: Hi Whitney, we are getting the names up
9:50 AM  Whitney: Thanks!
9:51 AM  Ed Thralls: Which DTC channels become more important when a winery lacks a tasting room?  ed@flowerswinery.com
9:51 AM  Dan: What is your perspective on processing capacity?
9:51 AM  AGG: we've been conducting nursery surveys for 5 years and are conducting our 2014 right now. we will let you know later this week
9:51 AM  Brandbuilder1: Will 2014 also be a banner year for wines in the +$50 segment?
9:52 AM  Ryan: Good / tough question Ed.  Our visitor centers drive our other channels.  ecommerce has to be the primary capture.
9:52 AM  Adam Burck: AGG please add me to your mailing list.
9:52 AM  Cynthia: In Calif. is there a glut of vineyards? Many food crops (ie. Salinas Valley, Lodi) are being replaced by vineyards. Are we overplanting vines? What is the impact?cynthia@santacruzmountainvineyard.com
9:52 AM  Ed Thralls: We are seeing close to 30% web traffic via mobile (up from 20% in one year) - will that accelerate in 2014? ed@flowerswinery.com
9:52 AM  SL: Is there a phone number to call in?  Video is cutting out a lot.
9:52 AM  Brandbuilder1: Will on-premise sales of super-premium/luxury wine rebound? brandbuilder@mac.com
9:52 AM  Bill: Will China based buyers be a bigger factor in US winery ownership in 2014? How will it matter? nabipresident@bevimporters.org  Assoc. is trying to push for 100% sustainability from all wineries in the area, which includes regulated water usage
9:53 AM  SVB Kelly Kel: Hi SL, please check your connection. There is no dial in.
9:53 AM  mbernton: Can anyone weigh in on  the future of Spanish wine exports?
9:53 AM  1WineAcolyte: Thanks for the responses. 2014 will definitely be one to watch in terms of prices.
9:53 AM  Mark Chase Commercial: Any comments regarding international competition as Europe is going through their issues resulting in diminished consumer disposable income abroad and the potential to flood US market with Euro wines?
9:54 AM  AGG: Thanks for the plug, Rob
9:54 AM  Whitney: DTC channels for international wineries are a lot more complicated. Any insight on the future of DTC for them?
9:54 AM  Chris H: @Whitney-Good question!
9:54 AM  KT: How about effect of draught on yields and quality
9:55 AM  AGG: Early 2014 Nursery Survey results show LOTS of Cab plantings in 2013
9:55 AM  Kayla K: What strategies are DTC wineries implementing to position the sale of increased inventories from 2012 and 2013?
9:55 AM  AGG: Will have the full report at the Unified Symposium
9:55 AM  Michael Wine Studies: With the shortage of Moscato fruit in the US market, which countries/regions are US producers turning to for bulk Moscato wine: michael.adams@chemeketa.edu
9:56 AM  DanS: you've talked grape supply - how about processing capacity.
9:56 AM  Whitney: Love VinTank, but as an international winery, we've had to go with a less intuitive platform that takes care of the retail/fulfillment side instead. It's handicapping.
9:56 AM  kiwivitchick: how important do you think mCom will become in the future and it is the millennials buying value based wine that is target here?
9:56 AM  Alison_Crowe: Please speak to processing capacity, esp. after two big harvests.
9:56 AM  SVB Kelly Kel: Please be sure to include your email address with any questions so we can get back to you if we run out of time
9:56 AM  ECL: second the processing question
9:56 AM  winesk8: As we all know, the wine industry has many software programs in terms of DTC. Who/m do you see as the frontrunners of making this management easier for sellers?
9:56 AM  kiwivitchick: kerry@giveagrape.com asked mobile commerce question (as kiwivitchick)
9:57 AM  rachelnewell: Millennials consume more foreign wine than US brands. What are you doing to strengthen the appeal of US brands?
9:57 AM  winesk8: winesk8@gmail.com
9:57 AM  kp: Can you talk about the import markets and what your thoughts are on importers selling direct to consumer? 9:57 AM  kiwivitchick: great question Rachel
9:57 AM  Bill: Will the TTIP trade talks open foreign suppliers to US DTC?  Will domestics fight back?  nabipresident@bevimporters.org
9:57 AM  rachelnewell: rachel@schoolofthought.com
9:57 AM  SimpleMathConsulting: Whitney: You may find Vin65 or ShipCompliant helpful provided your fulfillment house wil buy in to the APIs. VinTank rests atop Vin65, which is useful.
9:57 AM  mbernton: berntonm@gmail.com
9:57 AM  parkerwong: dpw@tastingpanelmag.com
9:57 AM  winetomarket: Tank space vs. wine supply
9:58 AM  Mark Chase Commercial: mark.n.mraule@chase.com regarding international macro econ influences and reduced euro consumer spending
9:58 AM  natalieu: natalie@rosatifamilywines.com
9:58 AM  Kiley Evans: kiley@raffaldini.com
9:58 AM  Kayla K: What strategies are DTC wineries implementing to postion the sale of increased inventories from 2012 and 2013?
9:58 AM  Whitney: @SimpleMathConsulting - Yes, oops, meant to say Vin65
9:58 AM  DTC Wine Workshops: Vin65 e-commerce solution is by far the most complete and is built with open API's and designer tools allowing for flexbiility as the winery grows
9:58 AM  winetomarket: Tank space vs incoming wine supply
9:58 AM  Ian@Mascot: Whitney, we use ShipCompliant and find it suits our needs very well.
9:58 AM  kp: What about global markets? You're talking a lot about California
9:59 AM  Ian@Mascot: Another shipping API gaining traction in e-commerce tech is Y-Combinator backed EasyPost.
9:59 AM  DTC Wine Workshops: VinTank is now integrated with Vin65 and provides real time customer insights
9:59 AM  vtwinemedia: ?
9:59 AM  Alison_Crowe: Glenn- Big 2012 + 2013 + small 2014...anyone building more processing capacity or is it all just changinghands?  acrowe@wgimglobal.com
10:00 AM  AllieMerrick: Paul, how do you see DTC mobile sales and DTC millennial sales increasing in 2014? What percentage of total sales do you predict those channels will encompass? allie@mywinewords.com 10
10:00 AM  mbernton: berntonm@gmail.com  regarding future of Spanish wine industry, job opportunities, trends, any insight into Spanish market for wine
10:01 AM  winemaps: Are you on www.WineMaps.com
10:01 AM  SVB Kelly Kel: #SVBWine
10:01 AM  Kiley Evans: rob please jump into the millennial impact discussion or more importantly lack thereof
10:01 AM  @brittanpinot: Is production facility capacity in balance or is there a shortage developing?  ellen@brittanvineyards.com
10:02 AM  WineSmith: Barring retailers from interstate licenses is clearly unconstitutional. How do we get consumers marching in the streets?
10:02 AM  Adam Burck: Bulk is 2-3% of the total CA market - is that a lot or a little?
10:03 AM  kp: Can we talk about the rest of the world?
10:03 AM  winemaps: Where is most of the bulk wine sold?  In state CA or out of state/country?
10:03 AM  noblewines: WineSmith great question... need to use Social I think
10:03 AM  SimpleMathConsulting: WineSmith - Tom Wark is a great fuel source on that.
10:04 AM  mdonohue123: calif bulk wine is mostly labeled California
10:04 AM  AGG: Lots of capacity questions.  Any information you can provide?
10:04 AM  Monika: Intl wineries really need to rethink their US marketing approach to deliver Pull Through with US consumers. Any thoughts as SM and mobile have far greater impact in US than other markets.
<transmission error>y hero, but he can't do it alone. Somebody needs to go to jail. I'd do it. NH has already charged me with a felony. Let the *** come and get me.
10:05 AM  rachelnewell: All the more reason to build strong brands that speak to more than "price". re. appealing to Millennials in the US.
10:05 AM  Tom Wark: Are millennials really open to different varietals?
10:05 AM  rachelnewell: I believe so.
10:05 AM  ChrisBaker: ?
10:06 AM  Blake Gray: Can you spend a little time talking about non-bulk wine? Fine wines?
10:06 AM  Wark: Right now it looks like the distinguishing feature of the millennials is that they buy inexpensive wine.
10:06 AM  ToddVTWine: Is there any sense that the increased production numbers will lead to increases to inventories of product delivered in alternative packaging? post@vtwinemedia.com
10:06 AM  @veraisonltd: What is the forecast for keg wines for on-premise consumption?  Will regulations change to make keg sales easier?
10:06 AM  sophiep: @tom - no, I don't think so. Especially when money's tight and there's a lot to spend it on - people stick to what they know.
10:06 AM  kp: This is the state of the wine industry, not the state of the California wine industry. What about europe? What about south america?
10:06 AM  Mardochee: In New York they are at least a subculture set is
10:06 AM  mdonohue123: kegs rock t #SVBWine
10:06 AM  Al Samuelson: I think the "global market" def is different than it used to be. Now, many brands are multi region/country based upon blend.
10:06 AM  jbhinusa: no kegs roll
10:07 AM  cmdurzy: I owuld like to more about predictions for kegs as well. cheryl@clos.com
10:07 AM  1WineAcolyte: What about women consumers? How will they continue to impact the market?
10:07 AM  HardyWallace: Where do you see non- Asia / Pac demand for Premium CA wine in 2014?
10:07 AM  Silverdo Dave: There is no chance of vineyard over planting in California.  Just the opposite we are ceding market share to imports.
10:07 AM  LarryChandler: We have many young members of our wine club here in Utah and they are very eager to try new wines, new regions. It's the older folks who stick with what they know.
10:07 AM  Tom Wark: @Rob...YES!!!!!  A marketing order!!!
10:07 AM  kiwivitchick: 80% of boomers who buy wine are women
10:07 AM  TinaC: The wineries surveyed are all on the West Coast of the U.S. But there is some int'l info in the report, too.
10:07 AM  rachelnewell: @1WineAcolyte Great question re. Women consumers.
10:07 AM  ianmalone: thanks for the shout out!
10:07 AM  Cynthia: A lot of Millennials that I meet make good money and can afford more expensive wine but are not quite education of high-quality wine to justify the spend.
10:08 AM  Kayla K: Larry Chandler- What winery in Utah?
10:08 AM  Elin: could we talk more about fine wine?
10:08 AM  HardyWallace: We stop pushing plonk on Millennials
10:08 AM  kiwivitchick: good point Cynthia
10:08 AM  Cynthia: "educated" on high-end wine.
10:08 AM  Tom Wark: Where direct shipping is concerned, millennials are an inconsequential group.
10:08 AM  LarryChandler: Our local winery is the IG Winery but the club is a separate organization
10:08 AM  walkstep: Fed marketing order to drink alcohol? Don't think so...
10:08 AM  RyanCorvalle: Anyone interested in working with Wharton on a project to understand how to market premium wine to millennials?
10:07 AM  Silverdo Dave: There is no chance of vineyard over planting in California.  Just the opposite we are ceding market share to imports.
10:08 AM  Kayla K: I'm only familiar with Killer grove in SLC
10:09 AM  AGG: We also support the concept of a marketing order.  Good suggestion, Rob.
10:09 AM  rachelnewell: @RyanCorvalle - I'm interested in knowing more.  rachel@schoolofthought.com
10:09 AM  Elin: ryan corvalle, would be interested in talking to you on this
10:09 AM  SVB Kelly Kel: #SVBWine
10:09 AM  winemaps: Red Mountian?
10:09 AM  kiwivitchick: @Ryan, yes (kerry@giveagrape.com)
10:09 AM  LarryChandler: There are a few wineries in Utah. Many more breweries. Killer Grove does some interesting work.
10:09 AM  kp: RyanCorvalle -- would be interested.
10:09 AM  scs: We need to train good salesman
10:09 AM  AngelinaMLo: Nice hand raising for the international wine community, Paul!
10:09 AM  RyanCorvalle: I can be reached at Ryan.Moreland.wg15@wharton.upenn.edu
10:09 AM  @veraisonltd: Ryan, I'm interested in the Wharton study scott@veraisonltd.com
10:10 AM  Chris H: @Ryan Carvalle--yes, chris@harozaselect.com
10:10 AM  HardyWallace: Scores?
10:10 AM  ToddVTWine: Paul Hobbes moving into the Finger Lakes is notable also
10:10 AM  SimpleMathConsulting: Scores. Ha.
10:10 AM  kroneo: What would be the industry impact of a significant Federal Excise Tax increase?  This is a pending reality!
10:10 AM  Adam Burck: Does the panel expect to see continued consolidation in distributors? Implications for wineries outside the top 25? adamb@evergreen-equity.com
10:10 AM  Michael Wine Studies: Could you identify some of the current major consumer lifestyle segments, not just the age-based segments.  For example, are women golfers still one of the fastest growing segmetns?
10:10 AM  noblewines: Ryan I'm interested as well
10:10 AM  SimpleMathConsulting: Scores. Ha.
10:10 AM  kroneo: What would be the industry impact of a significant Federal Excise Tax increase?  This is a pending reality!
10:10 AM  Adam Burck: Does the panel expect to see continued consolidation in distributors? Implications for wineries outside the top 25? adamb@evergreen-equity.com
10:10 AM  Michael Wine Studies: Could you identify some of the current major consumer lifestyle segments, not just the age-based segments.  For example, are women golfers still one of the fastest growing segmetns?
10:10 AM  Tina: Very interested in the Wharton Study too tinakunkel@gmail.com
10:10 AM  Pedro: Can you guys talk about the water situation in Paso Robles?
10:11 AM  kiwivitchick: what do folks think about using cause marketing as a brand differiantor part. for millennials who seem to care more about values of a winery and what they're doing to give back
10:11 AM  Kiley Evans: would also like to see the wharton study, please. kiley@raffaldini.com
10:11 AM  1WineAcolyte: How about US investment overseas in Eastern Europe? Hobbes is investing in Armenia too.
10:11 AM  Mavwine: sweeitier profile wines still growing?
10:11 AM  ChrisBaker: Speculating on 2014 being a short harvest due to weather related issue, is the 2012-2013 harvest going to stave off any market share loss to imports, at least for a few year?
10:11 AM  Blake Gray: What does "Most Desired Areas mean on this slide?
10:11 AM  WineTrackMind: Wharton study for me as well janet.dorozynski@international.gc.ca  Thx
10:11 AM  cmctyre: @RyanCorvalle - I'm interested in learning more cmctyre1@gmail.com
10:11 AM  Alison_Crowe: Paul- what are the top trends in DTC and Digital Marketing?
10:11 AM  WineSmith: Me too, for the Wharton study: clark@winemaking411.com.
10:11 AM  TinaC: The SVB report warns of  overplanting, but cites many factors that would mean less planting will take place: water issues, imports, growers switching to other crops.  Explain? tcaputo@vwmmedia.com
10:12 AM  Bill: NO federal bev alcohol tax increase in 2014
10:12 AM  SimpleMathConsulting: Wharton yes plz:  christian@simplemathconsulting.com. Thanks
10:12 AM  Mark Chase Commercial: Wharton Study would be appreciated.  Mark.N.Mraule@Chase.com
10:12 AM  ECL: wharton study please elvin@abnormalwine.com
10:12 AM  Kayla K: or millennials who seem to care more about values of a winery and what they're doing to give back- Amazing idea
10:13 AM  Jonathan: wharton study for me as well please:  events@hazlitt1852.com
10:13 AM  Elin: ryan reach me re the wharton study at elinmccoy@gmail.com
10:13 AM  1WineAcolyte: Me too. xingchin@hotmail.com
10:13 AM  kiwivitchick: Thanks for shout out Karla K the wharton study at elinmccoy@gmail.com
10:13 AM  1WineAcolyte: Me too. xingchin@hotmail.com
10:13 AM  kiwivitchick: Thanks for shout out Karla K
10:13 AM  DOSLAGOS: also intereseted in Wharton - td@doslagosvineyards.com
10:13 AM  dannyg: wharton: dgromfin@gmail.com
10:13 AM  SVB Kelly Kel: #SVbWine
10:13 AM  vinoval: @scs I agree that better sales reps lead to more informed servers, bartenders, wine stewards, etc. and therefore more informed consumers valeriecrow1@gmail.com
10:13 AM  andrewpimentel: I'd love to see the wharton study as well: andrew.pimentel@sbragia.com
10:13 AM  Cynthia: Good point Kayla but I personally have nevermet a Millennial who asked me if we were giving back. 1 0:13 AM  HardyWallace: Sierra Foothills aquisitions?
10:13 AM  Rebecca: Wharton study please! Rebecca@monksgate.com
10:13 AM  rarecat: I would be interested in the wharton study please, sharon@rarecatwines.com
10:14 AM  sharong: Paul, I agree with Allison - what are the top trends on DTC and SM sharon412@att.net
10:14 AM  Jerry: yes on the Wharton study< sasswinery@aol.com
10:14 AM  sharong: Paul, I agree with Allison - what are the top trends on DTC and SM sharon412@att.net
10:14 AM  Jerry: yes on the Wharton study< sasswinery@aol.co
10:14 AM  vinoval: Wharton Study please valeriecrow1@gmail.com
10:14 AM  Alison_Crowe: We only have volume now- 2014 will be much shorter.
10:14 AM  JJKE: interested in Wharton study jennieenholm@gmail.com
10:14 AM  Kayla K: Cynthia, Customers don't dig for their info, you have to just give it ot them. No customer dives right in with, Hey what are your core values?
10:14 AM  RyanCorvalle: Just to clarify re Wharton, this is a marketing research project being conducted by MBA/Undergraduate students to understand purchasing behavior by millennials relating to premium wine.
10:14 AM  RyanCorvalle: We are looking for people to contact for primary research.
10:15 AM  RyanCorvalle: Ryan.Moreland.wg15@wharton.upenn.edu
10:14 AM  Alison_Crowe: We only have volume now- 2014 will be much shorter.
10:14 AM  JJKE: interested in Wharton study jennieenholm@gmail.com
10:14 AM  Kayla K: Cynthia, Customers don't dig for their info, you have to just give it to them. No customer dives right in with, Hey what are your core values?
10:15 AM  5150: Interested in the Wharton Study-ted2409@comcast.net
10:15 AM  Blake Gray: Which fine wines can raise their prices the most? New brands? Parker 100 pointers? Some other factor?
10:16 AM  @veraisonltd: Ryan, our Mobile, Social and Web offerings for small wineries target Millenials scott@veraisonltd.com
10:16 AM  AllieMerrick: Good quesiton, Blake.
10:16 AM  Ryan: Those with the highest demand, Blake?  :)
10:16 AM  Tom Wark: Blake, you are asking which brands or wine have the greatest difference between supply and demand.
10:16 AM djohnston: Will the wharton study be published along with the notes and replay of this webinar?
10:17 AM  1WineAcolyte: Blake, social media and friends talking to each other will have the most impact in my opinion.
10:17 AM  AGG: Where would we get copies of today's slides?
10:17 AM  Jon: add me to wharton jstamell@futureshiftnow.com
10:17 AM  Bill: Ryan.........try Brandactionteam...Steve Raye for possible help
10:17 AM  Tom Wark: If it were me....I'd invest in Moscato!
10:17 AM  SVB Kelly Kel: Hi AGG, the slides are available at the bottom of this page.
10:17 AM  Kelty: happy to help with Wharton as well: kelly@theurbangrape.com
10:17 AM  wineevangelist: Would love to hear more about the Wharton project @RyanCorvalle
10:18 AM  Ryan: #MoscatoRising
10:18 AM  Ian: add me to Wharton list as well ian@ilevine.com
10:18 AM  SVB Kelly Kel: #SVBWine
10:18 AM  Kayla K: I'd love to participate in Wharton kkoroush@gmail.com  Age 26
10:18 AM  HardyWallace: Any thoughts on # of DTC transactions vs $ spent on high end wine? Was seeing fewer sales / visits but with much higher sales- Not sure if that is healthiest outlook for high end
10:18 AM  Southport Wines: Is the consumers or the retailers who resist change to more esoteric regions and grapes?
10:19 AM  samanthalau: i'm interested in the Wharton Project as well  samantha@atozwineworks.com
10:19 AM  WineSmith: But moscato may well be dead or glutted by the time new plantings are bearing.
10:19 AM  winesk8: interested in wharton study winesk8@gmail.com
10:19 AM  TrentG: Hello Ryan, would like to hear more. trent@heibelranch.com 
10:19 AM  cmdurzy: wharton study please cheryl@clos.com 
10:19 AM  kiwivitchick: Thought provoking article on marketing wine to millennials with greatcomment thread: http://svbwine.blogspot.com/2013/10/bra-burning-feminists-drive-wine-sales.html (EDITORS NOTE: Thanks kiwicitchick!)
10:19 AM  Ryan: Hardy - we're seeing visitation growth
10:19 AM  Alison_Crowe: @SouthportWines- first hoop you have to jump through is "gatekeeper"-for most volume it's a distributor.  They are notoriously reluctant to change and explore esoteric wines.
10:19 AM  rchall: wharton study please richard@cliffledevineyards.com
10:19 AM  LarryChandler: wharton study larry@cedarcitywineclub.com
10:20 AM  Dianna: Wharton study plus slides.  Thank you.
10:20 AM  cdjohnston: WE would like to hear more about the millenial study / wharton study. THANKS winetalk@middleridge.com
10:20 AM  Chuck: Wharton plus slides .. chuck@mlgwinelaw.com  please
10:20 AM  SFM: Wharton study please  suzanne@cinnabarwinery.com
10:20 AM  Dianna: Wharton study plus slides.  Thank you.
10:20 AM  cdjohnston: WE would like to hear more about the millenial study / wharton study. THANKS winetalk@middleridge.com  
10:20 AM  Chuck: Wharton plus slides .. chuck@mlgwinelaw.com  please
10:20 AM  SFM: Wharton study please  suzanne@cinnabarwinery.com  
10:21 AM  Ryan: #GenXRising
10:21 AM  Bob C: please send the warton slides to me
10:21 AM  kiwivitchick: what & of GenX buyers female?
10:21 AM  HardyWallace: gen x is where it is at.
10:21 AM  rebeccahopkins: Wharton plus slides please @ rhopkins@foliowine.com Thanks
10:21 AM  dylanelliott: me too Mr. Moreland. Wharton study please dylan.elliott@crimsonwinegroup.com
10:21 AM  Southport Wines: Thanks Alison_Crowe - I am a small distributor and I am getting the push back from the retailers - restaurants are game, retailers are mired in big brands
10:21 AM  DFults: wharton study too.  dfults@langtryestate.com    
10:21 AM  andrew_young_SWILL: same here: andrew@getswill.com  
10:21 AM  Michael R: Wharton study please mrittenhouse@vinasset.com
10:21 AM  Grace: Ryan (Wharton) published his email address above... Monika: Wharton plus slides pls melling@foundationsmarketing.com   
10:22 AM  Brandbuilder1: Wharton slides & study please cork@balancebeampartners.com 
10:22 AM  Bob C: bobc@benoviawinery.com  thanks for sending the Wharton
10:22 AM  Laura: wharton study lmarcinek3@bloomberg.net 
10:22 AM  Christopher: Wharton study, please christopher@mercantile12.com
 <transmission error>4/01/bottling-it-the-changing-face-of-wine-marketing/ - after last year's report.... Gen X and Millennials both respond to building "experiences" with brands.
10:22 AM  Kiley Evans: thanks for covering the millennial myth, rob.
10:22 AM  Kristin: wharton study kmuhly@apwinery.com  
10:22 AM  Nedda Bakhshi: I’d like the Wharton study too please
10:22 AM  Robina: wharton study please robina@awomanspalate.com 
10:22 AM  TrentG: Slides please trent@heibelranch.com 
10:22 AM  Jon: Yes, income from millennials is important but why do we assume that their tastes and prioritization for expenditures is the same as is for Gen X or Boomers?
10:22 AM  Bill C: Wharton study please to bill@laurenashtoncellars.com  
10:22 AM  sharong: Paul, is GenX as digital as the millennials? sharon412@att.net  
10:23 AM  kiwivitchick: great q sharong
10:23 AM  Josh: Wharton Study as well please JCairns@hahnfamilywines.com  
10:23 AM  ToddVTWine: Purchasing three $20 bottles of wine per week is about equal to a car payment, what segment of the consumer can afford that on a regular basis?
10:23 AM  ChristopherCalicott: Wharton study, please! ccalicott@gmail.com  
10:23 AM  Heather: wharton study - heather.everett@wentevineyards.com  
10:23 AM  PamelaP: Wharton Study please senoritavino@gmail.com
10:23 AM  wineevangelist: Great question, Blake
10:23 AM  fweibelwines: wharton study please. fred@weibel.com
10:23 AM  martyta: marty@avennia.com Slides and Wharton Study please
10:23 AM  Alison_Crowe: @Southport Wines We need more small, curious distributors!  Esoterica usually is a better restaurant play, indeed.  #curioussomms
10:23 AM  kp: Millennials will buy DTC if DTC is aimed at us. Though we may not buy as much, we will share with all our friends about it.
10:23 AM  LarryChandler: Millennials are eager to try new things even if they can't afford a lot of them
10:23 AM  winesk8: interested in link for study the group mentions above about age and millennials
10:23 AM  kiwivitchick: Ryan, I suspect you won't have trouble finding Wharton school study col
10:23 AM  Mardochee: GenX population is varies from income to lifestyle
10:23 AM  Bill: An important stat is the years of lifetime buying potential versus what generation is buying today.  Forming taste and brand preferences
10:23 AM  Tina: Are DTC purchases driven from existing relationship/tastes from a winery? Wine clubs? What's the POME for DTC wine industry?
10:23 AM  TASween1: Wharton study please tracy@supplysidestrategies.com   
10:23 AM  kp: Millennials are a more INFLUENTIAL generation because of their grasp on technology & desire for change.
10:24 AM  Mardochee: cultural background counts as well
10:24 AM  VanessaRobledo: vanessa@blackcoyotewines.com -Please send report
10:24 AM  winesk8: good question Tina!
10:24 AM  SimpleMathConsulting: DTC is a margin- and relationship-builder, not a savior
10:24 AM  Nicolas: GenX completely overlooked - caught between Boomers and Millennial mania
10:24 AM  rickboland: wharton study please rick.boland@mossadams.com 
10:24 AM  kiwivitchick: agree kp
10:24 AM  Mark Chase Commercial: any comments regarding consumer substitution with craft beer on the 20-40yr old market?
10:24 AM  TinaMorey: tina.morey@protocolwine.com  Wharton Study please.
10:24 AM  Mardochee: GenX are overlooked Nicolas
10:24 AM  kiwivitchick: part. if more of eCom moving to mobile
10:24 AM  cdjohnston: MIllenials we find want to be told straight info.  They are great foo detectors and are turned off by "not real" wineries.
10:24 AM  Mardochee: very true
10:24 AM  HardyWallace: They buy 1 bottle
10:24 AM  luiscetto: share the Wharton Study lacetto@gpocetto.com  
10:25 AM  sryan: wharton study please: steve@thewinefoundry.com  
10:24 AM  HardyWallace: They buy 1 bottle
10:25 AM  Tina: Is eComm wine linking with existing wine apps to help guide selections?
10:25 AM  KLorenzi: kurt.lorenzi@wineryexchange.com  please send Wharton slides
10:25 AM  SVB Kelly Kel: Continue the conversation on twitter #SVBWine
10:25 AM  akhshi: kelly what is Rob's email address?
10:26 AM  Peter Willmert: How do you see the year for upmarket restaurants and their wine lists?
10:26 AM  noblewines: Does/should the Micro Brew and Cocktail interest worry wine industry?
10:26 AM  Clau: claudia@winesur.com  please send Wharton slides
10:26 AM  slowinecountry: heather@slowine.com , please also send Wharton slides, thx! on study/slides please. michael.adams@chemeketa.edu 
10:26 AM  Whitney: @noblewines good question!
10:26 AM  Frank: frank: interested in Wharton study too frank@winewize.com  .
10:26 AM  Southport Wines: Would love to see the Wharton study Diane@southportwines.com
10:26 AM  Al Samuelson: Ok, I'll jump in on the Wharton study request al.samuelson@sunflowergroup.com
10:26 AM  gonzalojmerino: gonzalo@winesur.com
10:26 AM  kiwivitchick: millennials have influence on shift to more by the glass programs IMHO
10:26 AM  SVB Kelly Kel: Hi Nedda, you can contact him through SVB.com. Search Rob McMillan
10:26 AM  Cynthia: What's your take on "wine in a can", like a beer?
10:26 AM  Chouinard: Would like to see Wharton Millennial Slides as well
10:26 AM  Karn: knichols@devoniancoast.ca   - please send Wharton Slides
10:26 AM  Adam Burck: Please discuss Distributor factors for medium/small wineries.
10:26 AM  BKBen: Wharton study/slides please. benputman@gmail.com  
10:26 AM  HardyWallace: Potential USPS effect on DTC?
10:27 AM  SVB Kelly Kel: Continue the conversation on twitter #SVBWine
10:27 AM  TinaC: noblewines: Some wineries are starting to make craft beer and spirits to get in on the action. Not a huge number, but growing.
10:27 AM  Jenn: Jenn@gooseridge.com  for Wharton Slides please
10:27 AM  mbernton: Wharton study/slides please.  berntonm@gmail.com  
10:27 AM  Jenn: Jenn@gooseridge.com  for Wharton Slides please
10:27 AM  mbernton: Wharton study/slides please.  berntonm@gmail.com    
10:27 AM  mdonohue123: USPS and wine is a win-win
10:27 AM  LarryChandler: Is the USPS really going to happen?
10:27 AM  Michelle: wharton study slides. michelle@inmanfamilywines.com thank you
10:27 AM  el jefe: USPS and wine is scary as heck.
10:28 AM  evalen: Wharton slides to: ericavalentine@sbcglobal.net   thanks
10:28 AM  AHerbert: Wharton slides please to usmnwriter@gmail.com  
10:28 AM  Tom Wark: up 1,000% digital sales on what kind of change in price point? I'm guessing average price per bottle is down.
10:28 AM  1WineAcolyte: Yes, what is happening with women consumers?
10:28 AM  wineevangelist: Wharton slides please barbara@affairsofthevine.com  thanks!
10:28 AM  Al Samuelson: I live in KS and since the made direct ship legal a couple of years ago, my UPS guy said he has 20-100 cases a day on his truck.  I guess I picked the right neighborhood.
10:28 AM  kp: Paul needs to talk more next year.
10:28 AM  Stormy Weather: Who would trust USPS with their wine?  Crazy!
10:28 AM  AngelinaMLo: Hey all, Wharton needs help, not offering slides or info: the request was the following: "Anyone interested in working with Wharton on a project to understand how to market premium wine to millennials?
10:28 AM  markf: rob's email is:  rmcmillan@svb.com
10:28 AM  mdonohue123: I dunno re USPS, conditions might be iffy but so democratic
10:28 AM  SVB Kelly Kel: Continue the conversation on twitter #SVBWine
10:28 AM  1WineAcolyte: Yes, what is happening with women consumers?
10:28 AM  wineevangelist: Wharton slides please barbara@affairsofthevine.com  thanks!
10:29 AM  TrentG: would like to participate in SVB study trent@heibelranch.com  
10:29 AM  Alexandra: Wharton slides to Alexandra@RameyWine.com  please
10:29 AM  Dini Rao: I think the real win with USPS could be more locations where one can pick up your wine if you can't be home to receive a delivery.
10:29 AM  tbaldini: wharton study please:  tbaldini@hahnfamilywines.com  
10:29 AM  Ryan: Tom - our eComm sales are up and not at the detriment of margins
10:29 AM  AngelinaMLo: This was the email sent if you wanted to help with Wharton study: Ryan.Moreland.wg15@wharton.upenn.edu    
10:29 AM  SimpleMathConsulting: sales volume up, flash sales multiplying. Success for suppliers? Just saying.
10:29 AM  Cynthia: USPS would have to store the winey properly.
10:29 AM  LarryChandler: Angelina, willing to help. Lots of younger wine drinkers in this anti alcohol state. larry@cedarcitywineclub.com 
10:29 AM  tbaldini: wharton study please, tbaldini@hahnfamilywines.com  
10:29 AM  Dini Rao: Paul: Lot18 is still here and going strong
10:30 AM  Heather: Re: Wharton Study - I was signing up to help.
10:30 AM  Goldilocks412: @Dini: Good point. USPS will just make it easier and raise awareness of DTC wines for people who havent gone that route before. And DTC sales are higher price point sales. So I think it will be a win.
10:30 AM  Tom Wark: #WeLoveLot18
10:30 AM  SVB Kelly Kel: Have a glass of wine and tweet #SVBWine
10:30 AM  HardyWallace: Yes- Dini!  That and potential lower cost of shipping
10:30 AM  wineevangelist: The pdf for the report is not printing out correctly. Would it be possible to have this emailed to me? barbara@affairsofthevine.com  
10:31 AM  Nicolas: Easy to sell cases online - tougher to make a buck with shipping and compliance costs
10:31 AM  SVB Kelly Kel: Hi Barbara, the slides will be sent in the play back email in the next day or two
10:31 AM  Bill: When will the gray counterfeit story hit the DTC sector?
10:31 AM  VinAmbassador: Nice RHPS Reference Paul...
10:31 AM  ToddVTWine: Thanks folks, you could do this presentation on a quarterly basis
10:31 AM  Whitney: This should be a weekly show. Great info and love the side chat format...although makes me feel completely ADD going between.
10:31 AM  SVB Kelly Kel: Continue to talk about wine on twitter at #SVBWine
10:31 AM  TASween1: Had to join late - will you be posting the video on the blog or your site?
10:31 AM  PamelaP: Any stats on wine consumption among U.S. Latinos? senoritavino@gmail.com  
10:31 AM  cdjohnston: Best address for Middle Ridge Winery is winetalk@middleridge.com  - we would all love to hear some of the follow-on
10:31 AM  AllieMerrick: Fabulous job, guys! Thanks for sharing!
10:31 AM  jbhinusa: Any factual study's on tasting fees and their impact on increased purchases? jess@BellaGraceVineyards.com  
10:31 AM  VINO ZEN: study to me also...
10:31 AM  Nicolas: Yup - a monthly show would be awesome
10:31 AM  punky: Please forward the answers to the questions punky@lot18.com  
10:31 AM  Kim Kolb: Very insightful!  
10:31 AM  Goldilocks412: SVB: Great job today. Go for 90 mins next year and balance out the panel with a woman!
10:31 AM  Ian@Mascot: Yes, would like to see this quarterly SVB!
10:31 AM  SVB Kelly Kel: The video will be posted on the site in the next day or two
10:31 AM  Alison_Crowe: For follow up, would love to have a whole hour devoted to Digital/DTC!  @PaulMabray
 
Goodbyes and Thank-You's
 
10:32 AM  TASween1: thanks!
10:32 AM  wineevangelist: Thank you. Most interesting.
10:32 AM  Chris H: Thanks for the discussion! The reports are great info for the industry.
10:32 AM  SVB Kelly Kel: Thank you everyone for joining!
10:32 AM  AngelinaMLo: Thanks so much for the info!
10:32 AM  Nedda Bakhshi: Thank you!
10:32 AM  @brittanpinot: Thanks Rob, great job as always! @BrittanPinot
10:32 AM  Christopher: agree on DTC content
10:32 AM  1WineAcolyte: Thanks guys. Fantastic reporting.
10:32 AM  SVB Kelly Kel: #SVbWine
10:32 AM  Clau: thnsk you for sharing such an interesting information
10:32 AM  Shokie: Good stuff, thanks!
10:32 AM  Brandbuilder1: Thanks and a big Hi-5
10:32 AM  Elin: Thanks so much; Paul have a bunch of questions for you
10:32 AM  Cathy: Thank you - kschang@usfca.edu
10:32 AM  Heather: Agree with the DTC/digital content
10:32 AM  Leskup: thank you gents - nice presentation!
10:32 AM  Rod: can you please email me the PDF presentation at rrodero@gmail.com ? Thanks
10:32 AM  Heather: Thank you!
10:32 AM  SVB Kelly Kel: Thanks for joining us!
10:32 AM  Bob C: Well done good luck in 2014
10:32 AM  mbernton: Thank you!
10:32 AM  sharong: also agree on the 90 min and more DTC content
10:32 AM  winemaps: Thanks Everyone!
10:32 AM  Kelty: yes do this more than yearly, please! Interesting stuff and good conversation/questions
10:32 AM  Jerry: Thanks, SVB!
10:32 AM  WineSmith: Compared to last year, disappointing brevity on DTC and other small winery issues. They do represent perhaps 98% of players with no real three-tier presence.
10:32 AM  SVB_Lindsay: Please participate in the survey next year all!
10:32 AM  imacneil: wharton Study, please imacneil@rodneystrong.com 
10:32 AM  rebeccahopkins: great session and presentation panel
10:32 AM  Cynthia: Appreciate your time and info!
10:32 AM  RyanCorvalle: Thank you everyone for your interest in the Wharton research project, we will be reaching out within the next week! Ryan.Moreland.wg15@wharton.upenn.edu
10:32 AM  JonBjork: Thanks!
10:32 AM  Michael R: Thank's guys! Great presentation! - VinAsset Team
10:32 AM  AGG: Thanks guys.  Good job.
10:32 AM  slowinecountry: Thank you!
10:32 AM  Mardochee: Is there any statistical data in reference to wine festivals? mardochee.pierre@gmail.com 
10:32 AM  dylanelliott: Thank you!
10:32 AM  LarryChandler: Thanks!
10:32 AM  Alexandra: Well done Gents!
10:32 AM  TrentG: Thank you SVB & Panel
10:32 AM  Kiley Evans: Fantastic prsentation. Montly/quarterly would be a great benefit for the industry
10:32 AM  sactoboy: Thanks. nice job
10:32 AM  Steve Manley: Thanks
10:32 AM  WineTrackMind: Interesting webinar. Thx.
10:33 AM  Geoff Labitzke: Thank you
10:33 AM  wineybob: Thx folks
10:33 AM  Jim: Paul:  what is your email address?  I have something that is interesting for the biz we can share.  thanks   Jim  jgreaves@choicemaster.com  
10:33 AM  scs: Long Term Vineyard financing?
10:33 AM  Rod: please email PDF presentation to rrodero@gmail.com  thanks
10:33 AM  gonzalojmerino: thanks!!! great information!!!
10:33 AM  ThreeSticks: Would love to participate in the survey - hayden@threestickswines.com  . Thanks!
10:33 AM  Elin: Thanks, Rob and panel. . .
10:33 AM  Matt: Thanks for the intel. mlevy@schramsberg.com  
10:33 AM  LarryChandler: Things are definitely looking good here in Utah with alcohol sales way up, new restaurants, new wine lists, bigger selections
10:33 AM  winesk8: Monthly/Quarterly would be great.  Would even pay for subscription if reasonable for small business/consultants
10:33 AM  parkerwong: Wharton, pls.  dpw@tastingpanelmag.com  .  Thank you!
10:33 AM  Paul Franson: like Whaton report paul@paulfranson.com  
10:33 AM  sactoboy: Can you mail the presentation to: robert@cabanawine.com  
10:33 AM  noblewines: I would like to get a .pdf of the stream and even the chat log if possible cmiller@noblewines.com
10:33 AM  luiscetto: where can I find the slides
10:33 AM  LarryChandler: And hi Barbara (evangelist) if you're still here :)
10:33 AM  fweibelwines: Well done thank you Fred Weibel
10:33 AM  Silver Stag: Great presentation Rob
10:34 AM  mmm3bbb: wharton study
10:34 AM  rebeccahopkins: Thanks gents; great panel presentation and mix
10:34 AM  Casey: Rob-great job. Thanks, Casey
10:34 AM  vinoval: I second that @ winesk8...quarterly would be great!
10:34 AM  MarkChandler: Glad to hear talk of marketing order to support research and promotion!
10:34 AM  mmm3bbb: wharton study, michael@gigamind.com
10:34 AM  Almax: great job everyone!
10:34 AM  Bill C: Looking forward to the transcript.
10:33 AM  fweibelwines: Well done thank you Fred Weibel
10:33 AM  Silver Stag: Great presentation Rob
10:34 AM  mmm3bbb: wharton study
10:34 AM  rebeccahopkins: Thanks gents; great panel presentation and mix
10:34 AM  Casey: Rob-great job. Thanks, Casey
10:34 AM  vinoval: I second that @ winesk8...quarterly would be great!
10:34 AM  MarkChandler: Glad to hear talk of marketing order to support research and promotion!
10:34 AM  mmm3bbb: wharton study, michael@gigamind.com  
10:34 AM  Almax: great job everyone!
10:34 AM  Bill C: Looking forward to the transcript.
10:35 AM  keithhock: Good Info!
10:35 AM  Andrew: What were the 4 Apps that were referenced as having "made it through" the glut and have proven sustainable/valuable? andrew@clospepe.com 
10:35 AM  wineevangelist: How do educational wine events play into reaching present and new consumers?
10:35 AM  LarryChandler: If done without attitude and snobbery people are eager for info and to learn
10:36 AM  DTC Wine Workshops: GREAT job!
10:36 AM  Elin: Same question as Andrew on the four apps that made it through? elinmccoy@gmail.com  
10:36 AM  DTC Wine Workshops: GREAT job!
10:37 AM  Mardochee: Wine industry has to become more inclusive if it wants to attract new customers
10:37 AM  LarryChandler: How so, Mardochee?
10:38 AM  kiwivitchick: @andrew delectable, vinocork, drync (it's a weird spelling of drink) and Lot18 albeit latter flash wine sales
10:38 AM  kiwivitchick: can mail drync spelling
10:39 AM  kiwivitchick: note one of 1st 3 got $10.2 M in funding and Lot 18 42M .... wine industry VC going into mobile
10:39 AM  AllieMerrick: Agreed, Mardochee. Too many are too intimidated. If you help consumers understand wine in their own terms, their perceptions will change in a way that only results in increased sales.
10:40 AM  kiwivitchick: @Andrew http://www.prweb.com/releases/2013/11/prweb11374368.htm Drync Wine App Offers Interactive Experience in Food and Wine Magazine's December 2013 Issue
10:41 AM  LarryChandler: Wineries can turn people off with their attitude but many know how to treat customers well
10:41 AM  kiwivitchick: agree Larry albeit varies by AVA (not saying more than that ;)
10:42 AM  LarryChandler: Sometimes old ways die hard
10:42 AM  kiwivitchick: indeed
10:43 AM  LarryChandler: Wineries need to be educated just as consumers do. But without attitude which does inflict much of the industry
10:43 AM  kiwivitchick: concur 100%
10:43 AM  AllieMerrick: Absolutely agree, Larry.
10:44 AM  winemaps: Wondering if anyone has seen some of our new updates on www.WineMaps.com, could use the feedback.
10:45 AM  @veraisonltd: Can we receive a log of this chat scroll?  scott@veraisonltd.com
10:45 AM  winemaps: copy and paste works
10:47 AM  @veraisonltd: Thank you!  Ctrl-A, Ctrl-C and Ctrl-V into a text file.  Nice! 
11:23 AM  @SVBWine: Rob McMillan is the smartest person I know. I can't believe how much he is able to produce for his bank and the wine industry. He must be two people! I can't believe everyone wouldn't be lining up to bank with him. He is also a most handsome fellow and should be given a raise IMHO.

Answers to Select Questions

Q1: Please discuss multiples and the present activity in winery sales?

A1: For those not used to the term, multiples are a way of defining the value to a business using EBITDA (earnings). For instance, a company with $100 profit and an 8x multiple, would in theory be worth $800. In small and family run business, it’s a more difficult discussion because often personal expenses are embedded in statement and in the wine business – sales prices aren’t publicized openly.

The short discussion is if a company is near $0 in EBITDA, earning multiples aren’t of use and the company will sell more on some net asset value, or a multiple of sales. A healthy company might typically sell in the 8x – 12x multiple range but in the wine business, there have been sales that have been much higher even approaching 20x. From a practical perspective multiples in the wine business while interesting for owners, really aren’t of much value because of the wide range of business operations from n├ęgociant brands through fully integrated wine operations. Those winery owners interested in selling should consider using a one of several professional M&A advisers in the wine business, an attorney with experience in transactions, or for a real estate heavy small winery, perhaps an experienced real estate professional.

I will be discussing the M&A market in a little more detail in a future SVBonWine post.

Q2: What are the prospects for export expansion?

A2: That’s a long answer which is partially covered in the report, but to keep it short – export from the US market will be important over time particularly for fine wine if the dollar stays strong and the young wine consumers prefer lower priced imports over domestic bottles. Export to markets throughout the world that cater to the luxury market would be one way to maintain price in such a scenario. Actually developing an export perspective and maintain in-country pricing stability to build a brand is a skill set the US wine business has thus far not embraced.

Q3: Expand on DTC strategies.

A3: That is an area that will wait for another day. While we did have Paul Mabray from VinTank on the panel, we’ve broken out the Tasting Room and Direct discussion into a separate survey and panel discussion. The survey will go out in February, and the panel will convene in May in conjunction with the publication of the Wine Business Monthly Tasting Room edition.

Q4: Drought

A4: The problem we are facing in drought in California is severe and according to a UC Berkeley scientist who studies climatology with tree rings, it’s the worst in 500 years. Drought will make it difficult to have proper frost protection, hydration when needed to combat heat spiked, make new plantings more difficult if there are restrictions in a given area, increase political pressures regarding water use among competing interests, make changes in water use within the winery more likely, and the list goes on and on. The silver lining is the unlike row crops, vineyards can have some success with dry farming. I won’t cover that much here on drought simply because it’s going to receive a lot of press both at Unified and in other industry publications. That will allow us all to heat up the cause of global warming debate while we develop new drought technologies.

For what it’s worth, I don’t take a stand on the cause of global warming, but it would be illogical for anyone to ignore drought in an arid state like California and spend all their time trying to do nothing because “global warming” isn’t proven. Either way, drought is a reality and we need to do more to improve water conservation and use.


Q5: Which wine channels become more important when a winery lacks a tasting room.

A5: I have a controversial position on tasting rooms. I think most wineries use tasting rooms like the native Indians used fish traps. If the fish swims by, maybe you will catch a fish. Of course you might get a carp instead of a salmon too.

I believe in era of digital technologies, winery owners have to think a little harder about the value of a brick and mortar tasting room. To the extent a tasting room makes sense for a winery, it HAS TO BE part of an integrated sales and marketing program. It’s not about the first sale when they come into your tasting room. The whole game is based around getting the second sale. You can read a little more on my philosophy on this blog in the post: How Much Do Tasting Rooms Make

Q6: Are there too many vineyard acres planted? Is there sufficient tank space available to handle the crush?

A6: Many questions like this are covered in the State of the Industry Report which you can downloand [HERE]. On the question of tank space, while there wasn’t sufficient tank space to handle the crush in 2013 that doesn’t mean we should put in more tanks as it would presume all the extra grapes should have been crushed. We have sufficient tank space I believe and this was the second year of record harvests. If we had this size harvest each year going forward starting now, we would have an oversupply. Tank space will grow as consumer demand for wine supports a winery’s need to buy more grapes.

Q7: Will on-premise sales of super-premium/luxury wine rebound?

A7: Helping frame the question a little, there really is no good accepted definition of super-premium anymore. And when we talk about rebound, we have to know …. rebound from what?

If I look at the casual dining segment – that segment that’s white tablecloth but still modest price and quick(er) service, there is a definite downturn with customer traffic declining 9 of the past 13 years. Restaurants as a whole continued the downturn long after the wine business trended back up from the recession, but like the wine business – the growth in that segment fell off making the improvement seem more like the proverbial dead cat bounce. Looking at the restaurant business for 2013, according to Black Box Intelligence, “Annual same-store sales for 2013 were -0.1%, a 1.0% drop from the 0.9% reported for 2012 and the first time since 2010 that Black Box Intelligence’s index has resulted in negative same-store sales for the year.” To my thinking, the improvement we’ve seen since the recession had to do with the improvement the economy has seen, and the build back of expense accounts. Today I think until the economy improves for the middle class, we won’t see improvement in the higher priced “super-premium” wines served in restaurants.

Q8: There were several questions about grape planting some answered in the report.

A8: Allied Grape Growers have done a good job in discussing that in California and I expect they will be doing more of that this week at Unified. For my part, I think we are balanced but I am concerned about the potential for overplanting in the Central Valley. I believe we will see the pace of planting pick up in Washington and Oregon and that its probably sustainable for the near term given the price of land versus the quality of their wines.

Q9: Diversity in regions covered is always a question. Each person wants to hear about their own AVA, state, or country. Why do we spend so much time talking about California?

A9: The report is a State of the Industry but is viewed from the US perspective. We don’t for practical reasons discuss other countries perspectives in great detail but do spend time on discussion of imports from those countries and how they impact the US market. We speak a lot on California because of the size of the production and availability of information. With respect to Oregon and Washington – two areas that can compete on quality evenhanded with California, we do surveys with the help of the winery associations there but we have to recognize that information from those regions isn’t as plentiful as California. In fact the Agricultural Statistical Service stopped their harvest reports (it’s being picked up again IIRC at the University level thankfully.) We did include mention of the two states in the report, but clearly not as much as I would like.

While I have my own resources, one can never know too much ... unless you are a know-it-all. Anyway if there are any out there that would care to direct me to good research from Oregon and Washington I am always grateful when someone points me to good information.

Q10: Is Gen X as digital as the Millennials

A10: Its one of the Millennial Myths that Millennials are digital, have all the secrets of the digital universe so we need to learn a foreign language just to communicate to them. While they are more comfortable with digital, Gen X is equally able to use digital platforms to get what they want and/or shop but that’s the wrong path. Its not the technology that matters. It’s the tastes that matter.

Take mobile platforms for instance. Millennials use their phones like it’s an appendage but mobile for wine shopping is still not a material component in wine sales yet. You would think if Millennials were really comfortable, they would have thrown off their pads and laptops already. But where are they buying their wine? Almost exclusively at a grocery store just like the Mature cohort.

I’m a Boomer. Somehow I’ve managed to figure out how to shop and communicate using digital …. just line Millennials and Gen X. I don’t spend the time on other platforms as the younger generations and have no time for Farmville and any other Facebook style game, but you can communicate with me using digital just like the other generations. The real difference is WHAT you communicate because my tastes aren’t the same as others, nor are their wallets as experienced as mine. How you communicate – through which platform, is a much less important issue.
 

That covers it. Hope you found the report and this expanded coverage helpful. If you have any comments on this, or other questions please log in and offer your thoughts, questions, and perspectives for the community below.

 
 

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