Selling Wine in a Pandemic

There are times in life when we have to react to circumstances that are well outside of anything expected. A pandemic? Well, that's a circumstance with which none of us have any experience. That new aspect of our lives required us to adapt then employ behaviors that are out of the norm. For some, this is distracting, but for others, this is nothing less than debilitating.

The current news cycle seems like an unending summer rerun now, with a plot being played over and over - except it's hard to avert your eyes from this show because there is an issue of safety involved. And business?

The recommendation from the CDC to avoid crowds and employ social distancing is causing havoc with travel agencies, hotels, airlines, cruise lines, and the hospitality industry. But what about the wine industry?

This is obviously hurting us as well, but let's not go down that path because plenty of people are and will. We don't need to look at a train wreck. We need to talk about as many creative solutions as we can muster. And more important to me is that everyone grasps one overarching philosophy I hold as an absolute truth:

This is NOT a situation that will impact long-term wine demand. This is a short-term demand shock. Consumers will buy less wine for a short time because there is a reduction in the number of occasions; canceled sporting events, conventions, corporate events and so many other occasions where wine is served.

...But no matter what, wine consumers won't abstain. That's a fact!

How do I know that? Did consumers stop drinking wine during Prohibition when it was illegal? No. They just evolved the way it was manufactured and delivered.

And during the most recent recession, did consumers stop drinking? No. We experienced a short-term slowdown in sales, followed by a sales increase a year later.

Wine consumers drink wine in good and stressful times. Your job as a winery is to figure out how you can get your consumers to realize you are open for business, and show them the options they have that will make it easy to get your wine to them - even during a pandemic.

My advice for wineries today is to focus on things you can control. While you can't control diminishing hotel reservations or canceled tasting room visits, you can find a way to meet the customer where they are. Here are some thoughts:

• People will want wine and with restricted purchase points, try to find same-day delivery options and/or tell customers how long it should take to deliver your product to their door.
• In the good old days, winery employees made delivery runs to local restaurants. If employees are willing, send them out on nearby delivery runs to consumers.
• Find ways to help your customers have fun even in this difficult environment. People will search for something else to do to feel normal. Ship them a game for family play with their case of wine. Include a gift card to Uber Eats to have dinner delivered, or give them free passes to a concert on your own property later this summer.
• You can't get on a plane, so consider virtual tastings using Skype or Zoom. Use your network to get a celebrity, athlete, or musician to participate with you in a larger event. Engage with your at-home customers.
• Some people will still come to your tasting room as long as it's not against the law, but you have to assure them it's safe. Publicize and prominently post the new actions you are taking to control community spread and make those activities obvious to guests who come. If that means putting everyone in gloves and masks, then do that and have fun with it!
• If you are in three-tier grocery outlets, early indications are that consumers are buying more from that channel as they eat more often at home. Consider things you can do to have your wine noticed on the shelf and use this news cycle and behavior change to your advantage.
• Consider changes to your tasting bar that enhance social distancing, but emphasize that you have private tastings where by-appointment consumers can maintain a safe distance.
• Have a curbside pickup offering. If it can work for grocery stores, it can work for wineries.
• If you can't sell from a tasting room, consider other places you could sell that are in keeping with current CDC Guidelines. Some that might work include grocery stores, pop-up venues, open-air farmer's markets, and out-of-area or out-of-state locations. Don't limit yourself to selling only in wine country.
• Is it possible to put up a tent and sell cases of wine from the roadside, with fanfare and messaging? I'm thinking roadside fruit stand here - which interestingly is where tasting rooms started way back when.
• Use your marketing imagination and messaging to get consumers to buy online. It's a less expensive way to sell. And while you're at it, see if you can get new club signups in the process. There are many ideas to consider that may drive new behaviors including coupons, discounting, free tickets to future events, and gift cards that could be used on the next purchase. Figuring out how to direct people to online sales will continue to pay off even after this situation fades from the news.
• Collaborate to promote your region hotels and restaurants that are aligned with your thinking in promoting "safe visits." Give consumers a reason to get out of their homes without them feeling they are at risk. Or maybe go a step further and cross-promote with a venue entirely out of your region.
• To the extent your tasting room employees find they have free time, call your club members. While telling them what you are doing at your winery, emphasize with them and be ready to listen to their stories too. They might buy wine, or your outreach might enhance your connection. Either way, both are good things that will pay off with a long-term view.
• With the recent job and stock market losses, some consumers won't want to spend on your spring release. Consider delaying your shipment. At a minimum, however, have a gracious option available for them to skip their allocation and still remain a club member with full benefits.

I believe the wineries who take up this challenge to control what they can, will find success even in the current operating environment. I also believe that at some point when this issue ebbs, we will have local wine consumers with pent-up demand who won't be going to Europe, Asia or getting on a plane for a vacation. 

In 2020 there will be an unusual number of local consumers wanting to have some fun and they will be staying local. Make your winery one of the places consumers discover, because they are and will be looking!

UPDATE:

The situation continues to change rapidly. Since posting this blog a few hours ago, Governor Gavin Newsom came out with new guidance that calls for all bars, wineries, nightclubs, and brewpubs to close.  

Many wineries are already announcing the closures of their tasting rooms as of Monday the 15th. That will put enhanced emphasis on revenue-generating activities away from the winery. [link]

And in further news:

• Governor Pritzker of Illinois has ordered all bars and restaurants closed to the public 
• The Governor of Ohio has also ordered the same closures.
• Pennsylvania is closing all of the State wine and liquor stores. 
• Mayor Bill de Blasio of NYC announced the closure of all restaurants and bars.
• Governor Charlie Baker of Massachuttes announced that all bars and restaurants will close.
• Gov. Inslee of Washington State orders statewide shutdown of restaurants and bars
• The Federal Reserve has reduced the Fed Funds rate to a target range of zero to 0.25%. The 100 basis point drop is the largest on record.

What's Your Opinion?

• Yes, we know everything sucks so let's not start there. Do you have any suggestions for others that might help at this unique time?
• Are you having success with anything?

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