Category: Marketing

Sustainable Wineries Attract More Consumers

Cyndi
winery at the foot of the mountain

By: Briana Tomkinson

  Concern about threats related to climate change is inspiring more consumers to make lifestyle changes like going vegan, upgrading to electric cars, reducing plastic waste and seeking more environmentally sustainable products. It’s also starting to affect how consumers select their wine.  

  Surveys of wine consumers in Canada, the U.S., Sweden and the UK are indicating a growing interest in purchasing sustainably produced wine, favorable perceptions of sustainable certifi-cation programs and certification logos, and a willingness to pay more for sustainably pro-duced wine—particularly by Millennials and Gen Z.

  For many Canadian winemakers, however, their interest in sustainable winemaking began well before consumers started paying attention.

  According to veteran British Columbia winemaker Gordon Fitzpatrick, adopting environmentally sustainable practices isn’t just the right thing to do—it also makes good business sense. “Often, sustainable choices have economic benefits. It’s not mutually exclusive,” Fitzpatrick said. “Every little bit helps.”

  Fitzpatrick has been in the wine business since 1986 when he founded Cedar Creek Estate Winery. He sold the majority of his vineyards to Mission Hill five years ago, but kept one be-tween Peachland and Summerland. In 2017, he launched a new label, Fitzpatrick Family Win-ery, using those grapes.

  The boutique winery focuses on sparkling wine and has approximately one-fifth of the produc-tion capacity of Cedar Creek, topping out at about 10,000 cases at full production. The shift into sparkling wine was a strategic choice to take advantage of the vineyard’s unique microcli-mate.

  “We lose the sun about two and a half hours earlier than most other vineyards,” Fitzpatrick said. “That’s why we specialize in sparkling wine. It creates that natural crisp acidity. I call it shade’s gift.”

  Fitzpatrick Family Winery is located in the Thompson Okanagan region, British Columbia’s pri-mary wine-growing region. The area boasts 84% of the province’s vineyards by acreage and has over 200 wineries. Wine tours are a big draw for visitors to the region. With the local tour-ism association increasingly spotlighting sustainable tourism, wineries like Fitzpatrick’s are get-ting more recognition for their environmentally friendly choices.

  The Thompson Okanagan Tourism Association recently developed a sustainability pledge to identify and feature responsible tourism providers in the region, including Fitzpatrick Family Winery. Other wineries who have signed on to the program include Poplar Grove (https://www.poplargrove.ca/), Grizzli Winery (www.grizzliwinery.com) and Meadowvista (www.meadowvista.ca).

  The region was also officially certified as the first destination in the Americas to achieve the Sustainable Tourism Accreditation from Biosphere International and the Responsible Tourism Institute. The certification criteria includes commitments to environmentally sustainable practices, including ensuring access to sustainable energy and adopting measures to mitigate cli-mate change.

  Fitzpatrick Family Winery was a pilot winery for the program last fall, Fitzpatrick said, which included a thorough audit on water, energy and waste management practices.

  “We think of ourselves as good stewards of the land, but you always want to look at how you’re doing things. They came up with some recommendations on how we can do things even better than we currently are [doing them]. It was a very worthwhile process to go through,” he said.

  Recommendations ranged from replacing big-ticket items like a 25-year-old water pump with a newer, more energy-efficient model, to less costly initiatives like installing flow meters to better monitor water usage, and expanding the winery’s compost program to incorporate food waste from the on-site, seasonal restaurant.

  The winery is also now pursuing organic certification, following a recent $40,000 investment in mechanical weeding equipment that will allow Fitzpatrick to stop using herbicides in the spring.

  In the last five years, Fitzpatrick said consumer awareness of sustainable practices has changed significantly. “People are much more aware and want to know what your practices are, and are you being a good steward of the land,” he said. “it’s nice to be able to stand be-hind what we do.”

Do Wine Consumers Care? Researchers Say Yes

  According to market research by Wine Intelligence, it’s not just hippies who are choosing more socially and environmentally conscious purchases. Interest in organic, fair trade and sustaina-bly produced wine is growing and is now considered mainstream, particularly among consum-ers under the age of 45.

  In the U.S., almost three-quarters of consumers surveyed said they would consider buying sus-tainably produced wine in the future. Seventy percent of Canadians agreed.

  Nine out of ten millennial consumers surveyed said they would be willing to pay an average of $3 more for sustainably produced wine. The research found that sustainability certifications for wine improved consumers’ willingness to buy.

  The research was presented at the first U.S. Sustainable Winegrowing Summit in Sonoma last June. In a speech at the event, Wine Intelligence CEO Lulie Halstead outlined five key concepts  to “sell” sustainability to consumers, highlighting how it’s good for people as well as for the environment:

1.   Focus on the small steps producers and consumers can take today.

2.   Frame sustainability as a positive choice: talk about positive benefits.

3.   Use groupthink for good: invite customers to be part of a larger movement to make greener choices.

4.   Appeal to feelings, not facts: logic is not as persuasive as emotion.

5.   Be brief: keep messaging succinct.

  The second edition of the U.S. Sustainable Winegrowing Summit will be held this year on May 5-6 in Long Island, New York. The event will feature tours of sustainable wineries in the area, as well as a full conference program. Tickets are $50. More details are online at https://www.sustainablewinegrowing.org/summit/.

British Columbia to Host Global Sustainable Tourism Conference

  The Thompson-Okanagan region is also hosting the 2020 Global Sustainable Tourism Confer-ence November 19-22—the first time the annual event will be held in Canada—at the Delta Ho-tels by Marriott Grand Okanagan Resort in Kelowna.

  The event will feature expert speakers and panelists from around the world. Over 500 local, national and international delegates are expected to attend, including destination marketing professionals, airlines, travel agents, international media and tourism-oriented business lead-ers.

  According to President and CEO of Tourism Kelowna, Lisanne Ballantyne, industry research indicates that interest in sustainable tourism destinations is growing. She said recent reports have found 87% of consumers want to travel sustainably, and 67% are willing to pay more for travel that has a less negative impact on the environment.

  In 2019, for the second year in a row, TOTA was named the World Responsible Tourism Award Winner at the Annual World Travel Awards.

  According to British Columbia’s Minister of Tourism, Arts and Culture, Lisa Beare, the prov-ince’s stunning scenery and unspoiled wilderness is a key draw for visitors from around the globe, and the region’s tourism strategy reflects that.

  “Our strategic framework for tourism seeks to responsibly grow the visitor economy by re-specting nature and the environment, and making sure that everyone sees the benefits of this important industry,” Beare said in a press release about TOTA’s award win.

Are More Audits Coming For the Direct-to-Consumer Market?

Cyndi

By Alex Koral, J.D., Senior Regulatory Counsel with Sovos ShipCompliant

Last fall, the state of Texas began the process of auditing all of their direct-to-consumer (DtC) wine shipping licensees, the biggest such audit in the history of this market.

While all states reserve the right to audit their licensees, the scope of this mass audit surprised many. More than 1,600 wineries possess permits to ship directly to Texas customers. Many have already received a notice from the Texas Alcoholic Beverage Commission (TABC) requesting to review their records. This time-consuming process began in September 2019, when the first round of notices were sent, and will continue as the TABC reviews all permit holders to ensure they are in compliance with the state’s laws.

At the heart of this heightened regulatory scrutiny by Texas is the dramatic rise in popularity of the DtC channel in recent years. Many wine drinkers have come to appreciate the DtC wine shipping market for bringing a direct connection to their favorite brands and greater access to wine clubs and highly-allocated labels, creating a $3 billion national market. 

The beverage alcohol industry has long been one of the most regulated enterprises in the country, so it is little surprise that this increased scrutiny has come to the DtC wine shipping channel. States have a vested interest in making sure they collect the full balance of tax money they are due and that their laws are followed to the letter. As Texas’s audits proceed, they could well represent a harbinger of what’s to come for DtC wine shippers, making it important to understand how and why regulators are examining this market. 

Even the Audits Are Bigger in Texas

In May 2005, Texas Governor Rick Perry signed into law Senate Bill 877, a transformative reform of the state’s Alcoholic Beverage Code that smashed open the door for wineries to ship directly to consumers in the state. Since then, wine enthusiasts in Texas have been able to purchase wine directly from out-of-state wineries, provided those wineries obtain the necessary sales tax and Winery Direct Shipper’s permits.

The state’s timing was no coincidence. Just one week after Gov. Perry signed the new bill into law, the Supreme Court held in Granholm v. Heald that the states’ ability to control their internal alcohol markets under the 21st Amendment did not supersede the general prohibition on discriminating against out-of-state interests under the Commerce Clause. 

Under the decision, states could no longer prohibit direct-to-consumer wine shipping if they allowed in-state shipping. In the years following Granholm, a wave of reforms flowed across the country. But Texas was one of the first to update its wine shipping laws. And today, the state lives up to its outsized reputation by being the second-biggest recipient state for direct-to-consumer wine shipping, according to Sovos ShipCompliant data. 

So what are Texas regulators seeking to achieve with this wave of audits? The goal appears to be ensuring wine shippers are properly licensed, paying excise taxes, reporting shipments, and not exceeding limits on how much they can send to individual Texans. The TABC has asked licensees for the sales data used to produce their Texas Excise Tax returns, including requests for copies of certain invoices

In addition to order data and invoice copies, the TABC has requested information regarding licensees’ business structures, including copies of their state and federal permits, and lists of corporate officers and directors. Contracts or other agreements that licensees have made with fulfillment houses and similar service providers have also been sought.

Finally, the TABC is looking into the specific wines that licensees have shipped to Texas consumers. Texas’s DtC statutes prohibit licensees from selling wines that the licensee does not personally produce or bottle. As such, the TABC has requested licensees provide Certificates of Label Approval (COLAs) and production records for wines shipped to Texas consumers.

These past requests, though, are subject to change at any time and any DtC wine shipper that does receive an audit notice should ensure they comply with the specific requests on their notice.

This heightened review by the state of Texas comes at a time when many states are working to ensure that direct-to-consumer shippers are complying with local regulations. For example, the Michigan Liquor Control Commission is stepping up in response to reports by the Michigan Beer and Wine Wholesalers Association alleging widespread violation of its DtC shipping laws, and the Mississippi Supreme Court recently heard a case regarding stings conducted by the state Alcohol Control Board to catch illegal DtC shippers. 

While Texas is currently the only state to have announced a review of this size, it almost certainly won’t be the last. 

As the Market Grows, So Will Regulator Scrutiny

The Supreme Court’s decision 15 years ago in Granholm v. Heald triggered a wave of wine shipping reforms across the country. Today, 45 states plus the District of Columbia permit DtC shipping, enabling over 90% of Americans to connect directly with their favorite wineries. 

As a result, direct-to-consumer wine shipping has grown from a small, niche market in 2005 into a hugely important channel worth more than $3.2 billion in 2019. According to Sovos ShipCompliant’s annual Direct-to-Consumer Wine Shipping Report, the channel grew by  7.4% percent in value and 4.7% in volume last year as more wineries invested in e-commerce, the average price-per-bottle increased, and Oregon and Washington again outpaced the overall channel in shipment growth, among other trends. 

In many cases, DtC shipping succeeds because it allows smaller wineries access to markets they would struggle to enter if they relied solely on the traditional three-tier system due to their relative size. According to the 2020 Direct-to-Consumer Shipping Report, wineries in the small winery category (5,000 to 49,999 annual case production) again dominated the winery shipping channel in 2019, accounting for 42% of the volume of shipments and 45% of the value of the DtC channel. DTC shipping has emerged as one of the best ways for these smaller producers to reach a national audience. 

This growth also reflects consumer demand across the economy for goods delivered directly to their doorsteps. Apps like Instacart and UberEats have democratized delivery, and consumer expectations for quick and convenient delivery have never been higher. This presents a tremendous opportunity for wine sellers to expand their reach, develop their customer base and increase their sales online. 

The marketplace is also likely to get more competitive in the new decade. In 2019, the Supreme Court paved a path for expanded DtC shipping of wine by retailers in its ruling in Tennessee Wine & Spirits Retailers Association v. Thomas. While only 15 states currently allow some DtC wine shipping by out-of-state retailers, many see this decision as an opportunity to challenge old laws to expand this market. Litigation is ongoing in several states that seemingly discriminate against out-of-state retailers in regards to their ability to ship wine DtC – notably Illinois, Michigan, and Missouri. Much in the same way that Granholm prompted a wave of statutory reform, observers expect consumers and advocates to push legislative changes across the country. While it may take a number of years for these changes to take effect, expanded retail shipping is something everyone should be watching closely. 

In the meantime, regulators have a vested interest in making sure all sellers—whether package stores, direct wine shippers or otherwise—are in compliance with the law. That means ensuring they are properly licensed, collecting all applicable taxes, not overselling to individuals and preventing sales to minors. So if other states see the Texas audits bring positive results, they are likely to follow suit to uncover gaps in their own systems.

Overall, the DtC wine shipping market is still young and regulators are still figuring out how to manage it. As the market grows, we can expect this trend of closer attention being paid to DtC shipping to continue at the state levels, making now the best time for wine producers to firm up their direct-to-consumer compliance processes and overall channel strategy.

Now Is the Time to Ensure Compliance

The risk of audits like those in Texas underscores the importance of closely adhering to the various laws and reporting requirements imposed by states. That the regulations can vary among states only adds to the complexity, whereas failure to comply may result in fines, loss of home state or federal licenses, and even possible criminal charges.

Wineries have a number of ways to handle this. Some are able to build in-house teams that can manage compliance, though this can be expensive. Others rely on outside consultants to manage their compliance needs. But of course, automating compliance processes is the easiest way to ensure audit success, limit compliance risk and reduce the overall administrative burden on shippers as state-by-state tax rules, rates and forms change. 

Shipping wine can be complicated, and compliance will never be a task that anyone relishes. However, as the direct-to-consumer channel grows in its importance to the industry, it’s vital that producers shore up their compliance strategy now before the next round of state audit notices goes out. 

About the Author: Alex Koral, Senior Regulatory Counsel with Sovos

Alex Koral is senior regulatory counsel for Sovos ShipCompliant. He actively researches beverage alcohol regulations and market developments in order to inform development of Sovos’ ShipCompliant product and help educate the industry on compliance issues. Alex has worked with the company since 2015, after receiving his J.D. from the University of Colorado Law School.

2020 The Year of Personalization

Cyndi
Hand using tablet with application icons flying around
Businessman hand using tablet with flying application icons around

By: Scott Moss and Susan DeMatei

According to Forbes, 2020 is going to be the year of personalized marketing. The current opinion is that we are all so bombarded with advertising and emails that we now tune out anything that isn’t specifically relevant to us. When Ad Age asked executives the one thing anyone could do to impact their marketing in the future, a full third of them answered “personalization.” And Conversant Media noted 94% of customer insights and marketing professionals they surveyed listed personalization as either “important,” “very important,” or “extremely important” for meeting their current marketing objectives.

  Back in the 1990’s when the internet and data tracking was young, there was a public outcry concerning privacy and personalization. Individuals were nervous about the newly formed “cookie” technology and didn’t like being tracked online and were suspicious about loyalty cards being scanned at checkout in stores. But now, we take it for granted that when you leave something in a cart you’re going to see an ad for it the next time you log in to Facebook, and we don’t feel creeped out when we buy kitty litter at the grocery store and we get a coupon for cat food along with our receipt.

Age of Customer

  Personalization is everywhere and we’re used to it and we like it – which makes the blanket, non-personalized communications all the more blatantly lazy and unappealing. According to an online Epsilon survey of 1,000 consumers ages 18-64, the appeal for personalization is high, with 80% of respondents indicating they are more likely to do business with a company if it offers personalized experiences, and 90% indicating that they find personalization appealing.

  And, personalization does work. In multiple studies, personalized ads and emails are perceived as more engaging, educational, time-saving, and memorable than mass advertising or emails. Experian reports personalized emails deliver 6x higher transaction rates. And, with new affordable tools, there really isn’t an excuse for mass marketing anymore.

  What this means is that we can no longer rely on mass, generic email blasts to our customers and expect the returns we did in the past. Our buyers are now empowered, and their expectations are high in the messaging and advertising they receive. In the Age of the Customer, we need to be smarter about how we communicate.

  The good thing is, this doesn’t require us to restructure our entire marketing plan. Here are three simple things we can do today to improve the way we interact with our customers on a more personal level:

EMAIL LIST SEGMENTATION

  List segmentation is the quickest way to personalize messages to customers. It can be as simple as creating an email for recent visitors to your tasting room or website purchasers.  Sending these customers, a thank you email 30-days after their visit or purchase is a great way to personalize and engage with a follow-up offer.  You can add a deeper level of personalization if your email provider gives you the ability to insert the customer’s first name in the body copy.

  Additionally, each email can be more personal by modifying the subject line with the purchase location, “Thank you for visiting our tasting room,” or “Thank you or your online purchase.”  Although this may require two email sends, it refines the touchpoint and serves as a reminder of the customer experience.

  Start Crawling: Set up some automatic emails like “abandon cart” and “thank you for visiting.”

  Learn to walk: Take your email list segmentation beyond Wine Club and Non-Club into purchase history. To do this, divide your list into first-time buyers, repeat buyers, and non-buyers/prospects. Then, for every campaign, tailor the message for each. For first-time purchasers give them easy second purchase options similar to their first, for repeat buyers offer them volume or shipping discounts, and for prospects, tell them a little more about yourself and offer a trial package.

  Learn to run: Combine the two. First, set up ongoing automated campaigns (called “drip” campaigns) that remind people they’ve left items in their cart, or that they haven’t logged in to rate or buy a product, or to thank them for an order. Then, take a look at your campaigns in 2020 and brainstorm how you can segment them by purchase or other behavior.

CUSTOMIZED LANDING PAGES

  Sending personalized communications to customers that include a call to action should take them to a page on your website that corresponds to the offer in your email. Keeping the customer journey with our brands consistent is a key component in lowering attrition and increasing sales.

  This requires creating a page template within your website that can be easily duplicated and modified by changing the title, image, or copy to match your outbound communication. This enforces the personalized offer and brand consistency with your customers, while providing a clear path to purchase.

  Brand consistency is the pattern of expression that affects what people think about your company. The more consistent your messaging, the more consistent your branding — whether via words, design, offerings, or perspective. Your brand should build awareness and develop trust and loyalty with customers.

  Start Crawling: For those emails discussing several wines, rather than dumping the clicks at the top of the store page, set up a customized landing page and only include the wines in the email with a header and the offer.

  Learn to walk: For your social campaigns, try a separate landing page with introductory copy about your winery and why they should sign up for your mailing list or like/follow your winery.

  Learn to run: In addition to emails and social media, consider custom landing pages for most initiatives such as pouring events, coupon redemption, Google Ads, and print.

GET TO KNOW YOUR LOYAL CUSTOMERS

  A loyal customer is one that makes repeat purchases rather than switching to a competitor. A loyal customer will be more likely to purchase additional products and recommend your brand.

  Without digging too deeply into your data, a few key metrics can help identify your most loyal customers.  High average order value, buying frequency, and last purchase date is what you will need to start. These metrics can all be found in the customer purchase history of your database. When vetting your data, don’t assume that your best customers are also wine club members. However, if they are not, you may have a missed opportunity.

  After identifying your most loyal customers be sure to nurture the relationship, they are your best buyers for a reason. Knowing what they purchase, how often they purchase, and how much they spend per order will help guide you on when to reach out and with what offers.

  The communication and touches to these customers should be as a personal friend and offers should be presented as gifts. Offering a specially selected “pre-sale” wine or early event access will build continued loyalty. 

  Start Crawling: A handwritten note of thanks for attending an event or a customer referral is an easy way to start and goes a long way to keep your best customers.

  Learn to walk: Identify your top customers and find them on social media. Set up alerts for their posts and like and comment on them as your brand. They’ll be thrilled you care enough about their lives to get to know them.

  Learn to run: Look at your campaigns and give first dibs to your best buyers. Either offer them a pre-order capability or maybe access to the pick-up part a half hour in advance. Realize that discounts aren’t always what they’re after – they want a relationship and time with you.

  The true end result will look like taking your linear annual campaign calendar and splintering it into multiple, smaller, targeted communications that run simultaneously. It takes more work, but it’s worth it.

  Susan DeMatei is the President and Scott Moss is the Director of Operations of WineGlass Marketing, a full-service direct marketing firm working within the wine industry in Napa, California. www.wineglassmarketing.com 

Profiling Software Used by the Wine Industry

Cyndi
tablet showing Vinnow
Photo Courtesy of: VinNOW

By: Becky Garrison

While one can still find wine producers who rely on paper ledgers, Excel spreadsheets and other pen and paper methods to manage their business, wine producers are increasingly turning to technology to help them perform these tasks. The proliferation of software explicitly geared to the wine industry has streamlined how many wineries operate. This software can help winemakers better manage a range of functions starting with regulating environmental conditions in their vineyards to performing a variety of eCommerce functions, as well as helping to enhance the consumers’ experience in their tasting rooms.

Microworks Wine Software

  Microworks Wine Software was formed in 1991 to address the lack of technology servicing the wine industry. Currently, this software includes a suite of tools that help wineries manage their direct-to-consumer sales. The software takes complex tasks and simplifies them for efficiency and accuracy. With Microworks Wine Software, all details of sales, customers and inventory are tracked and reported to management so they can execute informed decisions.

  These tools include visitor center tracking, wine club and eCommerce sales, customers and in-ventory, as well as helping with accounting, fulfillment and alcohol compliance. This software suite allows wineries to manage their retail operations by tracking sales data and then issuing re-ports. Tasting room managers can track visitors and staff, and wine club managers can oversee the wine club and its members. Inventory staff can track products across multiple warehouses while managing wine shipments and pickups, and accounting can track and reconcile all sales and inventory activity with complete audit trails. Additionally, marketing managers can track all customer activity, including which wines consumers buy, when they buy their products, how fre-quently they purchase wines and the channels through which they make these purchases.

  When a wine producer purchases the software, Microworks performs an initial onboarding pro-cess. Then apps can be downloaded by the user on devices through the Microworks website, Ap-ple’s App Store or Google Play. Users can take advantage of Microworks certified training ser-vice—a one-on-one instruction for winery employees that ensures they’ll get the most out of what the software has to offer. Online documentation and tutorials are also available.

  The latest release of Microworks Wine Software’s iPad mobile POS offers an offline mode, so users can now access this software without having to connect online. When the software gets used offline, transaction data is stored and then uploaded to the server when the device is back online. Currently, they are working on an automated email system to simplify and tailor custom-er communications to drive more sales.

Sensaphone

  Sensaphone software complements the hardware that measures temperatures, humidity and other environmental conditions in the vineyard. Since its founding over thirty years ago, Sensaphone has transitioned from having its software utilize traditional alarm auto dialers hooked to phone lines to a cloud-based platform. 

Using this software allows producers to know the exact temperature in the fields, and to be alarmed if the temperatures sink too low. In the case of ice wine producers, it allows them to pro-tect the grapes during cold temperatures.

  This software allows wine producers to see the temperature values of their vineyards in real-time, set high and low alarms, and datalog those values. These features monitor environmentally sensitive assets and can be programmed to send emails or text messages to users when those as-sets are in danger. Also, it offers real-time visibility and the ability to datalog values for a com-parison over time.  

  Sensaphone products are easy to install and program. It is a one time purchase with upgrades in-cluded with the purchase price. Also, they feature an app that allows producers to view data from any mobile device.

VineSpring

  For the past eight years, VineSpring has offered winery eCommerce, allocations and wine club management software designed for wine producers who sell directly to consumers. Through this software, wineries can easily manage their club and allocation offerings, saving administrators time, and providing wine club members with tools that are easy to access. Online tutorials allow wineries to maintain the software on their own.

  VineSpring can connect to many third party programs, and natively supports integrations with MailChimp, ShipCompliant and Square POS. Also, they have partners like WineGlass Marketing that have built powerful integrations, including automatic sync with Quickbooks desktop. Mov-ing forward, they look to expand the options for wine clubs, especially surrounding automatic recurring billing.

VinNOW

  Created in 1999, VinNOW software was specifically designed for wineries to manage customer data and purchase histories, tasting room sales, wine clubs, multiple location inventory tracking and wine production. Wineries can use this software on a single stand-alone computer, a tablet, or on a network multi-point of sale operation. Also, as this software does not require a good in-ternet connection, it works well for those wineries located in regions that do not have reliable internet access.

  The software includes a customer management system, point of sale, wine club automation, eCommerce, inventory management, reporting and order processing with QuickBooks, compli-ance, email and shipping integrations and EMV credit card processing. Also, bulk wine tracking and custom crush billing module are available. When necessary, features are added that respond to industry changes, such as the new California District Tax.

  For those wineries offering wine clubs, the software’s one-step wine club processing includes shipping labels for UPS and FedEx. Also, GSO shipments can be tracked through VinNOW. In addition, the software has options for easy email and postcard marketing campaigns. It also inte-grates with QuickBooks desktop or online versions, web shopping providers, and ShipCompli-ant.

  VinNOW can be self-installed and maintained and includes a comprehensive help database. New customers are encouraged to go through the free training program, so they understand the full capabilities of the software. Customer service is available seven days a week.

Winetracker.co

  Winetracker.co is a wine tasting app launched in 2017 that’s available for iOS and Android, as well as the web browser.

  Users snap photos of the wine they are drinking and then use the app’s four sliders to give their personal opinion on the aroma, taste, finish and overall impression of the wine. The app then auto-generates a wine expert score (50 to 100 points) based on these four sliders. Optionally, the user can use “TouchTags” to describe the unique elements they detect in the wine. As they continue using the app, they end up with a visual history of the wines they drink, similar to a “Pinterest for wine.”

  The second primary feature of this app is a multi-person, real-time experience called Group Tasting. Anyone hosting a tasting event, whether a winery, event planner or party host, can create a tasting list ahead of time. At the event, attendees can collaboratively taste the wines together through the app. They can see each other’s wine scores and comments popping up on the screen in real-time. Also, there’s an optional Blind Tasting mode for the Group Tasting feature.

  According to Tony Jacobson, Founder of Winetracker.co, wineries who use the Group Tasting feature increase their wine sales. He ascribes this to the fact that when people taste wines with Winetracker.co, it causes a fuller engagement with each wine they sample. “When they are pondering the aroma, taste and finish of a wine, they get a much better sense of how much they like or don’t like it. This creates a deeper connection with the wine they’re drinking.” Winetracker.co is willing to schedule one-on-one consultations with wineries and event planners to help guide them through the process of creating Group Tasting events.

  In the future, the company plans to launch tasting groups similar to Facebook groups, where us-ers can join and automatically be notified whenever someone adds new wine scores. These groups can be public or private. Also, they plan on adding the ability for users to follow individ-ual people on Winetracker.co. Along those lines, users can automatically receive notifications whenever people they follow taste a new wine. Winetracker.co is also looking to enable wineries to have conversation threads or email conversations with the people who participate in their tast-ing events.

  As technology continues to evolve, expect to see these software companies continue evolving to meet the needs of 21st-century wine producers.

WINERIES and the HOLIDAYS: Inseparable Partners in Making the Season Merry

Cyndi

By: Cheryl Gray

Portrait of Santa Claus watching tv, celebrating with a glass of champagne and panettone

With the holiday season comes infinite ways to celebrate the fruit of vineyards from coast-to-coast. Wineries and tasting rooms across the U.S. count the time between Thanksgiving and New Year’s to be amongst their busiest and, in some cases, amongst their most profitable. Moreover, ancillary businesses, including hotels, inns, restaurants and special events venues, benefit from creative partnerships with local wineries during the holidays.

Walter Clore Wine & Culinary Center

  The Walter Clore Wine & Culinary Center stays open year-round and features Washington wines in its tasting room and during special events. The space was named for the man whose years of scientific research established Washington state as the second-largest premium wine producer in the country. According to the Center, Washington’s wine industry contributes approximately $14.9 billion to the U.S. economy and supports an estimated 27,000 jobs. Those numbers underscore why the holidays are an important component of marketing the state’s wine producers and grape growers.

  The Clore Center showcases Washington’s wine industry, as well as the science of enology, through a combination of educational, experiential and entertainment activities. Its holiday events kick off just before Thanksgiving, featuring established and up-and-coming Yakima Valley wineries. On Saturdays throughout November and December, several Yakima Valley winemakers will be pouring at the Center’s “Meet the Makers” event with the pertinent theme, “Thanksgiving in Wine Country.” In December, the Center will feature sparkling wines from Washington’s Columbia Gorge. 

  The Center’s holiday events will also include classes every Saturday in November and the first two Saturdays in December, according to Deb Carter, the Clore Center’s Wine and Culinary Program Director. That might, for example, include a cooking class from a local master chef on how to pair local wines with farm-to-table meals using local produce.

  In addition to educational classes, the venue rents out space during the holidays for corporate gatherings, parties and other holiday-centered outings, many of which choose to feature local wines.

  Wineries, tasting rooms, restaurants and others vested in promoting Yakima Valley wine during the holidays are, at the same time, raising money for a charitable cause—fighting hunger. “Thanksgiving in Wine Country,” will benefit Northwest Harvest and kicks off during Thanksgiving weekend. The event also allows visitors to take advantage of deals on wines and related products.

Milbrandt Vineyards

  Other Yakima Valley December events include Prosser, Washington-based Milbrandt Vineyards’ “Holiday Flights and Bites,” featuring holiday wines and food pairings with live entertainment.

  “The holidays are key for us because customers tend to purchase more of our higher tier wines like our Reserves, especially if they are buying wine as gifts,” says Milbrandt Vineyard’s Tasting Room Manager, Karen Ballew. “This holiday season is particularly special because we will be releasing our ‘Bottle Your Charity’ Sparkling Rosé with the winning charity’s mission featured on the back of the bottle. Direct donations from wine sales go to the charity.”

  One of Millbrandt’s holiday marketing strategies, says Ballew, is a play on words derived from a holiday favorite, Twelve Days of Christmas. “We will be bringing back our 12 Days of Deals, an online campaign we ran during the holidays that was incredibly successful the last couple of years. We will also be launching our Cyber Monday campaign where customers can get up to 40% off certain cases of wine.”

  As for partnering with local businesses, Ballew says Millbrandt favors specialty food shops, whose treats pair well with Milbrandt wines. “We partner with a few local business, most notably Jade’s British Girl Treats,” she says. “Jade’s is a local bakery/chocolate/sandwich shop in Prosser. They just opened a few months ago in downtown. They handle catering for our events and also cater our small plate menu that we offer in the tasting room daily.

  We also feature for sale a small selection of Chukar Cherries that are specifically paired with some of our wines. Another partnership is with Wine Country RV Park. We pour at their evening tastings about once a month during their peak season. They promote our events on their emails and on the TV in their retail shop.”

Tourism on the 45th Parallel

  Hotels and inns tied to wineries have a unique focus on the holidays. In Northern Michigan, wineries and tasting rooms dot the landscape along the same 45th parallel as Washington’s wine region. Among them is the internationally renowned Black Star Farms, a family-owned enterprise known for, among other products, its signature ‘Pear in a Bottle’ wine. 

  Black Star Farms provides a backdrop for holiday-inspired events, such as snowshoeing on its vast grounds and cooking classes that teach guests how to pair wines with various cuisines. Its most notable event, however, is the annual New Year’s Eve Wine Dinner, a formal occasion featuring a multi-course meal paired with wines produced by Black Star Farms. The event is popular enough that tickets go on sale beginning in early fall. Sherri Campbell Fenton, whose parents, Kerm and Sallie Campbell, established Black Star Farms in 1998, is managing proprietor. She told The Grapevine Magazine that the holidays are, indeed, big business. 

  “The holidays are a key time for Black Star Farms, for both holiday wine sales and the hospitality side of our business,” says Campbell Fenton. “Obviously, wine sales are strong for gifting and parties. We have a luxurious 10 room inn on our 160-acre property, which is a favorite for guests as a quiet, romantic escape, especially during the winter when blanketed in snow. We also host holiday corporate wine paired dinners as well as private or family gatherings. Holidays are a strong time for these. Many times, gift certificates are purchased for wine sales or inn stays during the holidays, as a gift of Black Star Farms is a very special one for anybody.”  

  At Washington’s end of the 45th parallel, there’s the Hotel Maison, a landmark in downtown Yakima, listed on the National Register of Historic Places. The hotel’s holiday offerings include a package featuring Yakima’s annual “Sip, Stroll & Stay.” This promotional event features a downtown stroll with food, entertainment, and, at the end of the evening, an opportunity to overnight at the historic Maison, built in 1911 by Yakima Freemasons. Guests receive their choice of a bottle of wine, cider or beer delivered to their room. In addition to hosting wine tastings with local sommeliers, Hotel Maison does its part to promote wineries during Yakima Valley’s ‘Thanksgiving in Wine Country.’ They feature an overnight package that includes a bottle of Yakima Valley wine and a gourmet cheese board delivered to guests.   

  A quieter holiday respite can be found at Washington’s Cozy Rose Inn, an acclaimed bed and breakfast owned by husband and wife Mark and Jennie Jackson in Yakima Valley’s Grandview area. The Jacksons have relied upon friendships with local wineries over the past 27 years, which keeps guest referrals coming in both directions. Having a great location, Mark Jackson says, goes a long way. “Guests come to the Valley for the sunshine and wine. We’re just in a prime location, being in the middle of Yakima Valley. They taste on their way down the Valley, stay here, eat dinner, and the next morning, they’re off to Red Mountain and Prosser Wineries.”

  In addition to its chef-inspired gourmet breakfast, during the holidays the Cozy Rose Inn offers guests staying at least two nights a candlelit dinner for two, which includes a bottle from one of the region’s wineries.

Holiday Food Pairing

  Foodies looking for a Southwestern flavor to pair with Washington wines during the holidays turn to Los Hernandez Tamales, another family-owned business in Yakima Valley. They tout an authentic family recipe, combining it with local, Washington state ingredients, including the state’s bountiful asparagus crop. Rachel Wilburn, whose father, Felipe Hernandez, started the business in 1990, says the holidays are tremendously hectic for the Hernandez clan.  

  “Tamales are traditionally a holiday season food. Christmas, in particular, is the busiest time for them. We open early, and everyone gets tamales with or without an order. We usually have 400 to 600 dozen in pre-orders, but we sell 1,000 dozens (12,000 single tamales) by the end of the day, all made by hand.” Wilburn says that Los Hernandez Tamales is also called upon all over Washington to participate in events that pair their famous tamales with regional wines.

  Gingerbread co-stars with wines at Desert Wind Winery, which supports a local charity through its annual “Gingerbread Build Off.” This holiday-themed event, held in November, draws professional bakers from throughout the Yakima Valley region.  Wine barrels serve as the background for gingerbread creations large and small in a winery whose Southwestern style architecture belies its Washington state location. 

  It’s not difficult to see how the holidays bring out the best in wineries and related industries across the United States. From charitable giving to savvy marketing, synergy builds between businesses that understand the value of partnerships during the holiday season.

Wine Industry 2019 Email Benchmark Results

Cyndi
Email marketing with young man

Presented by WineGlass Marketing

A clean, transactional website that conveys a story, a consistent and authentic social media presence, and thoughtful targeted emails are the digital super group in your marketing arsenal. Although it seems every year someone comes out and predicts the death of email, it is still the best direct marketing tactic available to you. In the U.S., email usage has grown every single year since 2012 and 91% of American internet users use email (statista.com).

  But, that thoughtful and targeted part ain’t easy. After you find your audience and convince them to subscribe, which is a challenge in itself, you then have to keep their attention. (It takes an average of six to eight touch points to generate a qualified sales lead. (Salesforce))

The WGM Client Email Project is Born

  When we are working with our client on their email-marketing efforts, many of our clients want to know what others are doing. The internet is full of benchmarks and studies about email marketing, but very little exists about wine-related content. Can we assume that we are most analogous to a “Retail” category? Agricultural? Food and beverage? We’re never sure.

  So we started a project in January 2018 that entailed recording every email we sent for our clients: 3,089,124 emails across 1,697 campaigns for 43 clients over 21 months, to be exact. We removed administrative and club emails and checked for statistical significance and can confirm this is a large enough sample to be confident about the findings. Our goal was to compare our clients’ results to the posted industry benchmarks to see if they were a good judge of success. What we uncovered was interesting.

We are not the same!

  Immediately, we saw that our emails performed differently than the posted benchmarks. We had always used Mailchimp’s “Retail” benchmarks for our marketing – but never knew if this was a good comparison. It turns out that its’s not.

Graph showing Winery Open and CTR versus Mailchimp "Retail"

I’d like to say that the emails we create for our clients are so creative and impactful that they perform 20% better than industry average, and there might be some small truth there. But, it’s more likely that the wine category, as a whole, gets better response than the average category.  “Retail” is a broad category for any email that is selling something from Amazon to Zappos. But our clients are selling wine, which, in most people’s world, is a good thing and a welcome distraction from their daily drivel. Our theory is that winery customers look forward to news about their wineries, their favorite wines or upcoming events because it is an enjoyable hobby they have chosen to learn about and follow, versus the Sunday white sale at Macy’s which, may or may not be, relevant this week.

Getting Their Attention: Thoughts on Open Rates

  The two best predictors of whether an email will be opened is the subject line, and when the email is sent. We wanted to isolate both of these variables. According to data from Marketo, 41 characters–or 7 words–is reported to be the sweet spot for email subject line length in 2019. We counted all the characters (including spaces) in our campaigns and came out with an average of 42…so, we were pretty confident about our test results.

  But when we got into the data we were surprised. We couldn’t find any general statistical significance between open rate and the length of the subject line. (For you nerds out there, in our analysis, R2 =.04894 indicating that there is no linear relationship.) Put another way, if you have more, or less, characters in your subject line, we couldn’t say if your email is more, or less, likely to be opened. Length didn’t matter when looking at the emails in aggregate.

Graph showing Impact on Length of Subject Line

  However, when we look at the type of email, we saw trending. We bucketed emails into groups of club emails, eCommerce or sales emails, event announcements and emails with just information or news. We then looked at the open rate of emails whose subject line were low (1-25), medium (26-50), high (51-75) and very high (over 75) character counts. What we found was club emails perform better with brief subject lines, whereas event and newsletters are more likely to be opened with a longer, more explanative subject line. The fact that eCommerce shows little difference between lengths of subject lines indicates that it is the message that matters – or, simply, what is the offer?

Graph showing Impact of Day on Open and Click Through Rates

The frequently debated topic of which day to send emails was also on our radar. Old-school folklore says Tuesdays are the best, but we should know by now that mobile phones have changed the way we consume email. It is now a 24-7 activity done on the bus, in line at the lunch counter, during weekends and before bedtime. Also, most people use mail applications that merge personal and work email together on their phone or they switch back and forth. So, it’s no longer a world where we read our work emails at the office desk between 9-5 on weekdays, and our home emails at the weekend home computer. In fact, there is substantial research indicating that a hobby topic like reading about wine is most often enjoyed and acted upon during weekends. So, we had our doubts.

  Looking at our clients’ data, the majority of the emails were sent on Thursday, and this coincided with a peak in open rate and click through rate. We surmised that for each client we naturally started optimizing to the best send day, and it is definitively Thursday. (Since they are all averages, the increased number of email campaigns on Thursday shouldn’t necessarily mean that open and click through rates are better, so we feel confident that mid-week is still the best time to send for optimal performance.)

Keeping Their Attention: What About Frequency?

  Then there is the question of frequency. Frequency is a complex mix of your unique databases’ relationship with your winery, and the quality of content you deliver to them. Some wineries may have developed a relationship that their customers tolerate several emails a week. Some only email twice a year. The only true way to tell your particular ideal frequency is to test and look at unsubscribe, open and click through rates.

Pie Graph showing Frequency of Email Sends

The client pool for our data collection was wide and diverse. It included large, distributed mass-market brands, as well as small, allocation-only wines. It should be noted, generally, that the larger the winery, the more frequently they emailed their database. But, when we looked across all 43 clients, more than half of them are sending emails once or twice a month. Only 10% are sending weekly, and 9% are sending every 6 weeks or every 3 months. The 13% of wineries sending every 6 months are all on allocations.

Graph showing the Affect of Frequency on Email Performance

  But, the question becomes, what is the optimal frequency for performance? Well the answer there is more is not better, but there’s a catch. At first glance, the data suggests that every six months gets you the best open and click through rate, but take into consideration these communications are highly anticipated semi-annual release allocations. For those of us that don’t have a line waiting around the block for our wine, it appears somewhere around 4-5 weeks is the sweet spot. This is also supported by the data and knowledge that segmentation and smaller lists get better response. Remember – it’s not how often you send an email, but how often any one person on your list receives one. So, your best bet is to spread out your communication and don’t hit everyone all the time. Segment your lists by their preference, location, or buying habits, and your frequency will naturally drop.

Getting To The Sale

  Not all of our email campaigns were sales based (yours’ shouldn’t be either.) Some were event invitations or newsletters, but we did pull out the eCommerce emails for sales statistics. Klaviyo.com quoted the average conversion rate on 18,000 customers across 13 industries during the full 2018 calendar year at .09%. We felt pretty awesome at our. 48% average. But once again, take into account this is wine versus kitty litter or whatever other offer ends up in your inbox. Our consumers generally want to hear about our winery and order our wine because they choose to enjoy it.

  If you were to project out response, you can assume about $334 AOV and 7-8 orders on an average campaign.

Winery Benchmark Averages

Conclusion

  So, what does this all mean? Here are our take-aways:

1.  Wine is a cheerful addition to the inbox, so set your goals higher than posted averages. Below is what we’re using for our winery benchmark performance moving forward.

Winery Benchmark Averages

2.  Go ahead and use those long subject lines and test emojis and other attention grabbers. But on sales emails, keep the offer short and to the point.

3.  Don’t feel stressed about making a specific send day of the week. It is true that Thursdays are the best day for email drops. But if you miss that, Tuesdays, Wednesdays and Fridays are good, too.

4.  While most of us send emails every 2-4 weeks, it appears that spacing this out to every 4-6 weeks would be beneficial. Rather than cutting back on good content, try segmenting communications to who might best respond to the message.

5.  Smaller lists perform better. Always. Get out of the habit of sending every message to everyone on your list. Its more work to segment, but it’s worth it.

  We were pleased with the results of this inaugural benchmark, and will continue and broaden our study, and continue reporting annual results.

  We are curious – does this match with what you see in your own database? If you have comments, we’d love to hear them at service@wineglassmarketing.com.

  Susan DeMatei is the President of WineGlass Marketing, a full-service direct marketing firm working within the wine industry in Napa, California. www.wineglassmarketing.com

Wine, Widgets & Website Accessibility

Cyndi
Blind person using computer with braille computer display

By: ADA Site Compliance

Like most businesses today, wineries are grappling with making their websites accessible to users with disabilities. Plaintiffs and their attorneys continue to target the wine industry and have now filed dozens of lawsuits alleging that growers, distillers, distributors, and merchants are non-compliant under the Americans with Disabilities Act (ADA). If the current litigation wave follows that of other verticals recently hit – retail apparel, hospitality, restaurants, travel, among others – the trend will likely persist until every player in the space has either revamped its existing website, built an entirely new one, or closed its doors altogether.

  So how have wineries and vineyards fared so far in facing this new risk? While the final chapter in this story has yet to be written, defendants in such suits across similar retail-based industries have found that their outcomes largely depend on the strategy they choose to adopt. There are three basic approaches. One option is to do nothing at all and hope for the best.

  A second option is to take some incremental step or steps toward improving the website. Often, this involves fixing the easy-to-find compliance failures – issues like color contrast violations and missing alterative (“alt”) text on images. The advantages here are convenience and cost; many software tools can assist with this, and for not much money. The primary disadvantage is that the results are mixed, since no technology can catch every failure. In fact, most automated tools only detect about 20-30% of the non-compliant issues. As a result, while software offers a step toward ADA compliance, it will continue to leave website owners exposed and vulnerable. And given that “copycat” suits are now the norm, your odds of escaping further litigation are low.

  The third option is for wineries to make their websites ADA compliant. The only way to do this is through human expert auditing that involves actual people going through the site manually to check for all 78 “success criteria” under the current web content accessibility guidelines (WCAG 2.1). After that, wineries can use the audit reports to remediate their sites and achieve meaningful compliance. While this option costs more, it remains the only reliable way to stop successive suits. It is also the right thing to do.

Widgets: Savior or Snake Oil?

  Many businesses – not just wineries – turn to third-party accessibility “widgets” as an apparent cure-all. These software plugins or overlays go directly on a website and claim to provide disabled visitors with an expanded set of accessibility tools to help them better navigate the site. To the uninitiated, widgets seem to be the long- sought solution: an inexpensive and easy-to-use button that makes fonts bigger, contrasts sharper, and other enhancements. Their simple integration with any website accounts for their widespread adoption.

  Unfortunately, as lots of their former advocates have found, widgets fail to make any website. In fact, there is reason to believe they make sites less compliant than before and more susceptible to litigation. The reason: the features they offer are already available to users via their browsers, their operating systems, or their assistive devices such as electronic screen readers (JAWS and NVDA are the two most popular). Most users who would benefit from a widget’s functionality already have these options available and are using them when needed. So instead of providing new ways to access information, widgets only succeed in further confusing assistive devices, which now have yet another potential barrier on the website to try to “read” and “understand.”

  Some experts have been vocal in their opposition to widgets as a quick-fix tool. Jeanne Spellman, a 19-year veteran of web accessibility, represents the World Wide Web Consortium (W3C), the group that creates the WCAG guidelines. When asked about the rise of widgets, Ms. Spellman referred to them as “snake oil” and noted their likelihood of exacerbating a website’s accessibility hurdles. “Installing plugins that provide text-to- speech or screen magnification,” she writes, “does not help people who are blind or low-vision, because these inferior plugins interfere with real assistive technology the blind or low-vision person already owns and uses.”

  Fair enough. But what about the benefit of widgets as a risk-mitigation tool? Is there not some advantage that website owners derive from prominently displaying this software on their site? To this, Ms. Spellman offers a definitive no: “Plugins do not help you if you are sued. Additionally, installing a custom overlay over your code … requires changing the custom overlay every time you make a change to your site. In the end, you still have an inaccessible site.” In the end, the only use Ms. Spellman sees for widgets is as a temporary patch while business owners fix their sites.

Take Action Now

  In the short term, what should wineries do in order to minimize their risk of costly litigation? Here are some steps that make for a good start:

•   Hire a true expert in website accessibility. There are many new players in the digital accessibility world, many of whom come from other businesses like web design or marketing. They may be experts in their core business, but they’re not web accessibility specialists. Don’t let them learn on your dime.

•   Post an accessibility statement. This can be simple verbiage on your site that lets visitors know you are addressing the issues. It also lists your contact info so that users can reach you if they need help navigating the site. Nearly every lawsuit filed in his space cites the lack of such a statement on the site.

•   Perform human audits. Again, technology does have some benefit for those looking to gauge their general accessibility level. But it will not make your website compliant. If true accessibility is the goal, you must have human beings auditing your website for all instances of all WCAG errors.

•   Commit to ongoing auditing and maintenance. Post-remediation, you’ll need to periodically review your site to make sure it stays compliant. Your content may change, as do laws and regulations, and so a set-it-and-forget-it strategy can land you back in court. Accessibility is a journey, not a destination. 


  Lastly, remember that website accessibility is about more than merely avoiding lawsuits; it’s about doing what is lawful and making your website accessible to all, which ultimately benefits everyone, including your winery. 


  For more information about becoming ADA compliant, please contact Gemma Petrón at ADA Site Compliance at…

(561) 258-9875; gemma@adasitecompliance.com

or find us at… https://adasitecompliance.com

Four Important Ways to Use Software in a Winery

Cyndi
staff placing info at a tablet

By: Alyssa L. Ochs

For hundreds of years, wineries got by with keeping track of their operations with little more than pen and paper. But in today’s competitive wine industry, getting by isn’t good enough, which is why an increasing number of wineries are relying on high-tech solutions that make running a wine business more productive and profitable. Fortunately, there are some excellent software companies that specialize in wine business software to address the common challenges that wineries face.

  With a focus on inventory, fulfillment, compliance, and wine club memberships, here’s how an investment in software can assist modern wineries.

Inventory Software

  Inventory management is a tedious job at a winery, which is why this type of software is in such high demand. Inventory software helps winery owners keep track of how many bottles of wine are available, understand the production history of the bottles, and ensure that each wine batch is traceable. This is a good type of software to invest in because it can ensure fewer counting errors and reduce the amount of time your staff has to spend manually keeping track of wine bottles that are produced, sold, and shipped.

  Fulfillment Software

  Order fulfillment can also be a challenge for wineries because it is a time-consuming and error-prone task. Fulfillment software winery can help winery staff create new orders, search past orders, view inventory details, facilitate returns, and be alerted about inventory shortages. Other fulfillment software features include the ability to view invoices, run reports, and get order status updates.

  It’s important to choose fulfilment software that integrates easily with the current information you are working with and that can provide detailed reports about supply chain issues.

Compliance Software

  Wineries must comply with many rules and regulations, which can be hard to keep track of and put you out of business if guidelines aren’t met. This is why compliance software is a popular choice among wineries to reduce business risks and keep up with important deadlines. Software companies offer solutions that help wineries follow the legal requirements of operating an alcohol-based business in a more accurate and precise way. This is particularly important when your winery begins to sell bottles to new markets outside your home region.

  However, this type of software can be unnecessarily expensive if you have a very low production volume, and you’ll still need a staff member to manage the compliance software system in-house or on an outsource basis.

Wine Club Software

  Wine clubs are great ways to retain loyal customers and stay connected with the wine-loving community. Good wine club software informs consumers how much they will save over time by becoming a member, makes it easy to buy bottles, and simplifies the process of running a wine club. With this type of investment, a winery can create shipments, print shipping labels, report on member statistics, customize shipments, and stay in touch with members more regularly.

Recommended Wine Software Companies

  The wine industry is big business for software companies, but it is a smart idea to choose a company that has specific applications for wineries rather than more general applications that are broad enough for any type of company.

  One company that specializes in the business side of wine is Microworks Technologies in Napa, California. Microworks provides direct consumer sales management software for the wine industry though tasting room, wine club, wine marketing, and winery accounting solutions.

  Scott Meloney, the president and CEO of Microworks Technologies, told The Grapevine Magazine that one thing that sets his company apart from others in the industry is that when you call Microworks, you will reach a real human being.

  “If you need technical support, we encourage you call us by phone, where you will speak to a live person and your question(s) will be answered to closure on the first call 99% of the time,” Meloney said. “Our staff is made up of industry veterans who understand the wineries business and will relate to your questions.”

  Meanwhile, VinNOW LLC is a winery software company that provides customer, wine club, and sales and inventory management all under one roof. This Mesa, Arizona-based company also offers free training and support, extensive reporting real-time wine club management, point of sale, and QuickBooks integration.

  Ted Starr, the CEO of VinNOW LLC, said that what sets his company apart is VinNOW’s extremely reliable customer service.

  “This ranges from customer support when the wineries need it, seven days a week, to the ability to support wineries who can’t rely on their internet connection.”

  Another company that provides a comprehensive software package that integrates numerous aspects of winemaking is The Winemaker’s Database. This Los Gatos, California company has been in the industry since 1983 and assists wineries with everything from tank transactions to barrel tracking, analytical data, customizable reports, 702 generation, and more.

  The Winemaker’s Database’s Vice President, Emily Vahl, told us how her company was originally created by a winemaker and how it still offers winery solutions from a winemaker’s perspective, rather than that of a company or programming team with no winemaking experience.

  “Also, our entire support team consists of former winemakers or winery employees that have worked hands-on with crafting wine,” Vahl added. “When our customers call WMDB, they speak with people who understand their specific needs.”

Considerations and Important Software for Wineries

  There are many considerations to take into account before investing in a new winery software system, and you may want to talk to other wineries in your region about what they use and what works well for them before making any decisions. Compare costs for similar types of software and think about whether you only need a single-service type of software or would benefit more from a comprehensive software program that addresses multiple needs.

  Other considerations include how customizable software is for your winery’s specific needs, the data setup process, and how you will transition from your current system to a new one. You might also think about the ability to use software through a mobile app, how easy to navigate the web interfaces are, and how secure the site is for cloud computing technology and data center privacy. Customer technical support for software purchases and access to future software updates as technology improves are also important considerations.

When asked about the most crucial products that are must-haves for a modern winery, Meloney of Microworks Technologies said, “At the very least, a winery will need a good CRM package with POS, club, ecommerce, inventory, and accounting software so it can leverage sales efficiently with the right tools to promote, track, and measure business goals.”

  Starr of VinNOW pointed out that crucial software needs vary with each winery because some only sell wine online, while others sell through retail, clubs, have tasting rooms, or incorporate a combination of these sales channels.

  But overall, for software or hardware, POS, club, cart, compliance, accounting, communications, and other products, Starr said that wineries “need products that work the way the winery wants to run their business, which are affordable and supported with great service and have the ability to grow with the business as the business grows and changes.”

Vahl of The Winemaker’s Database said that the most important type of software for a winery to have is anything that can help it reduce paperwork and be efficient and organized.

  “Winemaking is an art form, but it is also a craft, meaning the end product needs to be consistent each time,” Vahl said. “Software is an excellent tool because you can click a few buttons and gather the data instantly to view the numerous components of a blend.  Plus, since nobody enjoys paperwork, so it’s pretty handy to let your computer do the leg-work when it comes to providing the required reports to the government.”

How to Avoid Common Software Mistakes

  Meloney from Microworks Technologies said that many businesses make the mistake of not taking the time to learn the full capabilities of their software. This means that you might be missing out on important efficiencies that the software has to offer. Another common mistake he noted was inadequate hardware.

  “Can you image pulling a boat up a hill using a bicycle?” Meloney asked. “Recognizing the impact of outdated computer equipment on the performance and reliability of software can be the difference between success and failure of a software system.”

  To avoid future regrets, Starr of VinNOW emphasized the need for wineries to call multiple references with similar business demands and review the hidden costs and expenses of possible solutions.

  “Ask references about the surprises and difficulties they uncovered during the installation and first six months of using the solutions,” Starr advises. “Also, ask references about any shortcomings and strengths of features and service.”

  Vahl of The Winemaker’s Database said that a common mistake is looking for an entire software package from just one provider. For example, her company has specialized in wine production software for over 35 years and that is its primary area of expertise.

  “Often, wineries approach us looking for a software package from a single company that can do everything from vineyard management to POS,” Vahl explained. The areas of vineyard management, wine production, warehousing, accounting, point of sales, and wine club are vastly different from one another, which is why I am a fan of software interfaces. When companies work together to create interfaces, then they can offer some pretty amazing options to clients because they are each doing what they do best.”

Software Advice for Wineries

  Modern wineries rely on software for accuracy, efficiency, and to be competitive, but a software decision could either help or hurt your business. Therefore, it is advisable to talk to a few software companies to get a sense of how their products can work with your current operations.

  Meloney from Microworks Technologies advises wineries to know their business needs, be thorough, and check with as many references as possible before implementing new software for their operations. 

  “You don’t want to favor one department in the decision when it may cripple another,” Meloney said. “Make sure you are provided an in-depth demo of the features in detail. Know that what you see on the surface does not represent the software’s capabilities. Ask references about the vendor, not just the software, because the quality of your vendor is just as important as the software itself.”

  Starr of VinNOW’s main pieces of advice are to review your winery’s goals, assess the strengths and weaknesses of your team and location, and know what questions you need to ask software companies. He also recommends making sure a company has the features you need and to remained focused.

  “It is so easy to get distracted with features like customer photos in your POS and club, but since most of us don’t have facial recognition features, we end up finding out that a customer is a club member when we speak with them,” Starr said. “And every customer should get excellent customer service, so the feature sounds great but is not highly used.”

  “Then have a hands-on test-drive of the software,” Starr recommended. “If you plan to keep the solution for three to five years, dedicate a few hours per solution to truly see the depth of the solution and avoid picking the wrong solutions. Try adding a sale, changing the order mid-stream, cancelling an order, processing a club release, and managing returned packages and cancelled orders. Take the time to access reports that you need. Some solutions are strong in reporting but need a rocket scientist to use them. Ask how they meet ADA and PCI compliance and how they deal with D2C compliance and all the new tax reporting requirement and permits that are required.”

Finally, Vahl of The Winemaker’s Database advises wineries to start small and not try to resolve all of your issues right away because this is a common way that wineries end up paying too much for way more software than they really need.

  “I always recommend starting with the simplest form of the program and then adding on components as they are required, when users become accustomed to how the software works,” Vahl said. “Modular-based solutions are excellent for keeping costs down and also for helping wineries create a tailored solution for their operations.”

Five Areas to Focus on When Maintaining Your Website

Cyndi

By: Susan DeMatei

Website under construction with Laptop

Maintenance is an important and often overlooked part of having a website. Which is odd because you spend a great amount of effort on maintaining other aspects of your life and business. You go to the gym and the doctor to maintain your health; you repair and clean your house, your car, and your yard; at work, your tasting room, Wine Club, and your wine education or tasting senses are all given careful attention to make sure they are kept in shape. Why, then, do we expect to set up our website and then let it sit? Websites need to be maintained, too.

Your website is your front door to the entire world. Will customers or the trade find broken links, missing images, or an insecure page––or will they not even arrive at your website due to poorly tagged pages, making it impossible to find it on a search engine?

The bad news? The internet, software, hardware, and browsers are constantly changing. But the good news is there are lots of plugins and systems out there to keep your website up to date and healthy. Here are 5 areas you should focus on when maintaining your website.

Security

This may seem like it goes without saying, but if your website doesn’t use the proper, up-to-date security measures, your website will suffer. First, search engines will likely put you near the bottom of a list of search results or not even display your site. Second, a scary warning can appear where your website should be strutting its stuff.

Security is especially important if you have a WordPress site. WordPress powers over a third of the internet today. Because of sheer volume and the number of WordPress websites online, it’s the most hacked content management system on the web.

You should set up a routine schedule for removing malware, scanning for viruses or hacks, removing spam blog or product comments as well as spam signups to your mailing list. And don’t forget to monitor your SSL certificate to let purchasers know that you are safe to enter credit cards. Nothing says “don’t buy wine here” like a big security warning.

Data Preservation

You may not realize this, but on many mainstream platforms, including WordPress, there isn’t an automatic backup feature that you can just revert to if your website gets hacked, corrupted, or damaged.

This happens more likely than you think. Sometimes plugin updates can cause irreparable damage to the design. Other times, there’s human error when that new marketing intern deletes all your trade assets by accident.

It is up to you to back up your files. Luckily, there are many tools on the market that can do this automatically.

Broken Links

Whether your website is five pages or 30 pages, it can be easy to miss a broken link buried on your website. If the broken link is to your ecommerce store, it’s like having a malfunctioning door to your tasting room. Even if nothing is broken, if you don’t have a proper “continue shopping” link in your cart or checkout, you could lose the customer with their frustration. Maybe the link is minor and doesn’t lead to the store, but a broken link says you’re not paying attention, so why should your customers?

Again, routine maintenance should look for achieved products, employee bios, vineyards, vintages, distributors, events, or anything on your site that may be out of date and driving to a dead link.

SEO

Google is the most widely used search engine and now processes over 70,000 search queries every second, on average; which translates to well over 5 billion searches per day and closer to 2 trillion searches per year, worldwide. By 9:30 am on any given day there have been 2.5 billion searches on Google, globally.  Your winery is in there, somewhere, you just have to help people find it.

Search Engine Optimization doesn’t have to be overly complex. It’s primarily made up of tagging pages and images with keywords so Google can read them, and submitting the site and the sitemap to Google to index. The maintenance of these items requires checking that new pages and images are described and indexed. There are a number of tools on the market that will help identify and flag if a new page is missing tags, or if something is out of date.

ADA Compliance

There has been a lot in the news lately about ADA compliance, mostly coming from several lawsuits being brought against some wineries on the East Coast. The goal of this exercise is to make sure that everyone has equal access to the content on your site, including those with visual or mobility impairments.

Being compliant for something like ADA can be tricky and until the law has even more clear guidelines, it may be hard to be 100% compliant. But there are a number of ways to be accommodating for web visitors with disabilities. Think of it as very rigorous SEO: The requirements for being ADA Compliant cover tagging a large portion of your content, images, and overall accessibility. I would not recommend you try and tackle this on your own. There are scans and specific tasks required, like scripting to close modal windows, and tested functionality with the site text increased up to 200%. It is something your designer should look into. But once done, it needs to be maintained with each new image or block of text. The good news is, not only does it benefit your customers with disabilities, but it benefits your website functionality overall.

Ongoing maintenance doesn’t have to be a brain-teaser. If you consider the investment you put into your website and the sales you get out of it, then finding an agency with a maintenance package or setting up a series of plugins to manage these areas seems like a no-brainer.

Susan DeMatei is the President of WineGlass Marketing, a full-service direct marketing firm working within the wine industry in Napa, California. www.wineglassmarketing.com

Is Your Facility Ready to Host Events?

Cyndi

By: Markel Insurance

glasses of wine in a buffet

As the spring season brings new life to the vineyards and offers opportunities of growth, so too are winery owners looking for new growth in their operations with increased sales.  Having a great experience at a winery results in improved customer loyalty, increased publicity and more sales.

One way to maximize your public exposure is by hosting events.   The activities can be small and simple such as an acoustic guitar on the back patio or larger concert exposures.   Events can include wine club dinners, fund raisers, vendor shows or weddings.

In planning for the events that will best suit your operations and facility, several key elements should be reviewed to help minimize losses and protect your assets.  Understanding your target market and what activities are best for you are as unique as each blend of wine.  Current markets have several popular events, including yoga stretch and sip; Wine Paint and Pour; Races through the vineyard or even a vendors “farmers market” offering local crafts and products.

There are the tried and true, more traditional activities expected at a winery with Crush or Harvest festivals, pickin’ party, club dinners and weddings/shower events.

You should consider the space needed based on the anticipated number of participants and any specialty needs, including tables & chairs or tents, rental equipment, caterer or DJ/vendors.

Once you have an idea on the type of event that will appeal to your demographics, a quick checklist can be reviewed.

Facilities Checklist for Hosting Events:

  • Is the use/occupancy rating for the property acceptable for the type of event?
  • Will you be able to provide adequate staffing for supervision?
  • Is there clear signage for acceptable vs restricted access areas?
  • Are there any ADA compliant concerns at the facility?
  • Based on the attendance expectations, will there be enough bathrooms, trash cans, water stations, shade/covered areas?
  • Are the electrical demands up to code? Who manages the setup and takedown for stage and dance floor exposures?
  • Is there emergency personnel on site?

Slip, Trips and Falls

Liability losses related to the facility most commonly relate to the slip, trip or fall category.  Not to underestimate the severity of what seems to be a simple loss cause, the following claim shows a good illustration of what can happen.

  Real-life claim example: A small concert event on a patio that required additional electrical power and resulted in cords running along the open patio.  A trip and fall occurred resulting in a fractured hip.  A surgery turned into an infection, causing a second surgery and extended recovery time.  With lost wages alone, the price was rising, and when finally settled to include medical, the shared cost was nearly $1.7 million.

Parking

Parking can be an often overlooked, but it is an important influence on the experience of the customer because it can be the first and last impression for any event.

Parking Factors to Consider

  • Is there adequate parking based on the number of attendees and is it easily accessible?
  • Always consider the path for emergency vehicle access (fire trucks, police cars, and ambulances).
  • Should local authorities be notified of the event and to help route the traffic flow in and out of facility.
  • Make sure the parking lot is clear of debris and free of obstacles with clear walking areas outside of traffic pattern.
  • Verify all areas of the parking log are well-lit for evening use and not susceptible to rain or vehicle being stuck.
  • Have clearly marked flow patterns and parking lanes help eliminate confusion and frustration.
  • Determine if you will have attendees directing traffic, or will be offering valet parking or any shuttle/transportation.

  Real-life claim example: Parking mishaps may leave you exhausted, or exhaust-less.  A vineyard/winery cleared a small lot to have as overflow parking for their outdoor event.  A small tree stump remained and although not a concern for the tractor or owners pickup truck, was not concealed enough to avoid damaging the exhaust systems of several customers that parked in the field lot.

Security

Depending on the size of the event, the responsibilities of the host grows with increased attendance.  When managing crowd control, do you rely on winery staff or opt for hired security.  Are there any weapons carried by other than law enforcement?  Do you hire off duty local law enforcement or an independent contractor.  Rules and procedure should  be clear relating to checking coolers and bags; not allowing any outside liquor; and restricted areas, especially where there is an attractive hazard, i.e. – open barns, fire pit, swimming pool/fountain/pond.  As an aside on fire, any open flame, fire pits, bon fires, outdoor grills, burgers and s’more’s cooker should be reviewed to make sure there are proper barriers, clear space and storage of combustibles.

Contracts and Certificates

Contracts and certificates should be in place for all vendors, caterers, artist, or instructors.  Each certificate of insurance should be from an  A rated or higher admitted carrier with limits equal to or greater than your limits, naming you as an additional insured, owner of premises.

Pets

People love their pets and pet lovers typically believe that everyone else should also be a pet lover, especially their pet.  From an insurance standpoint, it is not recommended to have pet friendly events.   If pets are allowed is there restrictions to be on leash or in designated areas.

Is the vineyard dog allowed to mingle in the crowd, “unsupervised?”

Know the difference between a professional service animal and a therapy pet and have clear rules so that you avoid an issue of selected acceptance or exclusion and can rely on your policy language.

Minors

Although minors may not be the norm for the tasting room, family friendly events can bring in a broad age range.   Have you crawled through your facility lately?  What may be obvious to an educated adult, may not be as clear to a child.  Locks and barriers are better than signs alone.  Have staff training to look for hazards and anticipate a lack of parental supervision.  Most wineries are not suitable as a daycare operation and should not have any childcare exposures.

Miscellaneous Exposures

  Evening Events: As a general rule of thumb, liability goes up when the sun goes down.  For many reasons, whether it be the time element of consuming more alcohol or just the visual difficulties to recognize hazards, losses are more likely as events run into the evening hours.   Having events that are shut down by 10:00pm would be considered a good practice and depending on your coverage carrier, may be a requirement.

  Cyber Security: Cyber / data breach coverage can include storing the credit card information for your club members, but can also apply to online purchases and any ticket sales for events.

  Private Events: When dealing with a special private event such as a Wedding or private party, clear contracts are the key.  The greatest frustrations come for unmet expectations.  Make sure all parties know what is being provided and what the expectations are for contracts, payment, timeframes or services.

  Real-life Claim Example: A facility that was not closed to the general public during a wedding event.  There was no clear detail on a separation of the wedding party areas vs the public access tasting room area.  In a clash of Party vs Public, tempers rose, words were cast and a white wedding dress is now a shade of cabernet.

Conclusion

This checklist is not all inclusive for all the unique elements to all event types.   The checklist should be a starting point for your facility.  Before hosting more events at your facility, review what type of events will be the best fit for your situation to provide a great experience for your guest.  Try to create events that will have a positive marketing buzz and will also increase your income while minimizing your exposures to loss.

The information provided in this article is intended for general informational purposes only and should not be considered as all encompassing, or suitable for all situations, conditions, and environments.

  Please contact us or your insurance professional if you have any questions. Products and services are offered through Markel Specialty, a business division of Markel Service Incorporated (national producer number 27585).  Policies are written by one or more Markel insurance companies. Terms and conditions for rate and coverage may vary.

For More Information Please Call Us At…800-814-6773, or Visit Our Website: markelinsurance.com/winery