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%). Wine.com 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.
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
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.
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
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
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.
Metrics Matter “I know half my advertising doesn’t work…I just don’t know which half” Pure E- marketing/ Ecommerce ROI
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.
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 Winespectator.com. These publications are effectively invisible to Millennials: Google can’t see Wine Spectator ratings.