Who turned on the lights?

“Well we’re movin on up,
To the east side
To a deluxe apartment in the sky.
Movin on up
To the east side.
We finally got a piece of the pie.”

… ‘The Jeffersons’ … Lyrics by Jeff Barry & Ja’net Dubois

Moving on Up

In a conversation at the recent DBTA symposium at Ferry Plaza, Qupe winegrower Bob Lindquist (and many others) referred to 2009 as “a very tough year.” Well, even if US wine market conditions are still challenging, it seems as though a significant change in the direction in the US wine market has finally occurred, and that the lights in the marketplace have been turned-on. The dynamics of change are complex, and driven by multiple factors, including significant promotional spend and discounting. In addition, this uptick was aided by new wines entering new channels, and new route to market tactics being implemented by winecos who formerly relied on a few traditional channels, such as Tasting Room DTC efforts, and on-premises channel exclusivity. Some of the changes have happened due to innovation, sheer panic, or as a result of the ongoing recognition of wine market trends. But the evidence of a wine bull market is now unmistakeable.

Sometime in mid to late August 2009, an inflection point in the US market had been reached, as domestic wines sales took an upturn in both value and volume. As reported by Rachel Nichols in Wine Business Monthly on January 15, 2010, The Nielsen Company reported that “wine sales for October were up 2.3%” year/year. And in the rolling 52 week report dollar sales were up 3.5%, and for the same period case goods volume was up 1.7%, possibly reflecting higher price point wines entering the US Food & Drug channel tracked by Nielsen, and the concomitant significant promotional across the board spend for this period.

In a November 10th WBM article, Liza B. Zimmerman noted that “retailers, restauranteurs and wholesales” had expressed optimism that wines sales were indeed moving in a positive direction. But the YTD market seemed to be driven by the value segment; and, as noted by Suzanne Gannon in the November 2009 issue of Wines & Vines, by wines in alternative and environmentally friendly alternative packaging, with dynamic growth being shown by wines in Tetra Pak and bag-in-box formats.

The March 2010 Wine Business Monthly Retail Sales Analysis headline on page 56, reads “Retail Wine Sales See 6 Percent Holiday Bump, Signs of Life for $20 Sales,” with sales increasing in value by 6.3% and volume gaining 5.6%, with wine above $20 gaining almost 10% in both value and volume. This represented a dramatic change of events in a market that has been referred to as the toughest in years. A change in the trend line that not even CNBC‘s Jim Cramer or Danny Brager, Vice President of Client Services for The Nielsen Co. had forecasted.

A Sea Change

Consumer and market confidence seem to have returned with sustainable results now, not only possible, but probable for the remainder of 2010. The major sign beyond the US Food & Drug wine sales increase trends tracked by Nielsen, as seen by Think Wine Marketing, was the February 20, 2010 Premiere Napa Valley Barrel-Futures Auction. The Napa Valley Vintners reported that the auction raised $1.9 million, a figure that is a 30% increase over the 2009 results and represents the 3rd best revenue total in the Premiere Napa Valley’s fourteen year history. According to the Napa Vintners, the top-selling lot of the day was from Shafer Vineyards, a five-case offering of Sunspot Vineyard Cabernet Sauvignon sold to Napa-based Winebid.com for $37,000, or $616 a bottle. In response to the winning bid, Doug Shafer, President of Shafer Vineyards remarked that “It was exciting to see the support and enthusiasm for our wine, but it was just as good to sense the cautious optimism in members of the wine trade that things have turned a corner economically.” The sales at the NVV Premiere event marked a sea change in market sentiment by those close to consumers, the wine trade. Gary Fisch of New Jersey’s Gary’s Wines noted that his customers were “starting to drink more premium wines, and they’re calling for us to bring these kind of wines home.” And, JP Richard of Cache Road Liquors in Oklahoma observed that “you can feel that the energy is springing back.”

New Routes to Market

Nielsen trend analysis and auction results alone are not the whole story. A recent Think Wine Marketing survey of wine e-commerce sites revealed vigorous market activity and enviable revenue accretion in 2009. In response to my inquiry Shaun Bishop co-founder and President of wine e-commerce pioneer WineCommune and JJBuckley.com stated that “at JJ Buckley, revenues grew 19% in 2009 vs 2008. We focused on product selection, pricing and service – and customers responded. People are spending, but they want to be smarter about how they spend and are focusing their purchases with retailers they trust. We tried to make it easy for them to save money and get the wines they wanted.”

George Studdert of wine.woot! remarked that “my controller tells me that 4th Qtr numbers aren’t quite in yet, but conservative numbers indicate a 50% increase again this year over last making it three consecutive years of 50% or greater growth.  We can also say that we shipped out in excess of 75,000 packages on behalf of wineries direct to the consumer.”

While both of these businesses are wine e-commerce sites, their individual models are significantly differentiated from one another. Of the two businesses, JJ Buckley is the longer standing e-commerce site (as WineCommune founded in 1999) with an established and recurring revenue base offering a dynamic selection of products on a daily basis, while functioning as a virtual bricks & mortar retailer. While wine.woot! is a newer business launching in 2006 offering 3 individual wines per week from selected wineries, allowing the featured winery to interact directly with clients, and functions as a marketing agent for each offer. Interaction seems to be the key to the success of both companies. The idea that relationships with customer and clients is paramount and that customer service is the driver that builds trust and sales. These are but two of the more than 250+ wine e-commerce sites available to US winecos, albeit two of the more successful operators in the space. In the long-tail, fast product cycle wine industry, and in this saturated market JJ Buckley and wine.woot! offer winecos a voice that seems to transform the “noise to signal” (<– term via VinTank’s Paul Mabray).

Wine e-commerce is a solution that many wineries have discovered, and one, that as broadband infrastructure buildout occurs, will become more popular with wine consumers. In the recent survey results of ‘Affluents,’ households with more than $100,000 net income, Ipsos Mendelsohn revealed that 98% of these households have a broadband connection and frequently shop online. However, e-commerce availability doesn’t appear to be the lone motivator, but selection, service and relationship development are the prime movers of purchase behaviors. With a 72% growth in worldwide mobile broadband data bandwidth usage in H2 of 2009, and the announcement by the FCC that “the goal is to bring super-fast broadband to every corner of the U.S. over the next 10 years, giving the country the fastest and most extensive wireless networks of any nation,” the trend of adoption of the wine e-commerce channel by a wide segment of US consumers will tend to accelerate.

The Aspirational Consumer

The idea of aspiration and the American consumer is a long discussed concept by psychologists, organizational sociologists, and economists, and defined as “being ambitious” and/or “desiring success.” And the idea of aspirational consumer behavior as defined in the ‘Business Dictionary‘ is that ”Consumer motives or goals can be represented by the values they hold. Values are people’s broad life goals that symbolize a preferred mode of behaving (e.g., independent, compassionate, honest) or a preferred end-state of being (e.g., sense of accomplishment, love and affection, social recognition). Consumers buy products that will help them achieve desired values; they see product attributes as a means to an end.”

Susan Hader in a MarketingProfs article notes that ‘aspirational consumers – (are) affluent and middle income consumers willing to pay more for high-end goods and services.” Purchasing these brands “provides aspirationals with feelings of success and status.”

Dr. Issac Mostovicz, a consulting academic with insights into drivers of human behavior in practical business situations, reports in the current issue of ‘Janus Thinking’ that he sees that the US is seeing the return of the ‘aspirational consumer.” “Trends happening in places such as Silicon Valley suggest that American’s with expendable income are regaining the confidence to spend it.” This conclusion is based on January 2010 retail sales figures. “The monthly sales numbers offered further indications of returning demand for prestige and luxury goods, with Saks and Neiman Marcus, the luxury fashion department stores, reporting increases of 6.8 per cent and 7 per cent, respectively.”

The  Long View

In his article ‘Wine in a Downturn,’ Vic Motto, Chairman, CEO and Co-Founder of Global Wine Partners tracks the wine market through it’s ups & downs from 1973 on. An article worthy of review. Mr. Motto has on several occasions referred to the aspirational American wine consumer. Wondering if this observation has changed, I asked the following:

TWM: You’ve often said that the American wine consumer is aspirational; so, in light of the challenges facing the US wine market in the last year what’s your current view?

VM: “Hit by the shock of the recession, we all feel and are a little poorer, so our spending patterns reflect that.  But, we don’t give up. As we recover financially, we always revert to our normal spending patterns. Old habits are hard to break. There are centuries of history that demonstrates this – including the post-recovery of the great depression, which went from the lowest low in U.S. history to the highest high. There are many reasons that premium wine sales will recover, including very important and ongoing long-term drivers of industry growth and premium trends with over 25 years of momentum behind them.  But the core reason that premium sales are already beginning to recover is that we humans are aspirational. We always seek to improve our lives and quality of life, and we don’t give up on that – no matter what our status. People really do want quality, and they appreciate the difference. So, I wouldn’t bet against the American consumer, or the U.S. economy. I just don’t think that’s a good bet.  The time for hunkering down is passing. It’s a good time to go long.  I’m already buying better wine than last year.  How about you?”

Insights and Recommendations

The just released qualitative and quantitative research study on today’s American consumer By Ogilvy & Mather Chicago in partnership with consumer insight company Communispace has revealed the emergence of a radically individualistic consumer who is re-imagining a more sustainable future for themselves. This post-recession consumer wants fewer, but still high quality consumables. “We are finding (that) consumers make very interesting trade-offs across seemingly unrelated categories in order to get their lives into balance while still feeling like they are treating themselves to those things that make them feel normal and well taken care of,” As discussed in ‘world tea news,’ the concept of ‘affordable luxury’ seems to be well applied to wine: “It seems that the next big buzz word for consumables is affordable luxury. The trends of consumers trading down their purchases due to the economy while staying at-home to re-connect and enjoy the finer things in life are fueling a new perspective in Americana. Add the fact that consumers are demanding higher quality products, faster without added cost or complexities; affordable luxuries seem to have found the perfect storm in the late 2000’s.” Another key attribute of the new consumer exacerbated by recent economics is the idea of ‘cocooning’ introduced in the 1990’s by trend forecaster/marketing consultant Faith Popcorn. Consumer cocooning is being redefined and actualized by this new consumer, who is eating out less, and socializing more at home, necessitating new route to market strategies by wine companies. The forecast by Ms Popcorn that cocooning would lead to stay at home electronic shopping, has in fact come true. So, as wine marketers, it is our job to identify consumer movement and consumer keys and develop a plan to create commerce.

Please note the following suggested steps to enact as part of your post recession marketing action plan:

Ramp-up your customer service: Pete Blackshaw, EVP of Digital Strategic Services at Nielsen Online, in his 2009 WITS keynote address said it all – “Service is the new marketing. It’s the most important activity.”

Route to market: Consider a diversification of your channel strategy and consider multiple market touchpoints, to include e-commerce. Note that single channel marketing strategies are no longer viable.

Talk to your customers: The idea of customer relationship management (CRM) may have morphed into the concept of “Social CRM.” But regardless of platform, understand that every consumer touchpoint matters. Develop, nurture and build a relationship with each and every customer. Make your customers your clients.

Ask your customers to talk to you: Today with so many ways to connect to your customers via social media (which you should monitor via Cruvee), don’t forget the basics, like the ‘contact us’ button on your web site, the basic 1-800 #, and those one-on-one conversations (remember talking to your customers) that you can have in person. And don’t forget those capture/feedback forms in your tasting rooms or at tasting events. Oh, and hand out a lot of business cards with your contact info.

Reevaluate your promotional spend: According to Olgivy’s Graceann Bennett “The consumer is moving forward, but many marketers are projecting the stresses of the economy in their marketing and are not connecting with the new consumer mindset…” “It’s time for marketers to reflect the new positive self reliance of today’s consumer and to tap into building relationships with more one-on-one marketing efforts” … “it is important for marketers to tread carefully into the discount space, because brands that are associated with deprivation and the recession may conjure up less than positive associations once consumers have a bit more cash to spend.”

Copyright © 2010 Think Wine Marketing Blog® All rights reserved.

Technology is not a Four Letter Word

‘If you can’t measure it, then you can’t manage it’ … classic B-School value proposition

The Challenge

Back in 1997 when I first started working and living in San Jose for Mirassou Vineyards as the National Sales Manager, I found myself in Silicon Valley in the middle of a revolution in science and technology based on a platform laid down by a post World War II generation of scientist and engineers. These were frenetic times in the South Bay, and the structure of today’s technological achievements was being built in a series of fits and starts. At the time consumer access to the internet was really only a few years old, and broadband was just a dream in a small lab in Telecom Valley. The Mirassou family had gone down some several dead-ends strategically in the development of their brand. A significant challenge was at hand. I faced a similar challenge years earlier at Walt Disney World when I was assigned the role as the supervisor for all of the food & beverage receiving clerks. Significant waste occurred on a daily basis as a result of over ordering limited shelf life foods. Ordering was based on a minimum/maximum par inventory level. A system that, even in the early days of an open and functioning Magic Kingdom, was already dated. Disney had a top line research department, and we had a monthly calendar of predicted guest counts. Decision on revenue budgets, levels of staffing and even operating hours were based on these forecast which were accurate within .5%. So, I did a 30 day research trial of food, item by item, usage versus actual guest counts. From there a specific relationship between traffic and usage was discovered, and a ratio or factor was assigned to the ordering system and quickly implemented by all food & beverage outlets. Food waste as a percentage of Park food service revenues was reduced from around 2% to .2%. The answer was in the math, and then in getting the system to accept the change. But the challenge at Mirassou was more daunting.

David Mirassou, who had gone to work for Fred Franzia, after College, became a star in Bronco’s chain grocery division. After a few years he returned to the family business, but was relegated to a role selling to and merchandising groceries in Northern California. I shared an office with David, and after implementing some necessary field staff changes, David became the Western Division Manager. At the same time I hired Michael Stedman as our sales analyst. Both David and Michael were very sharp in viewing and conceiving new ways of looking at the sales process. David built a detailed, sophisticated  Access data base, and then gained permission to login to his distributors’ AS400 data files. Importing the data in the form of a .cvs file, he created pivot tables to populate the data, and then used this information to manage his distributors by providing goals and monthly feedback on not only a macro level, but on a micro level, salesperson by salesperson. Michael Stedman built a national key account list for multiple channels, and then implemented a version of this system to target and track performance within this targeted set. A lot of work. The industry took note, and the Gallo Wine Company started tracking our performance. Gallo purchased the Mirassou brand a few years later; and, David is still driving sales leading to the continued dynamic growth for the Mirassou brand. Michael Stedman, after years in New York has returned to California to lead the marketing efforts at Domaine Chandon. Once again the truth was and is in the math.

The Solution

So you can imagine my interest when I read that on Tuesday February 9th, 2010 VinTank and Brixiom Systems announced a new strategic partnership. VinTank is the well known Napa, CA based strategic digital think tank. Brixiom Systems, is an Atlanta, GA based technology company that has developed SaaS (Software as a Service) based customer relationship management (CRM), sales force management (SFM) and warehouse management systems (WMS) designed specifically for the beverage industry. As such Brixiom Systems provides via the cloud, a product that incorporates wine and spirits product and business rules and integrates this unique design with traditional customer management resources. And this actionable CRM product is available anywhere that access to a browser is available – your desktop computer, your laptop, netbook or smartphone.

At the working demo today, Wednesday February 24, 2010 VinTank Founder and Chief Strategy Officer Paul Mabray kicked off the meeting with this on-point statement: “Sales is a science that requires sophisticated management tools, and surprisingly there has been a deep void in trade Customer Relationship Management (CRM) tools for wineries. Only now, with the introduction of Brixiom Systems, is there a product that truly understands the nuances of B2B wine sales management.  We are excited about the leaps and bounds this tool will give the wine industry for better visibility and business intelligence in managing the traditional sales channel.”

Mr Mabray introduced and then turned over the meeting to Andrew Suss, Founder and CEO of Brixiom Holdings. Mr. Suss, a Vanderbilt University Chemical Engineering graduate, started his first company The Charter Group while still a student. TCG provided software solutions and strategic IT consulting services for public and private companies and for educational and governmental agencies. Mr Suss went on to found Brixiom Holdings in the Spring of 2008 with the goal of providing online tools to the drinks industry. Mr Suss launched his presentation stating that “We are truly excited to Introduce Brixiom Systems solutions to the Wine and Spirits Community.  Our products allow for an unprecedented level of information visibility, and enable remote users to access corporate data from wherever they are, via the web and smart phone devices” As the demo progressed, I realized that in this seamless sales automation solution developed by Andy Suss, that rather than shoehorn an existing CRM solution to fit your business model, Brixiom Solutions provides a customizable, scalable, affordable and integrated sales relationship package with transactional, engagement and analytical features with a dedicated beverage industry interface.

VinTank Partner, in charge of Business Development & Operations, Clay Wallin, a Vanderbilt MBA who in early 1999 co-founded eSkye Solutions, discussed working on a similar product in the formative days of eSkye, but ran into a wall at the enduser level. Under Clay and Smoke Wallin’s leadership, eSkye developed market dominant eMarket Channel applications and sold to Orion Wine Software In 2008. Mr. Wallin noted that “Brixiom Systems is a unique tool for wineries, importers, and distributors to collaborate like never before. It enhances sales productivity, and the reporting is robust and customizable”

The Message

In October of 2009 Wine Business Monthly published my CRM product review, that focused on specific functional CRM solutions for sales force automation. While these are all superior products with specific applications within the Sales, Marketing and Operations departments of wineries, none have the level of integration that Brixiom Solutions offers to contemporary winecos. The beverage industry reporting functions (compliance, taxation, samples, bill-backs) alone will allow a level of efficiency and savings that will more than justify the modest cost.

I’ve often observed that the recommendation of the adoption of new technological solutions in the consumer facing segments of the beverage industry business is often met with the look of someone who would much rather be someplace else. The investment in new technologies is often avoided by wine companies who view their current non-integrated systems as adequate to their needs. Is that really working for you anymore in this saturated and hyper competitive market? If I was either an enterprise wineco, or a small family winery, I would want to grab the competitive advantage that Brixiom Solutions provides by improving information flow and program execution. Become the supplier of choice to your distributor partners by increasing channel communications and collaboration. Differentiate your wineco from the competition by being seen in your marketplace as technologically advanced. If you do, you will see improved trade and sales efficiencies resulting in reduced cost of sales (COS) reduced points of friction and improved targeted distribution.

Copyright © 2010 Think Wine Marketing Blog® All rights reserved.

Reflections of a Wine Business Blogger

“Sometimes I lie awake at night, and ask, ‘Where have I gone wrong?’ Then a voice says to me, ‘This is going to take more than one night.’”

Charles M. Schultz

The Decision to Write

As my eyes opened on the morning of January 1, 2010, I realized that I had survived what Time Magazine described as ‘The Decade from Hell.’ Oh, a bit beaten-up and feeling a little like one of John Stewart’s Black Pig Meats salumis at the end of the sausage making process. Yes, the economic events of the past 10 years have put most of us through the grinder, but here we are at the other end, having survived to make, market and sell wine another day. A little more than 9 months ago, I started writing the Think Wine Marketing blog. My timing coincided with the bottom of the business cycle. In short order the US stock market had lost more than half it’s value, ending March ’09 with a Dow Jones Market index below 6,500. Housing values, the base of asset wealth for most consumers continued to decline in all but a handful of smaller SMSA’s. Credit to small businesses had been so severely constricted as to be non-existent, especially for wineries with slow moving, devalued inventories. Times were tough for the wine industry. Before this recession, now called ‘The Great Recession,’ the wine industry has always been considered to be recession proof; but, this time at best our industry has proven to be recession resilient. Several cultural and structural changes were accelerated by the difficult economic times that had direct effects on wine sales. As consumers rushed to reduce credit card debit and increase their rate of savings , a significant downward segment shift hit wine pricing almost overnight. The pressures on pricing and the shift from fine dining to a more casual food experience with an emphasis on value, led to a rapid change in channel strategy for many wineries. The rapid movement from an on-premise focus to retail distribution had eviscerated any pricing leverage that formerly not sold at retail wineries had displayed, squeezing profits and/or creating negative margin sales. In light of the current times I decided to write a blog focused on wine marketing. A blog that in part told stories that would be of some help to smaller family wineries in these difficult times. I took a Socratic approach of creating a central narrative and then providing a workbook like ending. As I look back over the last 3 quarters of 2009, and look forward to 2010, I hope that I’ve helped provide some positive mentoring to at least a few family winecos out there in the ether.

The Metric System

While never concerned about gross numbers as the sole metric of success, as an experienced marketer I do track the number of hits and reads that the Think Wine Marketing blog receives. However, my primary concern is/and has been just who is it that reads my blog. It is specifically wine industry marketing centric. My readers for the most part, based on comments and emails are winery principals, GMs, CMOs, PR directors and brand managers. Based on blog originated emails, which have outpaced blog comments by a factor of 10, the TWM blog also has a demonstrable following in finance and in tech. I’ve written 33 blog post in nine months, that have received 149,117 hits of which 56,321 (37.8%) were a result of search engine crawlers, resulting in a net of 92,796 reads, numbers easily exceeded by experienced wine writer/bloggers like Tom Wark, Alder Yarrow and Steve Heimhoff in just a few months – with the following think pieces being the top 10 posts – re. close of business on 1/6/2010.

2009 Top Ten TWM Posts

  1. Nov 17            7,475   — Doctor Pinot’s Thanksgiving
  2. Oct 7               7,434   — Revisiting Marketing 101
  3. Nov 4              7,126   — A Conversation about marketing wine online w/Paul Mabray
  4. Sep 17             6,956  — Marketing by Pulling Corks
  5. Oct 20            6,334  — The Conversation
  6. Sep 24            6,165   — Does your winery have an effective OND plan?
  7. Aug 26           4,534   — Dispatches from Wine Country
  8. Dec 23           4,430   — Y2K10: Part Two: late 90’s tech effect on wine ecommerce
  9. Jul 27             4,259   — Dispatches from the 2009 Wine Bloggers Conference
  10. Sep 9              3,860  — Wine Brand Building Focus

Beyond noting that I have loyal readers, who have provided significant support, input and feed back, the fact that the Think Wine Marketing blog has received recognition from the wine industry and in the wine press is gratifying.

That Was the Year That Was

  1. The March 2009 acquisition of Scrugy by Cruvee in early March 2009 by CEO/Founder, Evan Cover. Scrugy Founder and Chief Technology Officer, James Jory joins Cruvee as V.P. of Technology.
  2. The Think Wine Marketing Blog is launched on March 26, 2009 with the post ‘Viral Marketing Strategies for Wine Businesses.’
  3. The State of the Wine Industry Social Media’, by VinTank, Derek Bromley and Tom Wark published 5/6/2009 and available for download on the VinTank web site. IMHO this is and will be considered the foundation document of the wine industry’s involvement in the social media movement.
  4. American Canyon based wine shipping and fulfillment company New Vine Logistics suspended business operations on May 29th, 2009. The story was broken on Twitter by Larry Chandler, aka LarrytheWineGuy.
  5. The 2009 Wine Bloggers Conference at the Flamingo Resort in Santa Rosa, CA the last week of July, 2009. This was not only a well planned and executed conference, but the opportunity to meet so many wicked, smart citizen bloggers was amazing. Kudos to Joel Vincent and the Open Wine Consortium.
  6. The August 13th appointment of Think Wine Marketing founder John Corcoran (that’s me) to the Board of Advisors at Cruvee.com, a wine business intelligence platform.
  7. On August 25th, Des Moines Iowa environmental attorney Charles Becker publishes ‘Wine and Global Warming: An open letter to the President.’
  8. RJ’s Wine Blog names the TWM blog of the Month for September 2009. If you’re not reading the frequent posts from Avenue A/Razorfish alum, R.J. Hilgers, please click on the link to check this A-List wine blog.
  9. On September 11th The Wine Spectator Senior Editor James Laube reports that cult Pinot Noir producer Kosta Browne sells for a reported $40 million.
  10. On September 28, Williams-Sonoma Founder Chuck Williams speaks on the lessons of customer service at Sonoma’s Maysonnave House.
  11. On September 29th, Wine Business Monthly publishes, as a cover lead, TWM author John Corcoran’s CRM, sales force automation article.
  12. On October 5th, the online wine magazine Palate Press published Paul Mabray’s article ‘New VinTank Research Analyses Wine iPhone Apps‘, winning praise for both wine consumers and the wine/tech segment of the wine industry.
  13. On October 25th Amazon suspends their on again off agin wine sales efforts. The demise of the Amazon.com wine store was laid at the feet of the arcane and balkinized labyrinth of state wine laws. Wine writer, W. Blake Gray wrote in the December 3rd post on his blog the Gray Market Report that Amazon withdrew because of taxation issues, “not just on wine but on everything.”
  14. On October 28th Cruvee & Vinfolio announce a partnership in which user generated reviews incorporated into Cruvee’s social media management platform. On November 24th Cruvee and Cellertracker announce a partnership giving Cruvee clients direct access to over 1.1 million wine reviews. This series of appointments/partnerships along with the subsequent December 3rd launch of The OwnIT movement helped to consolidate wine data and give wineries control over their brand communication. This innovative and free service from Cruvee.com was created to provide a platform “giving you control over how your wine is represented online.”
  15. On December 23rd the TWM blog received recognition from Dale Cruse and the Drinks Are On Me blog as one of the top new food and drink blogs of 2009. Bob Dwyer wrote a very nice review, which is not surprising given the quality of  writing on his blog, the Wellesley Wine Press.
  16. On December 28th Eric LeVine released a sneak peak demo of the new CellarTracker redesign.
  17. The TWM blog landed the #5 spot for the 10/7/09 post ‘Think Wine Marketing: Revisiting Wine Marketing 101’ on the 2009 Most Visited Blog Postings List on Winebusiness.com.

Observable Lessons

Dear Reader, I hope that my blog posts helped you to imagine ways to develop not only a sustainable wine business model but to envision more innovative route to market strategies and branding initiatives for 2010 and beyond. 2009 was a year that presented significant challenges to wine businesses regardless of size or location. It is my experience that out of chaos comes innovation. Observations that I’ve made over time that the Great Recession tended to reconfirm are: Identify your strengths and outsource functional areas in which you don’t do well; Hire and retain talent; Understand, even in an age of social media, that you own and are responsible for your brand(s) reputation; Understand that wine marketing is more than price reductions and promotions; Diversify your channel strategies; Rethink three tier distribution and investigate DTC (as more than tasting room sales) and DTT solutions to include digital distribution; Incorporate the appropriate sales and marketing focused technologies such as CRMs; Convert your wine business from a production centric culture to a sales and marketing focused culture. It’s now time to roll up your sleeves, and to focus efforts on driving your wine businesses to success in the new year, and in the new decade.

Note: Copyright © 2010 Think Wine Marketing® All rights reserved.