"So, you're in wine sales…"

If you're not contributing to a Wine Sale…

• Remember this cover?– More great wine than

ever– But too few consumers

to drink it

• It can't be that bad!– Wine quality is better

than ever– And there are more

choices available to the consumer than ever

The wine sector's golden age

• Between 1960s and 1980s, global wine consumption grew almost 50% from just over 20, to just under 30 Billion Litres.

"If it was good (enough), the wine sold itself"

3

The wine sector's crisis age• Between 1980s and now, global wine

consumption fell back to 1960s levels to be just over 22 billion Litres

"Wine needs help to encourage every sale"

4

Let's look at wine market size* trends (Euromonitor 2013)

5

USA +52%

Aus +39%

NZ +33%

*Originally, incorrectly labeled 'Export'

Let's look at wine *market size trends (Euromonitor 2013)

6

*Originally, incorrectly labeled 'Export'

In real terms, prices are much worse today than 1998 for European producers

1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 0.0

5 000.0

10 000.0

15 000.0

20 000.0

25 000.0

30 000.0

35 000.0

40 000.0

45 000.0

Retail Sales Value in 2012 currency

Australia New Zealand USA France Italy Spain

NZ+33%

Aus +7%

Italy -21%

Spain -36%

France -13%

USA +51%

Growth in number of wine consumers in the US

Image from: http://www.winebusiness.com/news/?go=getArticle&dataid=83196

Wine Consumers increased from 12 to 37% of Australian population in 50 years

From: http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4307.0.55.001main+features72010-11

Less Wine Consumers, drinking less often in France

From: http://www.franceagrimer.fr/content/download/19367/156077/file/SYN-VIN-conf%C3%A9rence-vinitech-%C3%A9tude-consommation-vin-A12.pdf

New consumers are the key

• Wine producers growing their markets have increased exports and domestic consumption

• Remember that these producers have also faced extensive growth in domestic competition– Eg. Wine producers in Aus increased from less than

300 in the 1980s, to 2600 by 2011 (WFA 2011)

Explaining the disparityEuropean selling

• Fragment the offer– More levels of quality– More layers to regions

• Regulate the product• Consumer qualification

Growing Market selling

12

Explaining the disparityEuropean selling

• Fragment the offer– More levels of quality– More layers to regions

• Regulate the product• Consumer qualification

Growing Market selling

• Transparency in offer• Link to wine's lifestyle• Encouraging new

consumers

13

Wine selling tool-kitWine communication don'ts…• Selling on quality• Focusing on loyalty at the

expense of new consumers• Creating niches in the

market• Emphasising uniqueness• Educating the customer

The list of 'do's…..• Link to producer and…

– Or retailer– Or restaurant/café/bar– Or brand

• Think social– With imbibers, at location

• Mention where found• Mention what for• Mention availability and

price!• Show changes in viewer

numbers over time

14

Why it will work in Europe

"We used to sell almost all our wine in Spain. Now most of our wine is in export [new consumers]. This year we might even hit 70% of our wines being exported" - Santiago Vivanco Sáenz, DG of Dinastia Vivanco

Who are you communicating for?

• Robert Joseph: "If you accept hospitality from a wine producer(s), you must be able to justify your value to them."

• Digital media provides you with all the numbers you need

• Use them!