8 Steps to Better Marketing8 Steps to Better Marketing

Founded in 1973Founded in 1973 20 person team, 10 20 person team, 10 BrokersBrokers Grapes & Wine in bulkGrapes & Wine in bulk Strategic planning Strategic planning

Turrentine Turrentine BrokerageBrokerage

1) Make Marketing a 1) Make Marketing a Priority!Priority!

2) Be Knowledgeable2) Be Knowledgeable

Current supply•Current bulk price

•Competitive supply available •Current domestic bulk supply

•Current grape price

•Global bottled branded competition

•Competitive demand for the grapes bulk (current and future)

Current grape supply available for sale

•Quality considerations

•Competition from alternate varieties

•Global spot market bulk supply

•Global total supply

•Growth in future supply (Non bearing acres)

Future supply

•Competition for those acres

Current Demand

•Available acres to graft or plant in the appropriateareas to sustain the vineyards

•Distribution channels

3) Work with Matt 3) Work with Matt TurrentineTurrentine

Get started early!Get started early!

What NOT to sayWhat NOT to say

4) Plan Intelligently4) Plan Intelligently

Truckload QuantitiesTruckload Quantities

Manage CostsManage Costs

Right clones/rootstocks for Right clones/rootstocks for target yieldtarget yield

5) Be Realistic5) Be Realistic

QualityQuality

PricePrice

Identify your ideal customerIdentify your ideal customer

6) Develop Reputation6) Develop Reputation

7) Bulk Wine7) Bulk Wine

Potential Benefits:Potential Benefits:– extend sales periodextend sales period– exposureexposure– profitprofit

Evaluate MarketEvaluate Market Plan on StoragePlan on Storage Consulting WinemakerConsulting Winemaker Invest in OakInvest in Oak

J/V partnershipsJ/V partnerships– do they make sense for youdo they make sense for you– picking a partner picking a partner – combined lotscombined lots

Traditional Custom CrushTraditional Custom Crush

8) Have a Long-Term 8) Have a Long-Term ViewView

To be long when the To be long when the market is short, and market is short, and

short when the market it short when the market it longlong

2009/20102009/2010 Market Dynamics Market Dynamics

Consumer trend = Value Consumer trend = Value BrandsBrands

Just in Time InventoryJust in Time Inventory Risk-Adverse Decision Risk-Adverse Decision

MakingMaking

Current Market Current Market DynamicsDynamics

Declining InventoriesDeclining Inventories Firming pricesFirming prices The End of Just in Time The End of Just in Time

Inventory?Inventory? But Value Brands still strong and But Value Brands still strong and

challenges for Luxury Brandschallenges for Luxury Brands

Bulk by RegionBulk by Region6-Year Gallons Available6-Year Gallons Available

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

3/25/05 3/25/06 3/25/07 3/25/08 3/25/09 3/25/10 3/25/11

1-yr AgoCalifornia

North Coast

Sonoma

Napa

Central Coast

matt@turrentinebrokerage.com

Cell – (805) 312-1828