I was recently invited to taste Pinot Gris on Katherine Cole's Mix panel. The Cloudline and Ponzi were my personal favorites. Visit here to read her full article.
7.27.2009
7.22.2009
Wine Crush Radio Interview
On Tuesday I had the pleasure of being interviewed by Laura Lawson of WineCrush radio. We discussed my June 2009 article for Wines & Vines regarding common mistakes new wineries make. Click here to listen her show. This episode also features Rob McMillan of Silicon Valley Bank.
6.29.2009
Washington State Fair
Judging at this year's Washington State Fair was a true pleasure. In addition to it being a very well organized event with a dedicated team of volunteers and experienced judges, it afforded me an opportunity I wasn't expecting: I fell in love with Washington Cabernet Sauvignon! Cabernet Sauvignon has never been my favorite -- I've always first loved "other" varietals like Tempranillo, Syrah, Pinot Noir, Garnacha, Nebbiolo, and Sangiovese. (I of course have really enjoyed some fantastic Bordeaux and a very well made California Cab, but I often find them over powering and just well, not my style.)
In general, each of the Cab flights in this competition showed strong wines with a great balance of ripeness, complexity and finish. None too ridiculously huge and tannic, and there wasn't the flood of watered down nondescript variety one sometimes sees in competitions. Really impressive, consistent and exciting -- perhaps Washington really is "the perfect climate for wine".
My panel also judged Viognier, Pinot Gris, proprietary and dessert whites, as well as red blends. Below are some of my favorites -- keep in mind that during competitions there isn't time to write lengthy tasting notes:
Cabernet Sauvignon
Jones of Washington 2006 - deep nose of blackberry jam, bell pepper, cedar and notes of baking bread and graphite
Dusted Valley Vintners Reserve 2006 - raspberry, fig, cocoa notes with a nice long finish balanced by pine and cedar characters
Maryhill Reserve 2006 - black and sour cherry with graphite, espresso and a super long finish
Wineglass Cellars Elerding Vineyard 2004 - sweet black fruit with pencil shavings, cigar box and an elegant, smooth finish
Viognier
William Church Winery Connor Lee Vineyard 2008 - orange peel, red apple and citrus with a little spritz at the finish
Mourvèdre
Tagaris Alice Vineyard 2006 - raspberry, pepper corn and cinnamon sticks with a very long finish... really nice!
Proprietary White
Kestrel Vintners "Pure Platinum 5" NV - pretty muscat-like nose with mango, apple and a balanced, pretty finish (this is a blend of Viognier and Gewürtztraminer)
6.02.2009
Wines & Vines Article
The below article appears in the June 2009 issue of Wines & Vines:
5 Mistakes New Wineries Make
5 Mistakes New Wineries Make
4.27.2009
So What Exactly is a Brand? Discussing a Broad and Often Misunderstood Concept
In a recent post, Top Five New Winery Mistakes, I cited lack of branding as a common omission in the business planning process. Brands are often confused with labels, logos and vineyards in the wine industry. I’ve even heard someone refer to his business card as a brand.
If it isn't a name or a label, what is a brand? A typical marketing definition is as follows: a collection of images and/or ideas representing an economic producer. To me, a brand is a set of experiences with a winery -- experiences with the wines, people, and place. (So it’s a label, a logo and much, much more.) These experiences in turn create impressions, ideas, values, and even personality. Dennis Hahn, President of ID Branding, and a speaker at the 2009 Oregon Wine Symposium likens a brand to a much broader concept of “a culture”, which is spot on.
A good brand starts with the introduction, continues through the experience and should create a lasting and positive impression. Let’s leave the wine industry for a few moments to examine two brand experiences:
Virgin America - this newer airline company, a subsidiary of Virgin, offers streamlined pricing, new planes with in-seat entertainment, and the ability to order refreshments from the convenience of your seat at anytime during the flight. This is certainly a competitive position and a unique experience when compared with the usual airlines with multiple add-on charges, the hated drink cart, and cramped spaces.
Starbucks Coffee - A visit to Starbucks is characterized by a personal or at least a warm greeting, a clean and polished atmosphere, a wide array of choices and the ability to customize drinks, to name a few. Other establishments offering coffee of lesser quality in a less upscale and comfortable environment are challenged by the lines at Starbucks every morning. (Know that McDonald's recently started competing on coffee and espresso -- in direct response to the market opportunity it sees!)
If it isn't a name or a label, what is a brand? A typical marketing definition is as follows: a collection of images and/or ideas representing an economic producer. To me, a brand is a set of experiences with a winery -- experiences with the wines, people, and place. (So it’s a label, a logo and much, much more.) These experiences in turn create impressions, ideas, values, and even personality. Dennis Hahn, President of ID Branding, and a speaker at the 2009 Oregon Wine Symposium likens a brand to a much broader concept of “a culture”, which is spot on.
A good brand starts with the introduction, continues through the experience and should create a lasting and positive impression. Let’s leave the wine industry for a few moments to examine two brand experiences:
Virgin America - this newer airline company, a subsidiary of Virgin, offers streamlined pricing, new planes with in-seat entertainment, and the ability to order refreshments from the convenience of your seat at anytime during the flight. This is certainly a competitive position and a unique experience when compared with the usual airlines with multiple add-on charges, the hated drink cart, and cramped spaces.
Starbucks Coffee - A visit to Starbucks is characterized by a personal or at least a warm greeting, a clean and polished atmosphere, a wide array of choices and the ability to customize drinks, to name a few. Other establishments offering coffee of lesser quality in a less upscale and comfortable environment are challenged by the lines at Starbucks every morning. (Know that McDonald's recently started competing on coffee and espresso -- in direct response to the market opportunity it sees!)A brand should lay the foundation for all of your winery communication -- i.e., your marketing and sales strategies, and even your operating plan. It should also consistently communicate a distinct identity and a proposition for the target consumer. Identity is composed of a defined look and clear messaging. The look portion includes logo, label, printed material, website design. The messaging is comprised of name, label copy, printed material and website copy, etc. Both brand look and messaging serve together to communicate a foundational brand platform. This brand platform should highlight the brand’s unique selling propositions that in turn create value for the targeted set of consumers.
Since a brand is about experience, it’s much broader than look and messaging and includes all contact with customers. Your signage, greeting in the tasting room, website performance, behavior of your representatives at wine events, and communication with customers are all elements of your winery’s brand experience.
A strong brand is consistent, efficient and effective. This creates value for the customer, and by extension creates sales opportunities for you, the brand owner. Building a strong brand boils down to building a relationship of trust. A consumer’s excellent experience with your brand and the trust that develops is what creates delighted and repeat customers.
Since a brand is about experience, it’s much broader than look and messaging and includes all contact with customers. Your signage, greeting in the tasting room, website performance, behavior of your representatives at wine events, and communication with customers are all elements of your winery’s brand experience.
A strong brand is consistent, efficient and effective. This creates value for the customer, and by extension creates sales opportunities for you, the brand owner. Building a strong brand boils down to building a relationship of trust. A consumer’s excellent experience with your brand and the trust that develops is what creates delighted and repeat customers.
3.25.2009
Promoting My Home Turf
This month I judged two very different, yet very well executed wine competitions: National Women's and San Diego International.I truly enjoy the experience of judging as it provides great opportunities to exercise the palate, learn about new wines, network, and remove myself from the glare of my computer. Judging always reminds me of the power of blind tasting: when labels, brand perceptions, and prices aren't revealed, the quality of the wine is the only factor.
I'm planning to write up my favorites from a wider range of regions in the April Strategic Guidance from the Ground Up e-newsletter, but for now, I'm promoting my home turf. Below is a list of wines from the Pacific Northwest that were particularly impressive -- the tasting notes are rather short as the object is not to write a review but judge quality:
Pacific Rim Riesling - Columbia Valley, WA
* lovely red and green apple with some floral notes and a cool lime zing
Stone Wolfe Vineyards Pinot Gris - Oregon
* nice blend of pretty floral, lavender and herbal flavors
Agate Ridge Viognier - Rogue Valley, OR
* beautiful mix of orange peel, white flowers, orange blossom honey and white pepper
Chateau Ste. Michelle Merlot - Horse Heaven Hills, WA
* plum, chocolate covered cherries; very juicy mouth-feel with balance, structure; great finish
Roza Ridge Merlot - Rattlesnake Hills, WA
*cinnamon, blackberry, sweet plums; pretty mouth-feel and a nice, lengthy finish
Maryhill Syrah - Columbia Valley, WA
*fantastic combo of dark cacao, moss, earth, black fruit and a little pepper; long finish
Reustle Prayer Rock Vineyards Syrah - Umpqua, OR
* quite different from the Maryhill with smoke, bacon (yes!), black fruit and some white pepper
Tagaris Winery Rhone blend - Wahluke Slope, WA
* earth, red fruit, and a bright pepper note make it sing
Dumas Station Cabernet Sauvignon - Walla Walla, WA
* bright black fruit with nutmeg, cherry; great structure and finish
Hogue Cellars Cabernet Sauvignon - Columbia Valley, WA
* pencil shavings, black fruit, cherry and espresso -- nice combo!
2.28.2009
Seeking Distribution: Tips for New or Growing Wineries on How to Approach the Wholesale System
Implementing an effective distribution strategy can be an excellent way of building a wine brand. Wholesalers provide sales know-how, relationships with accounts and their buyers, expertise in the three-tier system and logistics, and a network of “men on the street” who serve as winery ambassadors. Distributors are a set of business partners -- an extension of the winery, so selection for proper mutual fit is critical.
Before considering adding distribution to your sales strategy or even approaching a wholesaler, it is important to understand this dynamic segment of the industry. An industry colleague, Craig Eastman of Northwest Core Collection based in Portland, Oregon, likens the changes in distribution to an hourglass, with suppliers pouring into a narrower middle tier and trying to reach a wider base. From a supplier to wholesaler point of view, it can be thought of like a “funnel” that’s been turned 180 degrees:
Twenty years ago, the funnel was upside-down, with the narrow part at the top representing winery suppliers. It was easier for winery suppliers to gain distribution given less competition and wider availability of smaller wholesalers from which to choose.
Today, there has been a dramatic shift: the funnel has many more wineries trying to pour into a much narrower marketplace given growth in the number of producers and widespread consolidation of wholesalers. The dynamic and complex nature of shipping and compliance regulation adds further fuel to the fire.
While the above may seem daunting or even discouraging, being aware of the current business situation will help you make better decisions regarding your sales strategy. It may even be tempting or advisable to shun distribution all together in favor of a fully direct-to-consumer (DTC) sales strategy, but this decision depends on a winery’s goals and production. (Know that DTC has its challenges, too: customer acquisition and retention, less sales strategy diversification, potential growth limitations, compliance, etc.)
In short, there is no perfect answer -- each winery is advised to consider the pros and cons of engaging wholesalers within the framework of its broader business strategy. Asking the right initial questions and knowing best practices for seeking distribution is very important. Below is a step-by-step approach:
1. Decide if distribution makes sense. First tackle the supply side of the equation. What is my current production? Am I planning to grow it and if so, at what rate? Will doing so be profitable? Then look at the demand side. Am I selling everything that I make through DTC channels? Is this working and meeting my needs? If I’m growing production, are my DTC sales growing at a similar rate? (Or for a rare few, do I have the advantage of a multi-year waiting list and no plans to grow.) Are there accounts who have requested my wines? Do I have press that supports my quality and unique story?
At one extreme, a winery selling everything it produces with more demand than supply and limited growth plans may decide not to pursue distribution. On the other end of the spectrum, a brand with plans to grow and a goal of national presence with on- and off-premise accounts will need it. There are many business situations in between and the right answer will depend on each winery’s unique factors, inputs (resources) and desired outputs (goals).
2. Have a plan. Assuming distribution is a fit for you, the next step is to approach it in a business-like manner. Decide how many markets you’ll explore in the coming year or two. The number will depend on the amount of time you have to research and network and your production. (Hint: a 500 case winery should not aim to place 10 cases in each state -- doing so would create quite a hassle given the time needed to manage wholesalers and spread volume way too thin.)
Choose a number of target markets that make sense to you. These may be the traditional high volume states like California, New York, Florida and Texas. Or perhaps second-tier states where there may be less competition such as Arizona, Colorado, Virginia or Washington. Maybe you have personal reasons to travel to certain markets given family or other interests -- consider these, too. The main point is to be realistic about states that may be a fit and understand that your presence in each of these markets will be necessary to drive sales.
3. Do your homework. Once you’ve determined your target markets, you’ll need to do some research. Find out if you’re pursuing a franchise market -- these states have laws making it more difficult to unwind distribution agreements and entering should not be taken lightly. Gain an understanding of pricing and sales trends by reading the state’s beverage journal (http://www.bevnetwork.com/bevnetwork.asp). Ask your industry colleagues or buyers in accounts you frequent in the market with whom they do business and why. Try to find out about the wholesaler’s financial policies (i.e., does the business pay its bills), reputation, storage conditions, etc.
When you’ve found a potential match, study the distributor’s portfolio -- this is typically available on the company’s website. Does it look like a collection of wines with which you’d like yours to be associated? Does a wine or category you offer fill a need or create a new category that may be of interest to the wholesaler? Will your brand be a big fish in a small pond or a small fish within a sea of competition? What territory or territories are being covered? Is the business restaurant or retail focused? Do sales reps hand-sell fine wines or move volumes of beer and spirits suppliers’ products?
4. Craft your pitch. Determine what uniquely defines your wines. Pull together your materials, press reviews, account list and any other third party endorsement of your winery’s performance. Solicit any potential new accounts who would buy should your wine become available in the market. When preparing to approach wholesalers, demonstrating traction and demand is very important. Unknown brands with little recognition and support are not competitive and represent a lot more work for the distributor.
5. Approach your target effectively. Try to get a colleague who is already doing business with the wholesaler to recommend you, or at least seek an introduction so yours is a warm call. Do not send a box of samples with a note “Dear Owner” and a pile of information. Instead, call or email the owner or manager and politely introduce yourself, state your (specific) reasons for why you think a business partnership would be mutually beneficial and outline what you’re prepared to offer such as training, market visits, samples, ideas for sales, etc.
When you do get an appointment, be sure to have F.O.B. pricing and goals for case sales, account break down (percentage of on- or off-premise), market visits, your availability for training and education, and a list of questions in mind. If you are turned down, do take the time to ask why the decision was made and ask for a follow up appointment or referral if possible.
Before considering adding distribution to your sales strategy or even approaching a wholesaler, it is important to understand this dynamic segment of the industry. An industry colleague, Craig Eastman of Northwest Core Collection based in Portland, Oregon, likens the changes in distribution to an hourglass, with suppliers pouring into a narrower middle tier and trying to reach a wider base. From a supplier to wholesaler point of view, it can be thought of like a “funnel” that’s been turned 180 degrees:
Twenty years ago, the funnel was upside-down, with the narrow part at the top representing winery suppliers. It was easier for winery suppliers to gain distribution given less competition and wider availability of smaller wholesalers from which to choose.
Today, there has been a dramatic shift: the funnel has many more wineries trying to pour into a much narrower marketplace given growth in the number of producers and widespread consolidation of wholesalers. The dynamic and complex nature of shipping and compliance regulation adds further fuel to the fire.While the above may seem daunting or even discouraging, being aware of the current business situation will help you make better decisions regarding your sales strategy. It may even be tempting or advisable to shun distribution all together in favor of a fully direct-to-consumer (DTC) sales strategy, but this decision depends on a winery’s goals and production. (Know that DTC has its challenges, too: customer acquisition and retention, less sales strategy diversification, potential growth limitations, compliance, etc.)
In short, there is no perfect answer -- each winery is advised to consider the pros and cons of engaging wholesalers within the framework of its broader business strategy. Asking the right initial questions and knowing best practices for seeking distribution is very important. Below is a step-by-step approach:
1. Decide if distribution makes sense. First tackle the supply side of the equation. What is my current production? Am I planning to grow it and if so, at what rate? Will doing so be profitable? Then look at the demand side. Am I selling everything that I make through DTC channels? Is this working and meeting my needs? If I’m growing production, are my DTC sales growing at a similar rate? (Or for a rare few, do I have the advantage of a multi-year waiting list and no plans to grow.) Are there accounts who have requested my wines? Do I have press that supports my quality and unique story?
At one extreme, a winery selling everything it produces with more demand than supply and limited growth plans may decide not to pursue distribution. On the other end of the spectrum, a brand with plans to grow and a goal of national presence with on- and off-premise accounts will need it. There are many business situations in between and the right answer will depend on each winery’s unique factors, inputs (resources) and desired outputs (goals).
2. Have a plan. Assuming distribution is a fit for you, the next step is to approach it in a business-like manner. Decide how many markets you’ll explore in the coming year or two. The number will depend on the amount of time you have to research and network and your production. (Hint: a 500 case winery should not aim to place 10 cases in each state -- doing so would create quite a hassle given the time needed to manage wholesalers and spread volume way too thin.)
Choose a number of target markets that make sense to you. These may be the traditional high volume states like California, New York, Florida and Texas. Or perhaps second-tier states where there may be less competition such as Arizona, Colorado, Virginia or Washington. Maybe you have personal reasons to travel to certain markets given family or other interests -- consider these, too. The main point is to be realistic about states that may be a fit and understand that your presence in each of these markets will be necessary to drive sales.
3. Do your homework. Once you’ve determined your target markets, you’ll need to do some research. Find out if you’re pursuing a franchise market -- these states have laws making it more difficult to unwind distribution agreements and entering should not be taken lightly. Gain an understanding of pricing and sales trends by reading the state’s beverage journal (http://www.bevnetwork.com/bevnetwork.asp). Ask your industry colleagues or buyers in accounts you frequent in the market with whom they do business and why. Try to find out about the wholesaler’s financial policies (i.e., does the business pay its bills), reputation, storage conditions, etc.
When you’ve found a potential match, study the distributor’s portfolio -- this is typically available on the company’s website. Does it look like a collection of wines with which you’d like yours to be associated? Does a wine or category you offer fill a need or create a new category that may be of interest to the wholesaler? Will your brand be a big fish in a small pond or a small fish within a sea of competition? What territory or territories are being covered? Is the business restaurant or retail focused? Do sales reps hand-sell fine wines or move volumes of beer and spirits suppliers’ products?
4. Craft your pitch. Determine what uniquely defines your wines. Pull together your materials, press reviews, account list and any other third party endorsement of your winery’s performance. Solicit any potential new accounts who would buy should your wine become available in the market. When preparing to approach wholesalers, demonstrating traction and demand is very important. Unknown brands with little recognition and support are not competitive and represent a lot more work for the distributor.
5. Approach your target effectively. Try to get a colleague who is already doing business with the wholesaler to recommend you, or at least seek an introduction so yours is a warm call. Do not send a box of samples with a note “Dear Owner” and a pile of information. Instead, call or email the owner or manager and politely introduce yourself, state your (specific) reasons for why you think a business partnership would be mutually beneficial and outline what you’re prepared to offer such as training, market visits, samples, ideas for sales, etc.
When you do get an appointment, be sure to have F.O.B. pricing and goals for case sales, account break down (percentage of on- or off-premise), market visits, your availability for training and education, and a list of questions in mind. If you are turned down, do take the time to ask why the decision was made and ask for a follow up appointment or referral if possible.
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