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The USA Wine Market Paul Wagner, President, BALZAC Instructor, Napa Valley College Wine Marketing & Sales.

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Presentation on theme: "The USA Wine Market Paul Wagner, President, BALZAC Instructor, Napa Valley College Wine Marketing & Sales."— Presentation transcript:

1 The USA Wine Market Paul Wagner, President, BALZAC Instructor, Napa Valley College Wine Marketing & Sales

2 What is the US Market today? Wine Marketing And Sales

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8 Issue: #1. Sales are increasing. US Wine Sales are increasing overall US Wine Sales are increasing per capita Why? There is a new generation of wine drinkers Every producer wants a part of this market.

9 The New Generation We have a whole new generation of consumers. They buy Fat Bastard wine from France They arent afraid of screw caps They dont serve wine at dinner

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12 U.S. Adult Per Capita Table Wine Consumption vs. Population Growth Adult Population Gallons per Adult

13 Issue #2. The US is not one market Distributors, retailers, restaurateurs, chain buyers, and consumers Each is a different audience, each needs a different approach Consumers are not one market

14 Courtesy Constellation Wines US Genome Project

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18 Consumption of Luxury Priced Brand Drank Luxury Brand Did Not Drink Luxury Brand *Past 6 month consumption of one or more of luxury brands. Courtesy Constellation Wines US Genome Project

19 Issue #3 The market is Saturated There are 100,000 wines in the US market 5,000 wines with 90+ ratings from Wine Spectator in In many states, there are only two or three major distributors The competition is overwhelming The salespeople are overwhelmed

20 For the Trade You need to convince them that you are serious about making good wine. The wine business is a business of people and relationships. You need passionate winemakers in the market. You need a good story.

21 How to talk to consumers We have always begged for a way to make wine less intimidating, more approachable. Now we have it. What are we doing about it? We are doing everything wrong.

22 How NOT to talk to consumers: Dont talk about DOCGs, limited yields, viticultural practices, or malo-lactic fermentation. American consumers dont care about this. Winemakers carebut they wont buy your wines

23 Dont teach chemistry They do not want chemistry lessons. The romance and charm of wine has nothing to do with pH or titratable acidity.

24 Dont teach geology They do not want geology lessons. The advantages of calcareous or volcanic soils do not move them to rapture.

25 Dont teach botany They do not want botany lessons. The difference between rootstock 1103 Paulsen and 5C adds little to their dreams of the Willamette Valley.

26 Dont teach enology Barrels? Is anyone interested in barrels? Malo-lactic fermentation? Cold soak? Rotary fermenters? Diatomaceous earth? Yeast strains? Destemming?

27 What DO Consumers want? They want a story. They want to fall in love. They want to open a bottle and take a journey: A journey to a wonderful and interesting place.

28 Why Choose This Wine? Never had it before Purchased at a Store Tried at a Friends Home Tried at Restaurant Friend Brought it Over Dont Remember 75% Have Tried the Brand Before Trial Purchase Q: What was your first experience with this wine? Probably a Trial Purchase

29 What DO Consumers want? Only 25% of Americans own passports. Americans do their traveling in the movie theater, and at the dinner table. They buy wines to take a journey to another place, and another time.

30 Would you like to know more about her?

31 She is: Oxygen61% Carbon23% Hydrogen10% Nitrogen2.6% Calcium1.4% Phosphorus1.1% Trace elements.9%

32 Wine is not about Facts People dont remember facts, they remember stories Help us fall in love with wine.


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