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The USA Wine Market Paul Wagner, President, BALZAC Instructor, Napa Valley College Wine Marketing & Sales Slide 2 What is the US Market today? Wine Marketing And Sales Slide 3 Slide 4 Slide 5 Slide 6 Slide 7 Slide 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. Slide 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 Slide 10 Slide 11 Slide 12 U.S. Adult Per Capita Table Wine Consumption vs. Population Growth Adult Population Gallons per Adult Slide 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 Slide 14 Courtesy Constellation Wines US Genome Project Slide 15 Slide 16 Slide 17 Slide 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 Slide 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 2010. In many states, there are only two or three major distributors The competition is overwhelming The salespeople are overwhelmed Slide 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. Slide 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. Slide 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 Slide 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. Slide 24 Dont teach geology They do not want geology lessons. The advantages of calcareous or volcanic soils do not move them to rapture. Slide 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. Slide 26 Dont teach enology Barrels? Is anyone interested in barrels? Malo-lactic fermentation? Cold soak? Rotary fermenters? Diatomaceous earth? Yeast strains? Destemming? Slide 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. Slide 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 Slide 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. Slide 30 Would you like to know more about her? Slide 31 She is: Oxygen61% Carbon23% Hydrogen10% Nitrogen2.6% Calcium1.4% Phosphorus1.1% Trace elements.9% Slide 32 Wine is not about Facts People dont remember facts, they remember stories Help us fall in love with wine.