Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/777147
wine BUSINESS 8 Beverage Dynamics • January/February 2017 www.beveragedynamics.com DRIVING WINE SALES AFTER THE HOLIDAYS BY JONATHAN H. NEWMAN HAVING TRAVELLED TO NAPA OR SONOMA VALLEYS about 100 times, I can fi rmly state that the best time of year to purchase from wineries is actually in January. I use this golden opportunity to trea- sure hunt with wineries and fi nd compelling deals for retailers that will certainly get their consumers excited. Most wineries have delusions of grandeur about November and De- cember depletions, because hope springs eternal. In January, reality sinks in when wholesalers cry the blues and too often aren't reporting incredible sales or getting the reorders they expected. They are given a myriad of reasons why the wine apparently didn't move quickly--- because of the economy, the election or the weather. The paradigm has been changing, swamping good wholesalers with wines and commitments that inhibit their ability to sell their entire port- folio effectively. Many wineries have focused on direct-to-consumer sales and other alternative channels, but it's still a daunting task to sell through since there are so many brands competing for attention. And if a retailer has weaker-than-expected holiday sales, the winter months are typically used for drilling down inventory and turning it into cash. THE HOLIDAY CHALLENGE The holidays are an exciting time with sales during those two months often accounting for up to 30% of annual sales. And consumers must purchase wine for their Thanksgiving feast, Christmas holiday and New Year's Eve celebrations. A challenge for retailers is sustaining strong foot traffi c into the diffi cult winter months and keeping consumers excited about fresh and compelling offer- ings. While they had to keep the shelves fully stocked in December; late winter and early spring can be a fresh opportunity for creating opportunities through smart purchasing. Retailers I work with are very concerned with fi erce competition from big box retailers that have particularly aggressive pricing on the most popu- lar wines. If you have popular brand-name wines at higher prices than your nearby competition, it will kill customer loyalty and potentially drive them away. But unlike spirits, the wine consumer is more adventurous and willing to experiment and try new regions and varietals. Of course there are consumers that want the same exact bottle of wine, but if you understand their taste profi le you can still keep them in a comfort zone. And it's not just a matter of loading your shelves with private label, inexpensive imports to build mar- gin. It's important to have wines that come from dis- tinguished appellations and vineyards that resonate with discerning wine consumers. Train staff on the talking points of making these wines appealing, ex- plain the marketing story to your team and sample consumers on the product if possible. Don't sit back after the holidays. It's time to get aggressive and differentiate yourself from the compe- tition to expand your reach in the market. BD JONATHAN NEWMAN is widely recognized as a leader in the wine industry. As chairman of the Pennsylvania Liquor Control Board, he was the nation's largest wine buyer and brought a number of popular innovations to bear, in- cluding the Chairman's Selection program and opening of local stores for Sunday sales. Jonathan has received signifi cant industry accolades during his career. Follow him on Twitter at @NewmanWine and visit his website: www.newmanwine.com. TRAIN STAFF ON THE TALKING POINTS OF MAKING THESE WINES APPEALING, EXPLAIN THE MARKETING STORY TO YOUR TEAM AND SAMPLE CONSUMERS ON THE PRODUCT IF POSSIBLE.