CELLAR DOOR, ONLINE & WINE CLUB PURCHASING AUSTRALIA …€¦ · Cellar door purchases during a visit is the most likely channel for consumers to spend over $30 on a bottle and provides

1© Wine Intelligence 2017

CELLAR DOOR, ONLINE & WINE CLUB PURCHASING AUSTRALIA 2017

2

• Introduction p.3

• Management summary p.6

• Wine region visits p.9

• Cellar door tourism and consumer behaviour p.16

• Cellar door, online & wine club purchasing p.40

• Online and wine club purchasing p.53

• Profiling of cellar door and online channel users p.62

• Methodology p.67

CONTENTS

3

Cellar door, online & wine club purchasingAustralia 2017

Introduction 1/2

Wine Intelligence presents its inaugural Cellar Door, Online & Wine Club Purchasing report for the Australian

market 2017. This report aims to explore winery and cellar door visitation in Australia, as well online purchasing

and via wine clubs.

Over half of regular wine drinkers have visited a winery or cellar door in the past 12 months, and when speaking

to members of the trade, it is clear there has been a shift in what consumers are wanting to get out of their visits

to wineries and cellar doors. Whilst purchasing and tasting wine is a motivator for visiting cellar doors, it is

becoming more about the overall experience and value that can be added, rather than simply a trip to stock up on

wine. The average spend on a bottle of wine is higher at the cellar door than through other channels, due to the

opportunity to engage consumers with premium wines, thus developing sales at higher price points. Visitors are

increasingly more demanding, judging value through elements such as personalised and more in-depth hands-on

wine experiences, casual and shared food offers and exclusive ranges.

The volume of sales alone purchased at the cellar door no longer remains the primary motivator for wine business

as the recognition grows for the ability of cellar doors to act as a vital brand building and ambassador-generating

channel within the marketing mix. With this in mind, increasing emphasis is placed on the role of engaging and

effective cellar door staff as the face of the brand.

With over 1,600 cellar doors operating in Australia¹, understanding the attitudes and motivations of Australian

regular wine drinkers who are visiting wine regions and wineries is crucial in shaping offerings to further entice

visitors. The Hunter and Barossa Valleys are visited by the highest proportion of Australians, yet rank lower for

multiple visits within 12 months, suggesting that these regions are visited perhaps as more of a one-off annual

occasion. Unsurprisingly, Australian drinkers opt to travel to cellar doors closer to home.

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42% of regular wine drinkers in Australia have purchased wine whilst visiting a cellar door. However, cellar door purchasing generates the lowest basket size, with those buying online, remotely from a winery or via a wine club more likely to buy over 6 bottles in one purchase, reflecting the implications of minimum purchasing requirements for shipping.

Although gaining considerable momentum in the last decade, online sales either from a retailer or directly from the winery are still placed outside the top 8 wine buying channels for Australia regular wine drinkers. When consumers do decide to purchase through these channels, they are turning to the online offerings of familiar bricks and mortar retailers such as Dan Murphy’s, Liquorland and BWS. Wine drinkers in Australia are typically content with the range offered in traditional retail channels and that alleviating shipping costs and wanting bigger discounts on wine brands were the two key incentives for further purchase via the online channels.

Introduction 2/2

Source:

¹ http://winetitles.com.au/statistics/wineries_cellars.asp

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CONTENTS

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Source: Wine Australia

Wine regions of Australia: Context for cellar door visits and wine tourism

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1. CELLAR DOOR EXPERIENCE DEVELOPING

▪ Cellar doors are not seen a place to simply undertake a counter tasting, with visitors seeking more experiential activities that encompass vineyards, production and food offerings

2. TRADITIONAL WELL-ESTABLISHED WINE REGIONS STILL LEAD VISITATION

▪ The larger, well-established wine regions lead in terms of the proportion of Australians who visit the regions

3. CELLAR DOOR SEEN AS THE HEART OF THE BUSINESS BY TRADE

▪ Role of the cellar door within wine businesses growing in importance for representing the brand, regardless of the volume of the sales driven directly from this channel

4. CELLAR DOOR VISITORS INCREASINGLY INVOLVED IN CATEGORY

▪ Cellar door visitors are increasingly engaging with the stories about, and information behind, the wines they are experiencing

5. INCREASING EMPHASIS ON FOOD OPTIONS AT CELLAR DOOR

▪ Informal and shared food options and food pairings increasingly important as part of the overall ‘lifestyle and experiential’ offering of the cellar door experience

6. INCREASE IN REDEEMABLE TASTING FEES

▪ Increasing trend of redeemable tasting fees, often resulting in increased sales and more engaged consumers

7. LINKING WITH TOURISM OF REGION SEEN AS KEY FOR CELLAR DOORS

▪ Opportunities for the industry going forward to focus on providing an overall tourism experience, and continuing to focus on personalisation

Management summary: Cellar door

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8. SHIPPING COSTS STILL A MAJOR BARRIER

▪ The convenience of online shopping is a major motivation for online channels, yet shipping costs still remain a major barrier

▪ Reducing shipping costs is essential in driving further online & direct purchasing

9. QUALITY OVER QUANTITY FOR CELLAR DOOR SALES

▪ Cellar door purchases during a visit is the most likely channel for consumers to spend over $30 on a bottle and provides an opportunity for cellar door staff to showcase their premium offerings

▪ Australian regular wine drinkers are motivated by exclusivity when buying remotely from a cellar door or winery

10. PREFERENCE FOR ONLINE STORES OF TRADITIONAL RETAILERS

▪ Wine drinkers report that they are often happy with the range available from bricks-and-mortar retailers, so lack the motivation to switch to other online channels

▪ However, the top ranked online channels are led by the online offerings of bricks-and-mortar retailers, with Dan Murphy’s leading

Management summary: Online and direct wine purchasing

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CONTENTS

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33%

32%

24%

23%

19%

18%

17%

16%

15%

15%

12%

11%

10%

9%

8%

7%

Hunter Valley

Barossa Valley

Margaret River

Yarra Valley

McLaren Vale

Adelaide Hills

Clare Valley

Mornington Peninsula

Tasmania

Rutherglen

Swan Valley

Coonawarra

Mudgee

Perth

Canberra

Orange

7%

7%

6%

6%

5%

5%

5%

5%

5%

5%

4%

4%

4%

3%

2%

1%

Geelong

Beechworth

Grampians

Granite belt

Heathcote

Riverina

Langhorne Creek

Eden Valley

King Valley

Limestone Coast

Riverland

Great Southern

Southern Highlands

Shoalhaven Coast

Tumbarumba

Wrattonbully

Visiting Australian wine regions (Australian residents)The larger, well established wine regions lead in terms of the proportion of Australians who visit the regions

Wine regions visited for cellar door visiting% who have visited the following wine regions for the purpose of visiting a winery/cellar door Base = Those who have been to a wine region for the purpose of visiting a winery/cellar door

Source: Wine Intelligence, Vinitrac® Australia, Mar 2017, n=1,005 Australian regular wine drinkers

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Visiting Australian wine regions (Australian residents) Australian regular wine drinkers, as expected, are more likley to visit wineries located near them

Note: ACT, Tasmania and Northern Territory are not present due to small sample sizes

red: Significantly higher than all regular wine drinkers at a 95% confidence level

blue: Significantly lower than all regular wine drinkers at a 95% confidence level


² https://www.wineaustralia.com/getmedia/a400d503-3819-4289-b689-2db32730a179/USA-1204-Final-Report

Wine regions visited top 20 - by state of residence% who have visited the following wine regions for the purpose of visiting a winery/cellar door Base = Those who have been to a wine region for the purpose of visiting a winery/cellar door

Metro residents dominateAccording to Wine Australia, 91% of cellar door visitors live in or surrounding Sydney, Melbourne, Adelaide, Perth and Brisbane²

New South

WalesQueensland

South

AustraliaVictoria

Western

Australia

Hunter Valley (NSW) 33% 63% 41% 7% 14% 9%

Barossa Valley (SA) 32% 22% 38% 73% 28% 25%

Margaret River (WA) 24% 17% 18% 18% 19% 69%

Yarra Valley (VIC) 23% 15% 16% 10% 50% 9%

McLaren Vale (SA) 19% 13% 14% 62% 12% 15%

Adelaide Hills (SA) 18% 12% 19% 45% 13% 13%

Clare Valley (SA) 17% 10% 17% 46% 12% 16%

Mornington Peninsula (VIC) 16% 8% 5% 7% 37% 9%

Tasmania (TAS) 15% 15% 14% 6% 13% 8%

Rutherglen (VIC) 15% 10% 8% 6% 31% 10%

Swan Valley (WA) 12% 7% 10% 9% 6% 50%

Coonawarra (SA) 11% 9% 7% 25% 12% 3%

Mudgee (NSW) 10% 21% 10% 3% 3% 5%

Perth (WA) 9% 5% 10% 3% 7% 29%

Canberra (ACT/NSW) 8% 12% 4% 4% 2% 3%

Orange (NSW) 7% 16% 8% 1% 2% 3%

Geelong (VIC) 7% 6% 3% 5% 14% 4%

Beechworth (VIC) 7% 6% 4% 3% 12% 5%

Grampians (VIC) 6% 4% 2% 6% 16% 3%

Granite belt (QLD) 6% 5% 17% 2% 2% 1%

All AUS regular

wine drinkers

State of residence

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Visiting Australian wine regions (Australian residents) South Australian regions are particularly popular with those aged over 65, younger consumers are less likely to visit the popular regions of Barossa and Hunter



Sources: http://www.destinationnsw.com.au/wp-content/uploads/2013/05/Food-wine-tourism-NSW-Jan-2015-report.pdfWine Intelligence, Vinitrac® Australia, Mar 2017, n=1,005 Australian regular wine drinkers

Wine regions visited top 20 - by age % who have visited the following wine regions for the purpose of visiting a winery/cellar door Base = Those who have been to a wine region for the purpose of visiting a winery/cellar door

18-24 25-34 35-44 45-54 55-64 65+

Hunter Valley 33% 17% 29% 36% 31% 41% 42%

Barossa Valley 32% 15% 20% 29% 33% 38% 56%

Margaret River 24% 16% 18% 23% 23% 30% 33%

Yarra Valley 23% 16% 19% 28% 24% 26% 25%

McLaren Vale 19% 3% 13% 15% 17% 24% 35%

Adelaide Hills 18% 9% 14% 15% 16% 24% 26%

Clare Valley 17% 7% 9% 10% 14% 25% 35%

Mornington Peninsula 16% 15% 11% 15% 17% 17% 20%

Tasmania 15% 17% 14% 13% 16% 18% 16%

Rutherglen 15% 8% 10% 10% 19% 21% 23%

Swan Valley 12% 8% 10% 11% 11% 15% 18%

Coonawarra 11% 2% 2% 10% 8% 18% 23%

Mudgee 10% 4% 7% 9% 11% 12% 18%

Perth 9% 13% 11% 4% 11% 6% 11%

Canberra 8% 13% 5% 7% 9% 6% 8%

Orange 7% 8% 8% 9% 8% 4% 7%

Geelong 7% 10% 8% 5% 7% 9% 4%

Beechworth 7% 7% 6% 6% 7% 9% 6%

Grampians 6% 7% 5% 6% 7% 6% 7%

Granite belt 6% 7% 3% 1% 6% 8% 11%

All AUS regular

wine drinkers

Age groups

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Visiting Australian wine regions (Australian residents) Mainstream Value Seekers are more likely to visit a range of different regions, all of which are have long histories of producing quality wine

Wine regions visited top 20 – by Portrait group% who have visited the following wine regions for the purpose of visiting a winery/cellar door Base = Those who have been to a wine region for the purpose of visiting a winery/cellar door

Adventurous

Explorers

(n=204)

Developing

Drinkers

(n=194)

Mainstream

Value Seekers

(n=164)

Contented

Casuals

(n=204)

Newbies

(n=104)

Senior Sippers

(n=136)

Hunter Valley 33% 34% 26% 44% 33% 28% 31%

Barossa Valley 32% 31% 19% 45% 36% 18% 41%

Margaret River 24% 28% 18% 33% 23% 14% 20%

Yarra Valley 23% 30% 18% 27% 23% 18% 16%

McLaren Vale 19% 20% 10% 30% 15% 16% 22%

Adelaide Hills 18% 22% 10% 27% 16% 15% 15%

Clare Valley 17% 20% 9% 29% 15% 7% 14%

Mornington Peninsula 16% 20% 13% 20% 15% 11% 11%

Tasmania 15% 23% 13% 15% 16% 8% 10%

Rutherglen 15% 14% 11% 28% 14% 10% 12%

Swan Valley 12% 15% 12% 13% 11% 8% 11%

Coonawarra 11% 10% 5% 22% 9% 4% 8%

Mudgee 10% 9% 8% 17% 8% 9% 12%

Perth 9% 12% 13% 10% 7% 4% 4%

Canberra 8% 11% 7% 8% 5% 9% 4%

Orange 7% 11% 9% 8% 5% 5% 4%

Geelong 7% 12% 6% 6% 6% 3% 4%

Beechworth 7% 10% 8% 6% 6% 5% 2%

Grampians 6% 13% 5% 6% 4% 4% 4%

Granite belt 6% 6% 3% 11% 5% 3% 4%

Portrait GroupsAll AUS

regular wine

drinkers



Source:Wine Intelligence, Vinitrac® Australia, Mar 2017, n=1,005 Australian regular wine drinkers

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Visiting Australian wine regions (Australian residents) Taking into account the number of visitors and frequncy of visits, Tasmania rises in the rankings to be in the top six regions for the proportion of annual visits to wine regions in Australia

Proportion of all visits to wine regions in the past 12 months (Total number of visits calculated by number of visits & frequency of visit to each region)% of all wine region visits for the purpose of visiting a winery/cellar door in the past 12 monthsBase = Those who have visited each wine region for the purpose of visiting a winery/cellar door in the past 12 months

Note: The sample of those who have visited a region is based on those who have ever visited a region, not just in the past 12 months


Rank Region Rank Region

1 Hunter Valley 9% 17 Orange 2%

2 Barossa Valley 8% 18 Heathcote 2%

3 Yarra Valley 7% 19 Eden Valley 2%

4 Margaret River 7% 20 Riverina 2%

5 McLaren Vale 5% 21 Beechworth 2%

6 Tasmania 5% 22 Grampians 2%

7 Adelaide Hills 5% 23 Langhorne Creek 2%

8 Mornington Peninsula 5% 24 Great Southern 2%

9 Clare Valley 4% 25 Granite belt 2%

10 Rutherglen 4% 26 Riverland 1%

11 Swan Valley 4% 27 King Valley 1%

12 Perth 3% 28 Limestone Coast 1%

13 Canberra 3% 29 Southern Highlands 1%

14 Mudgee 2% 30 Shoalhaven Coast 1%

15 Coonawarra 2% 31 Tumbarumba 1%

16 Geelong 2% 32 Wrattonbully 0.5%

2017 2017

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Adelaide Hills

Barossa Valley

Beechworth Canberra

Clare Valley

Coonawarra

Eden Valley

Geelong Grampians

Granite belt

Great Southern

Heathcote

Hunter Valley

King Valley

Langhorne Creek

Limestone Coast

Margaret River

McLaren Vale

Mornington Peninsula

Mudgee Orange

Perth

Riverina Riverland

Rutherglen

Shoalhaven Coast Southern Highlands

Swan Valley

Tasmania

Tumbarumba Wrattonbully

Yarra Valley

0%

5%

10%

15%

20%

25%

30%

35%

1.3 1.5 1.7 1.9 2.1 2.3 2.5

Visiting Australian wine regions (Australian residents) Hunter and Barossa Valleys have the highest proportion of people who have visited the regions in the past 12 months, but relatively low average frequency of visiting

Wine region visitation and frequency of visitation% who have visited each wine region in the past 12 months/average number of times visited amongst those who have been to each regionBase = Those who have visited a wine region for the purpose of visiting a winery/ cellar door in the past 12 months

Note: The sample of those who have visited a region is based on those who have ever visited a region, not just in the past 12 months


Lower proportion of visitors, higher frequency per year

% o

f th

ose

wh

o h

ave

visi

ted

a w

iner

y in

th

e p

ast

12

mo

nth

s

Higher proportion of visitors, lower frequency per year

Lower proportion of visitors, lower frequency per year

Average number of times visited per year amongst those who have been to each region

Higher proportion of visitors, higher frequency per year

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CONTENTS

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35%65%

6.4 million 3Regular wine

drinkers who have visited a cellar door

(in the past 12 months)

80%

Wine drinkers (have consumed wine)

14.9 million 2

81%

Australian adult population

18.4 million 1

53%

Regular wine drinkers

(consumed wine at least once per month)

12 million 2

Sources: 1 Total 18+ population estimated by ABS in June 20152 Wine Intelligence online calibration study with YouGov, June’16, n=1,004 Australian adults. Wine=still light wine (red, white, rosé)3 Source: Wine Intelligence, Vinitrac® Australia, Mar 2017, n=1,005 Australian regular wine drinkers

Cellar door visits in Australia (Australian residents)

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Cellar door visits (Australian residents)90% of Australian regular wine drinkers have visited a cellar door in Australia, with 53% of doing so in the last 12 months

Cellar door visits % who indicate that each statement best describes their cellar door/winery visitBase = All Australian regular wine drinkers (n=1,005)

53%36%

10%Yes within the past 12 months

I haven't in the past 12 months, but have a while ago

I have never visited a wine region to visit cellar doors / wineries

Age mattersThose aged 25-34 are significantly more likely to have visited a winery/cellar door in the past 12 months, with those aged over 55 less likely to have visited

Involved wine drinkersAdventurous Explorers and Developing Drinkers, two of the most involved wine drinker Portrait segments, are significantly more likely to have visited a winery/cellar door in the past 12 months than other drinkers


19


Cellar door visits (Australian residents)Cellar door visits are most popluar amongst the younger age groups, particulaly those aged between 25 – 34 years

Cellar door/winery visits % who indicate that each statements best describes their cellar door/ winery visitBase = All Australian regular wine drinkers (n=1,005)

*: Significantly higher than all regular wine drinkers at a 95% confidence level

*: Significantly lower than all regular wine drinkers at a 95% confidence levelSource: Wine Intelligence, Vinitrac® Australia, Mar 2017, n=1,005 Australian regular wine drinkers

10%

25%*

10% 8% 12%6% 4%*

36%

23%*

23%*32%

37% 51%* 56%*

53% 52%

67%*59%

51%43%* 40%*

All Australianregular wine

drinkers(n=1,005)

18-24(n= 131)

25-34(n= 208)

35-44(n= 208)

45-54(n= 152)

55-64(n= 143)

65 and over(n= 163)

Yes within the past 12 months

I haven't in the past 12 months,but have a while ago

I have never visited a wine regionto visit cellar doors / wineries

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Visiting Australian cellar doors (Australian residents) Australian regular wine drinkers who have visited a cellar door in the past 12 months are most likely to visit 3 to 5 individual cellar doors per trip

Cellar doors visits per wine trip % who visit the number of cellar doors / wineries per trip to a wine regionBase = Those who have visited a wine region for the purpose of visiting a winery/ cellar door

Adventurous Explorers are more likely to

visit 10 or more cellar

doors

71% visit between 1-5 cellar doors per trip


33%

38%

12%

4%

13%

1-2 cellar doors

3-5 cellar doors

6-10 cellar doors

More than 10 cellar doors

Don't know / don't remember

21


Individual cellar door visits (Australian residents)Although in a lesser known and more remote location, Brown Brothers, located in Milawa, is cited most frequently as the favourite cellar door amongst Australian visitors

Unprompted favourite cellar door Base = Those who have visited a wine region for the purpose of visiting a winery/cellar door Size of words: Greater prominence given to words that were mentioned by more people

13% of respondents

stated that they don’t have or

can’t remember their favourite

cellar door


22


Reasons to visit cellar doors (Australian residents)The perception of the quality of the wine is still the main reason for consumers to favour a particular winery over others, with the location being a key driver too

Unprompted reason for a favourite cellar door Base = Those who have visited a wine region for the purpose of visiting a winery/ cellar doorSize of words: Greater prominence given to words that were mentioned by more people


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▪ Large shift towards the overall experience, rather being focused solely on just buying wine

▪ Consumers are willing to spend more time at individual cellar doors, in contrast to previous years where visitors were more likely to have visited the maximum number of cellar doors per trip

Cellar door visits: experiential tourismCellar door visits have moved towards an overall experiential tourism, rather than just tasting and buying wine from the counter

The industry is evolving to respond to the

consumers desire for more in-depth

experiences

Wine Room Manager

People are wanting more experiential offerings

rather than just tastings. Packages and those

one-on-one tailored experiences are growing

in popularity

Tourism Marketing Manager

The trend is for a more ‘personalised’

experience and educational tasting experiences

that go beyond standing at the bar and tasting

from a list

Brand Ambassador

People want more of an experience and less

just to stand at a counter.

Cellar Door Manager

As cellar door operators, we need to think

about what our offering is, rather than

previous years where we could simple offer a

basic counter tasting.

General Manager, Cellar Door

The biggest change is people are looking

more than to taste wine over the counter.

They are look for hands-on experiences, they

are wanting food and meals. They are wanting

a background story, where it has come from,

and where it is made

Guest Services Manager

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▪ The cellar door is viewed amongst wine businesses as the heart and soul of the brand, and key to engaging consumers and building brand relationships

▪ The cellar door provides an opportunity to experiment with new varietals and styles and receive instant feedback directly from consumers, not the trade

Cellar doors: importance within wine businessesRole of the cellar door within wine businesses growing in importance for representing the brand, regardless of the volume of the sales driven directly from this channel

Although a small part in a larger business, the

cellar door is the home of the brand

Wine Room Manager

Cellar door plays a major role. It only makes

up a small percentage of our revenue, but it’s

an important part of our business and it’s the

only place in the business where we are

actually talking to our consumers, not our

customers


The cellar door is a place where we can sell a

bit of wine, but equally as important is the

opportunity to talk to people about the wine

and the brands and hopefully engage with

those people long term once they leave the

site


Our cellar door is a vital marketing activity for

the brand – we have the opportunity to

introduce new customers to the brand, and

foster brand awareness to other customers

Cellar Door Manager

We treat our cellar door as the chance to

showcase how we want our wine consumed

Cellar Door Manager

It contributes a great deal of monetary profit

to the business but also promotes the brand.

It provides a location to tell our story


25


69%

62%

44%

38%

37%

34%

29%

23%

22%

19%

13%

11%

11%

7%

5%

1%

5%

Tasted wine

Bought wine to take home

Had a meal

Purchase food / other goods

Walked around the vineyard and enjoyed the nature

Bought wine to drink on the premises

Went on a tour of the cellars

Met the winemaker(s)

Went on a tour of the vineyard

Joined their mailing list

Attended an event (e.g. wedding, birthday)

Watched a video (e.g. about the winery)

Signed up to their wine club

Attended a wine education class (e.g. blending workshop)

Participated in a cooking class

Other activities

None of these

Cellar door visits: activities whilst visitingStrong connection and motivation with cellar door visiting when combined with food and outdoor experiences

Activities while visiting a cellar door% who have participated in the following activities during cellar door/winery visitsBase = Those who have visited a cellar door/winery in the past 12 months

Developing Drinkers are less likely to have tasted and

bought wine while visiting a cellar door,

with Adventurous Explorers more likely to do so

Those under 35 are less likely to have tasted

wine and bought wine to

take home

Those over 55 are significantly more likely to taste and buy

wine while visiting a cellar

door than other visitors


26


45%

38%

34%

27%

26%

22%

18%

18%

11%

Taste more wine

Spend more time dining / eating

Spend more time touring the vineyards

Meet the winemaker(s)

Learn more about the history of the winemaking

Attend a wine education class (e.g. blending workshop)

Participate in a cooking class

Spend more time shopping for wine

None of these

Cellar door visits: desired activities (Australian residents) Both dining and a more ‘hands-on’ vineyard experience are key motiavtors for improving a cellar door expereince

Desired activities while visiting a cellar door% who wish to participate more in the following activities during a cellar door/winery visitBase = Those who have visited a cellar door/winery in the past 12 months


Cellar doors used to be places people went to

because they thought they could try some

wines and find a bargain. It is much more

about the experience these days, it can

involve tastings but more and more cellar

doors will seek to offer deeper experiences

into wine.


27


▪ Cellar door visitors are wanting to learn more about the wines, vineyard, area etc.

▪ Visitors increasingly willing to try new and different styles of wine

▪ Consumers are looking to build on their current knowledge of the category, and gain insight into the industry

Cellar door visits: engagement with wineriesCellar door visitors are increasingly engaging with the stories about, and information behind, the wines they are experiencing

The level of knowledge of consumers has

increased to most visitors now having a very

good knowledge of wine from Australia and

overseas

Cellar Door Manager,

We are constantly looking for something new

and a bit different to showcase to consumers.

Their tastes are branching out and they want

to try something else at the cellar door

Cellar Door Manager

As people become more comfortable with

wine, they are looking for something more

challenging


People are seeking the chance to learn more

and talk to an ‘expert’. They also want to

‘touch’ and see the product to understand

how it is made

Cellar Door Manager

28


▪ Tastings have evolved from the traditional counter format and increasingly focus on:

▪ Personalised flights

▪ Hands-on blending

▪ Increased and expanded range (supported by enomatic and Coravin)

Cellar door visits: wine as experientialEvolvement of wine offering at cellar doors to both more personal and interactive

We have recently introduced structured tasting

flights that showcase a specific

varietal/region/wine making style

Wine Room Manager

We offer personalised styles of tastings and

blending workshops


We offer about 40 wines on tasting. We also

offer private tastings that can be tailored to

each customer


We offer tasting experiences and blending

exercises, as well as museum wine tasting via

enomatic machine

Brand Ambassador

We recommend people sit down for a flight

of three wines but people can still stand at the

counter. They can choose our from one of

our flight recommendations or make up their

own flight

Cellar Door Manager

We also have tourism experiences ranging

from a tasting tour to wine blending courses,

even a package that includes meeting the

winemaker and seeing operations


29


▪ There has been a shift in Australian culture towards wine being intrinsically linked to food and not simply a beverage

▪ Food and wine matching is a major component of cellar door operations and provides an additional touch point for the brand to create positive connections to the consumer, and provide further education

▪ Consumers now often expect food offerings at wineries, even if simple such as cheese platters or snack foods

Cellar door visits: culinary offeringsInformal and shared food options and food pairings increasingly important as part of the overall ‘lifestyle and experiential’ offering of the cellar door experience

We do light lunches- this is really popular and

growing, people seem to really be attracted to

food offerings at cellar doors


People also come for the wide open spaces,

the picnic spaces, somewhere they can run

their dog and children can run wild.


We link the food and wine experiences

together


We have a full a la carte restaurant and a casual

food offering available


We offer private wine and cheese matching

tastings, and also a restaurant

Cellar Door ManagerWe offer share plates of food (cheese board

etc), a vineyard tour with lunch, or a food and

wine pairing with lunch

Cellar Door ManagerWe added a small share-food offer in our

wine room. This is balanced to ensure it’s

seen to complement the tasting, not turn our

wine room into a cafe, but has allowed people

to linger over their tasting and enjoy a more

leisurely experience

Cellar Door Manager

30


▪ Strong potential seen for producers to align with local tour operators to facilitate substantial visitation

▪ Linking with the broader tourism to the local area seen as key to bring visitors in, as well as larger Australian tourism associations such as Ultimate Winery Experiences Australia

▪ Creating partnerships with local events, festivals or experiences in order to create further touch points with consumers

Cellar door visits: tourism linksIn order to engage potential Cellar Door visitors, there must be focus on developing links with the local area tourism & building relationships with community stakeholders

Advertising with local visitor guides, working

with tour operators, brand visibility in the

broader marketplace and connection with

peers within the region are ways that we try to

drive tourism

Wine Room Manager

We are a member of Ultimate Winery

Experiences Australia so we promote via their

channels and are contracted with international

and national travel trade to promote our wine

tourism experiences

Cellar Door Manager

We work with local and state-based tourism

organisations, as well as chambers of

commerce and business groups, all the ways

that we can spread that word around to visit

us


We are quite active in the international tourism

market through the Ultimate Winery

Experience Australia


We build and maintain relationships with

various local tour companies by offering

wholesale pricing to inbound tour operators

to drive business to us

Cellar Door Manager

By having regular events that we are

associated with, it keeps people engaged with

the [winery] and creates a sense of ownership

for them


31


▪ The overall experience of consumers is seen to be impacted heavily by their first point of contact with staff

▪ As consumers have become more knowledgeable and involved, the expectations of cellar door staff has increased

▪ Increasing demand for not only knowledgeable staff, but culturally diverse and multilingual staff

Cellar door visits: importance of cellar door staffEngaging and well informed cellar door staff are seen as increasingly critical to engage consumers

The service expectations have increased, with

consumers expecting high attention. Staff

recruitment has become more important to

ensure we can cater to these

Cellar Door Manager

Ensuring that cellar door staff deliver a great

experience to consumers to ensure the return

visitors and social media reviews are

consistently good

Cellar Door Manager

The key is having very knowledgeable and

engaged staff. Having people who know

what they are talking about and are engaging

customers make it a memorable experience.

You can have the best experience in the

world but if you have a staff member going

through the motions then it doesn't actually

amount to that much


To be able to service tourists properly, we

need Chinese speaking staff, however

sometimes we can’t do this due to visa issues

Cellar Door Manager

32


Cellar door visits: future motivations to visitAlongside discounted wine and a restaurant offering, having varied transportation options would motivate consumers who haven’t visited in the past 12 months

Motivations for visiting a winery% who said the following would motivate them to visit a cellar door/winery in the futureBase = Those who have not visited a cellar door/winery in the past 12 months

25-34 year olds are significantly

more likely to be motivated to visit

a winery if it is child-friendly

33%

31%

28%

25%

25%

24%

16%

14%

11%

4%

18%

Discount vouchers to buy wine at the cellar door / wineries

Having a restaurant

Good local transport to the cellar door / wineries

Organised group tours to the cellar door / wineries

Free shipping of wine purchased

Being renowned for their food

Cultural events e.g. art exhibition

Online map of wineries in the region

Being child-friendly

Possibility to participate in sporting activities

None of these would motivate me/ I am not interested in visiting avineyard


Where once it was more a 'middle aged

activity', our cellar door attracts a lot of people

under aged of 25 years now

Cellar Door Manager

33


▪ General move towards a redeemable tasting fee

▪ Premium tastings and bespoke offerings typically incur a fee which attracts few consumer complaints as these participants are willing to pay for a more tailored experience

Cellar door visits: feesIncreasing trend of redeemable tasting fees, often resulting in increased sales and more engaged consumers

We recently added a tasting fee, which is

redeemable. It has been fantastic – relatively

no push back from customers and seen an

increase in sales and a ‘better’, more engaged,

customer

Cellar Door Manager

We charge but only on premiums and museum

wines and is redeemable upon purchase of

same wines

Brand Ambassador

We charge groups over 8 people to encourage

them to try and book if they are in a larger

group so we can accommodate them. For

specific tasting experiences, we do charge and

also for food offerings. We are slowly going

down that path of charging


We have tastings at the main counter with a

fee redeemable on purchase, then private and

gourmet seated tastings that are more

expensive, but you receive some money back

to redeem on purchase

Cellar Door Manager

We are about to change our offering to charge

tastings for all visitors to cellar door. We

expect this will create some push back but

only from businesses that are not supporting

us

Cellar Door Manager

34


Cellar door visits: range availableExclusivity and diversity of range drive purchase at cellar door rather than discounting

▪ Belief that given the other channels available for consumers to buy wine, cellar door offering needs to be about exclusivity, diversity, and offering something different

▪ Discounting still prevalent, but not seen to be the driving factor for purchasing wine direct from the cellar door

▪ Customers often use cellar doors visits as an opportunity to buy special occasion wines, linking the wine with the memory of visiting

The most important factor for us is having

wine that you can't buy anywhere else


We offer complimentary freight for orders

over $200AUD as well as wines that are

unique to the cellar door and not available for

purchase in the wider market place

Wine Room Manager

We do some cellar door exclusives. We store

wine that will age well and reintroduce them

at cellar door to give them a reason for

visiting. Instead of discounting at cellar door,

we just have wines that they cant get else

where


We have been surprised to find our higher

price wines ($45+) are selling better than our

$24-$28, maybe because people see they are

getting the wines discounted (ie less the cost

of their tasting fee?)

Cellar Door Manager

It’s really encouraging to see that our higher

price points - wines over $50+ - are growing,

which is really encouraging. This is partly a

reflection of staff that can talk to people and

communicate the value to customers


35


▪ The majority of visitors to cellar doors are independent travellers, with tour group presence felt to be declining, and often not as profitable

▪ The majority of visitors are domestic, however growing number of overseas visitors, with an increase from Asian countries, can have an impact on desired offerings (e.g. sweeter, more aromatic styles)

▪ High reported proportion of repeat visitors, either bringing new visitors with them or coming back to re-stock and see what new wines are on offer

Cellar door visits: types of visitorsIndependent travel, as opposed to tours, dominate, with the proportion of international visitors increasing

International wine consumers have grown,

and the origin of visitors has also changed.

Visitors from mainland China and India has

grown considerably in the last 5 years where

as traditional international markets, Japan,

UK, USA and NZ have dropped off

Cellar Door Manager

60% of our visitors are either return

customers or have been highly recommended

by trusted sources

Cellar Door Manager

The tour groups have really diminished a lot,

which is something that we didn't try to

orchestrate, but we definitely see value in the

individual rather than larger bus groups of

tourists


We have a lot of people brought here by

locals. We also have repeat customers return

and buy their regular supply of wine


We can already see many other wineries

refusing tour groups which means those

wineries who do take groups are inundated

and often with customers who are visiting for

the wrong reasons

Cellar Door Manager

36


Motivations and barriersMotivation and barriers for Chinese tourists to visit Australian wineries can be observed by research conducted by Ma et al (2017)³.• The major motivations:

1. Curiosity2. Recommendations from

friends3. Uniqueness of a winery

visit• The major barriers:

1. Cost2. Language barrier3. Service attitude

Wine tourism focus: Chinese inbound visitsWith a rapidly growing middle class that is eager to travel, China has become an important source of tourism for Australia, with this growth cascading into winery visits

Source: ¹ Tourism Australia- http://www.tourism.australia.com/en/markets-and-research/market-regions/greater-china.html

² Drinks Central- http://www.drinkscentral.com.au/4751?Article=chinese-wine-tourism-to-australia-increases-300-per-cent

³ Ma, E. Duan, B. Shu, L. Arcodia, C. (2017) Chinese visitors at Australia wineries: Preferences, motivations, and barriers. Journal of Tourism, Heritage & Services Marketing, Vol. 3, No. 1, pp. 3-8, 20174 https://thewest.com.au/travel/food-wine/was-green-image-could-attract-chinese-tourism-gold-ng-b88550046z

Chinese tourism in AustraliaIn 2016, China was Australia’s second largest inbound market for visitor arrivals, and the largest market for total expenditure and visitor nights, generating $9.2 billion in total expenditure¹

Future OpportunitiesAccording to Professor Huang, professor of tourism and services marketing at Edith Cowan University, successfully communicating the ”green image” of Australia is the key to attracting more Chinese middle class tourists4

$Growth of Chinese wine toursAustralian tour operator AAT Kings have reported a significant increase in Chinese bookings for Australian wine tours, with a 300% increase in Chinese bookings for the company's wine tours between 2015 and 2016 ²

37


▪ Mailing lists seen as a major focus for many producers as a way of maintaining communications with their consumers, with recognition that current style often results in low engagement

▪ Focus on achieving sales through mailing lists, rather than simply growing the database

▪ Move towards creating wine clubs and digital offerings that engage the customer and provide value

Australian winery and cellar door visitationWine clubs and mailing list identified as a key area to engage consumers

Our wine club is relatively new, but it has

already grown to be worth about 20% of

Cellar Door sales

Cellar Door Manager

From Wine Club members, re-purchase is high

(even outside their subscriptions packs)

Cellar Door Manager

We currently have a newsletter/mailing list,

but we are in the process of updating it, as it is

something that is very important to us


We have a mailing list, but we’re developing a

more indepth wine club offering currently

Wine Room Manager

Our newsletter/mailing list is becoming an

increasingly important target for us


The mailing list has been identified as an area

which we want to grow. We have a significant

number of signups as we have a discount for

doing so but we are finding that we are not

getting much follow up purchasing


38


Cellar door visits: integrated tourismOpportunities for the industry going forward to focus on providing on overall tourism experience, and continuing to focus on personalisation

▪ Cellar doors need to focus on the overall experience of their customers and continue to facilitate memorable and unique experiences

▪ Focusing on also being in the tourism industry, rather than just the wine industry

▪ Catering for a range of international visitors, including providing culturally tailored experiences and the ability to send purchased wine home

There is great opportunity with Chinese

visitors, which can be driven by providing

experiences and wines they 'can’t' get (not to

mention photo opportunities)

Cellar Door ManagerWe see a lot of opportunity to build tourism

through linkages with other drivers of

tourism to our region (such as nature based

tourism, artisanal food producers etc). People

come looking for an experience and the cellar

door is a part of a bigger experience of

visiting


Wineries need to create more tourism

experiences that are bookable direct. At the

moment they don’t necessarily see themselves

in tourism, as opposed to wine industry

Cellar Door Manager

As Australian wine exports rise, so will wine

tourism. It is certainly been identified by us

as a our future growth opportunity with great

potential. People from across the world want

to understand where their produce is coming

from and this includes wine, where it is

grown and what goes into it


Placing greater value on our experiences is an

opportunity, as I think we undervalue our

worth compared to other wine tourism

countries and other alternative tourism

activities. If we value us – they will too

Cellar Door Manager

39









CONTENTS

40


Scope of researchWhich channels are we exploring?

From a cellar door or winery

during a visit

From a cellar door or winery through mail

order or online

Online from a bottle shop's

website or online retailer

From a newspaper,

airline or similar organisation's

wine club

This report focuses on purchasing from the following four channels amongst Australian regular wine drinkers:

41


39%65%

7.1 million 3

Cellar door, online & wine club purchasing

(in the past 12 months)

80%

Wine drinkers (have consumed

wine)14.9 million 2

81%

Australian Adult population

18.4 million 1

59%

Regular wine drinkers

(consumed wine at least once a month)

12 million 2

Sources: 1 Total 18+ population estimated by ABS in June 20152 Wine Intelligence online calibration study with YouGov, June’16, n=1,004 Australian adults. Wine=still light wine (red, white, rosé)3 Source: Wine Intelligence, Vinitrac® Australia, Mar 2017, n=1,005 Australian regular wine drinkers

Cellar door, online & wine club purchasing

From a cellar door or winery during a visit


order or online



From a newspaper, airline or similar

organisation's wine club

42


5.0 million have purchased from a winery during a visit

3.1 million have purchased from a winery through mail order or online

3.4 million have purchased online from a bottle shop's website or online retailer

1.7 million have purchased from a newspaper, airline or similar organisation’s wine club

12 million Regular wine

drinkers(drink wine at least

once a month) 42%28%

26%14%


Number of consumers who purchase via cellar door, online & wine club in Australia

43


77%

68%

63%

52%

46%

42%

36%

30%

28%

26%

26%

14%

Local bottle shop

In the supermarket - attached liquor store

In a liquor store that is in a shopping centre (i.e. not directly attached)

Bottle shop attached to a pub or hotel

Large wine discount store


From a drive through

From a specialist wine shop

Online from a bottle shop's website or online retailer

From a cellar door or winery through mail order or online

From Duty Free (at an airport)

From a newspaper, airline or similar organisation's wine club

Cellar door, online & wine club channel overviewWith regard to the cellar door, online and wine club channels in focus, cellar door purchases are the most popular with regular wine drinkers

Wine buying channels% who have purchased wine via the following channels in the past 12 monthsBase = All Australian regular wine drinkers


44


Cellar door, online & wine club channel overviewAlmost half of regular wine drinkers who buy wine online from a bottle shop’s website or online retailer, do so at least 3 times a year

Cellar door, online and wine club wine channels usage frequency% who have purchased wine via cellar door, online and wine club channels at the following frequencyBase = All those who have purchased from each channel in the past 12 months



order or online





9%

23%18% 19%

57%37%

36% 38%

24%26%

32%33%

10% 14% 15%10%

More than 5 times in the past 12 months

3-5 times in the past 12 months

1-2 times in the past 12 months

I don't know/I can't remember


45



Cellar door, online & wine club channel overviewRemote channels typically generate a larger purchase basket than cellar door visits, possibly reflecting the implications of minimum purchase requirements for shipping and ease of transporting purchases from winery visits

Cellar door, online and wine club wine channels purchase size% who have purchased the following amount of wine the last time they used the cellar door, online and wine club wine channelsBase = All those who have purchased from each channel in the past 12 months

15%3% 7%

11%

28%58%

27%24%

37%

27%

46% 43%

20%11%

20% 22%

More than 12 bottles

6-12 bottles

Less than 6 bottles

I don't know/I can't remember



order or online





46


2% 5% 9%4%

6%12%

17%

10%

18%

21%

27%

29%

29%

26%

24%

28%

22%

22%

14%18%

11%

8%4% 5%

12%7% 5% 7%

$30 or more

Between $25 and $29.99





Up to $6.99

Cellar door, online & wine club channel overviewAlthough fewer bottles are typically purchased when at cellar door compared with remote channels, these cellar door visits generate the highest average bottle spend

Cellar door, online and wine club wine channels bottle spend % who spent the following per bottle last time they used the cellar door, online and wine club wine channels Base = All those who have purchased from each channel in the past 12 months

$19.95 $17.75 $15.43 $17.15 Mean bottle spend (AUD)



order or online






47


From a cellar door

or winery during a

visit

From a cellar door

or winery through

mail order or online

n= 421 259

From a cellar door or winery during a visit 75%

From a cellar door or winery through mail order or online 46%

Online from a bottle shop's website or online retailer 38% 51%

From a newspaper, airline or similar organisation's wine club 23% 35%

Cellar door, online & wine club channel overviewThree quarters of those who have bought wine from a cellar door or winery in the past 12 months also report buying wine from a winery using remote channels

Cellar door, online and wine club wine channels overlap table% who have purchased wine in multiple channels in the past 12 monthsBase = Those who used any of the following channels in the past 12 months

Strong likelihood that customers who order wine through cellar door mail orders and wine clubs will also purchase when visiting a winery

Those who purchase wine during a cellar door visit are less likely to also use wine clubs


48


Adventurous Explorers are high spending consumers who are both confident in, and adventurous with, their wine choice

Developing Drinkers are younger, high spending, wine drinking consumers, with ‘conservative’ views of wine and growing in their knowledge

Mainstream Value Seekers are frequent, brand savvy wine drinkers, who view wine as an everyday treat

Contented Casuals are less frequent wine drinkers, who view wine as a weekend treat

Newbies are younger, new to the wine category and less frequent wine drinkers with a limited interest in wine

Senior Sippers are older wine drinkers, who are typically unengaged with the category

Share of regular wine drinking population 2017Base=All Australian regular wine drinkers (n=1,005)

14%

16%

10%

20%

19%

20%


Meet the PortraitsOur consumer segmentation, or Portraits, identifies distinct groups of wine drinkers based on their relationship with wine

49


14%5%* 7%* 7%* 7%

10%

6%* 2%*6% 3%*

20%

18%15%

13%*15%

16%

16%19%

19%16%

19%

22% 25% 24%

24%

20%

33%* 32%* 31%*37%*

Adventurous Explorers

Developing Drinkers

Mainstream Value Seekers

Contented Casuals

Newbies

Senior Sippers

Cellar door, online & wine club channel overviewAdventurous Explorers, the most involved Portrait group, are significantly more likely to have purchased wine through all online & direct channels in the past 12 months


*: Significantly lower than all regular wine drinkers at a 95% confidence level


All Australian regular wine

drinkers

Australian Portraits segmentation and by cellar door, online and wine club wine channels % who have purchased wine in the cellar door, online and wine club wine channels in the past 12 monthsBase = All Australian regular wine drinkers (n=1,005)/those who used any of the following channels in the past 12 months



order or online





50









CONTENTS

51


18%

11%

10%

9%

6%

6%

6%

4%

3%

3%

Danmurphys.com

Cellarmasters.com

BWS.com.au

Liquorland.com.au

Graysonline.com

VintageCellars.com.au

Nakedwines.com.au

VirginWines.com.au

Wineselectors.com.au

Winemarket.com.au

Online purchasing: retailersThe online offerings of bricks and mortar retailers are a popular choice for Australian regular wine drinkers

Online stores and wine clubs - top 10% who have purchased wine from the following online stores and/or wine clubs in the past 12 monthsBase: Those who have purchased wine from either a wine store website/retailer or through a wine club in the past 12 months

Those aged over 65 are more likely to use Cellarmasters.com.au

than other drinkers


52


Australian

regular wine

drinkers

Adventurous

Explorers

(n=204)

Developing

Drinkers

(n=194)

Mainstream

Value Seekers

(n=164)

Contented

Casuals

(n=204)

Newbies

(n=104)

Senior Sippers

(n=136)

Danmurphys.com 18% 29% 17% 20% 13% 9% 10%

Cellarmasters.com 11% 16% 11% 14% 6% 3% 11%

BWS.com.au 10% 12% 18% 8% 6% 8% 1%

Liquorland.com.au 9% 12% 15% 6% 7% 8% 4%

Graysonline.com 6% 8% 6% 8% 4% 6% 3%

VintageCellars.com.au 6% 14% 6% 4% 2% 3% 0%

Nakedwines.com.au 6% 10% 5% 4% 4% 3% 5%

VirginWines.com.au 4% 6% 5% 3% 5% 2% 0%

Wineselectors.com.au 3% 5% 4% 4% 3% 0% 1%

Winemarket.com.au 3% 4% 4% 4% 2% 0% 2%

Crackawines.com.au 3% 8% 2% 1% 4% 0% 0%

Getwinesdirect.com.au 3% 5% 2% 3% 2% 2% 2%

VinoMofo.com.au 3% 6% 3% 2% 2% 2% 0%

Winesdeals.com.au 2% 4% 4% 1% 2% 2% 0%

Wine.com.au 2% 6% 2% 1% 2% 0% 0%

Other 6% 4% 5% 12% 5% 4% 6%

None of these/I wouldn’t buy wine online 49% 35% 42% 41% 62% 62% 68%

Online purchasing: retailersReflecting their higher involvement with the category, Adventurous Explorers are more likely to use numerous different online stores and wine clubs

Online stores and wine clubs by Portrait groups - top 15% who have purchased wine from the following online stores and/or wine clubs in the past 12 monthsBase: Those who have purchased wine from either a wine store website/retailer or through a wine club in the past 12 months




53


Online purchasing: motivationsAustralian regular wine drinkers seek value for money when they decide to use online retailers and wine clubs

Motivations to use online channels% who said they were motivated by the following statements to use the mentioned purchasing methodBase = Those who used the following channels in the past 12 months





%: Significantly higher than the other remote DTC channel at a 95% confidence level


Mainstream Value Seekers are more likely to believe the delivery process is convenient for them when buying online from a bottle shop or online retailer’s website

The delivery process is convenient for me 33% 29%

Wines online are better value for money 32% 28%

The ordering process is very easy 30% 27%

Better range of wines from here 19% 17%

A good way to buy brands I like 18% 11%

Prices are more transparent (easier to compare across shops and brands) 17% 14%

Wine not available elsewhere 13% 11%

I can review other shoppers' comments to help me decide 12% 9%

I was buying for a particular event/gift 11% 12%

I trust this channel more than others 10% 6%

It's difficult to purchase wine near to where I live 6% 5%

Other 2% 7%

None of these/I don't know 9% 15%

54


Online purchasing: barriersWine drinkers report that they are often happy with the range available from bricks-and-mortar retailers, so lack the motivation to switch to online channels

Barriers to use online channels% who agreed with the following barriers to purchasing wine using the mentioned purchasing methodBase = Those who did not use the following channels in the past 12 months





I am happy with the range I can find at my local wine store 28% 23%

I do not want to pay for shipping wine by mail/online order 21% 17%

I like to taste the wine before I purchase it 17% 13%

I like to see the bottle of wine before I purchase it 15% 12%

I don't like having to share my personal contacts and being contacted after the purchase 12% 9%

I don't like buying multiple bottles at the same time 11% 9%

I find delivery to my house inconvenient 11% 10%

The prices of wine in these channels are too high 9% 12%

I trust my local store to recommend wines I like to drink 9% 7%

I am concerned that a delivery to where I live will get broken 8% 6%

I can't find my favorite wines on sale in these channels 6% 4%

I did not know that you could order wines to be shipped directly 3% 3%

The state I live in does not allow for wines to be shipped to me 2% 3%

Other 3% 4%

None of these/I don't know 24% 27%


55


Online purchasing: reasons to purchaseReducing shipping costs is essential in driving further online & direct purchasing

%: Significantly higher than the other remote DTC channel at a 95% confidence level


Reasons to use online channels more often% who agree with the following reasons to increase use of the respective channelsBase = Those who used the following channels in the past 12 months





Free shipping 49% 43%

More deals and bargains on well 42% 31%

Bigger range of wines to choose from 25% 15%

More exclusive and rare wines that aren't available elsewhere 24% 19%

More convenient delivery timings (e.g. one hour delivery slots) 18% 13%

Easier process of ordering 16% 14%

More information about new wines I can buy 15% 12%

More convenient shipping arrangements (e.g. shipping to a local collection point) 14% 14%

Better personalized recommendations 12% 13%

Events and activities that I can participate in 12% 10%

Other 7% 7%

None of these/I wouldn’t buy wine online 7% 13%

56


Remote cellar door purchasingAustralian regular wine drinkers are motivated by exclusivity when buying remotely from a cellar door or winery

Motivations to use the remote cellar door channel% who said they were motivated by the following statements to use the mentioned purchasing methodBase = Those who have purchased wine remotely through a cellar door in the past 12 months


order or online

A good way to buy brands I like 27%

Wine not available elsewhere 24%

The delivery process is convenient for me 21%

The ordering process is very easy 20%

Better range of wines from here 15%

I was buying for a particular event/gift 13%

Wines online are better value for money 13%

Prices are more transparent (easier to compare across shops and brands) 11%

I trust this channel more than others 11%

I can review other shoppers' comments to help me decide 10%

It's difficult to purchase wine near to where I live 5%

Other 4%

None of these/I don't know 10%


57


Remote cellar door purchasingBeing content with the range offered in retail channels is the number one barrier for Australian regular wine drinkers to not purchase remotely from a cellar door

Barriers to use the remote cellar door channel% who agreed with the following barriers to purchasing wine using the mentioned purchasing methodBase = Those who have not purchased wine remotely through a cellar door in the past 12 months



order or online

I am happy with the range I can find at my local wine store 21%

I do not want to pay for shipping wine by mail/online order 16%

The prices of wine in these channels are too high 14%

I like to taste the wine before I purchase it 13%

I like to see the bottle of wine before I purchase it 11%

I don't like having to share my personal contacts and being contacted after the purchase 11%

I don't like buying multiple bottles at the same time 9%

I find delivery to my house inconvenient 9%

I can't find my favorite wines on sale in these channels 8%

I trust my local store to recommend wines I like to drink 7%

I am concerned that a delivery to where I live will get broken 5%

I did not know that you could order wines to be shipped directly 4%

The state I live in does not allow for wines to be shipped to me 3%

Other 4%

None of these/I don't know 30%

58


Remote cellar door purchasingLowering shipping costs is imperative in order to generate more transactions remotely from cellar doors

Reasons to use the remote cellar door channel more% who agree with the following reasons to increase use of the respective channelsBase = Those who have purchased wine remotely through a cellar door in the past 12 months

25-34 year olds are more likely to indicate they would like more convenient shipping arrangements

for buying wine from a cellar door/winery


order or online

Free shipping 41%

More deals and bargains on well 33%

Bigger range of wines to choose from 19%

Easier process of ordering 17%

More information about new wines I can buy 16%

More convenient delivery timings (e.g. one hour delivery slots) 15%

More exclusive and rare wines that aren't available elsewhere 15%

Events and activities that I can participate in 13%

Better personalized recommendations 12%

More convenient shipping arrangements (e.g. shipping to a local collection point) 9%

Other 6%

None of these/I wouldn’t buy wine online 12%


59









CONTENTS

60


Profiling: From a cellar door or winery during a visitHigh wine involvement consumers purchase from cellar doors



(xx%) = all Australian regular wine drinkers


56% (55%)

44%(45%)

Gender

States

Most days/every day2-5 times a weekAbout once a week1-3 times a month

17% (15%)45%* (38%)25% (28%)13%* (20%)

Wine consumption frequency Involvement with wine

Age

All regular wine drinkers

Those who purchase from cellar doors

Those who purchase from

cellar doors


Base: n=421 Australian regular wine drinkers who have purchased from a winery through mail order or online in the past 12 months

28%

19%*

42%

40%

30%

41%*Highinvolvement

Mediuminvolvement

Lowinvolvement

13% 12%

21% 26%

21%23%

15%15%

14%11%

16% 13%

65 and over

55-64

45-54

35-44

25-34

18-24

29% (29%)

27% (25%)

12%* (20%)

12% (10%)

12% (10%)

4% (3%)

2% (2%)

1% (1%)

New South Wales

Victoria

Queensland

South Australia

Western Australia

Tasmania

Australian Capital Territory

Northern Territory

61


33% (29%)

24% (25%)

17% (20%)

12% (10%)

10% (10%)

2% (3%)

1% (1%)

1% (2%)

New South Wales

Victoria

Queensland

Western Australia

South Australia

Tasmania

Northern Territory


Profiling: From a winery through mail order or onlineHighly involved and frequent drinkers, with a slight male skew

63%(55%)

37%(45%)

Gender

States


23%* (15%)46% (38%)23% (28%)8%* (20%)


Age


Those who purchase remotely

from a winery

Those who purchase remotely

from a winery

All regular wine

drinkers


13% 9%

21% 25%

21% 24%

15%16%

14%13%

16% 14%

65 and over

55-64

45-54

35-44

25-34

18-2428%

16%*

42%

39%

30%

44%*Highinvolvement

Mediuminvolvement

Lowinvolvement





62


31% (29%)

24% (25%)

13% (10%)

13%* (20%)

11% (10%)

4% (3%)

4% (2%)

1% (1%)

New South Wales

Victoria

South Australia

Queensland

Western Australia

Tasmania


Northern Territory

Profiling: Online from a bottle shop's website or online retailerFrequent and involved wine drinkers, drawn from a broad range of ages

60%(55%)

40%(45%)

Gender

States


23%* (15%)48%* (38%)20% (28%)9%* (20%)


Age


Those who purchase online

Those who purchase online



13% 14%

21% 22%

21% 22%

15% 15%

14% 12%

16% 16%

65 and over

55-64

45-54

35-44

25-34

18-2428%

22%

42%

35%

30%

43%*Highinvolvement

Mediuminvolvement

Lowinvolvement





63


Profiling: From a wine club Younger and highly involved, with significantly more men using this channel than women

70%*(55%)

30%*(45%)

Gender

States


27%* (15%)45% (38%)21% (28%)7%* (20%)


Age


Those who purchase from a

wine club

Those who purchase from

a wine club

All regular wine

drinkers


13% 12%

21%30%*

21%16%

15%19%

14%8%

16% 16%

65 and over

55-64

45-54

35-44

25-34

18-24 28%20%

42%

39%

30%

42%*Highinvolvement

Mediuminvolvement

Lowinvolvement





38% (29%)

17% (25%)

17% (10%)

14% (20%)

6% (10%)

4% (3%)

3% (2%)

1% (1%)

New South Wales

Victoria

Western Australia

Queensland

South Australia

Tasmania


Northern Territory

64









CONTENTS

65


Research methodologyVinitrac®

▪ The data for this survey was collected in Australia in March 2017

▪ Data was gathered via Wine Intelligence’s Vinitrac® online survey:

▪ 1,005 Australian regular wine drinkers (March 2017)

▪ Respondents were screened to ensure that they drink wine at least once a month; drink red, white or rosé wine; and buy wine in the off-premise or in the on-premise

▪ Invalid respondents (those who sped through the survey or gave inconsistent answers to selected questions) were removed before analysis

▪ The data is representative of Australian regular wine drinkers in terms of age, gender and region

▪ The distribution of the sample is:


Mar-17

Sample size n= 1,005

Male 55%

Female 45%

Total 100%

18-24 13%

25-34 21%

35-44 21%

45-54 15%

55-64 14%

65 and over 16%

Total 100%

Australian Capital Territory 2%

New South Wales 29%

Northern Territory 1%

Queensland 20%

South Australia 10%

Tasmania 3%

Victoria 25%

Western Australia 10%

Total 100%

Age

Gender

Australia

State

66


Research methodologyQualitative trade research

Trade interview methodology

▪ Trade interviews were conducted with seven experienced industry professionals in Australia’s wine trade in August 2017

▪ Interviews followed a pre-determined discussion guide, and covered overall wine tourism trends, the role of the cellar door in the overall operations of a winery and opportunities and threats for the industry

▪ The seven interviewees were members of the wine trade working in different roles focusing on wine tourism and direct-to-consumer retail covering five different wine producing states. The positions included:

- 2x Cellar Door Manager

- 1x Wine Room Manager

- 1x General Manager, Cellar Door

- 1x Guest Services Manager

- 1x Brand Ambassador

- 1x Tourism Marketing Manager

67


Research methodologyVinitrac®

1) Defining the right samples:▪ Wine Intelligence, with the support of global research companies (e.g. TNS, YouGov), regularly runs calibration studies in

each market in order to define demographic specifications of the wine consumers and the size of the market (i.e.penetration of wine consumption)

2) Running the online survey:▪ Invitations to participate in an online survey programmed by Wine Intelligence are then distributed to residents in each

market▪ Respondents are directed to a URL address, which provides access to the online survey▪ Based on given criteria (e.g. age, beverage, frequency of wine consumption) respondents will either proceed or screen out

of the survey▪ Wine Intelligence monitors completed responses to build samples representative of the target markets’ wine drinking

population based on the most recent calibration study

3) Cleaning the data:▪ When a representative sample is logged, the survey is closed▪ Wine Intelligence will then clean out all invalid data points (e.g. those who sped through the survey or gave inconsistent

answers to selected questions) and weight the data in order to ensure representability

How does Vinitrac® work?

68

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▪ Wine Intelligence shall not be liable for any damages (including without limitation, damages for loss of business or loss of profits) arising in contract, tort or otherwise from this publication or any information contained in it, or from any action or decision taken as a result of reading this publication.

▪ Please refer to the Wine Intelligence Terms and Conditions for Syndicated Research Reports for details about the licensing of this report, and the use to which it can be put by licensees.

▪ Wine Intelligence Ltd: 109 Maltings Place, 169 Tower Bridge Road, London SE1 3LJ Tel: 020 73781277. E-mail: [email protected]. Registered in England as a limited company number: 4375306

69

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CELLAR DOOR, ONLINE & WINE CLUB PURCHASING AUSTRALIA …€¦ · Cellar door purchases during a visit is the most likely channel for consumers to spend over $30 on a bottle and provides