San Joaquin Valley WinegrowersAssociation – Annual ConferenceClaudia Schubert, President Diageo Chateau & Estate WinesFres...
Wines Video              2
Happy 10th to the SJVWA!                           3
AgendaIntroduction to DC&ETrends we seeOpportunities for SJVWAQ&A                          4
Who We Are – Diageo Chateau & Estate Wines                                             5
Who We Are – Our Winery and Vineyard Footprint                                             Lake County                    ...
Who We Are – Our Wine Portfolio  Highly acclaimed      Top imports   Fast growing portfolio California portfolio          ...
Who We Are – Our Growth Plans             HERITAGE WINES                                LIFESTYLE WINES    • We have a hig...
Who We Are – DC&E is a Business Unit of DiageoWho isDiageo is the     Great heritage   Global presence:   In the U.S., 3  ...
Industry Trend – Overall Wine Consumption     Wine Category Gaining                                                       ...
Industry Trend – Retail PricingPremium Wine Growing Strongly…                          …With Pricing Stabilizing          ...
Industry Trend – Varietal Trends Growth driven by select varietals…                                       …indicative of c...
Industry Trend – Innovation is KeyNew Products driving category growth 3,000 new SKUs reported in IRI since 2009 These p...
Industry Trend – Wine SupplyAfter short V10/11, outlook for V12                                                           ...
Opportunities for the SJVWAThese trends represent great opportunities but also challenges forSJVWA members1) Right supply ...
Opportunities for the SJVWA and DC&EWe are pursuing an aggressive new product strategy  30% of our requirement comes from...
Thank You and Q&A                    17
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Claudia Schubert 2012

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  • Working on content and may end up (dinner tonight) getting data points and rely on dinner conversations to pick up some talking points. Helpful: if we could google the organization – – find logo and put the logo there to start talking about them.
  • Remove Paicines
  • BV bottle is really small part of portfolio – switch it out and pull down the BV Rutherford Cabernet and swap it out. Looks the same but
  • Take out arrows – and put smaller arrows – rutherford cab bottle
  • Build bullets – Swap for butterfly kisses and play with it –
  • Data has changed and we will use Zsoka’s deckBuild left first and then click to build the right chart
  • Replot the right side – and change to opposite – switch red for green – stabilizing everywhereBuild right side on clickRemove grids
  • Flip the axes – it’s about the varietals not the percentagesTypo – charrdonay (chardonnay)Remove gridMake chart showing delta (char -7, pinot grigio +5, etc.)Chardonnay by far is still the biggest varietal, but it has declined in share – share the volume difference between each wine.Build – left and then White and then Red.
  • Take out gridsBuild left and rightPick a color for white (yellow/golden)
  • Claudia Schubert 2012

    1. 1. San Joaquin Valley WinegrowersAssociation – Annual ConferenceClaudia Schubert, President Diageo Chateau & Estate WinesFresno, CaliforniaNovember 29, 2012
    2. 2. Wines Video 2
    3. 3. Happy 10th to the SJVWA! 3
    4. 4. AgendaIntroduction to DC&ETrends we seeOpportunities for SJVWAQ&A 4
    5. 5. Who We Are – Diageo Chateau & Estate Wines 5
    6. 6. Who We Are – Our Winery and Vineyard Footprint Lake County DC&E Wineries – North Coast Napa Valley Acacia – SonomaMendocino County Sierra Foothills Sonoma Facility – Sonoma Sonoma County Beaulieu Vineyard – Napa Solano County Marin County Provenance Vineyards – Napa San Francisco Lodi Sterling Vineyards – Napa Livermore Rosenblum Cellars – Alameda (SF) Santa Cruz Central Valley DC&E Wineries - Central Coast Monterey County Blossom Hill Winery – Central Coast San Luis Obispo / Paso Robles Chalone Vineyard – Monterey County Santa Barbara South Coast Los Angeles San Diego 6
    7. 7. Who We Are – Our Wine Portfolio Highly acclaimed Top imports Fast growing portfolio California portfolio of Lifestyle wines 7
    8. 8. Who We Are – Our Growth Plans HERITAGE WINES LIFESTYLE WINES • We have a highly acclaimed portfolio of • We have an aggressive new product growth heritage brands agenda targeting the “lifestyle segment” • We are focusing our efforts on engaging • We are focusing on offering wines to with high value wine consumers and consumers who are looking for an trade gatekeepers approachable package & wine style Driving quality and value – Launching several new brands from vineyard to shelf nationally, including Butterfly Kiss™, Stark Raving Wines™, Rose’N’Blum™ 8
    9. 9. Who We Are – DC&E is a Business Unit of DiageoWho isDiageo is the Great heritage Global presence: In the U.S., 3 In UK, Blossom Innovation a keyworld’s leading brands across 24,000 people in core business Hill is the largest driver and corepremium drinks our entire about 180 units: U.S. wine brand. It is competence.business. portfolio. countries Spirits, Diageo- sourced around the Guinness USA primarily from world. and Diageo Central Valley Chateau & here in CA Estate Wines. 9
    10. 10. Industry Trend – Overall Wine Consumption Wine Category Gaining … As Wine Consumption Increases TBA Value Share… Value Share, P52W Per Capita Consumption Indexed to 2002 Beer, 61% +15% Spirits, 23% +14% Wine, 16% Annual Value Growth, P52W Wine +5.6% Spirits +5.3% (6%) Beer +6.6% 2002 2010 IRI 11/4/12 release, 52 week data. Beverage Information Group. 10
    11. 11. Industry Trend – Retail PricingPremium Wine Growing Strongly… …With Pricing Stabilizing 0.5 16% 0 -0.5 Avg. Retail v. LY (% change) 13% -1 -1.5 13% 10% -2 6% 4% 6%1% -2.5 -3 $7-10 $10-15 $15-25 $25+ $7+ IRI Price Tier Value Growth vs. LY 12 Week 52 Week Outside of IRI, the $7+ category is growing 5-6% IRI 11/4/12 release, 52 week data. 11
    12. 12. Industry Trend – Varietal Trends Growth driven by select varietals… …indicative of change in consumerVolume Growth vs. LY (% change) taste over last decade Volume Share Chardonnay 3.5% 30% 27% White Wine Cab Sauv 6.8% 25% 2001 20% Merlot 3.4% 20% 2012 Pinot Noir 8.2% 15% 10% 8% Pinot Grigio 9.5% 3% 4% 3% 4% 5% Sauv Blanc 12.0% 1% 0% Muscat 27.1% Chardonnay Pinot Grigio Sauv Blanc Muscat White Blend Zinfandel 0.2% Riesling -4.7% 20% Red Wine 15% 15% 12% Red Blend 24.0% 10% 10% White Blend 25.6% 5% 4% 5% 3% Total 2.5% 1% 1% 2% 0% 0% -10% -5% 0% 5% 10% 15% 20% 25% 30% Cab Sauv Merlot Pinot Noir Zinfandel Syrah Red Blends IRI 11/4/12 release, 52 week data. IRI data for 2001; 2012 data in 52wks 11/4/2012 release 12
    13. 13. Industry Trend – Innovation is KeyNew Products driving category growth 3,000 new SKUs reported in IRI since 2009 These products driving 30-40% of category growthLifestyle wines, wines with approachable packaging and winestyles, are fueling the category growth 7 of 10 fastest growing wines in $7-10 segment 3 of 10 fastest growing wines in $10-15 segment 13
    14. 14. Industry Trend – Wine SupplyAfter short V10/11, outlook for V12 ….Grape Prices Increasingmore balanced…CA Wine Supply and Demand 800(Million of Tons) 700 4.0 600 3.5 3.0 500 2.5 400 2.0 300 1.5 200 1.0 100 0.5 0 0.0 2007 2008 2009 2010 2011 2012*est. 2009 2010 2011 2012E White Grapes Red Grapes Total Grapes Grapes Crushed Wine Shipped Unified Symposium State of the industry 2012 California Grape Crush Reports (08-11) 14
    15. 15. Opportunities for the SJVWAThese trends represent great opportunities but also challenges forSJVWA members1) Right supply of right varietals to fuel new product launches  Increasing supply in high growth varietals  Maintaining balanced supply of 3 Core Varietals2) Right cost structure  Retail pricing stabilizing but not increasing across the board  Imports will impact domestic pricing 15
    16. 16. Opportunities for the SJVWA and DC&EWe are pursuing an aggressive new product strategy  30% of our requirement comes from Central Valley  Envision our requirements to grow  Quality ever more importantWe are supporting Diageo Wines Europe with contracts for Blossom Hill  UK’s leading wine brand in Blossom Hill – 6m cases: ½ billion glasses sold per annum – 16 glasses every second!  The top 3 selling sku’s in UK – the nation’s favorite 16
    17. 17. Thank You and Q&A 17

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