Pricing Wine https://lnkd.in/gqEN6xbp This is an interesting article by Esther Mobley in the "San Francisco Chronicle" about wine pricing. As anyone in the industry knows, pricing wine is a lot more complicated than, as a consultant in the article said, tasting it and naming a price. It is critical to know that pricing depends on three factors: the underlying cost of sales, factoring in the three-tier sales channel (yes, even for direct-to-consumer wines), and finally value: the trust proposition that wineries build over time by balancing price, quality, and consumer satisfaction (brand equity). Therefore, as in the article, some of those brands that found market pressure on their pricing were either not evaluating their value properly, or had not yet built the trust proposition that drives value. As for controlling price in the market, that is where factoring in the three-tier sales channel is important. Pricing through the three tiers can offer insight into the market dynamics your wine could face. More on wine pricing: https://lnkd.in/gCVqFcY
Paul Tincknell’s Post
More Relevant Posts
-
Please read my latest feature for Beverage Trade Network. "Citing Gallo’s 2021 purchase of 30 low- to mid-level brands from Constellation for $810 million, VinePair says, 'The refocus on the luxury tier seems to be an about-face [for Gallo] to the business strategy of just a couple of years ago.' Not really. This seems to be a longstanding strategy to put resources in all profit-making wine sectors, large and small, mass, and niche. . . . GALLO has removed 'all limitations.'" https://lnkd.in/ehSU3SzM #wineindustry #winebusiness GALLO Massican Winery Orin Swift Cellars #wineries
Wine and Spirit Powerhouse E & J Gallo is now Just GALLO: What’s the Backstory?
sommelierschoiceawards.com
To view or add a comment, sign in
-
This one hits a little different, not just because its Esther Mobley and the San Francisco Chronicle and not just because its our backyard and arguably the toughest wine consumer to convert to alternative formats. Its different because on the same day this was published, we spent the day in SF visiting retailers, trying to get new placements. We went from months of no answers, no shows and "not interested in boxed wine" to 10 visits and very likely 10 new placements in 1 day. On more than one occasion we were greeted by "saw you guys in the Chronicle this morning" before we'd even introduced ourselves. We know the demand for higher quality boxed wines is there, we have the DTC customers to prove it. Our current challenge is convincing retailers to give us some shelf space, not the bottom shelf of the back corner with the other boxed wine either. Our quality deserves to be on the shelf next to other bottles and we're getting there. Jason Haas summed it up perfectly below: “There’s no reason for most drink-this-soon wines to go in a glass bottle that takes so much energy to mine and melt and mold and ship,” said Haas. “There’s a lot of wines that should really be sold in boxes rather than bottles.” Thanks to Esther Mobley for shining some light on this format. https://lnkd.in/gE-8rpdr
California boxed wine for $100: Will people buy it?
sfchronicle.com
To view or add a comment, sign in
-
This one hits a little different, not just because its Esther Mobley and the San Francisco Chronicle and not just because its our backyard and arguably the toughest wine consumer to convert to alternative formats. Its different because on the same day this was published, we spent the day in SF visiting retailers, trying to get new placements. We went from months of no answers, no shows and "not interested in boxed wine" to 10 visits and very likely 10 new placements in 1 day. On more than one occasion we were greeted by "saw you guys in the Chronicle this morning" before we'd even introduced ourselves. We know the demand for higher quality boxed wines is there, we have the DTC customers to prove it. Our current challenge is convincing retailers to give us some shelf space, not the bottom shelf of the back corner with the other boxed wine either. Our quality deserves to be on the shelf next to other bottles and we're getting there. Jason Haas summed it up perfectly below: “There’s no reason for most drink-this-soon wines to go in a glass bottle that takes so much energy to mine and melt and mold and ship,” said Haas. “There’s a lot of wines that should really be sold in boxes rather than bottles.” Thanks to Esther Mobley for shining some light on this format. https://lnkd.in/gmxJzyDZ
California boxed wine for $100: Will people buy it?
sfchronicle.com
To view or add a comment, sign in
-
Yes, you can put aside that glass of rose wine for a 🍷in summertime by slightly chilling the red wine before opening it. Washington state is world renowned for its red wines and shares the spotlight with wine growing powerhouses like Argentina and Italy in award winning wines. Read more in my article for LuxuryFacts #wineconnoisseur #winewriter
Move Over California. Washington Wines are Here.
https://luxuryfacts.com
To view or add a comment, sign in
-
Isn't it great that there are some many options out there for fantastic Sparkling wine! Included in these options are the high quality sparklers form the UK. The term sparkling wine most recently, in my opinion, has been used to associate wine that is of lower quality than Champagne but as we all know that is not true. There are many high quality sparkling wines from all over the world that can rival the quality of Champagne. And just because a wine is Champagne does not mean that it is immediately superior quality. You can find amazing Sparkling Wine made in the traditional method from Franciacorta, from CA, and yes from the UK like Ridgeview Wine Estate. Ridgeview's award winning wines, served at Royal engagements and more will amaze you! Coming soon from Ridgeview and US agent Vinedos Imports, and represented by me will be the Bloomsbury Brut NV, Fitzrovia Rose Brut NV and the Blancs de Blanc. Elegance, finesse, fruit-forward are all words to describe their wines. As they say at Ridgeview, Life is for Celebrating - Cheers to the rise of Sparkling Wines of Quality - so check out the article below from Wine-Searcher #sparklingwine #traditionalmethod #britishsparklingwine #ridgeviewwineestate #uksparklingwine https://lnkd.in/eveahw5w
Sparkling Wine on the Crest of a Wave | Wine-Searcher News & Features
wine-searcher.com
To view or add a comment, sign in
-
Attention wine enthusiasts and professionals! We're excited to share our latest blog post, which takes a deep dive into the fascinating world of En Primeur wine buying. The En Primeur system, also known as wine futures, is a unique method of purchasing wine while it's still in the barrel, often years before it's bottled and released to the market. Our comprehensive guide explores the intricacies of this process, from the initial tastings and evaluations to the benefits of securing your favorite wines at potentially lower prices. 📈 We also delve into the rich history behind the En Primeur practice, tracing its origins in the prestigious châteaux of Bordeaux and examining how it has evolved over time. 🏰 Whether you're a seasoned collector looking to expand your knowledge or a wine professional seeking to better understand this complex system, our blog post has something for you. Click the link below to read the full article and enhance your understanding of the En Primeur wine buying process. 📖 https://lnkd.in/gXz7Tgqc #Grtwines #Enprimeur #finewines #wine101
En Primeur: Navigating the World of Wine Futures - GrtWines
https://blog.grtwines.com
To view or add a comment, sign in
-
Various Penfolds-related points made at: https://lnkd.in/gAUmfR_d Opening with this paragraph: "Penfolds Grange, the golden goose of Australian wine, is on a run of excellence never before seen in its history, or certainly not seen in the past 50 years. This does not mean that Penfolds Grange is a better wine now than it ever was; that’s simply not true. But it is now more consistently excellent. Penfolds hasn’t made a lesser Grange Shiraz since the 2000 release (88/100, The Winefront). Yes, the 2003 Penfolds Grange (93/100) and the 2011 (92+/100) are both silver medal offerings in our view, but they still rate as good wines. The more compelling point though is that the past nine releases of Penfolds Grange Shiraz have all scored 96 points or higher. In the 1990s, there were five Penfolds Grange releases with a score of 93 or lower, followed by the infamous 88-point 2000 release. If the 2021 Penfolds Grange (released this time next year) warrants a rating of 96 points or higher, it will be the tenth Penfolds Grange in a row to achieve such a rating." And including this paragraph: "For all this quality, and these scores, and these prices, only one thing more need be said. When you drink a bottle of Grange, you’re drinking more than a bottle of wine. Other Australian wines, at least in their youth, compare incredibly favourably for quality, and even more favourably for value. But, in many (most) Australian social circles, no wine-related sentence quite compares to: we opened a bottle of Grange." More: https://lnkd.in/gAUmfR_d
Penfolds Grange Shiraz 2020 and the full 2024 Penfolds Collection — Campbell Mattinson
campbellmattinson.com
To view or add a comment, sign in
-
For Champagne and California Sparkling wine, the past two decades have been complete and utter bangers, with both regions producing more (and arguably better) sparkling wines that are more enthusiastically consumed by broad swaths of the global populace than ever before. Champagne and California sparkling wine, broadly speaking, are different creatures, but they also share many similarities, especially when we focus on the traditionally produced Golden State sparklers made from Champagne grapes, primarily Pinot Noir and Chardonnay. The French and California wine industry have also always shared the kind of simultaneously admiring and disdainful rivalry that pushes each party to ever-greater heights of performance. While California has often looked to France for best practices in terms of classic farming on production methods, France has in turn ripped pages out of California's playbook when it comes to the business of hospitality and outreach. For the past 20 years, Champagne and Méthode Traditionelle California wine have helped pushed each other to the level of popularity and acclaim that they currently occupy. But how can they possibly continue to grow this aggressively? And do they even want to? Considering their current level of popular success, many producers seem to be approaching the next two decades with less of a growth, more of an evolution mindset. Read the full piece in Wine-Searcher https://lnkd.in/dZ9i7Ncg
Sparkling Wine on the Crest of a Wave | Wine-Searcher News & Features
wine-searcher.com
To view or add a comment, sign in
-
Working with a few clients in the past year, a large struggle for them has been identifying how to balance their wine portfolio. Oftentimes they don’t have clarity on which wines to produce, how much, how long to age them and when to release them. I think there are two main components that go into assessing and adjusting your wine production portfolio. Component number one is the financial aspect. You have to assess what kind of production your financials for the year will support. Can you sustain your current level of demand for wine? Do you need to grow wine production to support demand? If you are looking to grow production this year, are you identifying ways to scale production efficiency and increase profit margin? A lot times I see wineries by pass this crucial step and going straight to wine/fruit selections and picking wines that they feel will “Fit their consumer base”. Sometimes this is true, sometimes it’s not. The second component, once you understand available financial allocations to devote to production for a coming year is a detailed market analysis. Are your current club members and customers buying all of your wines? Which ones do your consumers gravitate towards? Do you understand what wines will sell through during different seasons of the year? Evidently, there are hundreds of questions you could ask to assess your market fit of the wine you plan on producing and at some point you will have to start making assumptions as you go into fruit selection. Too many times I have seen wineries bypass this step as well, and go straight into picking wines because they are either a “Good value”, are very “popular this year”, or worse because the winemaker or winery owner likes a certain varietal or style. Wine portfolio development is about aligning wine production decisions with company values, and financial realities.
To view or add a comment, sign in
-
Premium boxed wine has hit the market—while there are clear advantages, persuading customers to pay $50+ for a product they have associated with cheap, lesser quality wine remains a challenge. Better design, clearer messaging, and exceptional wine will help. Rethink your design strategy. Be creative with visually enticing labels and materials that are pleasing to touch. Repurposing your 750ml labels isn’t going to cut it. Reposition your messaging. Eco-conscious shoppers are already on board. Tell a compelling story that emphasizes cultivation, origin, and exclusivity. Use exceptional wine. This isn’t the time to let the family intern blend. First introductions to the category deserve the best. #wine #boxedwine #boxedisbetter
California boxed wine for $100: Will people buy it?
sfchronicle.com
To view or add a comment, sign in