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U.S. WINE MARKET: DISRUPTING THE SYSTEM Non-traditional marketing strategies to gain a competitive edge. © 2015 Steve Raye.

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Presentation on theme: "U.S. WINE MARKET: DISRUPTING THE SYSTEM Non-traditional marketing strategies to gain a competitive edge. © 2015 Steve Raye."— Presentation transcript:

1 U.S. WINE MARKET: DISRUPTING THE SYSTEM Non-traditional marketing strategies to gain a competitive edge. © 2015 Steve Raye

2 Steve Raye  Helping wine brands enter/grow in the US Market  Brand Development  Trade Marketing  Social Media Steve Raye Managing Partner Bevology Inc. +1 860-833-6272

3 Think Differently Zig 5 © 2015 Steve Raye

4 Think Differently ZigZag © 2015 Steve Raye

5 Marketing Manifesto Measure what matters: Impressions are important, but they don’t necessarily correlate with volume. Here’s what really matters: Sales on- and off-premise—cases, value, velocity Depletions vs. shipments/exports Distribution on- and off-premise Reorder rates, wine lists and BTG programs Don’t market to empty shelves: Distribution is critical, make sure consumers are able to buy what you’re selling, even if it’s not in stock in-store. Get it in, get it out: Getting distribution on- and off-premise is only the first step. Drive consumer purchase. Help the importer and distributor do their jobs: Drive consumer demand at retail and ensure the trade is aware of that demand. Target audience: You can’t be all things to all people. Determine your target and focus on it precisely, comprehensively, and consistently. Geographic focus : Define your markets based on the best potential for sales gains, not total category volume. Identify, then leverage your brand’s unique strengths: Have a POD that MAD: point of difference that makes a difference. © 2015 Steve Raye

6 Guiding Principle Align programs with account needs…help them build their business: WIIFM “What’s in it for ME?” What On/Off Premise Wants Increase sales (volume and/or profitability) Increase new traffic Increase customer frequency © 2015 Steve Raye

7 Industry Trends  Millennials represent the largest wine consuming age-cohort—70 million +. They like to explore new and different things and are a primary force driving wine growth – particularly imports.  Overall, consumers are trading up to higher priced wines, with the most growth (66%) in the $12 - $15 and $15 - $20 segments.  E-commerce and new/non-traditional distribution channels are rapidly growing: 3.47MM cases in 2013 (up 9.3%). does 53% of its business with imported wines vs. 27% for traditional retail.  Explosion in delivery-within-an-hour services: Minibar Delivery, Drizly, Saucey. New in 2014 and now active in NY, Boston, Chicago, Miami, San Francisco, DC and LA.

8 Industry Trends (continued) Sources: Wine Opinions, Gomberg-Fredrickson, Wine Intelligence, B.I.G. Handbook, Nielsen et al. # of wine selling channels continues to grow Wine/liquor stores represent the largest number of off-premise outlets (wine sales in supermarkets is allowed in only 35 states and notably not permitted in NY) Wine/liquor stores account for disproportionately higher percentage of $12-$20 wines vs. supermarkets Off-Premise Wine Selling Store Counts-by Channel Dec. 2009Dec. 2013 Wine/Liquor40,38443,675 Grocery- Conventional16,66217,019 Drug8,08212,390 Mass-Conventional2,1322,033 Grocery-Natural/Gourmet1,0662,539 Warehouse Club850911

9 Industry Trends (Cont.) Online access to news, recommendations, where-to-buy have displaced traditional print, especially for Millennials. They now seek information on Wine-Searcher, Vivino, Wine4me, Snooth, Hello Vino et al. Reach and Targeting: Wine-Searcher gets 3 million unique visitors per month, predominantly millennials. Snooth reaches 2 million people per month By comparison print circulations stand at: Wine Spectator – 400,000; Wine Enthusiast – 170,000; Wine Advocate – 48,000 Sources: Wine Opinions, Gomberg-Fredrickson, Wine Intelligence, B.I.G. Handbook, Nielsen et al.

10 You Can Change the Equation! 1 + 1 = 11 © 2015 Steve Raye

11 You Can Change the Equation! 1 + 1 = 11 © 2015 Steve Raye

12 Here’s How  Delivery within an hour, law of unintended consequences  E-Commerce optimization  Content population strategy  Social Media: What’s now, what’s next? © 2015 Steve Raye

13 Delivery-Within-An-Hour  Drizly, Minibar Delivery, Drync, Thirstie, Saucey  Laser-Targeted to Millennials: immediate, no shipping upcharge  Geographically targetable down to metro market  Tool to drive retail distribution, support wholesaler/importer  E-commerce solution © 2015 Steve Raye

14 E-Commerce  Allows you to sell in multiple states, nearly nationally, when you may only have distribution in one.  Strong penetration with Baby Boomers, average purchase is 3X typical physical store purchase  Has established awareness that it represents a better selection of hard-to- find wines  Tools like Wine-Searcher drive intent to purchase

15 E-Commerce Optimization Bottle photo Tasting notes Technical notes Food pairing After Before © 2015 Steve Raye

16 Content Population Strategy  Evergreen PR: Publicity that exists forever on the web and attracts visitors at the precise moment in time when they are most interested in the subject.  Leverage the authority and authenticity of trusted sites. © 2015 Steve Raye

17 Content Population Results  Visitors saw our content more when it was archived than when originally distributed.  That is a 7,823% ROI reaching people at the precise moment in time when they’re searching for this information  And they spent twice as much time viewing the content  Goal/Result: Delight the site visitor, add value to the site, leverage your marketing dollar efficiency Santé Magazine Content Population Results Page views generated in the week the article was posted Total page views over 15 months % incremental page views AFTER posting week… and still growing 12 articles posted monthly 57544,984 7,823% Average visit durationSite average2:03 More than double Chile article average4:15

18 Social Media: Build the Community Advertising Phase I: Build the FB community Advertising Phase II: Engage with the community Facebook is powered by a proprietary algorithm that determines what users see in their newsfeed. Because of this, on average, only 3% of a community’s users will see published content organically. The game has changed, you have to pay to play. Boosted posts are a type of Facebook advertising that will insert our page’s content posts into user’s newsfeeds based on targeting parameters. This would include both users that have “liked” the page and users who have not.

19 Twitter: use it strategically  Identify Somms, F&B managers, industry influencers who are actively engaged in subjects relevant to your brand  Focus efforts on those that the others follow…Klout score, follower base, engagement, posting frequency © 2015 Steve Raye

20 Metrics Matter “I know half my advertising doesn’t work…I just don’t know which half” Pure E- marketing/ Ecommerce ROI

21 Analysis and Performance Metrics Some examples: Social Media Metrics give us real time insight into consumer engagement and interaction on Facebook, Twitter, Instagram et al, supplemented by data supplied by Facebook Insights and Google Analytics on your website.

22 Social Media Activation: Platform Recommendations We recommend social media activity be focused on three primary platforms: Facebook: The to engage with your broadest audience of wine consumers. Instagram: Every picture tells a story Twitter: Focus activities on key influencers who are actively participating –Sommeliers and F&B managers have an active dialogue on Twitter centered around “wine geek” subjects of interest © 2015 Steve Raye

23 Read the Book © 2015 Steve Raye

24 U.S. competitions accepting currently non-imported wines Ultimate Wine Challenge Accepts brands not currently imported to the US wine-entry-forms/ wine-entry-forms/ BTI (Beverage Testing Institute) Accepts brands not currently registered in the U.S. Check site for deadlines http://us6.campaign- http://us6.campaign- San Francisco Wine Competition Deadline May 22, 2015 New York International Wine Competition May 17-18, 2015 (Deadline for entries May 12) © 2015 Steve Raye

25 Strategies  Focus, focus focus… and triage your initiatives into “must”, “should”, “could”. Make sure you do the “musts” before you do “should do” or “could do.”  Must Do  Should Do  Could Do  Target audience:  Be specific…demographics are important, but behavior is critical. Only spend money that gets in front of people who are receptive to your message, AND who can buy your product.  Recognize Millennials are a prime target and they do not subscribe to print magazines like Wine Spectator, Wine Enthusiast, Parker, or pay for subscriptions to These publications are effectively invisible to Millennials: Google can’t see Wine Spectator ratings.

26 Takeaways  You can compete with the existing, major players by doing a few things really, really well  Content Population: Get your content into the right places so consumers find it when they are specifically looking for it.  Wine Apps: Vivino, Hello Vino, Wine Searcher,  E-commerce  Delivery within an hour  Metrics matter © 2015 Steve Raye

27 Contact Steve Raye Managing Partner Brand Action Team/Bevology Inc. 1 Darling Dr.401 Park Ave. So. Avon, CT 060709 th Floor New York, NY 10016 +1-860-676-7900 (o) +1-860-833-6272 (m) © 2015 Steve Raye

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