Customized wine trend report available

Customized wine trend report available – Wine Trends State Report

Larry Walker

A good manager uses the right tool to get the job done. Michelle Rowell, a senior marketing consultant with MKF (Motto, Kryla & Fisher, LLP) in Napa, believes MKF has a good tool for a sales and marketing manager. It’s the Wine Trends State Report which analyzes the wine market for each of the 50 states by varietal and price.

“The real benefit of the report isn’t just the numbers,” Rowell pointed out in a telephone interview. “We will work with the winery to customize the report. It’s difficult for a single winery to do that kind of state-by-state analysis,” she said.

Rowell said a careful study of the report shows a winery where it is underperforming and what can be done about it. “For example, Winery Z may not be doing as well as they should in New York. But maybe their varietal mix and price-points just aren’t right for New York, but would work well in Massachusetts. We can show them they might increase sales by shifting emphasis from New York to Massachusetts and spend less money on marketing.”

Rowell said the report also enables the winery to look beyond what distributors tell them.

Since many wineries don’t have the resources to be in every market, the report enables them to pick the four or five markets where they could do well by looking at actual numbers.

The chart shows the mix in Illinois for California wines in the $120 to $185 per case segment, compared to the sales mix of Winery Z wines in that price segment.

In Rowell’s summary, Winery Z has asked its distributor to sell a total of 15,000 cases, with 40% of the mix to Cabernet, 25% Chardonnay, 20% Merlot and 15% of its other bottlings. Winery Z’s Illinois regional manager has had difficulty achieving this product mix, and is consistently selling too much Merlot and not enough Cabernet, according to Winery Z.

By plotting its actual product mix against the varietal breakdown for Illinois, it becomes obvious that Winery Z is swimming upstream for Cabernet business, which is not nearly as robust as the state’s Merlot market. Given that only 21% of wines sold in this price segment in Illinois are Cabernet, Winery Z should consider a higher Merlot percentage in the Illinois manager’s mix and redistribute more Cabernet sales to a market that can more easily sustain it.

In summary, Rowell said the report answers the following questions:

* Is there an opportunity for you to grow sales?

* Where are you losing business?

* Where are you wasting resources?

* What are the most (and least) important markets for your wines?

* How important are you within those markets?

* Are there better markets for your wines than those you are in currently?

* Is your distributor underperforming the market?

* Which wines do you sell where, and how much of each wine in these markets?

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For more information on the Wine Trends State Report, contact Michelle Rowell at MKF, (707) 963-9222 or for more details visit mkf.com.

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