Presentation / Speech about International Wine Marketing at German Wine Institute DWI (Deutsches Weininstitut) June 2012, Oppenheim Germany, by Marian Kopp, Managing Director DEUTSCHES WEINTOR eG

1. DWI Forum
June 21, 2012, Oppenheim / Germany
International Wine-Marketing
- Marian Kopp -
Marian Kopp – Deutsches Weintor eG, Germany

2. Outline:
Introduction
View on: Marketing
View on: Global Sales
View on: „Behavior to perform“
- Discussion -
Marian Kopp – Deutsches Weintor eG, Germany

3. Deutsches Weintor eG (Coop)
Founded: 1956
Staff: 90
Members: 900 Wine Farmers
Size: 1.000 Hektars
Turnover: EURO 35 mio.
Marian Kopp – Deutsches Weintor eG, Germany

4. Grapes in production:
traditional grape varieties
- Dornfelder
- Spätburgunder
- Grauer Burgunder
- Weißer Burgunder
- Riesling
- Rivaner
„international“ varieties
- Sauvignon Blanc
- Chardonnay
Marian Kopp – Deutsches Weintor eG, Germany

5. Certified:
International Food
Standard Version 5:
higher level 100 %
Marian Kopp – Deutsches Weintor eG, Germany

6. One of Germanys largest wine-
cooperatives, largest in the Pfalz, with
NATIONAL distribution.
Marian Kopp – Deutsches Weintor eG, Germany

7. Marian Kopp – Deutsches Weintor eG, Germany

8. Marian Kopp – Deutsches Weintor eG, Germany

9. View on: Marketing
Increasing accessibility of wines
Wine consumers less beholden to tradition
Proliferation of brands, but:
CONSOLIDATION => industry impact
Greater experimentation
But choice is still overwhelming
Seeking information online
Marian Kopp – Deutsches Weintor eG, Germany

10. View on: Marketing
Marian Kopp – Deutsches Weintor eG, Germany

11. View on: Marketing
Unless you have something to talk
about,
all you have is fermented grape juice.
Marian Kopp – Deutsches Weintor eG, Germany

12. Marian Kopp – Deutsches Weintor eG, Germany

13. Marian Kopp – Deutsches Weintor eG, Germany

14. View on: Marketing
Marian Kopp – Deutsches Weintor eG, Germany

15. Marian Kopp – Deutsches Weintor eG, Germany

16. Marian Kopp – Deutsches Weintor eG, Germany

17. Marian Kopp – Deutsches Weintor eG, Germany

18. Marian Kopp – Deutsches Weintor eG, Germany

19. Marian Kopp – Deutsches Weintor eG, Germany

20. Marian Kopp – Deutsches Weintor eG, Germany

21. VIDEOS PRESENTED:
1) Cupcake RED VELVET
http://www.youtube.com/watch?feature=player_detailpage&v=Ft-
JjSDHW88
2) CUPCAKE „serious“
http://www.youtube.com/watch?feature=player_detailpage&v=4t83
FaG_p38
-------------------------------------------------------------
BACKUP Videos:
3) CUPCAKE Vodka
http://www.youtube.com/watch?v=avNuJ3PrTVQ&feature=player_de
tailpage
4) Underdog Tasting Red Velvet:
http://www.youtube.com/watch?v=_17FO7etkaU
Marian Kopp – Deutsches Weintor eG, Germany

22. Marian Kopp – Deutsches Weintor eG, Germany

23. View on: Marketing
Cupcake, now selling at an average of
$9.28 per 750-ml. in USA, first rolled out
2008. Cupcake more than tripled in
volume 2011, reaching 1 million cases.
TWG followed up with Cupcake Vodka this
past year, including Original, Frosting,
Chiffon and Devil’s Food flavors and
selling for around $17 a bottle.
.
Marian Kopp – Deutsches Weintor eG, Germany

24. Marian Kopp – Deutsches Weintor eG, Germany

25. View on: Marketing
Brands are STORIES to be TOLD.
Well: lets get real: imaginations to be
triggered.
Plant the IDEA, and let the consumers
“ride along”
(=> Social Media matters here)!
Marian Kopp – Deutsches Weintor eG, Germany

26. View on: Sales
Marian Kopp – Deutsches Weintor eG, Germany

27. View on: Sales
Between 2011 and the end of 2015, the
US and Asia will drive a 6% increase in
global wine consumption, to 2.8bn nine-
litre cases, as IWSR figures (International
Wine and Spirits Record, Jan. 2012).
Marian Kopp – Deutsches Weintor eG, Germany

28. View on: Sales
Global wine consumption will increase
faster over the next four years, but mature
markets and a tough economic climate in
much of Europe will leave the US and Asia
to drive growth.
Strong demand for wine in the US and
China will force more wine companies to
focus greater resources on Asia and North
America.
Marian Kopp – Deutsches Weintor eG, Germany

29. View on: Sales
Premium California Wines Posting Torrid
Growth:
California wine’s premium-plus segment
(above $10) is making significant gains in
both the on- and off-premise, as luxury
wines have rebounded in the restaurant
channel and premium offerings further down
the pricing ladder are showing big gains.
Marian Kopp – Deutsches Weintor eG, Germany

30. View on: Sales
The top 10 premium-plus ($10+) California
wine brands grew by an aggregate 16.4% to
15.2 million cases in 2011, and eight of the
top 10 posted growth. Meanwhile, wines
over $20 continue to be the fastest-growing
segment in the off-premise, rising 11% in
Nielsen channels in the 52 weeks through
April 28, 2012. (Impact Databank)
Marian Kopp – Deutsches Weintor eG, Germany

31. Marian Kopp – Deutsches Weintor eG, Germany

32. View on: Sales
Wine sales by volume are expected to rise
by 10% in the US up to 2015.
China, meanwhile, has overtaken the UK
in the past year to become the world's fifth
largest wine market by volume, if Hong
Kong is included in the figures.
Marian Kopp – Deutsches Weintor eG, Germany

33. View on: Sales
There is a different situation in much of
Europe, where consumption is set to
continue falling in key wine producer
nations, such as France and Italy.
Marian Kopp – Deutsches Weintor eG, Germany

34. View on: Behavior to perform
Marian Kopp – Deutsches Weintor eG, Germany

35. View on: Behavior to perform
USA: Opportunities:
The super-premium continues to grow ($ 7-14)
But with greater price/quality demands!
Strong future growth consumption projections
(Millennials)
Strong prospects for imported wines
(limited growth in domestic production)
Marian Kopp – Deutsches Weintor eG, Germany

36. View on: Behavior to perform
Challenges:
USD / EURO exchange rate risks / fluctuations
Margin pressure
Consumer pressured by economic climate & inflation
Large suppliers consolidating distribution networks,
demanding greater attention and pressuring
distributor margins- small and medium suppliers
struggle to maintain share of mind
Marian Kopp – Deutsches Weintor eG, Germany

37. View on: Behavior to perform
USA: Key Success Factors
Adequate market segmentation,
budget for building brands
Good price/quality relationship
Develop and maintain good relationships with
(1) importers (2) distributors (3) retailers
Marian Kopp – Deutsches Weintor eG, Germany

38. View on: Behavior to perform
Marian Kopp – Deutsches Weintor eG, Germany

39. Positioning Strategies
Focus: content
• Niche distinction
Focus: consumer
• Superior image + quality • Brand (consistent
Perceived • Distribution on-trade,
specialists
quality)
• Innovation
Value • Distribution (Service)
retailers
Niche
High strategy
High Perceived "Outpacing"
Brand strategy
Value Competitor Competitor
Cost Focus: process
Low "Confused" leader-
Low Delivered
• Cost control
Competitor ship
Cost Competitor • Scale
• Distribution (discount)
retailers
High Low
Delivered Costs
(source: Rabobank research)
Marian Kopp – Deutsches Weintor eG, Germany

40. View on: Behavior to perform
Thank You!
Contact:
Marian Kopp m.kopp@weintor.de
https://www.xing.com/profile/Marian_Kopp
Marian Kopp – Deutsches Weintor eG, Germany