Issue link: http://read.dmtmag.com/i/230154
MARKET WATCH TIM TEICHGRAEBER "but he differentiated approaches to selecting a bottle: Aspirational consumers are going to pick a brand with cachet. Millennials with less cash are going to choose a quirky brand, like a red blend, that they don't expect to have to explain. A more confident connoisseur might go for The Prisoner or The Imposter, which they might be able to explain, but they've spent enough that they don't feel an obligation to do so. Leigon said the price-point of a red blend is crucial. "I launched a brand called Boneshaker before I left Hahn," he explained. "I thought the packaging and everything was great, but I think I blew it by pricing it at $20. It either needed to go to $70 or to $12. If it's a red blend and it's $20, I think that's a problem." Since being brought in to reorganize Reata, Leigon has devoted considerable attention to reinforcing the successful Whiplash brand guised as dry wines both finding an audience with younger consumers in the $10-and-under price range. Some of the wines are marketed as being sweet, and some are moderately sweet yet ostensibly marketed as dry. THE PRICE-POINT IS RIGHT Leigon also recognizes different audiences and buyer profiles within the red-blend category, and acknowledges that the lower price ranges ($8-$15) are where the strongest growth is taking place. The secret to success in that sector is to have a quirky brand name, a decent label, and to be at least a touch sweet. Hitting the right price-point and distinguishing between different types of consumers is a key to marketing red blends, according to Leigon. Lower-priced wines are typically "an impulse buy," he said, as part of the portfolio. He nixed a chardonnay under the Whiplash label and refocused the brand on the more successful red blend, and also named the horse statue at the entrance of the Reata estate Whiplash. "Whiplash has a quirky name," Leigon explained, "but in my mind, we need to get the word out about the horse so that they (consumers) don't feel like they're having a car wreck." Tim Teichgraeber cut his teeth in retail wine sales before becoming the wine columnist for the Minneapolis Star Tribune. Today he is a contributor to the San Francisco Chronicle, Tasting Panel, Opus Vino and other publications, when he's not working as an entertainment lawyer in San Francisco. Comments? Please e-mail us at feedback@vwmmedia.com. THIS AD IS VIDEO ENHANCED DOWNLOAD THE RETAILIVE APP TO WATCH IT COME TO LIFE! THE Y'L L K NOW YOU BY YOUR LABEL HOW IT WORKS: DOWNLOAD LAUNCH HOVER ENJOY the RetaiLive app from the App Store™ or Google Play Go Ahead, It's Free! the app on your iPhone®, iPad®, or Android™ smartphone We recommend using WiFi your device over the Key (this ad) so that it fills most of the screen... hold steady Double tap to lock video the ad as it comes to life! Register at the end of the RetaiLive video to Win $500 Off your next order. Good Luck! HIGH QUALITY printing FOR HAND CRAFTED PRODUCTS wrightglobalgraphics.com 24 V I N E YA R D & WINE RY MANAGEM ENT | Jan - Feb 2014 w w w. v wm m e d i a . c o m