us wine market, disrupting the system. steve raye vinitaly 2015

U.S. WINE MARKET:

DISRUPTING THE

SYSTEMNon-traditional marketing strategies to gain a competitive edge.

© 2015 Steve Raye

Steve Raye

Helping wine brands

enter/grow in the US Market

Brand Development

Trade Marketing

Social Media

Steve Raye

Managing Partner

Bevology Inc.

Steve@BevologyInc.com

+1 860-833-6272

Think Differently

Zig

5

© 2015 Steve Raye

Think Differently

Zig Zag

© 2015 Steve Raye

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

Guiding Principle

Align programs with account needs…help

them build their business: WIIFM

“What’s in it for ME?”

•Increase sales (volume and profitability)

•Increase customer frequency

•Increase new traffic

© 2015 Steve Raye

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: Drizly, Minibar Delivery, et

al.. New in 2014 and now active in all major markets.

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 ChannelDec. 2009 Dec. 2013

Wine/Liquor 40,384 43,675

Grocery- Conventional 16,662 17,019

Drug 8,082 12,390

Mass-Conventional 2,132 2,033

Grocery-Natural/Gourmet 1,066 2,539

Warehouse Club 850 911

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.

You Can Change the Equation!

1 + 1 = 11© 2015 Steve Raye

You Can Change the Equation!

1 + 1 = 11© 2015 Steve Raye

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

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

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

E-Commerce Optimization

Bottle photo

Tasting notes

Technical notes

Food pairing

After

Before

© 2015 Steve Raye

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

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 monthly575 44,984 7,823%

Average visit duration Site average 2:03

More than doubleChile article average 4:15

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.

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

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.

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

Read the Book

© 2015 Steve Raye

U.S. competitions accepting

currently non-imported winesUltimate Wine Challenge

Accepts brands not currently imported to the US

http://www.ultimate-beverage.com/ultimate-wine-challenge-

UWC/2015-wine-entry-forms/

BTI (Beverage Testing Institute)

Accepts brands not currently registered in the U.S. Check site for

deadlines

http://us6.campaign-

archive2.com/?u=da8603c0af6040dcc7e4d9ed2&id=8fdf91dae4&e=

San Francisco Wine Competition

Deadline May 22, 2015

http://www.sfwinecomp.com/

New York International Wine Competition

May 17-18, 2015 (Deadline for entries May 12)

https://www.nyiwinecompetition.com/© 2015 Steve Raye

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.

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,

wine4.me

E-commerce

Delivery within an hour

Metrics matter

© 2015 Steve Raye

Contact

Steve Raye

Managing Partner

Bevology Inc.

401 Park Ave. South, 9th Floor

New York, NY 10016

+1 212-613-2713

+1-860-833-6272 (m)

steve@bevologyinc.com

© 2015 Steve Raye