Insightful presentation with practical information for wine and spirit suppliers looking to enter the U.S. market. Presented by Steve Raye, President of Bevology Inc.
2. Steve Raye
Marketing Consulting Company:
Helping wine brands break into
and grow in the U.S. Market
Brand Development: new-to-the-
U.S., new-to-the-world
Trade Marketing
Digital, Social and non-traditional
media
Steve Raye
President
Bevology Inc.
Steve@BevologyInc.com
+1 860-833-6272
9. Top Ten Wine States = 61% Total Vol.
Top 10 Wine States (000 9-Liter Cases)
State Cases Share Growth
California 60,318 18.3% 3.0%
Florida 26,818 8.3% 1.2%
New York 26,152 8.0% 2.2%
New Jersey 14,848 4.5% 2.3%
Texas 14,730 4.5% 2.3%
Illinois 14,665 4.5% 2.2%
Massachusetts 12,595 3.9% 2.3%
Washington 10,040 3.1% 2.9%
Virginia 9,901 3.0% 3.5%
Ohio 9,254 2.8% 2.9%
Top 10 Total 199,319 60.8% 0.0%
U.S. Total 327,600 100.0% 0.0%
• Important at the macro level for
nationally distributed products.
• If your goal is only 5,000 cases, you
might find a market like Boston to be a
smarter target.
10. Industry Trends (continued)
• # 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 and
effectively in NJ.)
• Wine/liquor stores account for disproportionately higher percentage of $12-$20
wines vs. supermarkets
• People shop at retail stores more frequently for wine
Source: Sonoma State Univ., American Wine Consumer Survey 2014
14. Trend: Apps
Online access to news, recommendations, where-to-buy
have displaced traditional print, especially for Millennials.
They now seek information on Wine-Searcher, Delectable,
Vivino, Wine4me, Snooth, Hello Vino et al.
• Vivino has 10 million members
• Wine-Searcher gets 3 million unique visitors per month
• Delectable: 2.1 million downloads per month
By comparison print mag. circulations:
Wine Spectator: 400,000
Saveur: 290,000
Wine Enthusiast: 180,000
Wine Advocate: 48,000
16. E-Commerce Growth: skews imports
E-commerce and new/non-traditional distribution channels
are rapidly growing: Notably Wine.com does 53% of its business with
imported wines vs. 27% for traditional retail.
17. Getting to the Point
“I know half my
advertising doesn’t
work…I just don’t
know which half”
Pure online
marketing/
Ecommerce:
Measureable
ROI
19. 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
E-comm recognized as having a better
selection of hard-to-find wines
New models: Amazon, Flash sale sites
23. • Importer
– Licensed to import a wine brand from a supplier
outside the U.S. into the U.S.
– May or may not have distributor licenses or
operations in individual states
• Distributor/Wholesaler (synonyms)
– Licensed to buy wine from an importer and sell to
an on- or off-premise retailer
Definitions:
Importer vs. Distributor (Wholesaler)
26. Importers: What They Want
• Fills an identified void in portfolio
• Brands with existing U.S. volume they can grow
• New brands they feel their expertise can develop and grow
• Brands that have a unique positioning
• The right “CHEMISTRY”
• Enhances image, value and profitability (synergy with importer’s mission)
• Strengthens importer’s position within the trade
• Supplier understands the U.S. Three-Tier system
• Financially sound, budget to invest and support the brand
27. Presenting Your Brand to Importers
• Brand point of difference/value proposition for consumer; why
THIS importer should be interested in you
• Company description/history
• Product description: varietals, style, ranges, proposed U.S. retail
price by line/SKU
• Marketing materials as background
• A defined target audience
• Production info
• Past history of importers, distribution agreements, list of
distributors/brokers of products and volumes by state
• Price structure for U.S.
• Marketing support budget
• Sample budget
31. The chicken is involved, but the pig is committed.
Involved vs. Committed
32. Distributors:
Okay, I’ve Got One. Now What?
• Recognize you’re not a priority…you (and
your importer) will need do the heavy lifting
yourself
• Recruit/focus on a limited set of salespeople
dedicated to your brand
– Product training programs for accounts
– Sampling on- and off-premise
– Leverage Brand Ambassadors,
winemaker/winery owner visits vs. work-
with’s