U.S. DRINKS MARKET: DISRUPTING THE SYSTEM

Non Traditional Marketing Strategies

Steve Raye

Non-Traditional Marketing

Strategies to Gain a Competitive

Edge in the U.S. Drinks Market

Steve Raye is President of Bevology, Inc.

a U.S. marketing company specializing in helping wine and spirit brands enter and grow in the American market. His particular passion is in educating producers on the U.S. three-tier system and helping suppliers navigate its complexities.

Steve is a recognized thought leader in the industry and frequent speaker at conferences around the world on the issues driving the American Drinks market. He has lectured at Hochschule Geisenheim in Germany, and most recently at the London Wine Fair and Vinitaly. Steve is a graduate of Cornell University

Clients of Bevology include McWilliam’s and McGuigan as well as wine promotion organizations for Spain, Chile, Austria, Australia, Santorini. They also represent Cape Classics and Golden Ram Imports and trade marketing in the US for Vinitaly and ProWein. He also has extensive experience working on Pernod Ricard brands including Jacobs Creek and Wyndham Estate as well as the beer portfolio of Heineken USA.

Steve Raye

Steve@BevologyInc.com

+1-860-833-6272

Marketing Company that helps brands enter and grow in the US Market

• Strategic planning: Route-to-market and brand development

• PR: Trade and Consumer

• Advertising

• Trade Marketing

• Digital and Social – Social media marketing and engagement

– Content population

– Brand website design, development and optimization.

Changing Consumer Trends • Millennials represent the largest wine

consuming age cohort—77 million.

• They are driving a trade-up to higher priced wines, with the most growth in the $12 - $15 and $15 - $20 segments.

• They behave very differently from previous generations

– Seek out what’s new and different (to them)

• Moscato, Prosecco, Red Blends

– Very open to imported brands, and particularly New World wines.

• They don’t get their information from magazines,

they get it on their smartphones and from online resources and their social networks

The influencers are changing

• They seek “authoritative” information online at sites and on apps like Wine-

Searcher, Vivino, Wine4me, Snooth, Hello Vino, Delectable et al.

• And personal recommendations and evaluations through social media

• They do not subscribe to magazines or pay for access to scores on

WineSpectator.com

And the scale is changing as well

• Wine Spectator – 400,000; Wine Enthusiast – 177,000; Wine Advocate – 48,000

• Wine-Searcher gets 3 million unique visitors per month, and their data feeds many

other sites

• Vivino has 10.9 million users…up from 10.3 millions just one month ago

Changing Consumer Dynamics

On Line Wine Buyer • They’re more likely to use phone apps, websites and search in Google…and less likely to use

print as wine information source.’

• Buy more wine

• Buy more expensive wine

• Consider themselves knowledgeable about wine and talk about wine with friends. They are regarded as the experts in their social circle and are more influential than all the wine magazines and websites … combined.

• Online wine buyers vs. non-online buyers -buy on average two more bottles of wine/month -spend more on wine/month: US$135 vs. $81.61 spend more than US$18.50 on a bottle -interested in wines that are: premium quality, from a recognized growing region, from a family owned and/or boutique winery. (Also less interested in wine at a sale price)

Sources: Sonoma State Univ, Wine Market Council

So What Does That Mean?

“I know half my

advertising doesn’t

work…I just don’t

know which half”

Pure E-

marketing/

Ecommerce

ROI

1. Stop shouting and start talking

Engage on Social Media, and monitor, measure and manage the conversations

2. Content is king, context is queen

Take responsibility and control of how your brand is presented

3. Retail is evolving:

Delivery-within-an-hour services, Apps

4. Retail store trading areas are no longer barriers

E-commerce becomes a strategic tool

Adapt or Become Irrelevant

Build a community

Empower/encourage them to share and

tell your story to their friends in their

words

• Don’t try and do everything, Pick one or two

platforms and do them really well: Facebook,

Instagram, You Tube, Twitter

• Facebook’s New Reality: Pay-to-Play.

• Images and Videos rule: fun, engaging, short.

Commercial messages can be cool but bring

something new to the party.

1: Social Media Strategies

Social Media Think of it as free Market Research

Data Action Information Insight

Free Market Research: real time, behavior based Integrated with

Delectable

2. Content is King, Context is Queen

Content Population Strategy

• Publicity that exists forever on the web and attracts visitors at

the precise moment in time when they are most interested in the subject.

• Where it is posted is as important as what is posted

• Leverage the authority and authenticity of trusted sites.

Content Population Results

• 7,823% more views as archived file than

when it was originally posted.

• And they spent twice as much time

viewing the content

• Why this is important: Reaching people

at the precise moment in time when

they’re searching for this information

Santé Magazine Content Population Results

Page views generated in the week the article

was posted Total page views over 15 months

% incremental

page views AFTER posting week…

and still growing

12 articles

posted monthly 575 44,984 7,823%

Average visit duration Site average 2:03

More than double Chile article average 4:15

Content Population is Evergreen

• 275 registered for live

webinar

• 5,591 views since then

Content in the Right Context Moves Boxes

Unfamiliar category, product name, and how to

use.

Email to opt-in database sold out initial 11 cs.

inventory in 3 hours, replacement inventory in

two days.

Generated 100 cs. of volume in 4 months and

the store continues to promote and sell

Lesson learned: target the influencers who

impact sales vs. opinions.

http://www.vivino.com/claim-your-winery

Claim, Manage your Winery on Vivino

3. Retail is Evolving: Delivery-within-an-hour

• Drizly, Minibar Delivery, Drync, Saucey

• Laser-Targeted to Millennials

• Geographically targetable

• Tool to drive retail distribution, support wholesaler/importer

• Added value: – motivated retailers

– E-commerce partner

E-Commerce • Allows you to sell in multiple states, nearly nationally,

when you may only have distribution in one.

• Strong penetration with Baby

Boomers, average purchase is 3X

typical physical store purchase

• Recognition that it represents a

way to access broader selection

of wines found on the web—

viaWine-Searcher.com

4. E-Commerce as Strategic Tool • Strong penetration with Baby Boomers, average purchase is 3X typical physical

store purchase

• Has established awareness that it represents a better selection of wines and the question: “Where can I buy this wine I heard about?”

• Allows you to sell in states where you may not even have distribution

• Consummates ratings, reviews, whatever the source.

• E-commerce consumers – buy more wine

– buy more expensive wine

– consider themselves knowledgeable about wine and talk about wine with friends.

– They are regarded as the experts in their social circle and are more influential than all the wine magazines and websites …probably combined!

Sources: Sonoma State Univ., Wine Market Council

Bottle photo

Tasting notes

Technical notes

Food pairing

After

Before

E-Commerce

Optimization

U.S. competitions accepting currently-

non-imported wines and spirits Ultimate Wine Challenge/Ultimate Spirits Challenge http://www.ultimate-beverage.com/

BTI (Beverage Testing Institute): Australia deadline March 1, 2016 Wine: http://trade.tastings.com/get-reviewed/wine/any-style-wine

Spirits: http://trade.tastings.com/get-reviewed/spirits/any-style-spirit

San Francisco Wine Competition http://www.sfwinecomp.com/

New York International Wine Competition May 17-18, 2015 (Deadline for entries May 12) https://www.nyiwinecompetition.com/

Takeaways

You can compete by doing a few things really, really well

– Don’t be involved, be committed

– Engage via Social Media

– Content Population

– Apps: • Delivery within an hour

• Claim your brand on Vivino

– E-commerce as strategic tool

Thank You!

Steve Raye

Bevology Inc.

Steve@Bevologyinc.com

Blog: OH-pinions

+1-860-833-6272

www.BevologyInc.com