Tips for Helping Increase Bookings in Off-Peak Wedding Season

wedding couple standing in a vineyard

The months of January, February and March are typically considered “off-peak season” in the wedding industry and tend to be slower months. Getting more bookings in these months require a different strategy than peak season as well as thoughtful planning. Let’s look at some strategies to consider to help increase your business in the off season.

5 Tips to Booking in the Off-season

1.   Offer Off-Season Rates: There is a market for off-season weddings, you may just need to work smarter to reach it. Find budget-conscious couples through online target marketing (Social Media ads) and offer discounts for your slower months. Create a list of keywords that couples may use to search online for and include the words in your ad strategy. Some keywords may include affordable weddings, wedding discounts, wedding deals, wedding offers, wedding venue discounts, off-season wedding deals, off-peak wedding season discounts, etc.

2.   Promote Early: As you know, it takes time to plan a wedding. It makes sense to, start advertising your off-peak season discounts at least a year in advance. This gives couples looking for affordable alternatives a chance to decide if having a wedding in the off season is right for them.  An affordable way to advertise is through your blog and a special section on your website.

3.   Target Last-Minute Weddings: Most couples plan their weddings, at the very least, 6-months in advance. However, there are still couples who plan a wedding in less time. This can work to your advantage in the off-peak season. You may not have to offer the deepest discount to win this business because these couples are motivated to tie the knot. Again, the best way to find these couples is through targeted ads. Keywords that may appeal to these couples are last-minute wedding deals, last-minute wedding offers, booking wedding venues last minute, wedding planning in a short time, etc.

4.   Partner with Vendors to Offer Exclusive      Deals: The broader your network with local wedding industry professionals and vendors, the better positioned you may be for the off-season months. You may not be a couple’s first stop in their wedding planning – think bridal shops and jewelers. Consider exchanging voucher coupons with these vendors to promote each other’s businesses. In addition, if you partner with other local wedding vendors, you may be able to come up with an attractive package to offer budget-conscious couples and couples who are planning their weddings in a short amount of time. Partner with wedding planners, photographers, floral shops, DJs/bands, caterers, and more.

5.   Highlight the Advantages of an Off-Season Wedding: Engaged couples have a variety of concerns about booking in the off-season. Concerns they likely wouldn’t have to face in the peak season, mainly weather related. By highlighting the advantages of an off-season wedding to the couple, they may decide the risk is worth it. Here are some points to highlight:

•    Saving money with discounts.

•    Creativity with the theme and photos. Winter-themed weddings are unique and memorable because most weddings take place in the summer months. Their photos will be stunning with the natural beauty of the season and choice of winter fashion for outdoor photos (beautiful coats and capes for the wedding party).

•    Winter-themed décor and food choices that wouldn’t be offered in the summer months. For example:

      a. crystal icicles, shimmery linens and silver and gold accents lend a magical aura

      b. warm desserts such as death-by-chocolate, mini rum cakes, warm cobbler and crumbles

      c. hearty comfort food with creamy soup, whipped potatoes and roasted vegetables

      d. seasonal drinks like hot chocolate, hot apple cider, coffee, cappuccino, hot buttered rum, spiced wine, and eggnog

•    Increased attendance. People are busy in the warmer months and are more likely to decline invitations for other commitments. In addition, out-of-town guests, can experience lower airfare in the off-season.

•    Highlight the ways you prepare your venue for colder months, including your assurance of a comfortable, warm atmosphere (like a fireplace), cleared parking lot and walkways of snow and ice, a large, accommodating coat room, hand-warming towels in the restrooms, a backup generator, and many other ways you take care special care in the off-season to provide the best service possible.

  We hope these tips will help you attract more clients to your venue during the off season who should also think about event insurance. 

  Markel* offers event liability insurance to hosts and honorees, providing coverage such as property damage to the venue or injury to a guest. Up to $2 million in event liability insurance can be purchased by your client from Markel any time at least 1 day before the event. Policies start as low as $75. 

  By offering Markel Event Insurance, it will not only help protect your clients, but it can also help protect you by potentially decreasing your own business liability risk for accidents due to negligence of the event host or honoree. Markel Event Insurance is an easy and affordable solution for your clients – a free quote takes only a few minutes online or on the phone – turning you into a one-stop-shop for your clients.

  This document is intended for general information purposes only. The content of this document is made available on an “as is” basis, without warranty of any kind. Markel does not assume any obligation to update any information herein, or remove any information that is no longer accurate or complete. Furthermore, Markel does not assume any liability to any person or organization for loss of damage caused by or resulting from any reliance placed on that content.

* Coverage is underwritten by Markel American Insurance Company and policyholder services are provided by the underwriting manager, Markel Service, Incorporated, national producer license # 27585, in California d/b/a Markel Insurance Services, license # 0645481.  Terms, conditions, and exclusions apply.  Insurance and coverage are subject to availability and qualifications and may not be available in all states.  

The Pandemic’s Impact on the Wine & Spirits Industry

man in mask looking at wine section

By: Quinton Jay

The year 2020 was a complicated one for the wine and spirits industry. According to information published in Beverage Industry, the sale of wine at retail and convenience stores grew by some 11.4% in multi-outlet stores throughout the 52 weeks between December 1st, 2019, and November 29th, 2020, and champagne, as well as other sparking wines, saw year-over-year growth by nearly 29%, topping sales at roughly $1.6 billion.

  This boost to wine sales, however, could not fully offset the losses incurred by many other businesses throughout the wine and spirits (WS) industry.

  Fortunately, the U.S. seems to have since turned a corner in the pandemic struggle, and most restaurants and other WS businesses like wineries, distilleries, and breweries (WDBs) that were able to survive the brunt of the COVID-19 pandemic’s impact are now back open and able to serve customers indoors, or at least in some form of hybrid indoor-outdoor seating arrangement. While this return to normalcy should help the WS industry experience an upswing capable of putting business back on track, some industry experts are still analyzing the true depth of impact the pandemic has had on the industry and the businesses in it, regardless of whether those businesses survived the pandemic’s fallout or not.

  One such expert is Quinton Jay, a WS industry expert, Japanese whisky otaku, and industry consultant with more than 20 years of experience in owning, building, operating, and investing in businesses–specifically those in the wine and beverage industry. We recently sat down with Quinton to learn more about the trends he saw arise within the WS industry throughout the events of last year’s pandemic, how those trends impacted the WS industry as a whole, and where he sees the industry heading over the next few years as a result.

WS Trends Resulting From COVID-19

  According to Jay, one of the most widespread trends that impacted the WS industry as a result of the pandemic was the increase in the amount of WS businesses – including WDBs – that began offering e-commerce and Omnichannel retail marketing. By offering these channels, businesses across the entire WS industry were able to continue selling products directly to consumers (D2C), saving many businesses from having to shut their doors to customers – both online and offline – for good.

  “Methods like Omnichannel retail allowed businesses in the industry to continue selling products D2C,” Jay tells us. “For many businesses, especially WDBs, this was the difference between surviving the pandemic or not.”

  Along with the growing trend of Omnichannel retail marketing, many business owners in the WS industry have experienced what Jay refers to as “business fatigue.” This feeling of fatigue is one that many business owners who experienced the pandemic can sympathize with, but for the WS industry specifically, it could mean more owners of WDBs, restaurants, eateries, or other businesses preparing for financial exits from their ventures.

  “Business fatigue is a real thing,” Jay tells us, “and rather than simply close up shop and call it a day, the better option for business owners is to sell their company to someone willing to acquire, rebrand, and revitalize it.” This trend of business fatigue, according to Jay, could hint at other ways as to how the pandemic left a lasting impact on the industry.

The Lasting Impact of COVID-19 on the WS Industry

  In describing the ways that Omnichannel retail marketing has affected the WS industry in recent years, Jay also mentions the historical lack of innovation – particularly technological innovation – within the industry. In mentioning this, it begs the question as to just how innovation, both during the pandemic and immediately following it, will evolve both for businesses and consumers.

  “Many WDBs and other businesses in this industry aren’t necessarily at the forefront of innovation, especially when it comes to growing their market share,” Jay says. However, as Jay continues to explain it, the writing is literally on the wall for the continued growth of Omnichannel retail, given the industry’s historical customer demographics, current and emerging technologies, as well as the ever-evolving nature and growing competitiveness of the WS industry’s supply chains.

  “The U.S. has been lagging behind much of the world in Omnichannel retail offerings, obtaining less than 10% of all global e-commerce sales for the WS industry compared to China’s roughly 25% share,” says Jay.

  In these matters, Jay’s predictions may not be far off from aggregated industry data. For instance, according to McKinsey’s 2021 Consumer Report, e-commerce sales in the U.S. were projected in 2019 to reach 24% of all retail sales by 2024. This projection later increased to 33% by June of 2020 after the onset of the COVID-19 pandemic, seeing larger growth in e-commerce retail across the U.S. in six months than it had over the past 10 years.

  “As we continue to emerge from the pandemic,” Jay continues, “I expect many more businesses in the WS industry – especially WDBs – will begin offering or broaden their offerings regarding Omnichannel retail as more American consumers opt for D2C retail channels.”

What’s Next for the WS Industry

  As a result of the COVID-19 pandemic, every global industry was forced to evolve virtually overnight. The WS industry was no different. Along with broader implementations of Omnichannel and D2C retail methods and deeper technological innovations, Jay tells us that he also expects many businesses in the industry to rethink the way they operate internally and interact with customers on all levels.

  “Overall, I think the pandemic has left many business owners in this industry feeling defeated,” Jay says. “As a result, we can expect to see an increasing number of companies in this industry become more creative in the ways they can target, reach, and sell their products to consumers, as well as become more innovative in the ways that they handle and react to crisis situations.”

  Indeed, the revitalization of crisis management detail is one vital aspect that every business that survived the pandemic will inevitably have to revisit. For the WS industry in particular, this could mean the addition or inclusion of additional D2C sales channels (similar to the inclusion of Omnichannel retail), but also the way that many establishments in the industry hire and retain talented employees.

  “The U.S. has been experiencing a hiring crisis over the last few months,” Jay adds, “and tons of restaurants, eateries, WDBs, and other businesses that survived the pandemic initially are now struggling to keep up with increased consumer demand as the threat of COVID-19 wanes. By implementing policies that promote employee safety and wellness, offering more competitive wages, and remaining adaptable enough to stay ahead of society’s ever-changing curve, the industry as a whole can prevent the detrimental effects that came as a result of last year’s pandemic from having such a deep and lasting impact in the future.”

How to Succeed in WS Post-Covid

  As Jay mentions, there are a number of precautionary methods and strategies that business owners and managers, and other industry professionals in WS can use to better protect their businesses from suffering in ways similar to how they may have during the onset of the COVID-19 pandemic.

  “The first step every business in the WS industry should take is to implement more actionable mea

sures in planning their business strategy,” Jay says. “Start by taking a look at what types and quantities of grapes you have coming in, what bulk wine you have in the tank, your total count of bottled finished goods, and become intimately familiar with your sales run rate: if you know those 4 things, you can plan out your business very well and forecast what your business should be focusing on acquiring in order to avoid jamming up your supply chain.”

  For example, if your winery business finds that its sale run rate has slowed down, perhaps the winery needs to look at selling its bulk wine (wine in barrel or tank), or perhaps can temporarily focus on committing fewer grapes for an upcoming vintage. However, once any particular wine has been bottled, that’s it, which is why Jay says to avoid bottling your inventory until you know what your sales run rate is and how it directly impacts your business. While selling out of a certain inventory item can sometimes be a boon for your business, not selling enough can cause inventories to back up, alerting you that your business will need to discount other items and sell that portion of your inventory faster in order to get back into balance.

  A second method WS businesses should consider, according to Jay, is to revisit and revitalize their plan regarding capital management, or the funding of their business initiatives as they pertain to the needs of a business’s financing or cash flow.

  “Most business owners and professionals in the industry want their business to grow,” Jay adds, “but don’t realize how much money they need, especially regarding the lead time required for fine wines and of many products in the industry as a whole, especially aged beverage products.”

  Indeed, as Jay explains, it can often take one year for most white wines and Pinots to be made and bottled, as well as 2-3 years on average for wines like high-end cabernets. Most red wines can take anywhere between 12-30 months to properly process in-barrel and add to their in-bottle age time from Grape to Bottle. This, of course, takes cash, which is why planning your capital budget is just as important as your sales plan.

  By carefully considering these crucial factors to any business in the industry, Jay explains that they can be better positioned to survive in the face of the next inevitable threat the industry will face in the years to come.

Trends in Wine Packaging

Follow Consumer Awareness, Expected Use & Material Availability

beer beverage in a grocery stall

By: Gerald Dlubala

Statistics prove that a well-designed, eye-catching package can set the tone for consumers’ perception of a product’s quality and desirability. But with all the different wine packaging options available, how do you know which is the right one for your wine? Demographics and the corresponding lifestyle can heavily influence your packaging choices. By recognizing your preferred market segment, you can choose the most appropriate product packaging to enhance shelf presence and heighten your product’s perceived quality and desirability.

  Glass remains the overall preferred choice because of its ability to hold the wine’s intended sensory applications better than the alternatives, sometimes up to twice as long when compared to plastic options. In addition, glass can be molded into endless eye-catching, distinctive shapes and sizes, making it accommodating for different uses down to single-serve glass bottles, presenting a modern premium feel and look. Alternative and more innovative designs might feature Stelvin, or cork finishes on the bottle.

  Single-serve wine packaging has grown due to the pandemic and continues, including single-serve cups and goblets, plastic bottles, cartons, aluminum cans and anything else that offers convenience and transportability.

  Cork for use as a closure remains strong due to being an original and traditional choice, now enhanced by improved and more cost-effective technical corks. Aluminum screw caps and plastic dispensing closures on some current packaging present the opportunity for resealing and recycling.

  Ultimately, containers and bottles that are aesthetically appealing and fit a consumer’s lifestyle are the products that will cause them to stop, take notice and pick up the package. Consistency in using that same packaging will build consumer loyalty and recognition of your products in the future.

Using Packaging Options to Appeal to the Consumer

  Alcoholic beverages rely on packaging to maintain the integrity of the content’s chemical composition. For example, packaged wine must maintain the intended aroma, flavor and appeal. Glass keeps the chemical composition intact and has no chance of reacting with the alcohol. Additionally, colored glass adds a layer of protection against changes due to light exposure.

  “Glass goes as does the economy,” said Bradley Tucker, Vice President of Sales for Encore Glass. “When the economy gets tight, companies look to cut costs. Unfortunately, it’s common for packaging to take the hit, whether switching to lightweight bottles, choosing more cost-effective labels, or changing shipping methods. Our shippers remain popular because they are cost-effective, lightweight and stackable, made from 99% recyclable materials, and are themselves 100% recyclable and biodegradable. We also distribute custom printed boxes, decorated bottles and custom molds to meet specific customer needs.”

  Tucker said that all current packaging options have their place and purpose. Still, he believes glass will always be the preferred choice, especially when bottling premium wines. “Glass provides an extended shelf life, providing a premium touch and visual aesthetic without changing the taste, aroma or overall quality of the wine inside. We see increased use in the smaller 375 ml bottles. And the smaller, single-serve bottles are another way to appeal to customers who love wine but drink it only occasionally or want to avoid waste. Honestly, the bigger issue in packaging right now is supply. Like everything else right now, supply channels are difficult to maneuver. It’s a constant battle just trying to get the amount of glass needed, and it’s not going to get better anytime soon. Again, it’s a global issue. Orders that used to be ready in three weeks might now take six to nine months, so some winemakers are just going with what they can obtain.”

  When asked if the glass shortage may be driving some producers to choose aluminum packaging, Tucker told The Grapevine Magazine that it might be accurate, but aluminum distributors are going through the same supply difficulties as everyone else.

  “The most important thing to do is choose a packaging supplier that also can provide a type of supply insurance. Encore Glass fulfills your order by offering great selections of glass bottles, expert preparation, and a commitment to get your bottles to you when you need them.”

Aluminum Brings Versatility into Focus

  Like glass, aluminum is a solid and cost-effective choice for overall packaging effectiveness and performance, but similar difficulty in sourcing can be an issue. Aluminum offers convenience, recyclability, maximum portability and, in some cases, the ability to be resealed. Canned wines gained popularity and broader acceptance during the pandemic and continue to be favored by following the successful methods pioneered by canned cocktails and seltzers. Aluminum is easy to handle and customize with uniquely designed sleeves for shelf appeal and is perfect for occasions where glass containers are not allowed or practical. In addition, aluminum packaging is much lighter to ship and can ultimately help cut price points on wine.

Polyethylene Terephthalate and Plastic Find a Niche

  The pandemic brought on the idea that consumers would more frequently look to purchase and drink wine at home. To support this, wine companies looked to offer minimal contact accessibility, and plastic provided a solution.

  Garcon Wines acted on that new dynamic, finding that traditional bottles used in the wine industry no longer fit the dynamics of how and why most wine is purchased and consumed. With the growing belief that the existing carbon footprint of wine is unsustainable, they developed a 100% recyclable, 750 ml, flat Polyethylene Terephthalate wine bottle. It is designed to fit through mail slots and is manufactured from 100% food-grade, post-consumer recycled PET, saving energy and weight.

  When compared to the traditional glass bottles, they are 87% lighter and 40% smaller spatially. The flat bottles are a little taller than standard bottles and are stackable to save space. The taller profile helps them stand out and be a little more noticeable on a retail shelf. They pack tightly into shipping cartons without additional packaging, better utilizing the space on a standard pallet. Fewer deliveries are needed, and with more efficient loading and unloading times, the savings add up.

  However, under 30% of PET containers are recycled in the United States, so good intentions aren’t producing the proposed results. In 2023, Bacardi will begin using novel plastic for their containers that use seed oil rather than crude oil. The biopolymer bottles are made by fermenting canola and other seed oils that biodegrade within 18 months in any environment containing microorganisms, including compost bins and fresh or saltwater.

Alternative, Sustainable and Eco-conscious are Trending

  Packaging trends are moving towards more eco-friendly and sustainable options, thanks to shifting consumer ideology. Winemakers have found that the key to storing their wines in alternative containers is providing a tight seal. Among these options, boxed wines have been the most popular and recognizable, opening up new possibilities of how and where wine is consumed. Although it’s still a small segment compared to other packaging choices, bag-in-box wines are attractive to those who shop less and want to enjoy an occasional glass of wine at home without worrying about spoilage and waste. The inner pouch removes the need for glass, and the box shape makes them easy to store, transport and use without the chance of breakage. Additionally, they can offer a better price point, modern look and shelf appeal to consumers looking for more thoughtful, eco-friendly and sustainable options.

  With the pandemic driving consumers to drink differently and more often, boxed wine allows them that opportunity, staying fresh for six weeks after breaking the seal. Consumers continue to value convenient and lifestyle-friendly products—boxed wine answers that demand with a 2.25-liter box that perfectly fits a refrigerator shelf, saving space and offering on-demand accessibility.

Bag-in-a-bottle: a Paper Bottle

  Bag-in-a-bottle is an option for consumers who want all of those eco-friendly benefits but still yearn for the traditional bottle. Like the bag-in-box, the outer container is recyclable paperboard fused with water-based glue and molded with heat and moisture into a more conventional wine bottle shape. It is five times lighter than glass and is resistant to spillage, humidity and breakage, with a 12-month shelf life. Proponents believe a time will come where the paper bottle molding unit would be available for use on-site or near the winery for on-demand bottling. Five times more paperboard blanks than rigid bottles can ship at once wherever needed to be assembled and filled.

Return and Reuse: the Good Old Days

  Because only a little over 30% of glass wine bottles get recycled in the U.S., some distributors want to revisit the bottle deposit and return practice for use with wine bottles. The idea is that each glass wine bottle could be reused up to 10 times, allowing the consumer to experience the traditional and romantic experience of wine in a glass bottle while being eco-conscious. In addition, this practice hopes to appeal to those that still want to please those guests that are not comfortable with bag-in-box or canned wines. This business model would issue digital credits to distributors for returned bottles and help the winemaker build loyalty, communication and marketing contacts with participating distributors. The plan is to have the returnable program in thousands of venues, natural wine shops and participating big box stores in 2022, as a three-month pilot program in New York saw an 88% success rate.

  “Encore Glass started their business by sterilizing and recycling glass wine bottles to have an encore use, but with all of the current bottle shapes, sizes and custom structures, it would be nearly impossible to continue on a broad scale,” said Tucker. “I would have doubts about the feasibility of the program, including the willingness of consumers to continue long-term participation.”

Match Packaging to Consumer Awareness

  Creative packaging has always been one of the best and most effective ways to help a brand get noticed in a crowded market. But consumer awareness of a winemaker’s story combined with convenient options in packaging has never been more vital. Over half of consumers are committed to buying from sustainable brands when possible, and they are searching for more responsible behavior from the vineyard through the retail channels. Matching these behaviors with responsible packaging will help winemakers successfully differentiate their products and fuel their brand’s growth in today’s market.

The Importance of Review Sites

By: Susan DeMatei 

We all have a love/hate relationship with online reviews. We get angry when someone points out our flaws on Yelp, but we look for multiple reviews when considering something on Amazon. 

Four Reasons You Should Care About Online Reviews 

  Let’s start with your consumer. Chances are, if you’re a winery and you’re selling mid-priced wine, your consumers fall into the Baby Boomer and Generation X demographics. (The 2021 Silicon Valley Bank reported that Boomers and Gen Xers account for 71% of wine consumption.) 

  However, this won’t be the case for long. If you consider the SIZE of each generation, Baby Boomers are aging out, and GenXers aren’t that big of a group of individuals. The oldest Millennials turn 40 this year. So very soon – as in the next five years – our targets will be Millennials. 

  The shift is significant because of the vast difference in values between Boomers and Millennials. Boomers are the responsible generation and did what they could to justify purchases with tangible data like scores. They also liked outward recognition and status to validate that they made the right decisions. Millennials, on the other hand, tend to look for a purpose or meaning behind their products. Ideally, they search for companies and products with detailed backstories that offer intrinsic value to make them feel good about themselves and the purchase. And they care about what their cohorts think.  

  So, over the next 5-10 years, we will witness a massive shift in marketing, and one of the major transformations will be in the area of influence.  While today’s wine consumers are widely influenced by the established press or reviews, the consumers of tomorrow care about what peers say – even if they’re anonymous peers. 

  The second compelling reason is the sheer number of review sites and our reliance on them for purchase validation. It’s already evident that we’re groomed to look for ratings and reviews before we buy. Here is a brand-new ranking of the top 10 review sites based on searches. You can see here that these sites get millions of views a month.  

Vendista Chart

  A third reason to care about online reviews is Google. Reviews appear in, and help, Google search ranking. And incidentally, they also appear in search results by Alexa in voice-search. The number and quality of your reviews directly contribute to, or inhibit, people’s ability to find you and your products.   

  The best strategy here is to harvest Google reviews. Google supports Google. Google wants you to use its tools. So, it makes sense that Google cares if you have your Google My Business Page set up and that you’re collecting reviews. In addition to nepotism, it’s good business because Google will see that you’re a valid business and will have more credibility returning your company and product in search results. 

  The fourth reason you should care about review sites is because your customers care about review sites. 92% to 97% of customers look for or read a review before doing business with a company. 80% of us trust reviews by strangers just as highly as a reference from our friends. 72% of us look for only positive reviews, and 86% will not do business with those with negative reviews. (Clutch.co) 

  And it is surprising how quickly comfort levels fall when you go from five to one-star ratings. 94% of us will use a business with a four-star rating, but only 14% will consider a two-star rated business. 

  My advice is to be familiar with what people say about you. Search your brand. Know where you and your wine show up and what feedback you’re receiving. 

Tools to Help 

  Ok, but how can you efficiently monitor all those online review channels. Especially when you already have your hands full trying to run your business’s day-to-day without scouring Yelp and Google for new posts. Fortunately, there are some reputation management tools you can use to help out. 

  The easiest tool for tracking any mention of your company or product online is Google Alerts. This is a free search that lets you create daily alerts for any mentions of your brand online. Enter the name of your brand or product in the search bar to see who is talking about you. Then you can create a constant alert to get results emailed to you. The downside is it can be tough to filter the information out in an intelligent way. For instance, when I worked with Opus One, I was reminded daily how many products and companies contained “Opus.” That said, it’s a free, easy tool. If you’re a small winery on a time crunch with a limited budget, Google Alerts is worth your time. 

  ReviewPush is an excellent tool if you do have a small budget and want to take it one step further. With this service, for $89 a month you can create alerts for over 20 different review sites and have them sent to your inbox. Even more timesaving is a feature that allows you to respond direct to reviews from within those email alerts. This alone might be worth the cost. You can also involve an extended team with distributed reports and access to dashboards. So if you have multiple players in your tasting room or wine club, this might be an efficient way to have the entire team monitor and response quickly.  

  There are many other tools in this space that also fall into reputation management. So in addition to looking at reviews, they can monitor what anyone is saying about you on social media platforms like Facebook and Twitter. These are pricier options and typically involved working out your needs with a sales rep. 

  So hopefully this gave you some incentive to include reputation management as part of your marketing strategy, and some tools to help. In the next article we’ll talk about how to work with your tasting rooms to request reviews – it’s not as scary as it sounds. But until then, start to pay attention to where your customers are trying to communicate about you. Start thanking and replying to them if you aren’t already and take the view that feedback as gift to help you improve and delight future customers. 

  Susan DeMatei is the President and Nathan Chambers is an Account Director at WineGlass Marketing, a full-service direct marketing firm working within the wine industry in Napa, California.  www.wineglassmarketing.com

Ways to Help Promote Your Venue

It is important now more than ever to promote your winery to both potential clients and other industry professionals.  Promoting your winery in your community can increase your exposure and bring in more business.  We’ve put together a list of a few ways to reach out to potential clients and partners in your community.   

5 promotional ideas 

  1. Join business organizations and networking groups.   

By joining local organizations such as the Chamber of Commerce, the Visitor Bureau and other business groups in your area, you can attend events and meet other business owners. This gives you the opportunity to start developing important networking relationships that can lead to more business. You can host an after-hours event at your venue for members of these organizations to showcase your space and offerings.  

  1. Invite executives to visit. 

Invite leaders at corporations and small businesses to visit your venue. On the invitation, highlight your venue has ample space and is equipped for luncheons, company parties, team building, and meetings. Host a networking luncheon for these executives, so they can learn more about your venue while also meeting other leaders in the community.  

  1. Be part of organizations where you can share your expertise. 

Seek out organizations such as Events in America and join conversations. You can self-publish an article regarding relevant industry information for venues. You can then share it on your website, in your email newsletter and on social media. This increases your credibility and positions you as an expert in the venue arena.   

  1. Partner with convention centers and exhibit halls.  

If there are convention centers, exhibit halls, museums or other venues that hold large trade shows and other events in your area, develop a relationship with key leadership at those places. Find ways you can host an off-site luncheon, dinner or after-hours event at your venue for attendees of events held elsewhere. You can even suggest catering for the event.  

  1. Hold an evening for event planners.  

Establishing relationships with event planners can propel your business forward. Event planners can be your key to booking more events. Invite the top event planners in your area to experience a night in your space. At the event, give tours of your venue, present live cooking demonstrations, offer wine and specialty drinks, serve dinner and provide a delectable dessert bar.  This evening just may be a catalyst to future conversations with event planners and possibly lead to you becoming a preferred venue for many of them. 

We hope these tips help you attract more clients to your venue who should also think about event insurance.  

Markel® offers event liability insurance to hosts and honorees, providing coverage such as property damage to the venue or injury to a guest. Up to $2 million in event liability insurance can be purchased by your client from Markel any time at least 1 day before the event. Policies start as low as $75.   

By offering Markel Event Insurance, it will not only help protect your clients, but it can also help protect you by potentially decreasing your own business liability risk for accidents due to negligence of the event host or honoree. Markel Event Insurance is an easy and affordable solution for your clients – a free quote takes only a few minutes online or on the phone – turning you into a one-stop-shop for your clients.  

To learn more, please visit markelinsurance.com/event or call 1-855-480-9757.  

This document is intended for general information purposes only. The content of this document is made available on an “as is” basis, without warranty of any kind. Markel does not assume any obligation to update any information herein, or remove any information that is no longer accurate or complete. Furthermore, Markel does not assume any liability to any person or organization for loss of damage caused by or resulting from any reliance placed on that content. 

Coverage is underwritten by Markel American Insurance Company and policyholder services are provided by the underwriting manager, Markel Service, Incorporated, national producer license # 27585, in California d/b/a Markel Insurance Services, license # 0645481.  Terms, conditions, and exclusions apply.  Insurance and coverage are subject to availability and qualifications and may not be available in all states.    

© 2021 Markel Service, Incorporated.  All rights reserved.   

In Defense of Describing Wines as Masculine, Feminine, and Sexy

Neal D. Hulkower

Except for my own personal use, as a favor to a friend or colleague, or to satisfy a requirement for a gig, I eschew writing wine tasting notes. Consequently, I dismissed Vicki Denig’s rant against alleged sexist terms on wine-searcher.com on 20 October 2020 (https://www.winesearcher.com/m/2020/10/time-to-kill-gender-stereotypes-in-wine) as yet another misguided lunge by a hypersensitive. But when it became the subject of an entire session entitled “Term Exploder” on the first day of the Symposium for Professional Wine Writers (WWS21, held via Zoom from 10 to 12 May 2021), my reverie was disrupted, and I was rudely awakened. The cancel culture has seeped into the world of wine writing. In response, I took to the chat to offer a different perspective.  I offer this rebuttal based on the position I put forth in that chat.

At the start of the session, the panelists were asked to “Explode this Tasting Note”: “A wine of great breeding, the XXXX bursts from the glass with sweet smells of black currant, pain grille, and exotic spices. Masculine on the palate, with a sexy core of rich, dark fruit supported by a lingering acidity. Has the potential for medium to long-term cellaring and would pair well with almost any stewed meat dish. A serious wine for the collector set and a fine example of the varietal.” Almost every adjective and noun pushed someone’s buttons, with “masculine” and “sexy” singled out for extensive condemnation. Who knew the path from wines to lines could be so fraught?

This session elicited responses from two admittedly more notable wine writers. In her article, “The evolving language of wine” (https://www.jancisrobinson.com/articles/evolving-language-wine), Jancis Robinson writes: “I guiltily did a quick search of the 200,000+ tasting notes published on JancisRobinson.com since 2000 and – sure enough – found 192 masculines, 147 feminines and 37 sexys, although many of them were quotes from producers, or were preceded by the get-out ‘stereotypically’.”

Without an ounce of guilt, I decided to scan through my 450 notes on wines I sampled between 1969 and 1979.  I found three that contained “feminine” and none with “masculine” or “sexy.”  (More on how I’ve been making up for this omission lately below.) Here is part of my description of a 1962 Château Margaux that I tasted on 2 October 1977: “… Lovely medium deep elegant mature color. Flowery perfume – vegetable bouquet prominent at first – with air – nose becomes better balanced – flowery, fruit, herbal. Delicate flavor – flowers and fruit fade rapidly into a lovely long finish. Very feminine. Overpriced [at $27.50 less 10%, mind you], but interesting…” My reaction to a 1967 Corton “Hospices de Beaune” consumed on 12 January 1976 concludes with “A very pretty, feminine burgundy.”   And then there is a 1970 Gevrey Chambertin sampled on 7 November 1975: “…Light, elegant well balanced taste – very feminine taste.” Decades after they were written, these records of wines help me recall the experience of drinking some truly exceptional bottles.  Until recently, I would engage in a parlor game with my dinner guests and ask them to read a description I had written decades earlier to see if I could recall which wine it corresponded to.  Gender terms are among those useful in stimulating such memories.

W. Blake Gray blogged his reaction to WWS21 under the heading “Professional wine tasting notes are for the reader, not the writer” (https://blog.wblakegray.com/).  A long time hater of sessions on tasting notes, Gray offered a two-part rant focusing on the purpose of describing a wine in words. While I appreciate his complex and nuanced arguments, I take issue with the following: “Nobody should call a wine ‘masculine’ or ‘feminine’ in 2021 because nobody knows what that means anymore; half the women in San Francisco can kick my ass, and the other half say, ‘What do you mean, only half?’”

I certainly have no trouble knowing what masculine and feminine mean in the biological sense and have an unambiguous notion of what I mean when describing wines with these terms.  Also, there are plenty of wine terms being used that have no universally recognized meaning. For example, consider the pervasive “minerality” which carries with it the additional absurdity that rocks have taste or smell. Instead, what we are doing here is using the terms as metaphors which can evoke memories of similar tasting experiences.  They are certainly not intended to be offensive or to be in any way exclusionary. The latter was the justification given by the panelists for retiring these terms without any evidence, anecdotal or statistical, that folks are traumatized by their use.  Certainly, men enjoy wines described as feminine just as women enjoy wines described as masculine. In an inane conflation, Denig advises: “Next time you’re tempted to use a gender-focused tasting descriptor, think about how you would react if someone characterized a wine as ‘white/Black’, ‘gay’, or ‘elderly’ on the palate. If you’d find any of these terms offensive, then imagine how some of us men and women feel.” I’m sorry, I simply don’t buy into this comparison and even find it offensive.  

I remain unchastened. In fact, I have since increased my use of these terms and even found a way to acknowledge those who have not made up their minds which sex they are.  At one of the tasting rooms in which I pour, there is a wine that naturally lends itself to being described in gender terms. It is a lovely pour that starts masculine, i.e., rustic and funky, then gets in touch with its feminine self, exuding floral and perfumed aromas, before returning to show its more macho side. This single vineyard Pinot noir is a shining example of a gender fluid fluid! Far from offending visitors, my characterization is appreciated, revelatory, and even endorsed.  No one has pushed back, and sales are good for this higher priced bottle.  Denig made this offer to those who might be offended:  “Next time a winemaker, tasting room employee, or sommelier uses a gender-focused descriptor, feel free to check them. Or send them my way.”  I look forward to her call.

“Sexy” also came under attack.  One of the WWS21 panelists termed it awkward. But once again, these PC word police have arrogated the responsibility to purge the language of descriptors that they deem inappropriate without offering any evidence of the need to do so beyond their feelings or the feelings of those they seem to want to represent. But since “sexy” is used to describe a particularly alluring or seductive bottle without any reference to the various facets of the act like who, how many, what, what kind, where, how often, and with which parts, the word should remain in the lexicon of terms.  One is free to ignore the term or use his or her imagination to personalize its meaning.  “Slutty” also came up and in the heat of battle, I agreed in the chat that this was an unacceptable term.  I hereby withdraw my objection.  I have in fact had wines that were overly generous and a little too eager to please.

Like Denig, the same panelist who had problems with “sexy” labeled “masculine” and “feminine” “lazy cliches,” and was joined by his fellow scolds. But like all imprecise descriptors, really the preponderance of those used for wine, they are merely suggestive and can elicit memories of similar wines. If you want to attack a term for being lazy, look no further than the afore mentioned “minerality,” the pandemic use of which has led Alex Maltman, a noted Welsh geologist and winegrower, to produce a stream of articles and a book to set straight the record.  It is also a term for which there is no consensus definition. Everyone seems to acknowledge, and science provides solid evidence that one’s perception of wine is subjective. Compound that with different cultural references and experiences and no one can expect anyone else’s tasting note to precisely reflect his or her perception. Furthermore, tasting a glass of fine wine over a period of time is like dipping your feet into a stream.  It is never the same moment to moment.  

And what about wine scores?  Despised by many but used, nonetheless.  Even WWS21 keynoter Jancis Robinson expressed her disgust with them yet still assigns them. As an applied mathematician, I regard scores as a most egregious form of number abuse ironically referenced with reverence by innumerates!  Should I start a movement based on my bruised sensibilities to ban their use? Better to simply ignore them.   

While free speech is a precious right, there is no inalienable right not to be offended, especially on behalf of unnamed others.  As such, I am not particularly interested if you find my terminology lazy, inappropriate, non-inclusive, or dated.  It works for me and likely others who use it or resonate with it. If you can’t stand the reference, take heart, many of us are boomers who are slowly leaving the wine scene. I hate tasting notes anyway. What these verbal prohibitionists are advocating is a one size fits all version that will certainly make them so diluted that they become even more useless.  Nevertheless, this free speech absolutist welcomes all voices in wine writing and believes that all should be heard…including mine.

Now go ‘way and let me nap.

Balancing Budgets As Tasting Rooms Re-Open

By: Susan DeMatei

We’ve been waiting, and it’s finally here – tasting rooms can finally open for many of us. But 2021 began as 2020 ended, with much uncertainty as to when a significant revenue driver – tasting rooms — will open. And when they do open, how quickly will customers feel comfortable enough to visit in pre-COVID numbers?

  In the meantime, eCommerce and club sales are still growing exponentially. Please don’t walk away from this new channel but continue to invest in it.

  To take full advantage of all that you’ve achieved while your tasting rooms were closed, wineries should continue to use part of their tasting room marketing budgets to augment brand awareness, virtual experiences, and eCommerce marketing in the online space.

How Much?

  According to a survey done by cmosurvey.org last year, most companies budget between 6.5% and 10% of their revenue to marketing, making up about 12% of their total operating budget. In June of 2020, they revisited this survey to evaluate the impact of COVID. It showed that the 8.6% average marketing had jumped to 11.4%, reflecting the focus on maintaining brand awareness and retaining customers. (This figure fluctuates between B2C and B2B and by category, with consumer marketing in the service are being the highest. Wine would fall under consumer package goods at 9.1% in the survey.

graph showing marketing spending as percent of company revenues by industry

  Ok, so if your revenue goal is $1,000,000, you should expect to spend roughly $91,000 on marketing. But this is the entire category, including headcount. Plus, companies are not consistent with what they consider marketing. So, how do we break this down?

  You can find research like this CMO survey online from firms like Gartner, Forrester Research, and eMarketer, which poll various titles and industries to find averages. In general:

•    Roughly 26% of budgets are allocated to technology (platforms, CRM, Mailchimp, etc.)

•    16% of budgets are spent not selling but improving customer’s experience, either virtually or in person. This is expected to increase to 20.6% in the next three years.

•    Depending on the study you look at, anywhere from 26-62% of marketing budgets are dedicated to online channels, with search engine marketing (Google ads) being the largest share of that followed by social media advertising (which has increased 17% in the last five years)

•    And it is noted that while it doesn’t cost a lot, email marketing is the winner of the ROI question in every study.

  This chart, also from cmosurvey.org, shows how companies are shifting to digital growth and away from traditional (print and broadcast) channels. Since 2012, investment in conventional media has dropped by single digits, while investment in digital channels has increased by double digits.

changes in traditional vs digital marketing spend

But What About My Budget:

  It takes some math to calculate how much you should spend on digital media.

1.    First, look broadly over your eCommerce data in Google Analytics. Look at acquisition data to understand what is working best to drive traffic to your website. If you know-how, set up a funnel to your shopping cart so you can look at what is driving sales.

2.    Additionally, look at platforms you might not be using, but can quickly get your boss the data to support their value online, i.e., Google Search or Display ads.

3.    Decide your geo-targeting and geolocation. Costs per platform vary dependent on the specificity of your targeting and geolocation – gender, age, interest, occupation, education, geography.

4.    Project your return on investment based on your average click-through rate, conversion rate, and order value.

 

lead gen "join the mailing list" campaign

For example, we are running “sign up for the mailing list” ads on Facebook for this client. Based on our averages, we know that if we spend $175 in a month, we’ll reach out to 2500 targets and see a 2.8% conversion rate to add 70 names to the list.

By tracking our signups, we also know that it takes about 2-4 emails and 90 days for them to buys something. We also know that our conversion rate is 5%, and our average order value is $200. We can project 14 orders by month four with a return of $2800 (and a spend of $700). Plus, over time, the list and sales should grow exponentially.

table showing conversion sample

Conclusion

  Whether your tasting room is open or not, the future is digital, even for those wineries with an established local customer base.

  Some of the best practices of wineries successfully driving significant revenue online are:

•    Lead generation focus and follow up with personalized communication.

•    Analyze your data to map the customer journey for every new customer.

•    Use video to get attention.

•    Promote events and experiences (IRL or virtual) digitally to draw in new customers both locally and, more importantly, from broader geographic locations.

  So, put your tasting room budgets and efforts to good use this spring. But don’t forget about all you’ve achieved with your digital tests over the past year. Leverage the online investment and continue to nurture all channels, regardless of your tasting room opening.

Post-Pandemic: How Small Wineries & Vintners Can Get Back to Business, Better!

people toasting with wine glasses

By: Rod Hughes

Wildfires, faulty tanks, flooding, a pandemic, lockdowns, water shortages, tornados, tropical storms – the past two years have been, in a word, biblical in terms of challenges faced by vintners and winemakers.

  However, like the rest of the U.S. economy, there are signs of positivity on the horizon. Pandemic restrictions are loosening, and Americans seem eager to travel and resume their former leisure activities. This includes touring wineries as well as resuming their search for those great bottles to share with friends.

  This reality presents both opportunities and challenges to those in the winemaking industry.

  The challenges are not inconsequential: Northern California wineries faced savage wildfires in 2017, 2019 and 2020, leaving many around the country with the impression California wineries were irreparably harmed. In parts of Maryland, some wineries are still trying to put the pieces back together after Tropical Storm Isaias last summer. And let’s not forget the pandemic shutdowns, limited capacity re-openings and economic pain felt universally across all wineries. 

  However, the opportunities for those that made it through may be just as powerful.

EAST COAST SOLUTION

  One example is Old York Cellars Winery in Ringoes, New Jersey. Shutdown in March 2020 like much of the country due to COVID-19, owner David Wolin — a former attorney — gathered his staff and brainstormed.  (Photo: David is 3rd on the left)

  “We knew what we couldn’t do, and it was a lot,” Wolin explained. “The question was what could we do in this new environment?”

  Wolin and his team quickly turned to one of the major challenges for independent wineries: direct shipping to consumers.

  Winery direct-to-consumer shipping is legal in 47 U.S. states, each of which regulates its own system. Regulations, taxes and various packaging requirements can vary. However, Wolin and his team had time on their hands (they would reopen, albeit under strict New Jersey Department of Health restrictions, with limited capacity in June 2020). So Wolin put his legal training to work and secured approval to ship his Old York Cellar wines to 15 other states as well as Washington, D.C.

  In short order, he found a niche market and started shipping wine as far as California and Oregon. Much of the direct shipment was coupled with virtual wine tastings as customers reached out from all over the U.S. looking for creative ways to stay connected with friends and family through virtual activities. By the end of 2020, Old York Cellars experienced a 545 percent increase in online sales and swung from an early 2020 revenue loss of more than 70 percent to end the year up by 13 percent overall.

  For this New Jersey winery, its pandemic recovery began when it took on one of an independent winery’s biggest sales obstacles and found a way to turn it into a success.

WEST COAST SOLUTION

  Another example of finding opportunity amid challenge is Healdsburg’s Longboard Vineyards in California’s famous Sonoma wine region. Like Wolin in New Jersey, Longboard’s Head of Hospitality Heidi Dittloff and Oded Shakked, the owner and winemaker, had to reinvent the business following the March 2020 shutdowns.

  “We were at a stand-still, like a lot of businesses at that point, trying to figure out how to stop hemorrhaging cash while also looking for new revenue sources,” explained Dittloff. Like many pre-pandemic wineries, Longboard’s online sales were only between 1 and 3 percent of its annual revenue.

  “Of course, looking back, ecommerce seems like the default route. Just take your sales online. Simple, right? Um, no,” said Dittloff.

  Like many small wineries, outdated software and robust websites tailored for ecommerce sales had not been a priority. Before COVID-19, it could take shoppers up to 10 clicks to purchase a bottle of wine on a typical small winery’s website. In the age of Amazon’s One-Click mindset, that’s nine clicks too many.

  Dittloff’s solution was to re-examine the sales funnels for Longboard.

  The majority (more than 70 percent) of sales for most wineries before the pandemic came from three areas: tasting rooms, wine clubs and wholesale. The shutdowns and later limited capacity requirements of 2020 effectively took in-person sales off the table, as wholesale transactions dipped temporarily. Pivoting to touchless curbside pick-up and leveraging their wine clubs helped, but the key to surviving was replacing the lost tasting room sales funnel. Longboard accomplished this through what Dittloff called “data hygiene.”

  This meant closely examining all consumer data available, understanding new buyers versus pre-COVID buyers, and designing offers that matched buyers’ needs. To do this well, Longboard also had to reinvent its website as well as completely overhaul its shopping cart to create a more user-friendly environment that limited clicks, provided buyers with their order history and created stunning visuals. This also meant updating the winery’s Point-of-Purchase system.

  “None of this was cheap,” Shakked noted. “But it was either invest or vanish because no one knew back then how long the pandemic shutdowns would last.”

  With improved customer reach and systems tied to aggressive outreach on social media to bloggers and area businesses, Longboard grew its online sales from 1 to 30 percent of its revenue, replacing nearly all of its lost tasting room sales. The key to growth in 2021 and beyond, said Dittloff, is to maintain those online sales as restrictions ease and the tasting room business returns.

  “There’s a lot of opportunity for wineries like ours to come out of this pandemic stronger than when it began,” said Shakked. “Pursuing those new sales funnels and making better, smarter use of data will be critical to that future growth.”

ONGOING SOLUTIONS

  For many independent wineries and vintners, undertaking the paperwork headaches, sales tax collection and reporting, as well as the logistics of shipping wine to dozens of other states, is too heavy of a lift. For some, so is a complete overhaul of its web, ecommerce and POS systems.

  This is where a solid communications strategy can play an integral role in helping independent wineries rebound from both the pandemic and all that came before it.

REINVENTION

  One early and likely ongoing solution that will continue to be needed is the reinvention of outdoor spaces. Despite re-openings, some customers aren’t going to be completely comfortable going back indoors. This means, especially for the purposes of enticing wine club and other regional customers, developing seasonal or quarterly “makeovers” of outdoor spaces. While the upfront costs and sweat equity can be considerable, they can be recouped through a thoughtful email and social media campaign promoting the spaces. Done well, these reinvented spaces can present customers with something new or different to see several times per year while also purchasing your wines.

  Old York Cellars has done this successfully, creating a Winter Wine Village on its 28-acre property in late 2020 and early 2021, complete with decorative cabanas, high-end fire pits and posh outdoor furniture. A tented “Spring Wine Village” offers a similar vibe at Old York Cellars with a focus on new views, a dining menu and a return of outdoor entertainment, as well. Cana Vineyards & Winery in Middleburg, Virginia took a similar approach, creating 10 cozy fire pit areas on the lawn overlooking its 43-acre property and nearby mountains. Patio heaters on the winery’s outdoor decks and front porch created warm winter spaces along with ceiling heaters and an outdoor pavilion with stunning stone fireplace. S’more kits were also available for purchase.

  By mixing up the outdoor experience for customers, small wineries can offer something fresh and new for regional customers, road-trippers and wine club members to bring them back. These outdoor makeovers also present opportunities for email marketing and public relations to introduce customers to a remodeled venue as well as special offers.

A COLLECTIVE VOICE

  Additionally, small wineries should closely examine working with their local grower’s associations and/or chambers of commerce to come together with a single voice on their industry. Consumers are likely to remain unsure of what is and isn’t possible with travel and tourism businesses for some time. Using a collective voice to let travelers know that area wineries are open for business is key.

  Partnering with other business or marketing associations can also reveal additional opportunities for wineries to grow their way out of the pandemic and its economic challenges. A great example of this type of partnership is the collaboration of the Napa and Sonoma wineries working with LuxeSF, a B2B partner network comprised of sales and marketing professionals focused on luxury marketing in the Bay Area. As recently as April 2021, LuxeSF hosted a panel of small wine producers to talk about what happened in their industry in 2020 and offer tips and best marketing practices going forward for independent vintners.

MAINTAINING THE PULSE

  Surveys, of course, are an ideal way to stay connected to winery customers. They have the added value of not being seen as an overt sales tactic. Not only can these surveys help to keep small wineries top-of-mind, but they can also be great tools for gauging customer sentiment and crowdsourcing ideas as the country reopens. For instance, a survey about how customers might feel about a “garden party event” this summer or fall is a great way to gauge how to best address the potential use of masks as well as possible turn-out.

  Surveys about continued virtual tastings, satisfaction with prior wine shipments and ecommerce experiences can also provide vital insights into the continued strength and likelihood of these pandemic-induced sales channels.

BECOMING PUBLISHERS

  Finally, and this is a recommendation that should not be dismissed out of hand, wineries need to become content publishers.

  The world has changed, and we’re now in the experience economy. A consumer’s personal experience with a brand, service or winery can drive sales. And in a world where smartphones are ubiquitous and even grandparents are mostly on one form of social media or another, wineries need to feed consumers’ insatiable appetite for content.

  If wineries produce no other form of content (and they should produce a variety, just like their wines), it must be video. Video content should run the gamut, including tours of the vineyards, the first crush of the season, 3 to 5-minute video winemaker interviews on topics for aficionados, as well as casual tasting room tourists, 30-second event update videos and more. These videos should be shared across all the winery’s social platforms and promoted via email marketing and the website. Consumers are 37 times more likely to engage with a piece of video content than a newsletter, blog or long-form article.

  But that video needs to be brief and packed with good, non-sales information. They also need not be slickly produced. In fact, millennials and Gen Z consumers find simple smartphone videos to be “more authentic.”

  The pandemic is just the latest in a string of challenges to wineries, but it’s also likely to have one of the most profound and lasting effects on the industry. The good news is all wineries will have ample opportunities to rebound from this latest challenge, but it won’t be a return to normal or even a “new normal.” Rather, what comes next must be a new approach to how the business of wineries and vineyards are conducted and how they engage with their customers.

ABOUT THE AUTHOR  Rod Hughes is vice president and principal with Kimball Hughes Public Relations. A former journalist and frequent public speaker, he can be reached via email at rhughes@kimballpr.com or by phone at (610) 559-758

Demystifying Wholesale Wine Distribution

stock of wine

By: Becky Garrison

  At the virtual Oregon Wine Symposium held February 16-19, 2020, Jeff Lewis, Director of Education & National Sales, Revana Portfolio, and Colin Eddy, National Sales Manager, NW Wine Company, presented a seminar titled “Demystifying Wine Distribution: A Winery Toolkit to Help Build and Navigate Wholesale Distribution Across the United States.” They designed the seminar for winemakers looking to enter the wholesale channel for the first time, and those with existing distribution looking to expand their markets.

  Lewis and Eddy opened their conversation with a brief history of the 21st Amendment ratified on December 5, 1933, which repealed the 18th Amendment that launched prohibition. The 21st Amendment left it up to the states to govern the production and sale of alcohol. While every state has its own specific regulations, most stuck to the 3-Tier System separating producer, distributor and retailer.

  According to Lewis and Eddy, this 3-Tier System has multiple benefits. From a regulatory and educational point of view, this system ensures the safe handling of alcohol so that the final prod-ucts are safe for consumers. From an economic angle, this creates billions of dollars of local, state and federal tax revenue. The commercial benefits prevent a given winery from dominating the marketplace.

  Eddy said a key advantage of expanding into wholesale distribution is a daily representation of your brand. “You’ve got salespeople out there telling the story of your brand and letting custom-ers sample your wares. No one can be everywhere.”

  Distribution also ensures the ability to deliver products to licensed accounts in designated territo-ries and collect payment in accordance with state and federal laws so that both the manufacturer and producer get paid on agreed-upon terms.

  Another development that began in 2020 was a rise of online wine sales, with consumers pur-chasing bottles directly from a winery, a website like wine.com or an online service such as Drizly. Large wholesalers rolled out online purchasing websites that allowed retail shops, bars and restaurants to purchase wines online without the presence of sales representatives. “The les-son here is that people are comfortable having wine delivered to their home, and online platforms are getting future customers easier and safer access. That is something that’s going to continue,” Eddy said.

Achieving Success in the Wholesale Distribution Market

  Winemakers interested in expanding their sales should first ask themselves why they are inter-ested in wholesale distribution. “It’s important to remember you’re creating a whole new sales channel, and with that comes a whole set of variables,” said Lewis.

  Among those variables include how existing sales channels will interact with this new wholesale channel and how a wholesale distribution channel will impact the sales of wine clubs or winery-only wines. Is there enough wine in production to execute this plan?

  Lewis and Eddy broke down their approach into a toolkit designed to help winemakers achieve success in the wholesale distribution market. Their first recommendation is to review the current distribution landscape. Currently, there are 1,126 unique wine distributors across the U.S. In breaking down these numbers, 37% of these distributors reside in four states, with 141 distribu-tors in California alone. Also, the list of distributors continues to shrink and consolidate market share. Presently, the top ten distributors as follows: 

Southern Glazers Wine & Spirits

https://www.southernglazers.com

• 45 States

• 119 offices

• 1100+ wineries represented

•225 Oregon Wineries Represented (total U.S. market share 32%)

Republic National Distributing (RNDC)

https://www.rndc-usa.com

• 23 States

• 94 offices

• 1000+ wineries represented

• Major recent acquisitions in Young’s Market (2020) and Opici FL (2021) (total U.S. market share 19%)

Johnson Brothers

https://www.johnsonbrothers.com/suppliers

• 23 States

• 36 offices

• 430+ wineries represented California only

• 70+ Wineries represented (total U.S. market share 10%)

Breakthru Beverage Group

https://www.breakthrubev.com

• 16 States

• 40 offices

• 660+ wineries represented

Empire Distributors, Inc.

https://empiredist.com

• 4 States

• GA, NC, TN, CO 580+

• wineries represented

WineBow

https://www.winebow.com

• 22 States

•. 600+ wineries represented

• National Wholesaler R. Importer

Heidelberg Distributing Company

https://heidelbergdistributing.com

• 2 states OH/KY, 90+ wineries represented

• Services 26,000 retailers

Wine Warehouse

http://winewarehouse.com

• California ONLY

• 70+ wineries represented

Horizon Beverage

https://www.horizonbeverage.com

• 5 States

• Northeast Based

• 260+ wineries represented

Empire Merchants

https://www.empiremerchants.com

• New York only

  At present, there are 11,000 wineries, with 80% producing less than 5,000 cases a year. Another 16% of wineries are classified as small, producing 5,000 to 49,999 cases, 2% are medium pro-ducing 50,000 to 4,999,999 cases, and 1% are large wineries that generate 500,000 cases or more.

  Next, they said to explore what markets to target. An analysis of the desired markets will help determine which distributors would work best for those particular products you’re looking to sell. Where are people consuming wines, and which wines are they drinking?

  Along those lines, look at regulations in these particular states to assess if this is a market where it makes sense to enter at this junction.

  Presently, 13 states are one-price states. In these states, there’s no different pricing for restaurants or retail outlets and no quantity discounts.

•    Kansas,

•    Missouri

•    Oklahoma

•    Oregon

•    Virginia

•    New Hampshire

•    Utah

•    Idaho

•    Montana

•    New Jersey

•    Mississippi

•    Pennsylvania

•    Ohio. Also,

  Channel pricing is prohibited in 16 states. In these states, you cannot separate on- and off-premise pricing.

•    Kansas

•    Oklahoma

•    Virginia

•    New Hampshire

•    Utah

•    New York

•    Arizona

•    Washington

•    Idaho

•    Oregon

•    Montana

•    New Jersey

•    Mississippi

•    North Carolina

•    Ohio

•    Pennsylvania

  In addition, quantity discounts are restricted in Connecticut, Idaho, Kansas, Louisiana, Maine, Missouri, Minnesota, North Carolina, Ohio and Oklahoma.

  Next, Lewis and Eddy addressed state-controlled and franchise markets. Unless one has particu-larly strong relationships in an individual state, these markets do not represent an ideal place to start, and it can become difficult to change distributors should the need arise.

  The state-controlled markets are in Pennsylvania, Mississippi, Utah, Wyoming, New Hampshire and Maryland (Montgomery County), where the wholesaler acts as a broker to the state, or you sell directly to the state as the manufacturer, creating another “tier” to sell through.

  The franchise market is loosely defined as a market or defined territory in which one has a con-tractually binding agreement of representation with a wholesaler. Generally speaking, franchise markets protect the wholesaler or distributor from losing revenue and brands they’ve worked to build over time. Before entering into one of these markets, research the franchise law agreements for that particular state and define the parameters around potential future releases. If possible, sign a contract with these parameters. Thirteen states are currently under a franchise market.

•   Connecticut

•   Georgia

•   Idaho

•   Maine

•   Massachusetts

•   Michigan

•   Montana

•   New Mexico

•   North Carolina

•   Ohio

•   Tennessee

•   Vermont

•   Virginia

  The final market type they addressed was price posting. In certain markets, the winery and dis-tributor must post their wholesale pricing in advance with the state. The five states that require monthly price postings are Connecticut, Delaware, Missouri, New Jersey and New York. Also, they touched briefly on special situations like SS packs, Cuvée cases, and other “work-around methods” in pricing wines for different premise-types.

Choosing a Wholesale Distributor

  Lewis and Eddy advocate asking your pre-existing relationships which distributors they would recommend. Also, define the distribution partner’s territory and assess if their market focus is in sync with those markets you’re looking to target. Then look at those distributors and determine where your positioning might be within their portfolio.

  Examine the number of their active accounts with a particular focus on those deemed their key accounts. Will a new brand get buried because they represent other similar varietals that will re-ceive greater attention from this distributor, or can they market a new brand effectively? Does the pricing for your wine fit in with this distributor’s portfolio? Where are their most active sales channels? For example, if a distributor primarily targets bars and restaurants for sales, they will not be the best fit for a winery looking to enter the retail market.

  Lewis added that another huge part of this equation is the sales team and territory. “You might end up splitting a state up because these mid-level and smaller distributors aren’t big enough to cover an entire state.”

  Be sure to explore the distributor’s overall operation. What is the size of their staff, and is this staff commissioned? Who are the key decision-makers, and what is their overall reputation with-in the wine industry? Is there an ownership change or other management issues? Are they look-ing to consolidate or expand? What is their timeline for paying their wineries, and do they pay them on time? Does their warehouse and inventory practices work for your particular needs?

  They recommend the SevenFifty website https://go.sevenfifty.com/ as a valuable source in identifying brand competitors and researching distributors, as well as price positioning and mar-ket positioning. The website also allows you to look at which producers wholesale distributors have in their book.

Launching a Wholesale Distribution Program

  Before releasing a particular wine, be sure your sales reps and brand managers have adequate resources so they can tell the story behind this vintage. Be clear where you want your wine sold, as well as the pricing for placements. Along those lines, register your labels when applicable, and allow for ample time for this registration process to be completed. Determine if you need addi-tional staff to manage both this new sales channel and inventory.

  When planning a market visit to a distributor, timing is everything. Many distributors hold their general sales meetings on Mondays and Fridays, with most of their sales staff in attendance. Hence, these meetings represent an opportunity to tell the brand’s story and have the staff taste these wines.

  When going on a distributor ride-along, be mindful that most ride-alongs occur Tuesday through Thursday from 10:00 a.m. to 5:00 p.m. The typical visit is six accounts, though it could be any-where from five to nine with a break for lunch. (You will be expected to pay for lunch). Ask to see a list of accounts you will be visiting in advance. In particular, you need to know if you are visiting on- or off-premise accounts, as that will impact your attire and the sales materials you need to bring. Know your pricing and be prepared with collateral. During these visits, be flexi-ble. The distributor arranged an entire day of appointments around your wines, so be mindful when they need to do tasks such as putting in an order. Also, expect the occasional cancellation.

  A few things Eddy suggested to keep in mind once you have a distributor in place include monthly tracking to check your inventory and update your distributor on progress versus goals. He said wineries should know when it’s time to change pricing and be aware of chain presenta-tion schedules. “You need to be clear with your distributor regarding where you want your wines sold.”

  Finally, nothing is more important than having a plan. “Have a plan going in. Check up on it, and follow up,” said Eddy.

Websites Are a Virtual “Garden”

By: Susan DeMatei

  I was reading an article about spring gardening tasks, and they were suggesting that spring was a great time for maintenance. The types of things recommended, such as cleaning and sharpening tools, checking bulbs and seeds for moisture or mold, mulching existing flower beds, and planning for new ones, all made sense and almost inspired me enough to get off the warm couch and go out to my shed to investigate. But, because I’m a nerd, my mind immediately followed the theme to a digital correlation.

  Websites are a virtual “garden.” Their goal is to appeal to customers, draw them in and create an inviting setting so they may stay awhile. We design new sections within them, like adding blogs or recipes, we plant new products and SKUs and prune old ones no longer available. Sometimes we get tired of the entire thing and change the color scheme and layout with new pictures or templates. Like a garden, we should tend to our websites because if we let them sit over time, their ability to function and attract customers dissipate. However, regular website maintenance is something that many don’t realize is necessary. So, for this week’s blog, here is a list of periodic maintenance tasks to help you keep your website in full bloom.

  ADA Compliance:  We didn’t just start with this because it fits alphabetically – but you can remember it that way. It’s crucial to ensure that your website abides by ADA Compliance guidelines because of possible hefty fines, potential lawsuits, and these accessibility enhancements open your website to more potential consumers.

  Things to ensure to check each month to remain ADA Compliant are:

  Image Alternative Text: Every image you add to your website should have good alternative text. Alternative, or “alt” text, is a description of the image in the code that Google and screen readers for the blind can read. This code should describe what your image portrays, such as “Customers enjoying a tasting in the tasting room.” The only exception is if an image is entirely decorative (such as a twirly graphic forming a text break or a background style). With each new image you add, you will want to add alternative text to remain ADA Compliant. This addition also benefits you from an SEO lens.

Cesare and Rosa stading picture

  In this example, even though the picture is called “mondavi-family-04.jpg”, the website developer has given the picture an alt name of “Cesare and Rosa stading picture” to go along with the text. Helpful, but check your spelling in tags, too!

  Text Contrast: Anytime your copy or text has been adjusted, it’s essential to make sure that the characters are easy to read and not impeded by background images that may become unclear or hard to see.

  Links: Any new links that you create or add also need to contain clear relevant text. A URL with a mess of unfriendly letters and code can make you non-compliant—for example, https://www.wineglassmarketing.com/Services/Social-Media-Marketing  as opposed to: https://www.wineglassmarketing.com/Services/345j345jk345b34fsd0v.

Always try your best to have a friendly marketing URL that denotes what page they are on.

  SEO Improvements: You might think that most website building systems handle this for you automatically, but the sad truth is they don’t. You should already have a Google Analytics tracking code on your site, and ideally, you should also have a Facebook Pixel set up to track activity. If you don’t, you’re just paddling around without a plan. From a monthly maintenance perspective, the critical things for this category are:

  Meta Titles and Meta Descriptions:  While most systems do give you Meta Titles by default, these are often very basic and don’t abide by best practices according to the leading SEO platforms out there, namely Google. The real problem on the other side of the coin is Meta Descriptions are usually empty by default or don’t follow the best course.

  A big part of this is knowing how to write proper Meta Descriptions so that your website traffic improves – these aren’t just keywords of standard search terms. There’s an actual strategy to doing this correctly. For example, you shouldn’t stuff keywords into your Meta Descriptions. One case study by SterlingSky shows that when they saw brands keyword stuffing their posts, 40% of the time, the listing was suspended or removed by Google and had to be added again. With any new page created or even any new product added to your website store, it’s surprisingly vital to make sure that you’ve added the appropriate Meta Descriptions.

Google's example of keyword stuffing

  Keep your “Google My Business” page up to date:  Since Google is the most widely used search engine, this gives you a significant advantage in using the free Google My Business tools. However, having accurate operating hours is critical, especially since we’re in a current teeter-totter between open and closed. Considering this fact, you may wish to check on your business hours more frequently than once a month. You wouldn’t want someone making the trip to your tasting room when you’re mandated to have your doors shut.

  If you don’t have a Google My Business page, it could increase traffic. According to Forbes, a study done in 2019 stated, “Google My Business is a critical channel, with 96% of local businesses being viewed at least 25 times per month in Search results, and 86% receiving more than 25 [views per month] in Maps. And there’s plenty of space for high numbers, with 49% of businesses receiving more than 1,000 average Search views per month, and 33% receiving 1,000+ on Maps.” As of August of 2020, Forbes explains, “Google My Business has yet to catch on with large companies and those focused on B2B it seems, but manufacturers that sell through local independent retailers should refocus on GMB and how it can help their retailers succeed.”

  Broken Links:  As offers change and products go out of stock, it’s essential to make sure that your links don’t break. So, this upcoming month, if a product went out of stock, was it a featured link in an email? If a customer opens that email a few months later as they’re cleaning out their inbox and clicks on a link, will that connection break?

  Privacy Policy Compliant: In 2020 we saw the introduction of two privacy policies that impact each of us: CCPA (California Consumer Privacy Act), obviously for California residents, and LGPD (General Data Protection Law) for Brazil. (In 2018, the GDPR for the EU was put into effect for anyone who displays their website to anyone in the EU.) These laws are worth reviewing to ensure any new forms you’ve created on your site and your cookie policies follow them. There are plugins for WordPress that can handle the necessary popups and wording.

  Social Media Ads and Posts:   You should monitor and “prune” your social media posts as well. Technically these aren’t part of your website but play a vital role in bringing people to your website. When sensitive issues are coming up in the world scene (as we saw many examples of last year), many leave their ads in place without adapting them to show empathy for those suffering or to bring awareness appropriately. Meanwhile, some go entirely the other way and turn off their ads or halt their social media presence altogether, effectively shutting the door on potential sales by showing the outreach of an emotional connection with the consumer rather than plugging a promotion.

  For instance, leaving your ads as they stand – which usually contain a call-to-action, can seem tone-deaf. You’ve heard the term “read the room”; we need to “read the news” in this case. For example, adapt your posts showing an empathetic thought regarding the displacement of families who have lost homes in wildfires. Being relevant helps prospects and consumers appreciate the heart behind your brand, build a connection with your team members, and feel motivated to keep connected with your company.

By way of review:

•   Image Alternative Text

•   Text easily legible

•   Links are friendly and easy to read.

•   Meta Titles and Meta Descriptions follow best practices.

•   Google My Business Up to Date

•   Check for Broken Links

•   Check your forms that they are compliant with privacy policies.

•   Check your Social Media Ads and posts to make sure they are relevant.

  Now you have a spring maintenance list to ensure more significant traffic to your site, correct hours, better ADA compliance, and SEO practices. We hope that with these tips, your 2021 season will bloom with well-functioning websites attracting flocks of customers that enjoy your online garden.