• The Perfect Storm" torm " fectS • How digital tools are forever changing the e sel l eP er way we sell and market wine" ing th e way w Th g chan " rever wine s are fo arket igita l tool and m d HowCONFIDENTIAL
Unprecedented competition for mindshare. Wine Label Registration Growth Total number of COLA applications through the TTB in 2008 was approximately 133,427*. This number increases on an annual basis by approximately 5,000 labels Projected *Source: Advertising, Labeling and Formula Division,TTB
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• Business has no geographic boundaries. • Ideas have no geographic boundaries. • Communication across borders is easier than ever. • We are economically linked. CONFIDENTIAL
The US Funnel • Though it is reported that there are over 4000K wholesalers in the US each state 2 or 3 control the vast majority of distribution."• The top 5 wholesalers in the US (Southern, Glazers, Republic- National, Charmers, and Youngs) together have revenues of roughly $23 Billion."• Shanken IMPACT Newsle-er in 2010 reports that the top 6 distributors control over 50% of the marketplace."• From 2006 - 2010 it is reported that wholesalers spent $82 million dollars in lobbying and campaign contribution dollars."• In contrast wineries spent approximately $16 million on the same activities. We are grossly out gunned."
Wine is Mainstream In the US 329.7 Million Cases
There is no panacea in wine anymore! Email – 2.9% at best? Direct Mail - .5% - 1.5% is good? Advertising - #really? Events - #drunk_fest and waste of $ Publicity – Hope and a prayer Wholesalers – In the 1970’s Telemarketing – 1 by 1 . . . sounds like . . . Social media - 1:Many but still 1:1
If you make customers unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the Internet, they can each tell 6,000 friends. -Jeff Bezos
Consumer generated content is onthe rise. For people under 40, 70% of the content they read online has been written by somebody they know.* *Forrester
Winning brands are transforming into media companies
“Content will be the future of advertising, people distributingand creating content for your brand will be the barometer of your advertising success.” Barry Schuler – former CEO AOL/Time Warner/CEO Meteor Vineyards