Wine Immersion - The Business of Wine

As the first week of the Wine Immersion program ends I am inspired by the things I have a learned and the people I have met. There is so much growth potential in the wine industry and in a time when economic decline has hurt so many businesses, sales of wine has continued to increase. Drowning your sorrows? Perhaps, but it is clear that wine is accepted as an affordable luxury.

Just a few concepts from the last three days:
The marketing of wine is all about the P's. Product, Promotion, Price, Placement, and Presentation. You must establish a distinct brand that sets yourself apart from the other 250,000 wine SKU's out there. In a world where many vintners are creating handcrafted wines, produced by small family farms, sourced from select vineyards it's important that your wine have a story that draws the customer. Based on a number of factors including the region your grapes are grown you need to determine the correct price point of your wine. The placement of your wine on the shelf is also key to it getting purchased. Ideally you want the wine to be at an easy to access level and on the right of other notable wines. Since the majority of people are right handed you want your wine in a place where it can be reached without the customer having to reach across his/her body. A lot of thought should be put into how the bottle is presented. If your wine is at a high price point (over $100) you should consider using a heavy bottle that is more substantial in the hands as it gives the customer the impression of value. If your wine is at a lower price point it may make more sense to use cheaper glass to keep the cost of goods down.

If you are considering running a winery you should grow the grapes to produce the wine that the market wants and not the produce the wine you "like". The secret to success in the wine industry, much like every other business, is to sell your product at a really good profit.

It is important to establish a connection with the consumer. This is accomplished by creating a story related to the wine that will take the consumer to a place that is significant to them. The better the story, the better the connection the more your brand will stand out among others.

There are six categories of wine buyers:
Enthusiasts - What does the wine I purchase say about me?
Image Seeker - A collector who buys wine to say he owns it and not to drink it
Savvy Shopper - Always looking for a good deal
Traditionalist - If wine is good it's probably French and expensive
Satisfied Sipper - Loves the taste of a good wine
Overwhelmed - In store has no idea what to choose

The dynamic speakers who entertained and enlightened us:
Elliot Stern of The Sorting Table and East Oakville Exposure Winery
Barbara Insel of Stonebridge Reasearch
Paul Wagner of Balzac Communications
Matt Wood a "Direct to Consumer" guru formerly of Francisan now Exec VP of 1-800-Flowers

The business ideas I have are rushing through my brain at light speed but I need to focus as I am still weeks away from completing my wine education and I have a lot of studying to do.