Insightful analysis of how the web has democratized wine marketing permitting smaller wineries to compete on an even playing field with the big guys with big budgets. Presented by Steve Raye of Bevology Inc. at Vinitaly 2015, Verona, Italy.
2. Steve Raye
Helping wine brands
enter/grow in the US Market
Brand Development
Trade Marketing
Social Media
Steve Raye
Managing Partner
Bevology Inc.
Steve@BevologyInc.com
+1 860-833-6272
7. Industry Trends
Millennials represent the largest wine
consuming age-cohort—70 million +. They like to
explore new and different things and are a primary force
driving wine growth – particularly imports.
Overall, consumers are trading up to higher
priced wines, with the most growth (66%) in the
$12 - $15 and $15 - $20 segments.
E-commerce and new/non-traditional distribution channels
are rapidly growing: 3.47MM cases in 2013 (up 9.3%). Wine.com does
53% of its business with imported wines vs. 27% for traditional retail.
Explosion in delivery-within-an-hour services: Drizly, Minibar Delivery, et
al.. New in 2014 and now active in all major markets.
8. Industry Trends (continued)
Sources: Wine Opinions, Gomberg-Fredrickson, Wine Intelligence, B.I.G. Handbook, Nielsen et al.
• # of wine selling channels continues to grow
• Wine/liquor stores represent the largest number of off-premise outlets (wine sales
in supermarkets is allowed in only 35 states and notably not permitted in NY)
• Wine/liquor stores account for disproportionately higher percentage of $12-$20
wines vs. supermarkets
Off-Premise Wine Selling
Store Counts-by Channel
Dec. 2009 Dec. 2013
Wine/Liquor 40,384 43,675
Grocery- Conventional 16,662 17,019
Drug 8,082 12,390
Mass-Conventional 2,132 2,033
Grocery-Natural/Gourmet 1,066 2,539
Warehouse Club 850 911
9. Industry Trends (Cont.)
• Online access to news, recommendations, where-to-buy
have displaced traditional print, especially for Millennials.
They now seek information on Wine-Searcher, Vivino, Wine4me,
Snooth, Hello Vino et al.
• Reach and Targeting:
• Wine-Searcher gets 3 million unique visitors per month,
predominantly millennials.
• Snooth reaches 2 million people per month
• By comparison print circulations stand at:
Wine Spectator – 400,000; Wine Enthusiast – 170,000;
Wine Advocate – 48,000
Sources: Wine Opinions, Gomberg-Fredrickson, Wine Intelligence, B.I.G. Handbook, Nielsen et al.
14. E-Commerce
Allows you to sell in multiple states,
nearly nationally, when you may only
have distribution in one.
Strong penetration with Baby
Boomers, average purchase is 3X
typical physical store purchase
Has established awareness that it
represents a better selection of hard-
to-find wines
Tools like Wine-Searcher drive intent
to purchase
17. Content Population Results
Visitors saw our content more when it
was archived than when originally
distributed.
That is a 7,823% ROI reaching people at
the precise moment in time when they’re
searching for this information
And they spent twice as much time
viewing the content
Goal/Result: Delight the site visitor,
add value to the site, leverage your
marketing dollar efficiency
Santé Magazine Content Population Results
Page views generated in the week
the article was posted
Total page views over 15
months
% incremental
page views AFTER posting
week…
and still growing
12 articles
posted monthly
575 44,984 7,823%
Average visit duration Site average 2:03
More than double
Chile article average 4:15
18. Social Media: Build the
Community
Advertising Phase I: Build the FB community
Advertising Phase II: Engage with the community
• Facebook is powered by a proprietary algorithm that determines what users see in their newsfeed.
Because of this, on average, only 3% of a community’s users will see published content
organically. The game has changed, you have to pay to play.
• Boosted posts are a type of Facebook advertising that will insert our page’s content posts into
user’s newsfeeds based on targeting parameters. This would include both users that have “liked”
the page and users who have not.
20. Metrics Matter
“I know half my
advertising doesn’t
work…I just don’t
know which half”
Pure E-
marketing/
Ecommerce
ROI
21. Analysis and Performance
Metrics
Some examples:
• Social Media Metrics give us real time insight into consumer engagement and interaction on Facebook,
Twitter, Instagram et al, supplemented by data supplied by Facebook Insights and Google Analytics on
your website.
25. Strategies
Focus, focus focus… and triage your initiatives into “must”, “should”, “could”. Make sure
you do the “musts” before you do “should do” or “could do.”
Must Do
Should Do
Could Do
Target audience:
Be specific…demographics are important, but behavior is critical. Only spend
money that gets in front of people who are receptive to your message, AND who can
buy your product.
Recognize Millennials are a prime target and they do not subscribe to print
magazines like Wine Spectator, Wine Enthusiast, Parker, or pay for subscriptions to
Winespectator.com.
These publications are effectively invisible to Millennials: Google can’t see Wine
Spectator ratings.