Wine Institute unveils ad campaign at meeting
Wine Institute unveils ad campaign at meeting
In a departure from previous years, the Wine Institute laid on a Sunday afternoon and a Monday afternoon presentation, the former by the Institute’s new (1988) advertising agency and the latter by Arch Lustberg, Washington, D.C. “trainer” of corporation executives on how to deal with snide questions by the media.
Jack Kilpatrick and Tom Whitworth of Kilpatrick Strand Whitworth in San Francisco showed samples of their work and explained their efforts had to be confined to test markets — Austin, Texas and Denver in June and Tampa and Greensboro, N.C. in September. As the Institute’s Jerry Vorpahl explained, the $500,000 allocated for advertising “would buy 20 seconds on Superbowl Sunday.” It would cost an estimated $20 million to extend the same kind of exposure to major cities across the nation, leaving out television.
Kilpatrick and Whitworth used most of the money on radio commercials and also bought newspaper and magazine ads in the test cities. They also prepared point-of-purchase materials and a poster.
There are seven ads in all, with the focus on one showing a man and a dog, with the legend “I like wine. He likes beer,” signed The Winemakers of California.
Vintner Joe Heitz asked how that jibed with the Institute’s Advertising Code specifying no criticism of competing products. “Are we saying that while the man drinks wine, beer is for dogs?” He was assured there was no such intent, that the ad represented a light-hearted and humorous twist to beer ads featuring dogs. There have been a few complaints, Wine Institute President John De Luca said, including one from an animal rights champion and one from a beer advocate.
Lustberg, who was described as the man Fortune 500 executives go to when learning to field “tough” questions, put on a mock training session with Beringer Vineyards President Mike Moone as the pseudo trainee. Lustberg said “90% of the press is OK, but 10% is unserupulous.” In a confrontation, part of the audience tends to like you. Part to dislike, another segment is neutral and a fourth feels sorry for you. Lustberg’s advice: concentrate on the neutrals, and he added “Likeability is the element that wins.”
It is rare when the Wine Institute holds its annual membership meeting outside of its headquarters city, San Francisco. But when the City’s board of supervisors endorsed Cesar Chavez’ grape boycott, the wine end of the California vineyard industry stood with its table grape-producing brothers. So the 55th annual session was held at nearby Burlingame, in San Mateo County.
Joe Gallo, finishing his one-year term as chairman of the Institute, was given a commemorative plaque.
Gallo used an anecdote to introduce his successor, Arthur A. Ciocca, president of The Wine Group. He said he first met the latter when Art was in marketing for E.&J. Gallo. Later, when Ciocca was being considered for marketing director at Franzia Brothers, he queried Joe Gallo as to a possible conflict of interest. Assured to the contrary by Joe, Ciocca took the position and later acquired Franzia Brothers and fashioned it, together with other brands into the Wine Group. It includes Mogen David, Tribuno, 20/20, Summit and Corbett Canyon. Joe said Art so impressed him that he introduced him to his cousin. A marriage resulted.
The directors accepted the resignation of Patricia Schneider, for several years in charge of health and social issues for the Institute, and appointed her assistant, research analyst Elisabeth Holmgren, in her place.
The lunch speaker was U.S. Senator Max Baucus, Montana, chairman of the International Trade subcommittee and of the Environmental Protection subcommittee. He praised Trade Representative Carla Hills in opening the Japanese market as well as those of Korea and Taiwan. He counseled caution in approaching the European Community “to make sure that Europe does not slap us with new trade barriers.”
The first directors for the National Wine Coalition were also announced at the meeting. They are: Michael Cliff, President & CEO, Vintners International, New York; Thomas C. Fichter, Executive Vice-President, American Newspaper Publishers Association, Reston, Va; K. Dun Gifford, Chairman, American Institute of Wine & Food, Boston; Joe Guzzo, Vice-President, Marriott Corporation, Washington, D.C.; Thomas M. Moore, Bailli Delegue des USA, Chaine des Rotisseurs, New York; Dr. Stephen A. Mutkoski, Professor of Wine Education & Management, School of Hotel Administration, Cornell University, Ithaca, N.Y.; Vincent J. Mainoli, Chairman, President & CEO, Anchor Glass Container Corporation, Tampa, Fla.; Don Reynolds, Vice-President, M&R Packing, Lodi, Calif.; Dr. Olin Robinson, President, Middlebury College, Middlebury, Vt.; Marvin R. Shanken, Publisher & Editor, M. Shanken Communications, Inc., New York; Mrs. J.G. Swedenburg, Secretary, American Vinifera Association, Middleburg, VA.; Henry Wendt, Chairman, SmithKline Beckman Corporation, Philadelphia; Robert A. Young, President, R&G Young Vineyards, Geyserville, Calif.
* Lame duck Surgeon General C. Everett Koop released the report on drunken driving that resulted from his behind-closed-doors “workshop” last December. There were no surprises in that he called for increased taxes on licensed beverages and strict curbs on product advertising. He also called for lowering the legal blood alcohol limit to .08; most states have a .10 standard. Further, he would reduce the limit to .04 by the year 2000, and confiscate driver’s licenses from those arrested for driving under the influence. He also seeks equal-time broadcast messages, paid for by brewers and winemakers, on an anti-alcohol-related health message in a similar time slot plus inclusion of the warning label in wine and beer TV spots. Further, Koop advocated laws against happy hours and other discount promotions, a ban on using celebrities that appeal to young people in ads and an end to sponsorhip of athletic events and youth concerts by licensed beverage producers.
* Geyser Peak Winery of Sonoma County and Penfolds Wines Pty. of Sydney, Australia have entered into a joint venture, the first of its kind between an Australian and Californian winery. Under the agreement, the Trione family agreed to sell 50% of the winery assets to Penfolds but will retain ownership of the existing 859 acres of planted vineyards and an additional 300 acres which will be planted later this year. No sales price was announced.
All Penfolds brands combined sold about 9 million cases last year while Geyser Peak shipped about 1.5 million gallons or 625,000 cases. Since the Trione family bought the winery in 1982, they have concentrated on developing the premium side of the brand.
* The E&J Gallo Winery has stopped selling fortified high-proof wines to stores in a district of San Francisco noted for a high rate of street crime and alcohol abuse. Sales will be halted for a period of six months to determine if it has any affect on problems in the area.
* A U.S. district court judge in Fresno has ruled that Joseph Gallo must stop using his own name as the trademark for his cheese. The decision was a sweeping victory for Ernest and Julio Gallo in their business dispute over the use of the family name. The elder Gallo brothers contended that the name should be reserved for products of their Modesto, Calif. winery. Attorneys for Joseph Gallo said they will appeal the decision.
Wine Task Force
* The National Wine Task Force of the National Conference of State Legislatures (NCSL) met June 30 and July 1 in Sacramento, Calif., prior to the national meeting scheduled in August at Tulsa, Oklahoma. Dominic L. Cortese (D-San Jose), chairman of the Task Force, said the purpose of the meetings is to bring together the 20-plus states to identify the major problems facing wine to present at the national meeting. Regulations pertaining to licensing, labeling, fee collection, reciprocal trade and shipping requirements will be discussed.
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