Vineyard & Winery Management

May/June 2016

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w w w. v w m m e d i a . c o m M a y - J u n e 2 016 | V I N E YA R D & W I N E RY M A N A G E M E N T 2 3 w w w. v w m m e d i a . c o m including younger consumers being more open to trying new things and not demand- ing established brands, more responsible drinking and driving behavior, the growth of "small plates" restaurants and better wine preservation systems, from kegs to Enomatic and Coravin systems that decrease spoilage of glass pours. ales of wine by the glass (BTG) have, slowly but surely, increased in on-premise settings over the past 15 years. According to Ronn Wiegand, MW, MS, and publisher of the newsletter Res- taurant Wine, BTG sales now account for about 60% of all on-premise sales and, in casual restaurants, can be as much as 90% of wine sales. The wine directors with whom I spoke told me their BTG selections accounted for between 60% and 70% of all wine sales. While there's nothing inherently bad about wine being sold by the glass instead of by the bottle, there are some conse- quences that come with this trend — and they're not all good, from a wine produc- er's point of view. Not only do restaurants trim their lists and their by-the-bottle inven- tories, but wine sold by the bottle moves through the system more slowly. If a win- ery wants to move decent volume through on-premise settings, the sales team has to push hard for BTG placement, and that often requires competitive discounting. Wiegand attributes the rise of BTG sales to a number of different factors, MARKET WATCH TIM TEICHGRAEBER + By-the-glass sales have steadily increased in restaurants. + Small plate dining formats, adventurous young consumers, improved margins, spoilage control and inventory savings have contributed to its growth. + The trend toward by-the-glass sales leads to increased competition for glass pours and slower bottle sales. + The two types of establishments that seem able to sell bottles are old school fine dining restaurants with deep cellars and contempo- rary, family-style restaurants. AT A GLANCE A Glass Half Full Wine by-the-glass programs are evolving to accommodate new dining trends. The percentage of on-premise sales of wine by the glass or bottle largely depends on restaurant type.

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