This document summarizes Claudia Schubert's presentation to the San Joaquin Valley Winegrowers Association annual conference. She discussed trends in the wine industry including growing consumption of wine, price stabilization, and growth in premium and lifestyle wines. She provided an overview of Diageo Chateau & Estate Wines, noting their portfolio includes heritage and lifestyle wines. Opportunities for SJVWA members include supplying the right varietals to fuel new product launches and maintaining a competitive cost structure. Diageo sees opportunities to increase sourcing from the Central Valley to support their aggressive new product strategy and contracts with Diageo Wines Europe.
The document summarizes the 2003 annual shareholders meeting of Robert Mondavi Company. It discusses Mondavi's vision and history, competitive strategies, brand portfolio, financial report, and future outlook. Key points included global partnerships, innovations in grape growing and winemaking, diversifying the brand portfolio, and goals to improve operating efficiencies and returns.
The document provides an overview of social media and its opportunities for businesses. It discusses how social media has impacted customers and their purchasing decisions. While many businesses want to utilize social media, some lack resources, clear goals, or knowledge. The document then covers various social media platforms like Facebook, Twitter, location-based apps and online deals. It provides best practices for engagement on each platform and content creation. It emphasizes the importance of measurement to define objectives and track key metrics for each social channel.
- The 2012 California winegrape crop was estimated to be 10% above average at 3.885 million tons, though the Central Valley crop was close to average.
- Global wine supply is down in major producers like Argentina and Western Europe but up in California, South Africa, and Chile. California represents about 10% of global supply.
- While California's larger 2012 crop may cause concern, current global demand and supply dynamics suggest opportunity for California wines due to decreases elsewhere and the state's ability to increase exports.
Ms. Devyani Khobragade, the Deputy Consul General of the Indian Diplomatic Mission in New York, was arrested in December on charges of making false declarations in a visa application and underpaying her nanny. Her arrest inflamed anti-American outrage in India as government officials cited her diplomatic immunity under the Vienna Convention on Consular Relations. Arvind Kejriwal brought about a revolution among common people in India by making them more aware of their rights and influencing different political agendas. He formed the Aam Aadmi Party which won 28 seats in the Delhi legislative assembly, resulting in the party forming the next government in Delhi. These personalities demonstrate the importance of being truthful and leading by example
Marketing channels refer to the intermediaries used by companies to distribute products to consumers. Channels play an important role in delivering value by physically distributing products and providing supporting services. There are different types of marketing channels that vary based on their functions and characteristics. When designing a channel system, companies must consider objectives, customer and product characteristics, and available resources to determine the appropriate channel intensity and structure. Both choosing the wrong channel intensity and failing to properly manage selected channels can negatively impact sales and productivity.
Services Marketing
Chapter – 9
Pricing Of Services
Introduction
Pricing or Price is the key element in the traditional marketing mix (the 4Ps) and also the enhanced marketing mix (the 7 Ps). This is the element which earns revenue. This is highly critical because this is the strategy which can make or mar the business.
The firms must make it both ways –the price must
(1) get profits for the firm, and
(2) give value to its customers.
Names of Service Pricing
Pricing for goods is easy and straight forward, while for services it is complicated, may be controlled by several authorities, varies with time, place, people, etc.
For goods the price has a single name “PRICE”, but for services it has several names like :
Names of Service Prices
What Makes Service Pricing Different?
No Ownership of Services
Higher Ratio of Fixed Costs to Variable Costs
Variability of Both Inputs and Outputs.
Many Services Are Hard to Evaluate
The Silicon Valley Bank 2014 State of the Wine Industry Report identifies trends and addresses current issues facing the U.S. wine industry, offering data and observations that help that wineries can use to develop their business strategies.
Silicon Valley Bank's wine report is based on its in-house expertise as one of the largest bankers to the West Coast wine industry for nearly 20 years, a proprietary database of more than a decade of winery financials, ongoing research, and an annual survey of 450 West Coast wineries.
The document summarizes the 2003 annual shareholders meeting of Robert Mondavi Company. It discusses Mondavi's vision and history, competitive strategies, brand portfolio, financial report, and future outlook. Key points included global partnerships, innovations in grape growing and winemaking, diversifying the brand portfolio, and goals to improve operating efficiencies and returns.
The document provides an overview of social media and its opportunities for businesses. It discusses how social media has impacted customers and their purchasing decisions. While many businesses want to utilize social media, some lack resources, clear goals, or knowledge. The document then covers various social media platforms like Facebook, Twitter, location-based apps and online deals. It provides best practices for engagement on each platform and content creation. It emphasizes the importance of measurement to define objectives and track key metrics for each social channel.
- The 2012 California winegrape crop was estimated to be 10% above average at 3.885 million tons, though the Central Valley crop was close to average.
- Global wine supply is down in major producers like Argentina and Western Europe but up in California, South Africa, and Chile. California represents about 10% of global supply.
- While California's larger 2012 crop may cause concern, current global demand and supply dynamics suggest opportunity for California wines due to decreases elsewhere and the state's ability to increase exports.
Ms. Devyani Khobragade, the Deputy Consul General of the Indian Diplomatic Mission in New York, was arrested in December on charges of making false declarations in a visa application and underpaying her nanny. Her arrest inflamed anti-American outrage in India as government officials cited her diplomatic immunity under the Vienna Convention on Consular Relations. Arvind Kejriwal brought about a revolution among common people in India by making them more aware of their rights and influencing different political agendas. He formed the Aam Aadmi Party which won 28 seats in the Delhi legislative assembly, resulting in the party forming the next government in Delhi. These personalities demonstrate the importance of being truthful and leading by example
Marketing channels refer to the intermediaries used by companies to distribute products to consumers. Channels play an important role in delivering value by physically distributing products and providing supporting services. There are different types of marketing channels that vary based on their functions and characteristics. When designing a channel system, companies must consider objectives, customer and product characteristics, and available resources to determine the appropriate channel intensity and structure. Both choosing the wrong channel intensity and failing to properly manage selected channels can negatively impact sales and productivity.
Services Marketing
Chapter – 9
Pricing Of Services
Introduction
Pricing or Price is the key element in the traditional marketing mix (the 4Ps) and also the enhanced marketing mix (the 7 Ps). This is the element which earns revenue. This is highly critical because this is the strategy which can make or mar the business.
The firms must make it both ways –the price must
(1) get profits for the firm, and
(2) give value to its customers.
Names of Service Pricing
Pricing for goods is easy and straight forward, while for services it is complicated, may be controlled by several authorities, varies with time, place, people, etc.
For goods the price has a single name “PRICE”, but for services it has several names like :
Names of Service Prices
What Makes Service Pricing Different?
No Ownership of Services
Higher Ratio of Fixed Costs to Variable Costs
Variability of Both Inputs and Outputs.
Many Services Are Hard to Evaluate
The Silicon Valley Bank 2014 State of the Wine Industry Report identifies trends and addresses current issues facing the U.S. wine industry, offering data and observations that help that wineries can use to develop their business strategies.
Silicon Valley Bank's wine report is based on its in-house expertise as one of the largest bankers to the West Coast wine industry for nearly 20 years, a proprietary database of more than a decade of winery financials, ongoing research, and an annual survey of 450 West Coast wineries.
L2 S Wine Partners Domestic Presentation 10 18 11BrendanEdwards
L2S Wine seeks to produce approachable, balanced wines of recognizable quality and exceptional value. They conduct consumer research to understand what young, affluent wine drinkers want. Their portfolio includes the First Vine, Thomas Scott, and Napa Trail brands featuring California and Burgundy/Bordeaux-style wines priced $9-$30. They aim to differentiate brands for all occasions through time-honored winemaking and focus on premium grapes.
Paradise Ranch & Whistler Icewine produces ice wines and late harvest wines in Canada. They harvest grapes below -8°C and press them to extract a highly concentrated sweet juice. The juice ferments slowly, resulting in wines with intense flavors and high sugar levels. Paradise Ranch has won numerous awards for their ice wines and packaging. They market their wines for special occasions and compete internationally to promote their business.
The winemaker provides an update on the 2015 harvest season and current activities. The harvest was the earliest on record due to very hot weather. Most of the fruit was harvested by mid-October. The winemaker is now preparing the 2015 wines for bottling and tasting barrels of Chardonnay. He also notes an upcoming trip to Japan to promote Gordon Estate wines. Current releases and awards are highlighted in sidebars.
Yao Family Wines produces three tiers of wines from Napa Valley vineyards under long term contracts. Founded by retired NBA star Yao Ming and winemaker Tom Hinde, YFW has achieved sales of $8 million in 39 months by targeting the growing Chinese wine market where imported wine is a status symbol. The presentation outlines YFW's plans to leverage Yao Ming's celebrity to develop direct-to-consumer platforms in China and the US and build a portfolio of luxury wine brands to sell to those consumers.
This marketing plan summarizes Sandeman Port wine's strategy for 2012. It begins with an analysis of the company's current situation and portfolio. An environmental analysis examines the declining Port wine market and competitive landscape. A SWOT analysis identifies strengths in brand and quality but also weaknesses in inconsistent marketing. Marketing objectives target a 10% sales increase through improved promotion. Tactics will use testimonials, events, and digital campaigns to build brand awareness and position Tawny Port as a premium experience product. Performance will be evaluated based on sales, market share, and brand loyalty metrics.
You & Yours Distilling Co. was founded in San Diego, California by Laura Johnson and Luke Mahoney to bring people together through elevated drinking experiences. Their vision is to lead the craft liquor industry through high quality products and exceptional customer service. They have developed two flagship products - Session Vodka and Soirée Gin - and plan to expand their brand through additional products, a tasting room, and distribution to accounts in San Diego, Los Angeles, and Dallas.
This document provides an overview of Palmia, a new beer and lemon drink concept. It describes the origin and branding of Palmia which is inspired by a Spanish drink called Clara. It outlines Palmia's target market as millennial men and women, and opportunities to capture share from categories like flavored beers, cocktails, and craft beers. The document discusses Palmia's initial test launch in San Francisco and plans for product refinement, team building, and regional rollouts beginning in 2017.
Ravine winery practices biodynamic and organic farming which aligns with their philosophy of giving back to the land. They aim to sustainably maintain their 100+ year-old family farm and continue the legacy of the Lowrey family who have grown grapes on the land for five generations. The result is high quality wines that allow Ravine to share their lifestyle and connection to the land.
This document provides a summary and tasting notes for a collection of fine wines called "Legends of the Fall" from top California producers. It highlights several highly acclaimed Cabernet Sauvignons and proprietary reds from renowned Napa Valley wineries like Beringer, Joseph Phelps, Caymus, Duckhorn, Merryvale, and Rudd. The document promotes this collection as the perfect gift for connoisseurs, containing rare wines that will impress collectors and always sell out before the holidays.
IWA is a leading provider of mergers and acquisitions services to the wine and liquor industry. Over the last 20 years, IWA has represented or sold companies and brands with a combined value of over $1 billion. Recently, IWA represented Silverado Hill Winery in its sale to Laird Family Estates, represented Mayacamas Vineyards in its sale to a private investor group, and represented Resonance Vineyard in its sale to Louis Jadot.
1) The document discusses wine marketing and promotions strategies in India, including top wine brands, preferred varieties, and consumer demographics.
2) It provides information on top-selling wines from producers like Grover Vineyards, Sula Vineyards, and Indage Vintners.
3) Various promotion tactics are outlined such as wine festivals, publications, tasting events, online marketing, gift ideas, discounts, and developing a wine club.
This document discusses wine clusters and provides examples of clusters in different regions. It focuses on the potential for a wine cluster in Ontario, Canada. The key points are:
1) Wine clusters connect related companies in the industry to strengthen the market and attract investment.
2) Ontario is well-suited for a wine cluster due to its viticultural areas and research institutions.
3) Developing a wine cluster in Ontario could help promote tourism and marketing of Ontario wines.
30 Lessons for Marketing Italian BrandsRobert Joseph
Reka Haros, Rebecca Hopkins, Cathy Huyghe, Robert Joseph and Damien Wilson offer insight during a Vinitaly session, into the most effective ways to sell Italian wines, especially, but not only, in the US market. The 30 lessons cover packaging, website design, advertising, PR and social media.
This document provides an overview of Cabana Inc, a beverage company founded in 2005. It discusses the company's strategic focus, locations, organizational chart, industry and competitor analysis. Key points include generating over $110,000 annually, having 4 operating centers and 20 sales centers, and producing 1500 cases per day. The strategic focus is on successfully penetrating the soft drink market and increasing various metrics like market share, revenue and direct retail relationships.
This document describes a wine called "Z" that is targeted towards baby boomers. Z is a 2014 Cabernet Franc and Cabernet Sauvignon blend produced in limited quantities of 500 cases per year. The document provides details on the grapes and winemaking process, including tasting notes that describe Z as bold and balanced with potential for aging. Food and experience pairings are suggested that would appeal to older adults.
IWA is a leading provider of mergers and acquisitions services to the wine and liquor industry. Over the last 20 years, IWA has represented or sold companies and brands with a combined value of over $1 billion. IWA's services include mergers and acquisitions advisory, corporate finance, strategic planning, and vineyard brokerage. They have recently represented companies like Silverado Hill Winery, Mayacamas Vineyards, and Edna Valley Vineyard in major transactions.
- Grape prices drive vineyard land prices, and wine prices tend to correlate with grape prices based on a "rule of 100" whereby grape price equals retail bottle price times 100.
- Recent winners have been grapes for wines under $20 per bottle from regions like Lodi, Central Coast, Lake and Mendocino. Losers have been grapes for wines over $20 from Napa and Sonoma.
- Vineyard land prices continue rising in prime regions like Napa despite a lifestyle buyer slowdown, as wineries, investors and growers purchase land. The annual appreciation rate in the Central Valley has risen from 2.8% in 2002 to over 17% in 2012.
IWA is a leading provider of mergers and acquisitions services to the wine and liquor industry. Over the last 20 years, IWA has represented or sold companies and brands with a combined value of over $1 billion. IWA's services include mergers and acquisitions advisory, corporate finance, strategic planning, and vineyard brokerage. They have recently represented companies like Silverado Hill Winery, Mayacamas Vineyards, and Edna Valley Vineyard in sale transactions.
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006Marian Kopp
The document summarizes the set up and global launch of Golden Kaan, a South African wine brand. It discusses the Racke Group, a German family-owned wine company established in 1855. Racke has launched several global wine brands and distributes brands worldwide through subsidiaries across Europe. The document then describes Racke's process for developing and launching new wine brands internationally, including Golden Kaan. It provides details on the brand's distribution network across 28 countries and sales of over 10 million bottles since its launch.
This document provides an overview of the 2015 Power 100 report, which ranks the world's most powerful spirits and wine brands. Some key points:
- Johnnie Walker retains the #1 spot, though its score declined 11% due to less conspicuous consumption in China. Smirnoff vodka remains #2.
- Bacardi, Jack Daniel's, Hennessy, Captain Morgan, and Absolut Vodka round out the top 10 brands. Captain Morgan and Absolut saw increases.
- Whisky continues to dominate as the most powerful spirit sector. Bourbon growth may threaten Scotch's market share.
- Beam Suntory's merger propelled it to the #
L2 S Wine Partners Domestic Presentation 10 18 11BrendanEdwards
L2S Wine seeks to produce approachable, balanced wines of recognizable quality and exceptional value. They conduct consumer research to understand what young, affluent wine drinkers want. Their portfolio includes the First Vine, Thomas Scott, and Napa Trail brands featuring California and Burgundy/Bordeaux-style wines priced $9-$30. They aim to differentiate brands for all occasions through time-honored winemaking and focus on premium grapes.
Paradise Ranch & Whistler Icewine produces ice wines and late harvest wines in Canada. They harvest grapes below -8°C and press them to extract a highly concentrated sweet juice. The juice ferments slowly, resulting in wines with intense flavors and high sugar levels. Paradise Ranch has won numerous awards for their ice wines and packaging. They market their wines for special occasions and compete internationally to promote their business.
The winemaker provides an update on the 2015 harvest season and current activities. The harvest was the earliest on record due to very hot weather. Most of the fruit was harvested by mid-October. The winemaker is now preparing the 2015 wines for bottling and tasting barrels of Chardonnay. He also notes an upcoming trip to Japan to promote Gordon Estate wines. Current releases and awards are highlighted in sidebars.
Yao Family Wines produces three tiers of wines from Napa Valley vineyards under long term contracts. Founded by retired NBA star Yao Ming and winemaker Tom Hinde, YFW has achieved sales of $8 million in 39 months by targeting the growing Chinese wine market where imported wine is a status symbol. The presentation outlines YFW's plans to leverage Yao Ming's celebrity to develop direct-to-consumer platforms in China and the US and build a portfolio of luxury wine brands to sell to those consumers.
This marketing plan summarizes Sandeman Port wine's strategy for 2012. It begins with an analysis of the company's current situation and portfolio. An environmental analysis examines the declining Port wine market and competitive landscape. A SWOT analysis identifies strengths in brand and quality but also weaknesses in inconsistent marketing. Marketing objectives target a 10% sales increase through improved promotion. Tactics will use testimonials, events, and digital campaigns to build brand awareness and position Tawny Port as a premium experience product. Performance will be evaluated based on sales, market share, and brand loyalty metrics.
You & Yours Distilling Co. was founded in San Diego, California by Laura Johnson and Luke Mahoney to bring people together through elevated drinking experiences. Their vision is to lead the craft liquor industry through high quality products and exceptional customer service. They have developed two flagship products - Session Vodka and Soirée Gin - and plan to expand their brand through additional products, a tasting room, and distribution to accounts in San Diego, Los Angeles, and Dallas.
This document provides an overview of Palmia, a new beer and lemon drink concept. It describes the origin and branding of Palmia which is inspired by a Spanish drink called Clara. It outlines Palmia's target market as millennial men and women, and opportunities to capture share from categories like flavored beers, cocktails, and craft beers. The document discusses Palmia's initial test launch in San Francisco and plans for product refinement, team building, and regional rollouts beginning in 2017.
Ravine winery practices biodynamic and organic farming which aligns with their philosophy of giving back to the land. They aim to sustainably maintain their 100+ year-old family farm and continue the legacy of the Lowrey family who have grown grapes on the land for five generations. The result is high quality wines that allow Ravine to share their lifestyle and connection to the land.
This document provides a summary and tasting notes for a collection of fine wines called "Legends of the Fall" from top California producers. It highlights several highly acclaimed Cabernet Sauvignons and proprietary reds from renowned Napa Valley wineries like Beringer, Joseph Phelps, Caymus, Duckhorn, Merryvale, and Rudd. The document promotes this collection as the perfect gift for connoisseurs, containing rare wines that will impress collectors and always sell out before the holidays.
IWA is a leading provider of mergers and acquisitions services to the wine and liquor industry. Over the last 20 years, IWA has represented or sold companies and brands with a combined value of over $1 billion. Recently, IWA represented Silverado Hill Winery in its sale to Laird Family Estates, represented Mayacamas Vineyards in its sale to a private investor group, and represented Resonance Vineyard in its sale to Louis Jadot.
1) The document discusses wine marketing and promotions strategies in India, including top wine brands, preferred varieties, and consumer demographics.
2) It provides information on top-selling wines from producers like Grover Vineyards, Sula Vineyards, and Indage Vintners.
3) Various promotion tactics are outlined such as wine festivals, publications, tasting events, online marketing, gift ideas, discounts, and developing a wine club.
This document discusses wine clusters and provides examples of clusters in different regions. It focuses on the potential for a wine cluster in Ontario, Canada. The key points are:
1) Wine clusters connect related companies in the industry to strengthen the market and attract investment.
2) Ontario is well-suited for a wine cluster due to its viticultural areas and research institutions.
3) Developing a wine cluster in Ontario could help promote tourism and marketing of Ontario wines.
30 Lessons for Marketing Italian BrandsRobert Joseph
Reka Haros, Rebecca Hopkins, Cathy Huyghe, Robert Joseph and Damien Wilson offer insight during a Vinitaly session, into the most effective ways to sell Italian wines, especially, but not only, in the US market. The 30 lessons cover packaging, website design, advertising, PR and social media.
This document provides an overview of Cabana Inc, a beverage company founded in 2005. It discusses the company's strategic focus, locations, organizational chart, industry and competitor analysis. Key points include generating over $110,000 annually, having 4 operating centers and 20 sales centers, and producing 1500 cases per day. The strategic focus is on successfully penetrating the soft drink market and increasing various metrics like market share, revenue and direct retail relationships.
This document describes a wine called "Z" that is targeted towards baby boomers. Z is a 2014 Cabernet Franc and Cabernet Sauvignon blend produced in limited quantities of 500 cases per year. The document provides details on the grapes and winemaking process, including tasting notes that describe Z as bold and balanced with potential for aging. Food and experience pairings are suggested that would appeal to older adults.
IWA is a leading provider of mergers and acquisitions services to the wine and liquor industry. Over the last 20 years, IWA has represented or sold companies and brands with a combined value of over $1 billion. IWA's services include mergers and acquisitions advisory, corporate finance, strategic planning, and vineyard brokerage. They have recently represented companies like Silverado Hill Winery, Mayacamas Vineyards, and Edna Valley Vineyard in major transactions.
- Grape prices drive vineyard land prices, and wine prices tend to correlate with grape prices based on a "rule of 100" whereby grape price equals retail bottle price times 100.
- Recent winners have been grapes for wines under $20 per bottle from regions like Lodi, Central Coast, Lake and Mendocino. Losers have been grapes for wines over $20 from Napa and Sonoma.
- Vineyard land prices continue rising in prime regions like Napa despite a lifestyle buyer slowdown, as wineries, investors and growers purchase land. The annual appreciation rate in the Central Valley has risen from 2.8% in 2002 to over 17% in 2012.
IWA is a leading provider of mergers and acquisitions services to the wine and liquor industry. Over the last 20 years, IWA has represented or sold companies and brands with a combined value of over $1 billion. IWA's services include mergers and acquisitions advisory, corporate finance, strategic planning, and vineyard brokerage. They have recently represented companies like Silverado Hill Winery, Mayacamas Vineyards, and Edna Valley Vineyard in sale transactions.
Global Wine Marketing / Speech by Mr. Marian Kopp Sept. 2006Marian Kopp
The document summarizes the set up and global launch of Golden Kaan, a South African wine brand. It discusses the Racke Group, a German family-owned wine company established in 1855. Racke has launched several global wine brands and distributes brands worldwide through subsidiaries across Europe. The document then describes Racke's process for developing and launching new wine brands internationally, including Golden Kaan. It provides details on the brand's distribution network across 28 countries and sales of over 10 million bottles since its launch.
This document provides an overview of the 2015 Power 100 report, which ranks the world's most powerful spirits and wine brands. Some key points:
- Johnnie Walker retains the #1 spot, though its score declined 11% due to less conspicuous consumption in China. Smirnoff vodka remains #2.
- Bacardi, Jack Daniel's, Hennessy, Captain Morgan, and Absolut Vodka round out the top 10 brands. Captain Morgan and Absolut saw increases.
- Whisky continues to dominate as the most powerful spirit sector. Bourbon growth may threaten Scotch's market share.
- Beam Suntory's merger propelled it to the #
1. San Joaquin Valley Winegrowers
Association – Annual Conference
Claudia Schubert, President Diageo Chateau & Estate Wines
Fresno, California
November 29, 2012
6. Who We Are – Our Winery and Vineyard Footprint
Lake County
DC&E Wineries – North Coast
Napa Valley Acacia – Sonoma
Mendocino 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. Who We Are – Our Wine Portfolio
Highly acclaimed Top imports Fast growing portfolio
California portfolio of Lifestyle wines
7
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. Who We Are – DC&E is a Business Unit of Diageo
Who is
Diageo is the Great heritage Global presence: In the U.S., 3 In UK, Blossom Innovation a key
world’s leading brands across 24,000 people in core business Hill is the largest driver and core
premium 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. 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. Industry Trend – Retail Pricing
Premium 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. Industry Trend – Varietal Trends
Growth driven by select varietals… …indicative of change in consumer
Volume 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. Industry Trend – Innovation is Key
New Products driving category growth
3,000 new SKUs reported in IRI since 2009
These products driving 30-40% of category growth
Lifestyle wines, wines with approachable packaging and wine
styles, 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. Industry Trend – Wine Supply
After short V10/11, outlook for V12
….Grape Prices Increasing
more 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. Opportunities for the SJVWA
These trends represent great opportunities but also challenges for
SJVWA members
1) Right supply of right varietals to fuel new product launches
Increasing supply in high growth varietals
Maintaining balanced supply of 3 Core Varietals
2) Right cost structure
Retail pricing stabilizing but not increasing across the board
Imports will impact domestic pricing
15
16. Opportunities for the SJVWA and DC&E
We are pursuing an aggressive new product strategy
30% of our requirement comes from Central Valley
Envision our requirements to grow
Quality ever more important
We 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
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)