Page 71 - Grapevine July-Aug 2020

International News

mended decreasing the price of the cheapest bottle WINE
to $28, the price point can alienate a new customer
who is looking for something more economical, and
yet won’t be expensive enough to attract a cus-
tomer aiming for a “special” bottle. Kaisaris recom-

so it retails just under $20, and increasing the cost Tank, Door & Other Gaskets
of the most expen-sive bottle to ensure there is at
least one premium label above $30.

Another pricing trick wineries can use to increase
sales is to bundle wines, rather than discount them. G-M-I, Inc.
For example, three $25 wines could be sold as a Variable Capacity
package for $65 instead of $75. Tank Inflatable Seals

“You’ve discounted, but it’s not quite as evident.
You might have hit a price that is more com-peti-
tive, but you haven’t shown everyone that you’ve
taken $5 off the bottle, so you can con-tinue to
offer in singles at the higher price,” said Kaisaris.

Carefully Monitor Sales Volume For more information contact...
in Different Channels G-M-I, Inc.
Willoughby, Ohio 44094-4634 USA
It’s common in British Columbia that restaurant Website: www.gmigaskets.com
sales of white wine spike in summer and drop off Email: gmiinc@msn.com
towards the fall as the weather cools. At that point, Phone: 440-953-8811 • Fax: 440-953-9631
it makes more sense for wineries to shift their sales
efforts for white wine to retail stores. consistent markup, some boutique local and inter-
national wineries have made the strategic decision
“If you can do that in mid-September instead of not to sell through provincially owned liquor stores.
waiting until November, you can beat your compe- This allows wineries to set a price that is more prof-
tition, who’s trying to do the same thing, without itable for restaurants and privately owned liquor
having to discount the price,” Kaisaris said. “Stop stores and creates an incen-tive to feature that
selling to restaurants then, and let them know your wine over others with slimmer profit margins.
product will no longer be avail-able after that date.
Then you can load it into stores for the Christmas Some larger wineries do both. Oliver-based
season.” Tinhorn Creek, for example, is a well-known label at
provincially run liquor stores, but also offers some
The biggest season for wine sales is fall, during premium varieties at higher price points that are
October, November and December. That’s when exclusively available at private retailers.
savvy wineries try to get a lot of product in stores
and offer incentives to sweeten the deal for restau- “These are not things small wineries do, which
rants to push wine for Christmas parties and New puts them at a disadvantage,” Kaisaris said.
Year’s Eve bashes. Yet often, the big guys get there
before the smaller wineries have a chance to start.

“The small guys have already lost sales velocity
in restaurants and then failed to capture the extra
sales in retail over that two-month holiday period,”
said Kaisaris.

Since the British Columbia Liquor Distribution
Board establishes retail prices based on a fairly

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