good grape daily: pomace & lees free run: field notes from a wine life around the wine blogosphere wine: a business doing pleasure good grape wine reviews new world influences red wine wine white wine wine blog news robert parker wine bloggers notes & dusty bottle items wine sediments wine business wine blogs historical wine book excerpts tasting safari: wines you can buy online cluetrain manifesto revisited winecast: a year in collaboration wine spectator wine blogger robert mondavi wine marketing indy food & wine vin de napkin vinography dr. vino appellation watch: midwest regional review new vine logistics alice feiring wine blogging luxury wine tom wark natural wine gary vaynerchuk wine critics american wine blog awards wine reviews cameron hughes wine books wine writers biodynamic wine best wine bloggers a really goode job california wine robert mondavi day robert mondavi winery fermentation blog penner-ash wine research wine ratings fred franzia tyler colman steve heimoff oregon pinot noir wall street journal wine best wine blogs direct-to-trade murphy-goode winery notre dame football stormhoek inertia beverage group wine technology bordeaux wine enthusiast sparkling wine wine and the economy wine distribution terry theise wine.com allocated wine biodynamics reading between the wines wine news the wine makers tv inniskillin hr 5034 oregon bounty rodney strong oregon cuisinternship wine advertising wine review jim laube wine ethics three dolla koala sonoma pinot noir appellation america gourmet magazine wine market council open that bottle night zinfandel rockaway wine online winery marketing wine trends lynn penner-ash wine advocate sommelier journal good grape augmented reality hugh macleod rockaway vineyards pinot noir crushpad wine cellartracker dan berger amazon.com southern wine & spirits 100-pt scale grape stories mike steinberger church wine wine & spirits magazine wine tasting notes vintank silver oak trader joe's wine wine and spirits daily matt kramer champagne indiana wine slender wine wines of chile specialty wine retailers association judd's hill rose wine recession wine wine & spirits daily firestone vineyards wine trivia robert parker's bitch eryn supple the grateful palate heidi barrett john james dufour america eats willamette valley disney wine program value wines brand butlers american wine blogs forty-five north winery wine press release hong kong u.s. wine 2006 hess collection monterey chardonnay adler fels wines & vines kelly fleming interview the pour oregon food and wine dan cederquist parks and recreation wine umami swanson alexis cabernet dependable wine sutter home videos inexpensive wine jay miller keep walking wines that rock steve perry aussie wine glut clary ranch pinot noir john tyler wine wine economy mary ewing-mulligan non-profits and wine ebob bodeans mitch schwartz hourglass cabernet italian wine merchant wine blogosphere ge smart grid augmented reality trefethen family vineyards california zinfandel wineshopper aspirational marketing clark smith wine book publishing russian river valley ani difranco peru wine trip barbaresco michael steinberger value wine jamie oliver paul blart: mall cop phillip armenier red bicyclette pinot noir the vintners art australian wine vinexpo jay mcinerney the gaslight anthem the pioneer woman james laube sylvester pinot noir goodguide korbel wine blobbers oregon travel tokalon winery not-for-profit jess jackson massale selection wine & spirits magazines kenny shopsin next generation apple the psychology of wine sunbox eleven wine winery sponsorship champagne sales wine criticism cork'd 2008 vina mar reserva sauvignon blanc randy caparoso wine + music midwest wine culture chimney rock elevage cornell enology wine tycoon game stavin kelly fleming national wine & spirits kurt andersen " "new world wine" poseurs macari vineyards sette 7 swanson vineyards generation y and wine 2009 auction napa valley sonoma county wine wipes san francisco wine competition clary ranch tim hanni hunningbird wine beaux freres jon bonne the wine case climber white agency nil charlie weis sugar free wine a very goode job 2007 sean minor four bears pinot noir trefethen three-tier carmenere wine heist purpose-idea rose wine sales vincellar dominic foppoli discoveries pathfinder wine bar bets the winemakers tv australia wine fantesca judgment of paris women in wine oregon pinot gris vegas wine qpr wines jimmy clausen winery hospitality 2007 forty-five north cabernet franc alpine for dummies 2008 honig sauvignon blanc 1% for the planet wine industry news negociant wine business monthly 2008 food & wine winemaker of the year eric asimov travel oregon jordan winery amy poehler wine micro sites umami chris phelps paul mabray wine blogging ethics youtube cheap wine wine bard weds wine dj journey three dollar koala pinot noir reviews chronicle wine ed mccarthy wine to relax erobertparker little zagreb wine magazines howard schultz paul gregutt trefethen oak knoll cabernet sauvignon zinfandel reviews tasting note desciptors natural winemaking wine content klinker brick maria thun bad wine mumm napa slate wine columnist wine pricing wine blog awards 2010 bottle shock movie sketches of spain red bicyclette court wine politics what is terroir wine purchasing wine nose good wine under 20 the hold steady paste magazine sensory evaluation petite sirah wine points the press-democrat oregon cuisinternship winner blog contests preakness stakes pork tenderloins wine & spirits restaurant poll 2010 eat me kenny shopsin amazon kindle e-myth revisited bennett lane winery champagne and business a history of wine words marco capelli music + wine indianapolis patz & hall sonoma coast pinot noir notes on a cellar book wine tycoon video game oak alternatives cabernet bottle shock economy chronicle wines vignoles wine columns mirror wine joe roberts obama napa valley auction sonoma county wine french wine marketing vino chapeau wine medal winners petaluma pinot wine industry zap wine jr. san francisco chronicle wine ice wine c.g. di arie radiohead doubleback wine chateau thomas wine parker defamation blackstone wine trefethen fallow wine snobs wine is the new black expensive wine will hoge wine spies gapingvoid rose summer wine corkd foppoli wines tamari torrontes dirty south wine firestone contest doug frost whuffie factor wine reality show wine label design duane hoff resveratrol woman in wine organic wineries oregon bellagio wine the wine blue book conundrum winery customer service julie and julia texas for dummies wine collection shorttrack ceo vintage of the decade markham mark of distinction sonoma wine company spike your juice celia masyczek jim koch pinot main street winery obama wine digital signage wine retail the fifth taste dominus drvino.com wine direct shipping wine humor altar wine good wine livingston cellars persimmon creek vineyards liberty school cabernet sauvignon german wine oh westside road scott becker randall grahm party of five theme song wine spectator restaurant awards zig ziglar pbs john trefethen elliot essman wine intelligence research steroids in baseball publishing trends wine laws biodynamic wine health research 2007 waters crest "night watch" late harvest wine clif bar wine cheap wines rick mirer indiana miss america lewis perdue 2006 brancott pinot noir wine public relations facebook + wine millenials and wine penner ash deb harkness cowboy mouth wine evaluation dark & delicious biod alpana singh dos equis commercials wine and sense of smell tim mondavi rachel alexandra 500 things to eat before it's too late wine & spirits guinness beer professional culinary institute adobe road the the lost symbol wine stories wine 2.0 schotts micellany hugh johnson alloutwine cooper's hawk winery triple bottom line jim gordon kelly fleming wine mike hengehold traminette wine mobile applications rick mirer wine wine blogging tips john hughes '47 cheval blanc bordeaux reconquest santasti kevin zraly paul clary sweet wines zinfandel producers california wine for dummies best wine blog us wine sales dessert wine di arie rose napa cab. napa cabernet amazon wine constellation wine washington wine thomas pellechia wine spectator top 100 2009 cinderella wine deck wine lindsay ronga batgirl wine top chef hardy wallace firestone wine contest burger wine lonely island where the hell is matt southern gothic wine food revolution french paradox dark side of the rainbow gallo barack obama + wine sanford pinot noir rombauer digital marketing obama inauguration michael ruhlman wine spectator wine reviews karadeci the business of wine iphone wine mobile apps winery promotions whole foods wine first blush juice cult cabernet boston beer company trinchero wine tasting rooms viktor frankl chateau petrus 100 point system vineyard church communion wine mark squires wine and music scheurebe sherry wine tycoon healdsburg terroir wine branding global wine partners wine terroir southern wine and spirits wine lists adam strum tinybottles core wine drinkers janet trefethen bruce reizenman luxury wine marketing wall street journal wine columnists "frankenwine" wine authors nbwa old vine zinfandel cluetrain manifesto down under by crane lake unified symposium jackson-triggs vidal ice wine clif winery name your own price mirror wine company indiana gourmet food allocated cabernet the wine line guinness advertising 2007 stoneleigh pinot noir wine pr wineamerica wine wisdom lewin's equation 1winedude chacha rudolf steiner wine expedition fat tire beer mothervine supplements continuum texas bbq wine pairing prince's hot chicken king estate wine certification the traveling vineyard wine and art jason kroman alloutwine.com wine mou hess collection wine social media expensive wine trends wines and vines kelly fleming cabernet the new yorker ted lemon whyte horse winery iphone wine apps. palate press wine blogging strategies dip johnnie walker chateau latour planet bordeaux sherry wine paul clary blog gracianna wine wine cartoons alan goldfarb fusebox wine moms who need wine ted jansen hourglass wine murphy-goode wine trading down social media topps augmented reality rancho zabaco zinfandel woot wine the new frugality patio wine bryan q. miller argentina wine zephyr adventures barolo santana dvx au revoir to all that formula business ordinance .wine geocaching brigitte armenier rockaway wine red bicyclette new zealand wine sanford chardonnay lettie teague nba liquor advertising noble pig award of excellence ericca robinson andy warhol quotes fermentation anthony dias blue home winemaking consumer shopping research the best pinot noir food & wine magazine a year in wine apple iphone man's search for meaning st. helena catholic church bruliam wine generation y. wine april fool's day wine snooth karen macneil music and wine german riesling secret sherry society cult wines wine video game russian river valley pinot wine appellations reset "old world wine darwinism wine star awards tastingroom.com wine sales hailey trefethen park avenue catering fine wine marketing wine tasting journal wine competitions national beer wholesalers association clos lachance dr. oz yellow tail wine jon fredrikson wine blogging wednesday climber red priceline.com drew bledsoe amazon.com wine california cabernet paso robles
July 19 2007
It’s been a while since I posted here at Good Grape so I thought I would get back into action with a meaty topic I think a lot about in my day job as a wine marketer.
How has wine marketing changed in the era of consumer generated content?
At one end of the spectrum is the ground-breaking work by Hugh MacLeod harnessing the power of social media to reposition Stormhoek as a “social object.” You can check out Hugh’s account of his campaign by viewing a 25 minute video of a talk recorded at the PSFK Conference in London last month.
What is most interesting about Hugh’s story is how simply—and almost by accident—he implemented a global marketing campaign in a very fragmented and traditional industry. Like a lot of wine brands, Stormhoek is a volume play where critic’s scores, aggressive sales practices and shelf-talkers are the standard marketing approach. So what did Hugh and Company do? They engaged the blogosphere and started a global conversation about their brand. The result was more than doubling sales in less than 2 years for an investment of about £20,000 (approx. $41,000 USD).
The other end of the spectrum is where 99% of the wine industry is at the moment with their heads in the sand about the internet and little clue about social media. They live in fear someone uneducated consumer will bad mouth their wine on one of the new Wine 2.0 sites such as Cork’d. This level of spin control and anxiety is understandable given the subjective subject of wine tasting where a $2 Chardonnay could be judged superior to a $40 Chardonnay.
But I have three words of advice for winery owners - Join the conversation!
We have seen a few brave wineries start blogging and engage the growing wine blogosphere. Although the jury is still out on their efforts, I know wine has been sold and word of mouth has resulted in new customers.
Don’t have a tasting room? Use your blog to create a “virtual porch.”
Have a limited marketing budget? Spend some time reading and responding to wine bloggers and they will say some good things about your wine and drive traffic to your blog.
The theme of this week’s Wine Industry Technology Symposium underscores the urgency of wineries adopting new online marketing strategies. My favorite quote was from wine podcast superstar Gary Vaynerchuk from Winelibrary.com who said in his talk to , “Embrace your website as your business.” Amen, brother; I hope a few wineries there got the message.
So the bottom line is that wineries who are not part of the social media conversation are doomed to let consumers determine their word of mouth. Like any online endeavor there are trolls but if you engage and extend the conversation you are more likely to encourage partisan customers to come to your aid. If you do nothing, you are likely to suffer in “Google Hell” for some time.
All it takes is a bit of time and focus. The rest—like what Stormhoek has done—could be history.
Cheers,
—
Tim Elliott
Winecast
May 9 2007
My monthly podcast as Ed McMahon to Tim Elliott’s (Winecast.net) Johnny Carson is posted. It’s a good listen. Paul Mabray, CEO of Inertia Beverage Group, provides excellent insight and Mark Fisher brings a fresh perspective as a wine journalist for the Dayton Daily News—plus, Mark’s a real good guy, even if he’s an Ohio State fan.
Check it out at the link below
http://winecast.net/podcasts/Unfiltered_20070422.mp3
April 3 2007
I’ve been doing some work recently that got me thinking about how much a wine’s price is determined by the actual quality of the wine in the bottle and how much by the demand created through marketing. Aside from a few very rare exceptions, wine needs to be marketed to be sold. This is normally done through retail stores, the winery tasting room, to wine clubs and increasingly through online wine merchants. All these add to the costs a winery has to pay in order to get their wines to the customer but they are not the main cost driver; the grapes are.
If you are Fred Franzia making his famous “Two-buck Chuck” you are paying about $100 a ton for your over-cropped Central Valley Cabernet Sauvignon. The yield per ton is probably something like 7 tons per acre which doesn’t produce the most concentrated fruit. That ton of fruit will make around 60 cases or 720 standard bottles so Fred’s got around 14 cents per bottle in fruit costs. Now you can start to see how he can make money selling it for $1.99 at Trader Joe’s. Contrast that with the premium producer in Napa Valley who spends $6,000 a ton on fruit and up. There the yield is between 3 and 4 tons per acre that will produce a more concentrated, complex wine. Assuming the same 60 cases are made, the Napa Valley producer has around $8.30 in fruit costs. Not too bad if the wine will be selling for $50 or $60 a bottle but still 60 times more costly than Mr.Franzia’s wine. But this post is not intended to be a forensic dissection of the wine cost structure, for that, visit my friend Vini.
So getting back to the wine in the bottle, the basic difference is in the quality of the fruit and cellar treatment (i.e. new oak barrels vs. chips, aging time, etc.). For producers making the finest wines they tend to spend a lot more on these items but in the final analysis the most extravagant producer might have something like $30 of cost in each bottle produced. Since distributors buy at an average of 40% off retail, this wine would sell for a minimum of $57 a bottle assuming a 10% winery profit. But what if this wine is priced at $150 or $500 a bottle? Well, the profit margin is certainly higher but there are probably higher marketing costs, as well.
As I learned last week, there seems to be a point where price and quality diverge. The reputation of a winery, bolstered by glossy treatment in the wine magazines and 95+ Parker scores also help to push the demand, and price, for these wines. But are they the best example of a certain wine region or variety? Well that, my friends, is in the eye, and palate, of the beholder. You might think Screaming Eagle is the zenith of Napa Cabernet while I prefer what Ladera is doing for a lot less. Preferences aside, there are many great quality wines from all over the world that compete for our hard earned wine dollar. What really separates them is not the quality of what’s in the bottle but the demand that is created for those bottles. That, in a nutshell, is the essence of marketing… at least in my book.
Cheers,
—
Tim Elliott
Winecast
March 21 2007
Tim Elliott, our generous host and producer of the Unfiltered podcast, has completed and posted the third edition of the Unfiltered series. Nice editing job, Tim—completely taking out most of my guffaws and vocal tics, which is always nice.
I feel like Carl Spackler from Caddyshack when he’s talking to Ty Webb. “This place got a pool?” Ty: “Pool and a pond. Pond would be good for you.”
A pond would be good for me. I’m not sure I rate caddy swim time with these good guys and their good, smart company.
This podcast is designed to be something of an insider confab on wine topical items—something akin to the MacNeil Leher hour or (if you’re like me) the Sport Reporter’s on ESPN on Sunday morning—which is more my speed.
Our guests for this edition are Josh Hermsmeyer from Pinotblogger.com and Andrew Barrow from Spittoon.biz
Covering a bunch of different topics, this was a fun conversation ... give it a listen at the following link.
March 15 2007
As a wine marketer, I’m always on the lookout for new and innovative strategies to sell more wine. As the first wine podcaster, I feel a certain responsibility to keep current on the genre by subscribing to every new wine podcast (for a while anyway). When these two things meet, I take notice.
So it was with great interest that I discovered today that Trinchero Family Estates has started to podcast. This is the conglomerate that white Zinfandel has built with the best known brand being Sutter Home. Their podcasts are focused not on consumers like first entrant Goosecross Cellars (disclosure: I work with Goosecross) but on the trade. Kudos to whomever at Trinchero came up with this idea as I’ve always thought that business-to-business podcasting is as compelling as business-to-consumer. It’s somewhat perplexing why this is not the first thing large wineries would think about in this medium as distributors, retailers and restaurants are naturals for regular communication in forms that can be consumed on the go. But that’s where this effort falls a bit short in my opinion. Instead of providing RSS feeds for listeners to subscribe to, they make the user download each podcast individually. This can be easily fixed and I’ll bet someone will take care of this shortly. My impressions of the first few shows I listened to are, well, sort of dry and basic but it’s a start.
I’m hoping other large wineries (and I’m talking to you, Gallo!) will follow Trinchero’s lead here and address their podcasts to the trade and maybe even the consumer, too. It’s inexpensive and very effective.
Until next time,
—
Tim Elliott
Winecast
This work is licensed under a Creative Commons Attribution-No Derivative Works 3.0 Unported License
Design by The Blog Studio
