Overview of Merrill Research Wine Club Satisfaction and Segmentation Study March 2016. Full report is available at http://merrill.com/reports

1. PRESENTATION
PREPARED
BY:
Wine
Club
Satisfaction
and
Segmentation
Study
Merrill
Research
LLC
March
2016
©

2. Table
of
Contents
• Introduction
§ Background
§ Research
Objectives
§ Summary
of
Key
Findings
and
Implications
• Detailed
Findings
§ Target
Audience
§ Respondent
Profile
§ Types
of
wine
clubs
belonged
§ Where
wine
is
purchased
§ Winery
Clubs
§ Number
wine
club
memberships
§ Overall
satisfaction
(Net
Promoter
Score)
§ Satisfaction
specific
criteria
§ Wine
club
tenure,
bottles
bought
&
price
points
§ Winery
visitation
§ Drivers
of
membership
§ Segmentation
§ Other
Wine
Clubs
§ Number
wine
club
memberships
§ Overall
satisfaction
(Net
Promoter
Score)
§ Satisfaction
specific
criteria
§ Wine
club
tenure,
bottles
bought
&
price
points
• Appendix
(about
the
Author
&
Methodology)
2

3. • USD 500
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• AUS 700
70
page
Power
Point
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*Excludes
any
local
taxes
Report
Price*
3

4. • Direct
sales
of
wine
to
consumers
(DTC)
has
grown
steadily
over
the
past
15
years
and
continues
to
grow.
• According
to
Sandra
Hess,
founder
of
DTC
Wine
Workshops,
and
reported
by
Wines
&
Vines,
4
million
cases
were
sold
direct
in
2014,
an
increase
of
15.5%
over
2013.
That
represents
$1.8
billion
in
revenue,
a
number
expected
to
exceed
$2
billion
this
year.
Wines
&
Vines
just
reported
higher
monthly
DTC
sales
in
October
2015
than
ever
before.
• For
many
brands,
DTC
sales
represents
90%+
of
total
sales.
On
average
it
represents
about
25%
of
all
wine
sales
in
the
US
(Source:
2014
Silicon
Valley
Bank
Study).
• Most
wineries
have
made
it
a
priority
to
grow
their
DTC
channel
because
of
the
opportunity
for
more
favorable
margins.
Technological
and
legal
changes
are
expected
to
make
this
channel
even
more
lucrative
to
most
wineries
in
the
coming
years.
Background
4

5. Background,
continued
• Some
wineries
survey
their
wine
club
members,
but
many
do
not.
Regardless,
there
has
been
no
benchmark
for
wine
club
member
satisfaction*—until
now.
• Read
how
the
industry
stands
up
and
how
you
may
help
focus
your
DTC
program
to
better
leverage
your
strengths
and
increase
both
retention
and
new
memberships.
• Note:
throughout
this
report
we
refer
to
two
types
of
wine
clubs:
“winery
clubs”
and
“other
wine
clubs.”
A
“winery
club”
refers
to
a
wine
club
associated
with
a
winery.
An
“other
club”
refers
to
a
wine
club
not
associated
with
a
winery
(e.g.,
WSJ
wine
club).
*Contact
Patrick
Merrill
(pmerrill@merrill.com)
to
learn how
we
can
obtain
the
Net
Promoter
Score
(NPS)
for
your wine
club.
5

6. Background,
continued
Copyright
of
Merrill
Research,
LLC.
2015©
The
purchaser
of
this
report
has
a
limited
license
to
use
the
report
in
its
own
operations.
Purchaser
is
not
given
license
to
share
the
report
with
anyone
else
without
the
express
written
permission
of
Merrill
Research,
LLC.
6

7. Research
Objectives
• The
objectives
of
this
study
were
to
assess
the
following
among
wine(ry)
club
members*:
§ Assess
consumers’
satisfaction
with
wine
clubs,
whether
sponsored
by
a
winery
or
other
wine
organization
(e.g.,
Naked
Wines)
in
order
to
provide
an
industry
benchmark
§ Determine
factors
that
influence
why
consumers
join
wine
clubs
§ Gauge
specific
perceptions
of
wine
clubs
on
these
factors
§ Determine
what
wine
club
consumer
segments
exist
and
profile
the
segments
§ Measure
membership
tenure,
average
number
of
bottles
purchased
per
year
through
wine
clubs
and
average
price
paid
for
a
bottle
through
wine
clubs
7
*See
Appendix
for
the
Methodology

8. Target
Audience
• In
order
to
participate
in
this
research,
respondents
were
required
to
meet
the
following
criteria:
§ Age
21+
§ Current
member
of
a
wine
club
from
which
they
receive
wine
on
a
continuous
basis
• Sample
was
supplied
from
our
Grapes
&
Grain™
consumer
panel
of
wine
drinkers.
The
panel
consists
of
approximately
10,000
highly
engaged
weekly
wine
drinking
enthusiasts
throughout
the
50
states.
8

9. Methodology
• Online
surveys
§ Potential
respondents
were
sent
an
e-­‐mail
invitation
containing
a
link
to
the
survey,
and
were
screened
online.
All
respondents
had
to
be
a
member
of
1+
wine
club(s),
as
defined
on
the
previous
page
and
summarized
below.
Data
collected
in
Q3
2015.
• Average
interview
length
and
surveys
§ 6
minutes
average
length
and
574
completed
surveys
• Incentive
§ $100
cash
sweepstakes
• Demographic
profile
is
below.
Note:
A
letter
beside
a
%
indicates
the
%
is
significantly
greater
than
the
%
in
the
column
indicated
by
that
letter
(e.g.,
25%>14%).
Total 21-­‐34 35-­‐49 50-­‐64 65+ <$150K $150K+ Caucasian Other Male Female
A B C D E F G H I J K
TOTAL
(N) 574 78 145 247 104 285 164 506 55 312 262
Total
% 100% 14% 25%B 43%BCE 18% 50%G 29% 88%I 10% 54%K 46%
9