Vino Cammino Pty Ltd’s Post

Recently I read the interesting business case of The Australian Wine brand Yellow Tale. They were facing challenges in the vast market like 1. Complexity and Intimidation 2. Competition and Price Wars 3. Market Saturation 4. Cultural and Consumer Shifts. Yellow Tail started by eliminating the wine industry's complex jargon and the intimidating aura surrounding the traditional wine purchasing experience. They stripped away the pretense that often accompanied wine selection, such as the emphasis on vineyard prestige and aging potential. The company then focused on what to raise: the enjoyment of wine. They enhanced the drinking pleasure by offering wines that were consistently good and easy to drink. Instead of catering to the sophisticated palate, Yellow Tail raised the fun and social aspect of wine consumption. In their voyage, they also reduced the number of varieties they offered. This bold move went against the grain, as most wineries prided themselves on extensive collections. By reducing the complexity of choice, Yellow Tail ensured that each variety was friendly, approachable, and, most importantly, flavorful. But Yellow Tail's blue ocean wasn’t just about eliminating and reducing; it was also about what they could create. They introduced vibrant, cheerful packaging that stood out on shelves and created a brand image that was inviting and lively. This new creation was not just a bottle of wine; it was an invitation to a world where wine was accessible, enjoyable, and an integral part of life's everyday celebrations. Importance of Creating a Blue Ocean: Creating this blue ocean was crucial for Yellow Tail to emerge from the red ocean of intense competition where countless wineries battled over nuances of flavor and heritage. This market was saturated and profits were diminishing under competitive pressures. By stepping out of this battle and creating a market space with little to no competition, Yellow Tail was able to attract a vast group of new consumers. This strategic move not only differentiated them from traditional competitors but also allowed them to grow in a segment that was previously unexplored—casual wine drinkers who valued simplicity and enjoyment over prestige and complexity. By eliminating the intimidation, raising the fun, reducing the complexity, and creating a brand full of personality and ease of choice, Yellow Tail turned the tide on the conventional wine market. Yellow Tail had not just sold a drink; they had crafted an experience, and with it, sailed into a new era of wine. #yellowtale #businesscase #stratgey #blueocean

The Press Democrat reports— 🍇Demand for low and non-alcoholic wine drives innovation in Sonoma, Napa and beyond. According to IWSR Drinks Market Analysis, no-alcohol wine volumes increased 18% from 2022 to 2023, while low-alcohol wine volumes grew 11%. Moving forward, they anticipate the low-alcohol wine category will jump ahead of no-alcohol wine, with “low” predicted to rise at a CAGR (compound annual growth rate) of 14% by volume, while “no” will rise 12% by volume. Read the full article here: https://lnkd.in/eG5Rfuvw A Foray Into Luxury “None had a vintage and they didn’t have a speck of terroir,” said Martin. “I realized if I was going to do this, I’d have to create a brand-new wine category.” Last October, Martin released the first vintage of Oceano Zero: a 2023 nonalcoholic Pinot Noir from Spanish Springs Vineyard in the San Luis Obispo Coast AVA. The price? $55 per (750/ml) bottle. “The wine sold out in three and a half months,” said Martin. “And there’s a waiting list for the 2023 vintage. It’s been a huge success.” #winetrends #nonalcoholicwine #lowalcoholwine #wineindustry #marketgrowth #oceanozero

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

Unlocking China’s Wine Potential: How Brown Brothers and Vinehoo Are Shaping the Future of Wine in Asia. Brown Brothers Milawa Vineyard, Cameron MacFarlane, Georgia Bruton, Brown Family Wine Group, Ryan Buckle #ChinaWineBoom #BrownBrothers #VinehooPartnership #WineInAsia #MarketOpportunity #BeverageInnovation #WineIndustryGrowth #ChinaWineMarket #StrategicAlliance #WineBusinessExpansion

Chilean wines are poised to make a significant impact in the United Kingdom market in 2024, with several notable trends driving their entry: 1)Exploration of New Markets: Chilean winemakers are actively expanding into new markets, including the UK, to diversify their consumer base. 2)Diversification of Offerings: With the launch of new ranges such as Pinot, Sauvignon Blanc, and Chardonnay, Chilean wineries are catering to evolving consumer preferences in the UK. 3)Geographical Advantage: Chile's unique geography, with major wine regions located relatively close together, ensures a diverse range of wine styles, appealing to the discerning UK market. 4)Focus on Quality: Chilean winemakers continue to emphasize quality across all price points, earning accolades and attracting UK consumers seeking value and excellence. 5)Dominance of Cabernet Sauvignon: Chile's long history of cultivating Cabernet Sauvignon positions it as a leader in this varietal, appealing to UK wine enthusiasts. These trends signify a promising future for Chilean wines in the UK market, characterized by innovation, quality, and strategic positioning and offer the best price-quality ratio in the market.

Ten years ago to the day, Huon Hooke launched a crusade against Sommeliers and 'trendy' wine lists in a number of articles, detailing where he thought the On Trade was misaligned in comparison to the broader market. What followed was what some viewed as 'click bait' and what others thought of as a Wine Critic being 'out of touch'. Ten years on, two key brands that Huon went in to bat for: Wolf Blass and Lindemans, are now to be discontinued. Did these brands fail because the 'trendy' lists around town had abandoned them? Or did they not feature on these wine lists because their product offering had already become irrelevant? It seems that post pandemic, this kind of rock slinging has been put aside for.more collaborative approaches accross retail and the on trade, arbitrated by the brand owners, rather than critics. So what now for a struggling industry?

The Rise and Fall of Chilean Wine in the Southeast of U.S. Market A few years ago, Chilean wines were enjoying a prominent presence in the Southeast of U.S. wine market. Retailers and liquor stores were brimming with a variety of Chilean wine strains, ranging from red heavyweights like Cabernet Sauvignon and Merlot to the bold and distinctive Carmenère, as well as white favorites like Sauvignon Blanc and Chardonnay. Consumers could easily find Chilean wines in every price bracket, making them a staple for wine lovers across the country. The distribution was vast, and Chile’s wines had carved out significant shelf space. However, today, the scene has changed dramatically. Chilean wines have practically disappeared from the Southeast of U.S. wine shelves, and their once-prominent place in the American market seems to have diminished almost overnight. While some brands, like Casillero del Diablo, still manage to hang on to limited space in retailers, the robust portfolio of Chilean wines that once dominated the landscape has largely faded into the background. What happened? And why did the once-thriving presence of Chilean wine in the Southeast of U.S. market disappear?

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

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