Wine Business Bulletin
August 2009
My Facebook
Contents: just Twittered on
Export Forum 2009 – Key Themes Reviewed You Tube
My Facebook just Twittered on You Tube
“If your activity on Social
New Wineries – Avoid the same old Mistakes Media is done well and done
Winepartners at Bragato & Wine NZ consistently, your brand will
Opinion: “Runaway Train” be talked about, shared and
promoted to a scale that is hard
to comprehend”
My Space, Bebo, Twitter, Facebook,
Export Forum 2009 – Key Themes Reviewed You Tube, blogging. All this stuff is for
Generation Y or Z or whatever they’re
It was great to have Stu Devine representing Winepartners at the called now. Young people with iPhones
Export Forum and he rated the conference speakers, their message who spend all day drinking coffee and
tapping random nothings to all their
and the organisation very highly. The key themes that we drew
web-savvy friends when they should be
from the series of presentations and workshops were these: working. Right?
• Jeremy Moon: take ownership of your brand and get out there in the marketplace Wrong. The collection of internet sites
• Chris Lynch: find your point of difference that makes your brand stand out from known as Social Media (SM) represent
the crowd the most important brand development
• Doug Frost: a broader on-premise direction, as NZ appears limited to svblanc and
opportunity for wineries ever. These sites
pinot noir. are full of people who want to share
• Gary Vaynerchuk: ignore Social Media at your peril, use to relate your brand to
their lives and their discoveries with
your consumers their friends and the world. They are the
• Lisa Perrotti-Brown: make a long term commitment to key markets
classic Brand Ambassadors or Opinion
• Philip Rich: work closely with sommeliers, communicate regional attributes
Leaders who project their interest in
• Grant Ramage: exciting growth, develop regional story, still need keen price points
something new to many, many others.
• SAQ: popular category, be eco-friendly, broaden style & regional offer
What’s especially interesting is that they
• Pierpaolo Petrassi: tough market, NZ doing well, don’t follow Australia downhill
are not all young ones.
• Alessandro Marchesan: target wines to on-premise, education & training vital,
be green According to Comscore, the majority
of Twitter users worldwide are 35 or
Overall, the speakers praised the New Zealand position, particularly in this tough older. Young adults 18-24 only make
market. They recommended knowing and understanding your customers, their wants up 10.6% of the Twitter population
and their needs, as much as possible. It was also stressed that wineries shouldn’t in the US and are less likely than the
expect importers to over-deliver, as it will take time and energy to get it right, average user to tweet. 45-54 year
especially in this recessionary environment. The energy was great, discussion and
debate was energetic and constructive, and the networking opportunities superb.
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olds are actually 36 percent more likely On Twitter, a Marlborough wine brand
than average to visit Twitter. Facebook is “Torea” has 1,319 “followers” – people
growing at an unparalleled speed, and who link to the Torea Tweet. The most
the new adopters are older people. recent five of these followers have a
The 35 to 54 Year old demographic combined 76,849 people following
grew at a rate of 276% over the last six them. If only a quarter of Torea’s
months and the 55+ demographic grew followers passed on Torea’s comments, Winepartners at
more than 194% over the same time the number of people being touched by
period, while 18-24 year olds only grew the Torea brand would easily number in Bragato and Wine NZ
20%. the millions.
We’re looking forward to
So here’s a highly networked pool That’s free by the way. Zero cost brand catching up with you at the
of potential consumers, in a great exposure.
demographic for wine purchasing.
upcoming Bragato Conference
They’re happy to broadcast their lives on Of course not all those people are into and Wine New Zealand the
the web. This could be photos (Flickr), wine or could buy that brand easily or following week. Dave Nicholas &
videos (You Tube), chat (Twitter), catching are even planning to buy a NZ wine Stu Devine are both speaking at
up with friends (Facebook) or having their anytime. But some of them will. And Bragato and they will be joined
say (blogging). These media all overlap some of them will notice Torea later, in
and are often linked, so these consumers a restaurant or retailer. That puts Torea
by Paul Couldrey at Wine NZ in
can cover their social networks quickly ahead of many other brands competing Auckland.
in the same market.
If you like to discuss any aspect of your
Another important thing to appreciate wine business, from strategy and
is that to get any traction, you need to
marketing to sales and distribution,
be interesting. If you are blogging or
twittering, your content and tone will win we’d be happy to meet up for a
or lose you an audience. Share vineyard conversation.
and winemaking stories, talk about your Friday 21st is our day at Bragato, while
wines with passion, introduce people you
meet and places you’ve been to your SM we’ll be attending Wine NZ on both
audiences. This is the stuff people pass Monday 24th and Tuesday 25th.
on. Don’t get excited about the new label Do make contact promptly (09 360-
and conveniently, from a PC or a phone. design, the promotion in Vino Fino or the
0506, contact@winepartners.co.nz)
How do you get your brand in front of new sprayer being delivered. Do keep
them? online with your stories regularly. so we can arrange a time before the
schedule fills up.
The first thing to understand is that This new brand marketing approach is
this is not a sales channel. People on demanding and it isn’t for every winery,
social networks are not looking to buy but it can’t be ignored. Remember
things, they simply want to share. So that wine brands are built primarily by
you or your brand/winery’s presence has recommendation and referral, and this
to respect that and work within those is the essence of Social Media. If your
boundaries. However, if your activity on wine business lacks the skills to create
SM is done well and done consistently, and run a Social Media brand strategy, Winepartners Ltd
your brand will be talked about, shared relax - there are wine marketers who can p/f +649 3600506
and promoted to a scale that is hard to do it for you. e paul@winepartners.co.nz
comprehend. e dave@winepartners.co.nz
e stu@winepartners.co.nz
www. winepartners.co.nz
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New Wineries – Avoid the same old Mistakes
We regularly see the same mistakes even bottle shapes and label designs Ignoring the brand
being made as new wineries enter the absorb new wineries. Business planning Brand Architecture (aka brand identity,
market. It’s odd that owners of new is an unwelcome distraction and anyway, brand footprint, brand DNA) is the set of
wineries, having been successful in making sales is a long way off, well after statements and concepts that together
other fields, often fail to implement harvesting, barrel aging and blending. define what the new wine brand is all
business basics with their new venture. The wine will surely be spectacular - an about. This is not just for the winery,
Winemaking and marketing is one of award winner that will sell itself. but for the trade, media and consumer
the most competitive, capital intensive audiences that are the brand’s targets.
and risky sectors around, but it has had Taking this approach in any other sector It’s vital for the winery to be able to
an inappropriate reputation as a lifestyle would never be tolerated, yet in wine it communicate clearly, concisely and
or trophy investment. Those who enter happens commonly. The result is wine in consistently why their story is interesting
the category with either of these two the bottle with insufficient sales, a new and relevant. If they can do that well,
concepts in mind rarely see a return on vintage just around the corner and not it will be much easier for the market to
their capital. enough ideas on where the money’s embrace their wine. New wineries tend to
Wineries often struggle with this aspect of their young business,
as brand work is an intangible, specialist area.
Unlike tractors, barrels and wind machines you can’t touch it or see it.
Here’s a look at some of the gaffes new going to come from. Winegrowing is one bypass this step – that’s a big mistake.
wineries make – if this looks familiar, of the few sectors where the farmer is
don’t feel too bad, you’re one of many. also the processor and the marketer/ The brand architecture examines and
salesperson. Each of those roles defines the key attributes of the brand.
All Vision, No Plan demands precise skills and a managed It provides guidance and cohesion to
People entering the wine sector are approach. the look of the brand and its message. It
entrepreneurs – investors with a provides a road map on how to market
vision, funding, and plenty of energy Planning is a crucial precursor to success
and optimism. Plunging huge sums of and it’s a live, ongoing process, not a
money into a new vineyard with a wait dusty sheaf of paper in a drawer. Formal
of four years for their first cash return planning provides the business and all its
takes courage. Add on the capital for a stakeholders with a shared view of how
winery and a cellar door with operating objectives will be achieved and growth
overheads and interest costs and it’s a managed. A simple winery business
venture of heroic proportions. That takes plan should contain these things: the
an unshakeable belief, access to serious vision, mission and objectives of the
financing and a plan that lays out the winery; an assessment of the market
why, how, where and when for the wine opportunities, risks and competition;
business that’s been founded. marketing strategies including product,
brand, distribution and resources
The truly surprising thing is that while required; production and sales forecasts,
the vision is always strong, the plan financial budgets and assumptions. If
rarely exists outside the owner’s head. you don’t have a formal plan for your and sell the wine brand, minimising
Vineyard development, grape variety wine business, now’s a good time to get debate and costly non-core marketing
options, potential wine style choices, started. activity. It’s created by marketing
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specialists who understand branding. Not distinctiveness and memorability. The finely crafted brand messages. They are
designers; not advertising agencies; not brand’s visual identity should support constantly flattered, hosted, rewarded
printers. The brand architecture must be the brand’s positioning, its price point, and thanked for their attention and
created in concert with the new winery provide suitable cues to the target spending power. A new winery has to cut
and by marketers who are close to the audience and work with possible new through all this clutter and static to bring
fundamentals of the wine sector. elements, such as a sub-brand or even the focus onto their new wine brand. This
an upper tier. is hard work, it’s specialised work and
Strong brand architecture will identify the rapid results are required.
target audiences and their motivators; Without creating the brand architecture
specify the brand identity and values; first, one that has a target audience in Put it this way: You wouldn’t ask a
define the brand rational and emotional mind and a clarity of message; without marketer to make the wine – would you?
attributes; state the brand essence, the a clear and concise brief to a designer,
brand proposition and the story; and that leads to the visual identity and logo,
finally nominate the tagline or slogan. the new winery has a label that has been Winepartners –
The brand architecture also enables the created prematurely and in isolation.
development of the brand visual identity In a highly cluttered and competitive New Zealand’s
by a designer and ensures their skills are environment, the wine label needs Wine Business
best directed. Without a design brief led to work effectively as part of a brand
by the brand architecture, design costs communications suite. Specialist
can and often do blow out alarmingly.
DIY Marketing & Sales Winepartners Ltd is New Zealand’s
New wineries often struggle with this The wine sector is populated by a sole wine business specialist, with a
aspect of their young business, as large number of underachievers. Not client base of over 50 wineries since
brand work is an intangible, specialist in viticulture and winemaking, but in 2003. We provide insight and advice,
area. Unlike tractors, barrels and wind branding, marketing and sales. The wine and supply the practical tools that
machines you can’t touch it or see it. Yet may be great, but the other elements in help wine businesses make better
experienced wineries clearly understand the marketing mix don’t work quite so strategic and operational decisions.
the importance of getting it right with well. DIY is usually the diagnosis here. Our focus is the commercial
the brand early on. A casual approach development of your wine business,
to branding leads to a confused, diluted Many new wineries believe that the hard
with emphasis on planning, branding,
message, ad hoc activity and high costs. work starts and ends in the vineyard and
marketing and sales.
In the marketplace, that spells failure. cellar. “Once the wine’s in the bottle, the
world will be beating a path to our (cellar)
What we can do for you:
We’re all designers at heart door. The marketing and sales can’t be •
Strategic Planning and Review
Creating their wine label at the earliest so hard, we’ll do it ourselves.” Others •
Sales and Marketing Performance
opportunity seems to fascinate new come out of a business background and •
Marketing strategy development
wineries; it’s as if this is a guarantee believe that their professional skills and •
International sales and market
of their future success. It’s certainly contacts will ensure rapid and ongoing
development
something to show your friends when the success. All are imbued with dangerous •
Distribution channel management support
shots of the infant vineyard aren’t holding optimism and insufficient knowledge of •
Planning tools
their attention. the wine category, trade and consumers. •
Brand Creation, Development &
Transformation
But wine labels are only part of the entire The audiences a winery speaks to •
Packaging, Website, Promotional
visual identity of the winery’s new brand. about itself and its product are relatively •
Winery eMarketing Effectiveness
In addition to the label and logo, there sophisticated and they are spoiled •
Strategy and Implementation
will be signage, a website, brochures, for choice. From the global corporate •
Website and database
shelf talkers, banners, cartons, stationery machines to the top ranked, iconic •
Social Media Marketing
and so on. These elements all need to wineries the key audiences (media, trade •
Board and Management Advisory Support
work together to ensure cut-through, & consumer) receive well tuned and
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Opinion: “Runaway Train”
Over the past fifteen years we have
seen the number of winemakers in New
Zealand balloon to over six hundred.
Export demand for our wines has been
the driver of this growth with sales rising
from 700,000 litres in 1994 to over
113 million litres at the end of June
2009. The growth in revenue has been
similarly astonishing.
The current recession is a big challenge,
as is the structural surplus of wine
collectively held by the industry. But, all in
all, you’d expect wineries to be in great
shape to cope, given the boom times
they’ve enjoyed. Disappointingly, the truth
is that many are in a bad way. How can train apart from add more wagons. With So with inventories bulging, prices falling,
this be? enough wagons, they reasoned, nothing markets easing, lines of credit capped
could stop them. Managing supply was and importers profoundly deaf,
For a start, the New Zealand wine the key issue, not planning for the future New Zealand winemakers have no choice
industry has been spoiled rotten. The NZ or acquiring business skills. but to prioritise marketing efforts, focus
stands at trade and consumer shows are While industry PR sounded wonderful, on in-market sales, and vastly improve
our wineries did little with their runaway train apart from add more wagons
typically packed, and top wine writers still the dirty truth is that stocks have been their distribution knowledge and skills.
travel half way around the world to kick building in warehouses around the
the stones in a Marlborough vineyard. country for some years. New entrants This quantum change in perspective
A substantial premium for Sauvignon popped up every day and each of them needs to happen extremely rapidly to
Blanc has been maintained for an stole a slice of the market’s demand ensure not just success but in many
impressive period of time and the and its attention. But many of these cases simple survival.
continuing growth in demand has kept newcomers had little more than a
NZ wine in relatively short supply. We vineyard, a label and a dream. Few had
made it, they came. a plan; very few knew the markets and
almost none understood wine marketing,
Let’s talk…
Over in Chile or South Africa they’d give sales and distribution.
Interested in discussing the opportunities
their right and left arms to live in our
world. Unlike New Zealand wineries, their Credit is due to New Zealand and challenges your wine business faces?
winemakers know they need to hustle Winegrowers who have beaten the Email us or phone (09) 360-0506 for an
to make a living. The spotlight has rarely marketing drum for years. But the obligation free conversation.
lingered on them and as a result they’ve audience wasn’t listening. Owners and
contact@winepartners.co.nz
worked harder at the business of wine winemakers kept on running the show,
than our winegrowers. marketing plans were for corporates and
the new tractor was the priority. Why
Unfortunately, during this affluent period get to know the market when the orders
our wineries did little with their runaway were piling in everyday?
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