Millennials Aren't All That

Louis B Shrimperton III "LB3"

I have a large degree of respect for Tom Wark's dog Louis B. Shrimperton III. "LB3" as he likes to be called, serves as Tom's sounding board when Tom writes his daily blog and he's also a Millennial with a distinctive opinion. Having descended from the Flying Nun as you can clearly see by the above resemblance, he's able to give Tom a high-level perspective on things.

On rare occasions Tom writes an interesting blog and he did so this last week writing "Unsubstantiated: Millennials, Wine & the Meme." Tom addresses a pet peeve of mine when reporters and writers repeat equine excrement in what I've referred to as the Millennial Myths. That's the notion that Millennials are driving the wine business. Here's one quote from a newspaper article I cited in a recent blog I penned:

"the U.S. ranks third in total wine consumption, and is gaining rapidly on the leaders. Much of the (3.3% ~ 850,000 case) increase can be attributed to the Millennial generation"

The problem with this quote and an unending string of others ..... they just aren't real or helpful in describing wine business opportunity.

Here's reality:

• The Millennial Generation even today, represents only around 15% of total wine consumption.
• Millennials are drinking inexpensive wine.
• Millennials may or may not be any different than the generations in front of them when it comes to wine drinking.
• Millennials aren't in their prime spending years and have no wealth or earnings.

Large wine company's selling cheap wine should be marketing to Millennials. Fine wine producers will need to cater to them when they are 35-55 years old and in their prime spending years; not because they are Millennials. The reason to market to them will be because they want and can afford fine wine.

Really something gets lost in the discussion of cohorts: They aren't measured by when they were born. The number of years of each cohort vary by as much as 100%. The cohorts are defined and measured by factors demographers apply over different era's and time periods that "they" think link a generation. Gen X'ers for example are a 10 year cohort while Millennials are about a 20 year cohort. Boomers were a huge birth bubble but Millennials ..... they aren't all that. As a percentage of the population, they are vin ordinaire

The following animated gif courtesy of Calculated Risk demonstrates this important point.

Age Shifts in US Population

Starting in 1950, the chart shows how the US population has evolved. You can see how the wave of Boomers has dominated the US population and how that wave has swept through the decades. They hit those those prime spending years of 35-55 in the 1990's - which not coincidentally was the same time the consumption of wine really took off. 

What about Millennials? Where is that wave? Well ..... there is no wave. We are moving to a period which will have the over 70 age group as the largest, and the rest of the population pretty well disbursed evenly. The Boomers were every marketers best case scenario when that happened. The Millennials wont be. That's just a fact, not an opinion.

Where should the US Wine Business be marketing? Its a pretty easy answer: To whoever will buy their wine. Its not the 70+ cohort because they will consume less even if they can afford it. Its not the Millennials because they can't afford it. Its the Boomers and the forgotten Gen X.

I've been encouraged by recent remarks from the Wine Market Council who is altering their historic evangelical pro-Millennial message:

"Lets get the Industry to focus on high-frequency wine drinkers." (Consumers who are responsible for more than 90% of all high-end wine sales and 40% of all 750ml wine purchases between $10-$20.)

"While Millennials are increasingly important customers, when one looks at the total dollars spent on wine, it's still heavily skewed toward Boomers.... If one is concerned about dollars, Baby Boomers perhaps shouldn't be excluded from one's marketing efforts."

Its a double negative, but I think the Wine Market Council is saying Boomers should be included in one's marketing efforts. That's progress but the argument I've held for years now is the Gen X'ers are the ones being left out of the conversation and yet, they represent the second largest demographic consuming wine today. So what about marketing to Millennials? I suggest you wait until they might have the willingness and capacity to buy the product you produce. I've checked back with LB3 and he tell's me from a high-level, I have an excellent view of the landscape of Millennials. I would have talked a little longer to him, but he just took off.

What do you think? Please log in and offer your opinion and by all means, please share this on your favorite social media platform.

Are You Adjusting Your Marketing To Boomers?

Never Bet Against A Dog That Tells You They Can't Play Pool 

 

"If you aren't starting to make some adjustments in your current marketing strategy to Boomers, you will lose your most important current wine buyers sooner than you think, and another winery will pick that consumer up who will adapt to their changing preferences."

 

 

 

My mother plays pool, has an occasional nip, likes pink and is a dog. She's actually a wonderful person, but I've been trying to break her from nipping for years. Now it seems the years themselves are actually slowing down her nipping, which isn't good for the wine industry when considering her in terms of her Mature Cohort. A non-nipper wouldn't be the person a winery should try and attract. (Don't play pool with her either.) 

My mom can nurse a large bottle of moscato for a month. Obviously if she is representative of her generation, when it comes to developing a strategy to attack the geriatric set there are probably better places to invest your precious resources. But if you listen to many in the wine press, they will say its the Millennials. I believe if you sell fine wine and that's what you are going to do, I suggest you would be better off investing in my mom's cohort today because they can at least afford your wine, if you can convince them to buy it.

Millennial Myths

We've been writing for years on the Millennial Myths, the most prevalent one being Millennials are driving fine wine sales. That's absolutely false. They aren't driving sales and there shouldn't even be a debate. I found -this article- from 2009 which is a good example of the kind of confusion that's been layered onto the discussion. Take for instance this quote:

"the U.S. ranks third in total wine consumption, and is gaining rapidly on the leaders. Much of the (3.3% ~ 850,000 case) increase can be attributed to the Millennial generation"

Market Share of Wine Sales Sorted by Cohort

It wasn't true in 2009 and isn't true today. What is true is the Millennials have the highest growth rate, but like all segments with low numbers of consumers, the high growth is because of the small base versus the growth in the nominal consumption of the segment. 

The chart directly above is one I used for a speech in Sonoma in May. It's from a survey we do of West Coast Wineries and shows that Millennials represent less than 15% of total wine sales. That's pretty consistent with Nielsen information as well.

Don't Market to People Who Can't Afford Your Product

The way I make practical sense out of the avalanche of miss-communication and demographic-goguery, is to break it down into component parts. Buyers of anything have to have the willingness and the capacity to buy. For example, my 20 year old Millennial daughter wants a new Range Rover - she has the willingness. But as a sophomore away at college, she doesn't have the capacity in her budget. I've heard some people argue that you need to market your wine to the Millennials now because they are the future. In the same breath, I've seen market research on Millennials where they feel they aren't being catered to because they want less expensive and better wines. The truth is DOMESTIC wine should be marketed to Millennials as a category, but its the lower priced wines that attract those consumers today. For now though, lets just stipulate to the belief the Millennials have a greater willingness to drink wine than any previous generation ( .... its not a proven fact either because the data aren't available from previous generations, but lets just go with it.) Do Millennials have the capacity or disposable income to buy fine wine?

I looked to the most recent information provided by the U.S. Census Bureau on both wealth and income levels. The data reveal that the older boomers have the most wealth followed closely by the Matures, with Millennials having amassed only about 2 percent of the Boomer wealth still early in their careers. 

I also reviewed the top 20 percent of all wage earners sorted by age. Again its the Boomers leading the pack as the highest paid, followed by the Gen-Xers, the still working Greatest Generation, and last again are the Millennials. So if it was only the capacity to buy, that information might suggest a winery should have a plan to go after the geriatric set since they have the capacity. The problem is, the older generation doesn't have the willingness - or maybe the kidneys to be a dominant cohort in wine sales. Back to the question, where do you invest your precious marketing budget?

Boston Consulting Group Matrix

The answer isn't binary. Your marketing budget needs to be spread out a bit but focused largely between high growth segments, and those segments where you have a high market share. 

The basics of the now legendary Boston Consulting Group's Growth Share Matrix is pictured to the left.  My mother the dog as the chart shows, falls into a segment in the lower right quadrant that has a low market share and low growth rate. In the BCG Model, she is termed a dog and that is the cohort you want to put little if any of your marketing resources. The above chart on Market Share shows the Mature Cohort has a 14% share of fine wine sales now. That's about the same as the Millennials, but you should be investing more in the Millennial Generation versus the Matures because Millennials do have growth upside while Matures will be turning up daisies making them ineligible for wine purchases relative to Millennials. Plainly, there is no growth opportunity with my mom's generation.

Between the remaining cohorts - the Boomers and Gen X, where should you invest more of your attention and marketing dollars today? The Boomers are far larger than Gen X and they have more capacity to buy, but you really should be investing a fair amount of your time and effort now attracting new Gen X consumers instead of new Boomers. Gen X are - or should be, the current stars of the portfolio looking at the matrix. They are the consumers that are going to drive your sales growth higher as the Boomers kidneys hit retirement age.

It's True: My Mom Gave Birth to a Cow

To keep it fair, while my mom might be a dog, as a median aged Boomer, I am a cow; a "cash cow" to utilize the BCG model. I may not be able to beat my "Dog" mother in a game of pool, but I can swim better than her. I just need a little help lifting all that dead weight out of the pool these days. 

Anyways ...fine wine producers have to be relevant to Boomers because they have the highest market share in wine purchases still, and they will for some time yet. You need to "milk" the Boomers by spending less vigerously versus Gen X. You need to utilize this cohort to fund investments in product development and marketing to other growth cohorts. But if there is something you can do with the Boomers today in terms of investment, its looking for product changes that might elongate the length of time they remain your wine buyer. That is a very important consideration and worth contemplation and further investment. That will return a solid current ROI.

Why Will Boomers (and Matures) Slow in Wine Spending?

You may think that you are doing the right things to market to Boomers today - just like you always have, but that's no guarantee of their future behavior relative to your wine and purchase preferences. The Boomers are evolving and without adaptation of your brand strategy, you might find them growing away from you before the Millennials come to rescue your sales growth. I wouldn't expect the Matures to adopt Millennial behaviors that would keep them as a viable sales cohort .... generally speaking that is, but even they might benefit from answering the following question - Why will people slow their spending after age 60? Answer that and you will find a correct path to market to Boomers and even Matures as they age in the next 10-20 years. 

While part of the reason they spend less is retirement, the reason they will decline in market share is really because they can't continue to drink like they did when they were Millennials (sic). So the simple solution is, consider making some wines that are lower in alcohol but maintain the other attributes the older set prefers. That's easier said than done in the warmer AVA's, but there are available technologies to make a wine that has a traditional flavor profile and has less alcohol, and might fit their pocket book as well.

To that end, last week I came across an article advertising some new marketing research about the size of the Low Alcohol category. link. One statement in particular stood out to me:

"Once considered a niche outsider product category, lower alcohol wines are now growing in stature in many markets around the world. Across the 8 markets looked at in this report, buyers of sub 10.5% ABV wines now account for 38% of consumers, or in other terms, over 80 million regular wine drinkers -making a rather compelling case that this is a market sector which can no longer be ignored. From the 8 markets analysed in this report lower alcohol wines are currently performing best in the USA, Germany, Canada and UK where the number of lower alcohol buyers and consumption of sub 10.5% ABV wine is the highest."

I think that's where we should leave it for today. Hopefully that gives you some food for thought.

What do you think? Should you be spending all of your time marketing to Millennials? Are you investing in the best growth opportunity for today (Gen X)? Are you seeing declines in purchasing from Boomers and falsely attributing that to lower income from the recession? Are the Matures worth marketing to still? Where should you invest your precious marketing dollars and time selling your wine?

Please log in and offer your thoughts to the community.

Wine Sales In the Last Half of 2013

The Best View of the Housing Bubble Pre-Crash

I recall giving a speech in August of 2008 to about 125 growers and winery owners. The speech was on the economy and I pulled up the slide above to demonstrate what I was seeing ahead of us. This was at a time just after Lehman Brothers collapsed where it had become apparent that we had crested a market high in housing and entering a bearish period. What the chart says in brief, is the historical average ratio of existing home price divided by median 4 family income is 2.8 times. That's what the red line is. With a ratio of 2.8 times, if a family made $100,000 a year, they could afford a $280,000 home. You can see what happened by late 2006 into 2007.

We are taught in school that in economics, measures have a tendency to revert to the mean. But talking heads everywhere were suggesting back then that what we were experiencing was a normal correction. Maybe, but the chart above along with some other indicators told me otherwise and I suggested we were about ready for a nasty correction and reversion back to the mean, and that correction was going to be huge and take years based on the slope of that line. 

If that weren't enough, I also suggested the growth rate in wine would fall to flat (zero percent) growth. I really thought there was a strong chance wine sales growth could go into negative territory for the first time in memory - but predicting that would get me permanently banned from the Economic Optimists Union so I fudged up a little on the forecast. I was actually being optimistic on what was ahead for us, but people didn't hear it that way. My speaking invites started falling like the stock market. I've never been invited back to speak in front of that Grower Association again. From all sides the message was, "If you don't have good news to report, then we'll find someone who can." Well, OK then, go ahead and listen to your excessively optimistic speakers and see if I care. My dog still likes me and my mom still ...... well ...... my dog still likes me anyway.
 

"The housing correction poses the biggest risk to our economy. Our economy and our markets will not recover until the bulk of this housing correction is behind us." Treasury Secretary Henry Paulson, 11/12/2008

This video was what we saw just months after the speech I made noted above. It was pretty stinking gloomy. The stock market was in the crapper and home prices crashed. With speed never before seen and perhaps treading on Constitutional Authority, the Government and Secretary of the Treasury Hank Paulson started to make investments in the Banks through the TARP program and several other initiatives. Ben Bernanke started to throw money at the financial system and economy. The banking system and Detroit were stabilized. But with the markets dragging bottom and hundreds of billions of dollars being thrown at US industry, the average voter started asking the question, "When do we get a bail out?" The answer came soon enough though most of America missed the memo when Fannie and Freddie were put into conservatorship to protect the US mortgage market from vanishing, causing a free-fall in house prices.

So where are we today? Fannie is actually starting to repay the bailout money (Self serving note: the Bank bailout through TARP was paid back with a sizable profit to tax-payers thanks to the strings Paulson put on that Bailout.) Of course Detroit is now going Bankrupt, but the American Auto Industry was able to rationalize their insane Union compensation plans, and has a chance to pay back a large part of that bailout, if not all of it .... well most of it anyway. The economy isn't healed but the most recent Case-Shiller Index had this happy news last week:

"As of May 2013, average home prices across the United States are back to their spring 2004 levels. Measured from their June/July 2006 peaks, the peak-to-current decline is approximately 24 to 25 percent. The recovery from the March 2012 lows is 16.5 percent for the 20-city index."

Essentially the news is, housing prices are back! In the Bay Area consumers even see an overheated market again with multiple offers and short listing periods. So I was wondering now ...... just where is the recovery in terms of the measures in the chart at the top of this page? My speech back then said that we had to revert to the mean. Paulson said we wouldn't see the economy and markets recover until we had the bulk of the housing correction behind us. Did we get there? The current information out there suggests we have reverted to the mean and are now showing home values at 2.85 times median income. Of course the bad news in that is we will likely see growth in home prices slow now due to investors cashing out and more of the average mortgage payment going to interest, thus reducing the amount of house a person can afford. Being an optimist, we are at least not looking at another bubble. Housing growth will take place as median incomes rise.

Consumer Comfort Index at 5 year high

Don't get me wrong. There is a lot to do still to heal housing and the mortgage business. Banks aren't able to make home loans anymore and sell them as packaged securities. Prior to the crash, that was half of all new bank lending. Now it's 0%. Banks now have to keep the loans on their books or sell them to Fannie or Freddie for the present. While its nice to know they are starting to turn the corner, last week President Obama outlined plans for the wind-down of the Governments involvement in those institutions. Having just gone through qualifying for a home loan, I can tell you first hand that the mortgage business is dramatically different than it was.

In the SVB State of the Wine Industry Report released in January, we predicted bumpy going in the first half of the year and an upturn in the back half with average fine wine sales growth in the 4% - 8% range. While there are still plenty of variables out there that can throw that forecast off, I think at this stage with the good news in housing and retail sales hanging in still, its remains a good forecast.

The middle class consumer is showing resilience, housing is now below 6 months of inventory which typically signals a short market, and the Fed is talking about ways to slow their bond purchases in response to what seems like a healing economy. We have a lot to look forward to in the last half of the year, and I'm hoping my pre-recession gloomy speeches will be forgiven by the organizers in hindsight, and maybe my phone will ring again since I have happy news to report? Oh well  ..... at least my dog loves me.

What do you think? Where is the last half of the year headed? Are we going to hit my sales forecast for fine wine this year? What about the mortgage and housing markets? Are they going to stall or improve? There are lots of moving parts but please log in and offer your perspective for the community.

Do You Like Drinking Day-Old Wine?

My mom used to go to the Day-Old Hostess bread store. She would get apple pies and Ho-Ho's and freeze them for our school lunches. They were really good....maybe not that healthy but Hostess advertising said they were healthy snacks back then - wholesome goodness I think was the pitch line, and even day-old Hostess snacks never were stale. Of course now we know it was due to the overuse of preservatives which by themselves can cause a corpse to never decompose.

There is no Day-Old Wine Store for good reason. With Twinkies and Snowballs, freezing made the product usable on my schedule. With wine once its opened, you either drink the whole thing or risk letting the remnant oxidize. Personally, I hate oxidized wine but there's a dilemma. Do I drink a really nice bottle with dinner and have some left that might not be consumed? Or, do I drink a lesser bottle and not be as concerned if I have to dump it? Of course I can just drink the whole bottle, but the calorie thing is becoming a real problem these days .... maybe it was the Twinkies. Either way I blame it on my mother pushing me into addiction. Twinkies are a gateway drug you know.

I can't tell you how much day-old wine I've had to dump over the years. I'd hate to think about what that cost me; maybe thousands of dollars given my drinking habits stemming from my traumatic childhood. While I've not found a solution to my Twinkie addiction, I have found the solution to my dilemma of wasted wine. If you like this solution as well, there is a deal for you at the end of this blog - only for SVB on Wine readers.

 

Meeting Brain Pickers

Gadget to Hold Your Glass When Drunk

In my role at Silicon Valley Bank, I get lots of calls from people wanting to pick my brain. It's probably why I can't remember what day it is anymore. Brain pickers come in all flavors; as investors, the press, people with a business concept, and on occasion people who have the latest and greatest new product or gadget. Some of the ideas are novel but never has anyone presented me with something that I saw as a disruptive or transformational innovation. That changed in September of 2012 when I saw the beta model for the Coravin Wine Access System.
 

Gadget to Never Buy Wine Again

In August of last year I got a call from Josh Makower. He told me he had a product that "preserved opened wine for months" and "the transformational potential of the product for consumers, restaurants, and wine producers would be unprecedented!" To say I was skeptical would be a massive understatement as I've seen hundreds of gadgets in wine fail, but a few things intrigued me here. It turned out Josh had been involved with several successful medical start ups with Silicon Valley Bank on the Tech side of our organization, and he was a part of NEA which is a top tier Venture Capital Firm. He also said he was bringing his colleague Nick Lazaris who was one of the early CEO's of another of our technology start ups, Keurig.


The "AH-HA!" Moment

Gadget So Your Glass Never is Empty

Josh brought in one of the beta models of the Coravin system. With a special needle that's used in the medical field attached to a device that looked like a rabbit wine opener, he easily inserted the needle through the capsule of an unopened bottle. Then, pressing a button with his thumb and pumping in argon gas, he pumped out a single glass of wine. He removed the needle and the cork resealed itself. That was interesting but not earth shattering to me. Then the ah-HA! moment came: The bottle was half full, had the original capsule intact, and was first opened 4 months prior! This was not day-old wine! We popped the cork on an unopened bottle for a side-by-side comparison:  No difference whatsoever. The wines were identical. Now that WAS earth shattering. A wine that had the first glass poured months prior, tasted the same as an unopened bottle. My mind started racing to applications.

Gadget to Turn Wine into A Tree

I could have a glass of white, pinot, and cabernet every night at dinner and never worry about spoiling a bottle. Corked wine? A fine wine retailer or tasting room customer could take a very small sample and test it with reactive test strips to check for specific flaws before taking it home (First someone has to invent those strips). Tasting rooms could use an industrial version with a 1 ounce meter on the gadget that could be attached to a larger argon tank thus eliminating waste or accidentally pouring oxidized wine. My mom could drink her magnum of moscato one glass at a time for 2 months without the wine changing. That case of wine you bought a decade ago and stored ... has it reached the point where its time to drink it? The applications are limitless.

Product Release

On Monday July 29th; almost a year from the date I took the meeting, Coravin announced the launch of their new wine storage system. Robert Parker had interesting comments saying, Coravin is “the most transformational and exciting new product for wine lovers that has been developed or invented in the last 30-plus years.” He also posted a series of videos about the Coravin System based on his own testing. You can find those on his e-robertparker.com website.

Gadget to Make Sure You Spill Wine

I don't think the product is perfect yet:. The argon canister only contains enough gas for about 15 pours. It would be nice if that handled a few more glasses but I'm guessing we'll see more canister options at some point in the same way we saw so many different extensions from Keurig through the years. In addition, the product at first blush is a little pricey at USD $279.00. That said I drink a bottle of wine at that price on occasion so maybe its a bargain? Thinking further, after paying for the machine itself, we're talking about getting the freedom to try any wine in your cellar and not worry about spoiling it for 66 cents a glass based on 15 pours at $10 for a canister. Given the price of those bottles, the all-in price actually seems very reasonable, so I take it all back. Its a fair price.
 

Some of the skeptics out there might think I have a personal interest in promoting this. I assure you I don't. I haven't been asked to recommend this product by anyone and don't have any incentive. I'm just really jazzed with the utility of this gadget and the people behind it. The applications for the consumer, winery, restaurateur, and wine shop are game-changing. Me? I just can't wait to have any glass I want any night, or share any bottle with a friend without having to drink the whole bottle.

A Deal For SVB on Wine Readers

The good news for you is I did contact the founders last week to let them know I was going to dedicate the SVB on Wine Blog to the Coravin product. So while I don't get anything for recommending this, they have offered to anyone reading this blog, 3 gratis argon canisters if you buy a package between now and Friday August 9th using the PROMO CODE: SVBWine. You can do that through this link to the Coravin website.

As a final point, for those commercial wineries interested in trying this out, reselling these in their own tasting rooms at some point, or have other questions about commercial use, I've been given the contact at Coravin for additional questions and discussion. You can contact John Fruin, National Sales Manager here: john@coravin.com.

What do you think? Did you hang in there and read another exceptionally long Blog? Are you skeptical of this product like I was? Log in and offer your thoughts about this product or any other storage devices that you are using and appreciate.

Mid-Year State of the Wine Business

There are several thingies (......that's a technical economic term) that are happening right now that all link together in some form to drive components and the present direction in the wine business. Since this is a blog though, and blogs are generally top of mind and brief, discussing the state of anything is going to either violate the Constitution of the Blogosphere or the tenants of mildly meaningful research. Instead, I'm going to leave out a pantload (......that's another technical economic term) ... of discussion topics such as demand for wine, and go with the top 4 thingies worth pondering at this point in the year.

• The first thingy is water. There isn't any as the video above portrays. That's not good. And it's not just  a Central Valley thingy. This water thingy is running throughout the Ag. and wine industry and will only get worse.
• Second is the heat wave from the past week. Early discussions suggest the heat will reduce expected crop size by 10% plus or minus due to sunburn from the recent record heatwave. A related issue vis-à-vis supply is the size of the world harvest in the Southern Hemisphere.
• Third is rising interest rates. That does all kinds of thingies to the wine business.
• Fourth: the world is shrinking and so is the market share for US produced wine.

Even Edyie Gorme Knows it

Let's start with the last point. In May I saw an article in the Modesto Bee that said Gallo is launching a wine with juice from four continents. Because of the interwebs and the increased speed of communication the world keeps getting smaller every day and that continues a decade long impact on wine making and wine sales. It wasn't that long ago getting bulk wine from foreign sources wasn't really possible in any measure. We tried that in the late 90's when we were really short winegrapes but it didn't really take off. In fact it probably set Chile's reputation in the USA back a decade. Today, the issue is more price instead of grape supply. When the big guys can save a penny, they pick up a phone and buy juice like it was crude oil, and have it shipped in to fill supply gaps and lower the overall cost of varietal blends. It hits the dock, and the next day its in the tanks for blending and bottling. Back in the day, that would have been wine that was produced from the Central Valley.

I'm Channeling Milton Friedman ........

Rising interest rates. I recently wrote in this Blog about the Feds actions signaling the end of quantitative easing and what that means for the wine business. Never in the history of the world has there been such a coordinated effort by the worlds Central Banks to pump in liquidity and try to stop world economies from falling into a global slide. That said, each of the Central Banks have also been operating in self-interest too. Its just their interests seemed to have all aligned over the past 5 years. So what happens when self-interest at the Central Bank level diverges? We end up with uncoordinated policy leading to surprises and lots of finger pointing from other countries who don't agree with a sovereign country's approach to manipulating their currency to their own benefit.

What is clear at present is the US Economy is ahead of world economies in recovering. As our domestic interest rates rise, foreign currencies depreciate unless they increase their own rate structures to attract capital inflows. If they don't they lose in the carry trade translation. The expectation in Europe should be to do nothing and let their currency sink versus the dollar so their exports to the US have a rate advantage. But there are many who expect to see European rates rise "in sympathy." I'm doubting that as of this writing. My guess today is we see the US dollar strengthen across a basket of currencies leading to cheaper imports overall, and that keeps our purchasing power up at the consumer level, and inflation contained. The problem, is a strengthening dollar equals cheaper wine imports, for both bottled and bulk wine.

My Akward First Dance

The heat wave is part of a larger discussion on grape supply. Its hard to get a firm grasp on where that is. We took an stab at that subject earlier in the year in this Blog. The upshot in that post .... after treating my readers to intimate details of my first dance in 7th grade, is that growers and producers have different interests and benefit from fanning the flames of over or under supply. Once we get into late July though, the picture starts to become a little more clear and pure speculation starts to give way to partial reality. We wrote about that very thing last year when we asked, "Is there really a grape shortage?"  When we wrote that, the early year consensus was we were short on grapes, but the pre-harvest read last year suggested something else was going to happen and we ended with a record crop. This year the discussion of a large crop has dominated the early discussion, and at the same time growers have been holding out for higher prices and getting them early in the season. That doesn't make sense from a current year perspective if we are long again this year. But there are two parts to the grape and bulk business, the current outlook and the long-term trend.

Turrentine Bulk Volumes

The growers are looking at the long term position which is trending to shortage or is already short in many price points and varietals. The short term trend in grapes is a little different. The recent heat wave it appears has had an impact on many growing areas and crop losses have been discussed in the 10%-15% range in many circles. Also worth considering is tanks are still brimming after the record 2012 harvest and producers aren't really forced to fill short term needs today. More likely they will want to make sure they have tank space and sell down some of their excess wines creating an odd collision of a longer current bulk market, and a shorter long term market. As an aside, recent press out of Argentina and Australia suggest good harvests, some of which will be certain to hit our shores. That also has to play into the discussion. What I take away is the current grape supply is surprisingly a little long, but the long term supply is going to be short.

Drought might be a crack in California's Recovery

Last thing to note is water. Water is something (....not a thingy in this case) that gets plenty of discussion in the San Joaquin as noted in the above video. The farmers there almost never get more than 50% of their allocation anymore and have salt issues to deal with from ocean intrusion into the Bay. The Federal Government knew about the drainage problem when they put the Federal Water Project together but they never did anything about it and still aren't - unless you count Governor Moonbeam's Peripheral Canal II attempt as a Federal plan. In any case, it does bring in the specter of Climate Change which we covered in a earlier blog titled Bovine Excrement & Global Warming (are you getting tired of the gratuitous hyping of my blog yet?) ..... anyway, the bottom line is whether you are a believer in climate change or not, you have to believe we are experiencing interesting weather and can't help but recognize that we live in an arid state that has increasing demands from population expansion and increasing legislation surrounding water use. That factor is increasing in importance each year and will have an impact on domestic supply.

The Ghosts from Italian Swiss Colony say...

So ........ all that said, where are we mid-year?

• It looks like harvest is trending to be normal to maybe slightly above normal.
• Long term supply is going to be short with normal harvests in the next few years.
• World supply seems enhanced by good harvests in the Southern Hemisphere.
• Rising interest rates will strengthen the US currencies leading to cheaper imports which does have an impact on our wine growing brothers and sisters in the Central Valley in particular, especially when water - or the lack of it cuts into supply, and the damage from the just passed heat wave is factored in to the equation.
• Grape supply and juice seems adequate if not a taste long for now based on last year's harvest and and expected average to above average return this year, but still should be short-ish going out for the next few years.
• There is every reason to believe imports will continue to get a larger share of the US consumer dollar.

Its a lot to cover for a blog and I know that I'm hanging on a thread by bloviating on a blog but that was pithy and doesn't begin to really cover all that is going on in this wonderful business in which we work. We will have a more complete view after doing our annual Wine Conditions Survey in October this year. We hope you will participate in that effort.

Please ping me if you want to participate in the annual Wine Conditions survey. We normally have between 500 - 700 wineries participate in exchange for the consolidated results.

So ... what are your views at mid-year? Please sign in (with a name please or a pseudo-name if you prefer), and share your own thoughts with the forum about what you are seeing at this point in the season, what you find of interest or any thingy you think I have wrong.

What Does the End of QE Mean for Wine?

Everyone likes Fridays. This Friday is a little more special so I decided to post a non-Sunday blog for the first time. Why the deviation? Because Friday is the day we receive the most hours of sunlight in 24 hours .... and then its all downhill after that.

While that sounds a little gloomy phrased up that way, consider that its coming from someone who has been following and predicting the movements in the economy and wine business the past few years. Its been enough to make anyone gloomy especially since I've been consistently right. (Editors note: Please don't wake me and remind me of a forecast that was wrong. Thank you.)

Anyway, something happened yesterday that is making me put on economic sunglasses to protect my eyes: The Fed announced the economy is looking pretty darned good, inflation is in check, and unemployment is coming down to manageable levels. Add to that the US Credit Rating was raised back to AAA about 10 days ago and that is down right exciting right? What did the markets do? The Dow dropped 200+ points and the 10 year Treasury Bill rose 13 basis points. In fact the 10 year, which is the benchmark used for vineyard and acquisition financing has increased about 40 basis points since May. So what gives? If this is good news why is the market off and what does that mean for the wine business?


In conjunction with the other good news, the Fed announced they were going to pull the monetary sucker out of the Market's mouth of the toddler-like economic recovery, and targeted an end to their Quantitative Easing program starting early in 2014 and ending mid-year. The market has been feasting on cheap money for a long time and the announcement and timing was just a little more firm than many suspected, putting a damper on the investors mood.

 

Along with the announcement, the US dollar strengthened because there is now a higher return realized from investing in US$. In addition, the dollar also gained strength because the announcement demonstrated the US is not like Japan and won't be forever in a weak growth environment. A stronger dollar will mean we should see cheaper imports and that's a risk in a business that is running at balance to short in grapes and juice.

The announcement also signals an end to a cycle that has led to the lowest rates in the history of the US, and created a refinance stampede from wineries and vineyards in the past couple years. While the short term rates are for the present still low, the long end of the yield curve is trending up as noted to the left, and rates should continue to go higher based on this announcement. At some point in the next 24 months, it appears we are likely to see the short end of the rate curve start to rise as well.

 

Higher long term interest rates normally mean stabilized land values as higher interest costs mean larger property payments and a property can only produce so much in the way of cash flow so that lowers the sales price of land. In the case of vineyards, that may or may not prove out because the supply of vineyards is also lowish, and there has been a rush by many in the business to acquire new producing vineyards to support their programs driving land values higher. If this signals higher consumption levels, wineries will be looking for even more land. That's a long discussion and will have to wait for another Sunday.

 

The good news in all of this is the US Consumer is indeed making headway coming back and our economy is leading the World in showing recovery. Employed and confident consumers buy more wine, and higher priced wine. Higher bottle pricing will be needed if the wineries are going to be able to pass on the higher price of grapes that growers have been taking during the first half of this year. Consumers aren't quite there yet in being willing to spend more on wine but hopefully we will see that soon. That too is a blog post for another day.

 

Bottom line is the consumer is coming back so we might start spending our way back to prosperity .... which has always amused me ... that we can eat our way to prosperity, consume the worlds goods and be the envy of most other countries in the process. Doesn't that seem unnatural in some economic Darwinian way?

Back on point, this announcement signals rate increases will be coming. A 6% prime rate isn't that unusual. What happens to your winery's profitability if we see short term rates go up 3.00% in the next couple years at the same time consumers demand is growing and imports are cheaper?
 

Hopefully you've already locked in your capital and rate structure and got your piece of the cheap long term real estate money Ben Bernanke has been handing out, so your business wont be subject to a cycle of growth financed by higher priced debt in a margin strained wine industry.

 

Its a lot to digest and this barely touches the subject on the business and the changes we are going to see in this next cycle. For now I'd suggest you enjoy Friday because its all down hill after that ........... ( I'm talking about the hours of sunlight of course .....)

 

What do you think about the Feds announcement? Please sign in and offer your thoughts.

Successful Tasting Room Metrics

 

In our second live video broadcast of the year, we focused on the Tasting Room, Wine Clubs and Direct Sales with a panel of industry experts. The entire broadcast was supported by an extensive survey, with over 500 respondents taking part from across the US. The complete results from the survey were returned to the participants. This broadcast included participants from several countries, but primarily North America. Hopefully you were able to tune into the session live from the Silicon Valley Bank studios and participated in the discussion. If you weren't able, above is the YouTube link to the broadcast.

Please log in and comment for the community at the end of the transcript with any of your perspectives and suggestions for the next live broadcast.

As you will see in the following text, there were numerous requests for the transcript. Since panel questions and responses don't always line up on a timeline, I tried to edit it to match responses and questions. I deleted a few responses that I didn't understand or were repeated, but there is no conspiracy if your post was deleted. If there was a conspiracy, blame the Republicans.

Discussion

9:37 AM  DannyFay: Does gross compensation per hour include gratuities/wine club commission?
9:38 AM  SVB_Lindsay: DannyFay, Yes it includes all benefits and commission
9:38 AM  Evalen: Would be good to know base vs commission
9:39 AM  SVB_Lindsay: Thanks Evalen, I will take note for next year's survey
9:39 AM  Winegirl: Does that include "work for wine" compensation?
9:40 AM  SVB_Lindsay: Winegirl: No, It does not include the dollar price of wine compensation for employees
9:40 AM  ChrisB: How are TRs keeping an accurate head count of traffic?
9:41 AM  Kaia: We ring in all comps, trade visits, consumers, etc. even if fees are waived. 9:41 AM 
Melissa: We use a $0 guest button and add to all bills
9:42 AM  dobbeswinery: we track wc comps, along with comps based on purchase price
9:41 AM  Paul: Will we have access to a video of this program to replay to our staff?
9:42 AM  Kelly Kel SVB: The replay of the video that everyone will receive in a follow-up email will be expanded.
9:42 AM  John: Does compensation include wages paid to temps or temp agency?
9:44 AM  SVB_Lindsay: John: that wasn't specifically mentioned in the question, so I do not have a firm answer for you. I would say most participants documented average compensation regardless of temp agency fees
9:43 AM  ColbySmith: Off to a good start
Panel: What Kind of employees do you hire?
9:42 AM  Kayla K: Tastings rooms are not  hiring sales people,  you need story tellers, sales people the wine edu will come later
9:43 AM  JTrude: hiring personality is important, selling ability can be taught
9:43 AM  LindySez: JTrude, maybe so, but both together are best...
9:43 AM  ColbySmith: Personality! then Hospitality Training to get the most from our people.
9:44 AM  Evalen: Got to have a great, authentic story to support sales.
9:44 AM  Sara: My best sales people have been real estate agents
9:45 AM  Todd: Stories are great, but they must be authentic and be able to connect with your audience
9:46 AM  ColbySmith: Hospitality training.
9:47 AM  ColbySmith: It's all about HOW people are received and made to feel special.
9:47 AM  Randy: tasting room staff turnover inhibits consistent relationship building
9:48 AM  Greg G: Tasting room turnover wouldn't occur as much if employers would pay proper wages and offer better employee benefits.  Different subject!
9:48 AM  JTrude: turnover is a norm in the valley, standard service training is essential to create the culture you wish to acheive in the TR
9:48 AM  Kayla K: Randy- your right, what can companies do to prevent it being a turnover job
9:48 AM  elgordo: You have to pay tasting room staff what they're worth, and incentivize correctly...
10:02 AM  Kayla K: Lengthy interview process is key as well. Do they fit into your values and share company goals
9:44 AM  Alysha: Can we get a transcript of the questions?
9:44 AM  Kelly Kel SVB: Yes, the transcript of the questions will be sent to everyone in a few days.
Panel: Discussion of integration of software.
9:45 AM  Kayla K: wineweb.com does all of those things he just mentioned
9:45 AM  mbennetti: Wine Web for the little guy does too
9:45 AM  Brian: Brian Baker is speaking the truth
9:45 AM  Wine Pirate: bLoyal has an integrated product that ties the reporting together
9:45 AM  Eric: most people use QuickBooks and tie their POS to that
9:45 AM  Greg G: VinSuite will eventually solve all of this
9:46 AM  Casey: Vin65 will do that too, and integrate with quickbook. operates from an ipad too
9:46 AM  George: bloyal has a lot of holes though
9:46 AM  Lautie83: eCellars almost has it nailed
9:46 AM  Lautie83: it's a great program
9:46 AM  James: Casey, I haven't found a good way to upload sales into QB from Vin65.  Can I contact you sometime to learn how you do it?  Where are you from?
9:47 AM  orpheuswines: we just started using orderport.net. It’s a great winery centric pos,wineclub manager for small-medium sized wineries
9:47 AM  Ryan: Transaction Pro Importer from Vin65 to Quickbooks.
9:47 AM  Greg G: No standard because there are too many different types of tasting room scenarios.
9:48 AM  ScottR: SommeYay has a direct marketing portal to iPhone app, POS, marketing, inventory and member tracking!  Pretty cool!
9:48 AM  Marina: Look how many vendors have been mentioned.  Shows how fractured this still is. No ONE good option.
9:49 AM  JJK: TR / WC / eCommerce are all connected but very different.
9:49 AM  Greg G: Marina, seriously check out what E Winery VinSuite is proposing for the future
9:49 AM  Lautie83: eCellars has a custom club option! it's slick!
9:51 AM  RP: eCellars Software provides custom club without major administrative burden
9:51 AM  Eric: he's right, most  POS software does not dynamic  to the  website
9:51 AM  Jon Bjork: We offer penny shipping to members who add a minimum number of bottles to their normal shipment.
9:52 AM  Greg G: Coming from a previous business, this is the most antiquated business in regard to a complete software package I've ever seen
9:51 AM  ColbySmith: amazing that the software is facilitating the need. Big take-away!
9:54 AM  Michele: Software is the biggest problem and very expensive to change if unhappy.
Panel: Discussion on giving club members choice.
9:48 AM  Spencer: That would be a nightmare to give our customers a choice with 2500 members
9:48 AM  Casey: choice for members is so hard for determining production levels, allocation and can create cust service nightmares
9:49 AM  Nathan: customizing hundreds of shipments is a fulfillment nightmare
9:49 AM  Spencer: That would be a nightmare to give our 2500 WC a choice what they would get
9:49 AM  Casey: especially when you have a large range of wines and price points
9:49 AM  Turley: not nightmare, we do it
9:49 AM  Greg G: We do it too.
9:49 AM  Jon Bjork: All wineries should offer a reds-only club.
9:49 AM  elgordo: I give my 3500 Club a customization option, less than 5% take advantage, but it sets me apart...
9:49 AM  Erin: when the consumers have a choice and pick up from the tasting room they often add wine to their shipments which helps revenue in the tasting room
9:49 AM  Winegirl: We choose but offer the option to trade out for wine of equal or greater value.
9:50 AM  ColbySmith: personal follow up to the Wine Club members enhances longevity and loyalty
9:50 AM  Kayla K: We love our custom club options, 30 notice, if you don’t change your shipment. Club members are so much happier
9:50 AM  asabaird: Offering choice to some is OK but I would say not as a policy. If you do you have a delayed buying program rahter than being a part of the winery and enjoying the adventure
9:50 AM  cellarrat: Are there numbers showing club retention to choice?
9:50 AM  TastingRoomBuzz: Any data for club duration for more frequent deliveries (quarterly, semi-annual)?
9:51 AM  Kaia: We're super small and we offer a choice
9:52 AM  elgordo: This is true, customization allows customers to upsell themselves...
9:52 AM  Kelly Kel SVB: If anyone has a question today please be sure to send us your email address so we can follow-up with you, if we do not get to your question.
9:52 AM  Kayla K: @tressabores- we have 4-5 on a weekend 2 on weekdays and customization is controlled through allocation and putting the responsibility on them
9:52 AM  AViader: We manually do that. When one WC members says we like X and not Y...we accomodate them. It is time consuming though...
9:52 AM  Brian: choice between white and red?
9:52 AM  Sofia Horvath: Kaia -- probably easier for (us) smaller wineries to offer choice. Logistically speaking.
9:52 AM  SVB_Lindsay: cellarrat: there is a slide in the overview slide deck that addresses club retention based on choice clubs
9:52 AM  Wine Pirate: Is the choice red or white or different wines from the selection available at the winery
9:52 AM  ParadiseRidge: more shipments means more visits to the tasting room
9:53 AM  Sara: Randy, not many. Turnover rate is not what i thought it would be in tasting rooms. We start our TR at $12 plus club incentive
9:53 AM  Randy: turnover the biggest problem in tasting rooms
9:53 AM  Greg G: LOL, shows what we are really interested in
9:57 AM  RachelatSullivan: We have a choice club that allows members to choose each wine in their shipment, giving alomost full authority over which wines are included.
9:49 AM  BusteroftheDesert: How can an independent wine tasting room, not owned by any winery, start a wine club?
9:51 AM  WineClubsOnline: @BusteroftheDesert. I can show you how.
Panel: Discussion of data telesales and personal contact.
9:53 AM  Kayla K: It's worth it to add those little touches!
9:53 AM  Jon Bjork: Telesales with VIP customers has been profitable and worth it for us.
9:53 AM  Sara: we send a welcome card to all of our new club members. The TR attendant who signs them up has to write them
9:53 AM  asabaird: Colby you are right. As Peter Drucker said "the goal of every business it to create a satisfied customer" keeping in mind the difficulty doing it but always run it through that filter
9:54 AM  Afreveletti: telephone and hand written note is vital
9:54 AM  Kayla K: Thank You Economy By: Gary Vaynerchuck
9:54 AM  timnord: Brian Baker is making a key point here - high touch = retention no matter the costs
9:54 AM  Greg G: Yes, Brian is right, retention is the key
9:55 AM  Brian: who should write the notes?  temp employees?
9:55 AM  Vin65 team: AND using preference based marketing tools create more meaningful conversations
9:55 AM  Evalen: Need a fully integrated system - affordable but follows customer info across all POS
9:55 AM  Kayla K: Your write notes to the people who buy 5+ cases a year outside their wine club membership
9:55 AM  Michele: We have the TR staff who "sold" the club write a thank you to the guest.  People love it.
9:55 AM  Kayla K: Write notes to your top 10 best buyers
9:56 AM  Tiffany: We're a small winery, but we have owners writing thank you notes. Everyone should be involved.
9:56 AM  Greg G: Send them a amg of your best wine
9:56 AM  Tres Sabores: is there a way to pull a software survey based on winery size? Software for a 3,500 vs a 500,000 would be very different
9:56 AM  AViader: Personal phone calls and notes go a long way
9:56 AM  Evalen: And TR - Wine Club people should be the same/seamless
9:56 AM  Brian: wine club fatigue is real
9:56 AM  Tiffany: We do send wine for our top buyers, but I think people need to realize you don't have to give things away to keep customers engaged. "Thank you's" go a long way!
9:56 AM  Jen: We write notes to members who make sizeable purchases to thank them for visiting. Also we recognize birthdays, anniversaries etc...
9:57 AM  Greg G: Wine with a thank you note
9:54 AM  Greg G: SVB, please use all these comments about software to spur on another survey
9:54 AM  Marina: I would love a software survey.  I have done an informal one for my own use among my winery friends.
9:55 AM  Kayla K: Ohh... software survey.
9:55 AM  SVB_Lindsay: @GregG: We will definitely take note. Thanks!
9:50 AM  Kayla K: Why are there no tasting room mangers on this panel?
9:53 AM  elgordo: b/c these aren't TR people!
9:54 AM  LindySez: Brian has run tasting rooms and worked with them for years...
9:54 AM  Greg G: don't let them quit!
9:55 AM  WineClubsOnline: We have interviewed current and prospective Wine Club members around the country. It pretty much nails what they like and don't like.
9:55 AM  BusteroftheDesert: Is this going to be all about wine clubs?
9:56 AM  winemaps: http://svbwine.blogspot.com/
9:56 AM  mbrown4931: Are the Tasting Room results include Wine Club activity plus Retail visitors?
9:56 AM  DannyFay: This is so much better than driving an hour to Santa Rosa and sitting in an uncomfortable chair in a stuffy auditorium
9:56 AM  DannyFay: thank you SVB!
Panel: Note that a survey reported the #1 reason people left a club was “Didn’t like the wine.”
9:57 AM  Eric: We never get quits for "didn't like the wine"
9:57 AM  ScottR: SommeYay engages your club members through its app from information YOU put in our portal!  Stay connected after they leave the tasting room!
9:57 AM  AViader: "cellar full" is our #1 reason
9:57 AM  Eric: it's usually "can't afford"
Panel: Noted the average retention is a little over 2 years which for an annual shipment program is horrible results. 
9:57 AM  Nellie: I'm still stuck on 28 month ave retention
9:57 AM  Cante: full cellar #1
9:57 AM  PinotGrower: they liked the wine at sign up because they were drunk in the tasting room.  How many industries have that luxury? :-)
9:57 AM  AViader: they usually sign up again in 6 months
9:57 AM  EconErf: They can get wines that are not available elsewhere.
9:57 AM  Brian: customers like variety...do you eat at the same restaurant everyday
9:57 AM  Tsweeney: how many shipments do you allow members to skip yet stay "active"
9:58 AM  Wine Pirate: If they leave the club do you bother to contact them again in 30, 60, or 90 days to ask them to come back possibly with a special offer
9:58 AM  Randy: winemakers need to be more present during peak wine tasting hours
9:58 AM  BusteroftheDesert: Tourist mentality changes when they get home. They become a different consumer. These guys are correct. Finding the same bottle of wine cheaper causes retention.
9:58 AM  DannyFay: what is the average bottles thru wine club shipments per year per wine club member
9:58 AM  SVB_Lindsay: @DannyFay: That was not addressed in the survey, but I will take note. Thanks!
9:58 AM  JJK: TR create experiences that WC struggle to replicate
9:58 AM  Michele: People sign up to get free tasting on day of visit and % off.  Then cancel once 1st shipment arrives 'cause they didn't really want the club...just the freebies.
9:58 AM  Vin65 team: Sending event invitations to top members and customers builds brand loyalty
9:58 AM  Afreveletti: The experience is key
9:58 AM  Eric: we don’t allow quitting before 4 shipments
9:59 AM  Kayla K: If you grow your own grapes, you can go to farmers markets
9:59 AM  Julie: How many tasting rooms charge wine club members for tastings when they visit?
9:59 AM  Jon Bjork: So what do you do if they quit before the minimum number of shipments?
9:59 AM  WINESofWA: Ali:  Sustained event marketing
9:59 AM  Rutherford Team: Wine Clubs have become the new "Get the discount with credit card signup" so many more tend to drop out once they get the big savings...
9:59 AM  AViader: @ Eric...so how much $ for 4 shipments?
9:59 AM  Afreveletti: personal touch is very important
9:59 AM  Jen: The top 10 members are also invited to dine at our home with our family.
10:00 AM  Afreveletti: My customers are my friends first
10:00 AM  Nathan: waived tasting fees for a club member is no big benefit or way to differentiate
10:00 AM  Greg G: low is about 600
10:00 AM  Eric: our WC agreement has a policy of charging back the discounts if they quite before 4 shipments
10:00 AM  Tres Sabores: Eric do you charge the discount and tasting  fees if an early drop happens?
10:00 AM  Kayla K: People don't stick around because there are so many wineries in CA
10:01 AM  Ali: @WinesofWA - I think you're right. Events seem like a great way to get new customers in the door. Any other ideas?
10:01 AM  Eric: we don’t claw back the tasting fees
10:01 AM  anabawines: we charge the discount back if they don't stick thru the contracted time
10:01 AM  Kayla K: Turnover can be prevents by hiring BRAND CHAMPIONS!
10:01 AM  Spencer: We do discounts to all of our events and we do a lot events
10:01 AM  winemaps: How do wine travelers discover your winery?
10:01 AM  Kaia: hotels mostly
Panel: Tasting Room comp
10:02 AM  Brian: Does a tasting room wage pay for cost of living in Napa Valley?
10:02 AM  Kaia: no
10:02 AM  Nathan: no
10:02 AM  JT: no
10:02 AM  Mike A: No
10:02 AM  ScottR: no
10:02 AM  Nellie: Nope
10:02 AM  Brian: lol
10:02 AM  elgordo: It can!
10:02 AM  JJK: @Brian not usually
10:02 AM  Tres Sabores: not really
10:02 AM  Randy: what does 'can you sell' mean?
10:02 AM  Spencer: The same issue for Mendocino
10:02 AM  dobbeswinery: does it anywhere?
10:02 AM  Nellie: Like 4 interviews
10:02 AM  WineClubsOnline: @winemaps Through marketing outside your tasting room which is our focus.
10:02 AM  Mike A: Very few can, unless there is an awesome commission structure.
10:02 AM  Kaia: perhaps if there were more commissions and incentives for sales and sign-ups
10:03 AM  LindySez: some people cannot "ask" for the business...if you can't you can't sell
10:03 AM  Casey: can the panel touch on livable wages for TR staff and using sales incentives/commissions to do that? caseyz@bonnydoonvineyard.com
10:03 AM  elgordo: If you want to stop turnover, you have to compensate appropriately...
10:03 AM  ScottR: Great point LindySez
10:03 AM  WINESofWA: Ali:  Many - @WINESofWA
10:03 AM  Jen: Our family remains the core "face" of our business so no matter who leaves, the brand stays with us. Also, we hire more people we need so we can offer flexibility to part-time TR staff = low turn over
10:03 AM  Kayla K: TY- Brian Baker for taking my question.
10:03 AM  Brian: we work for wine?
10:04 AM  Eric: discounts are just part, we give a lot of wine to our people
10:04 AM  Kaia: Wine doesn't pay the bills
10:04 AM  George: I assume current slide is based on FTE's only?
Panel: Only 90% of Wineries give discounts for employees. The 10% that don’t are crazy.
10:04 AM  Kayla K: I never have enough time to taste our 24+ wines. I wish I could go home with a wine every wine to taste
10:04 AM  Randy: most salespeople are cheesy, if you act like a salesperson you great treated like a salesperson.......
10:04 AM  Kayla K: Mondavi's sounds like a great model
10:04 AM  APCharlie: When I'm tasting I don't want to feel like someone is trying to push a sale on me. It's a thin line, no?
10:05 AM  Marina: I know of a winery in St. Helena that used to not give discounts.  I hope they do now, but I know for a time they did not.
10:05 AM  ScottR: Staff needs to identify core clients and engage those people = increased sales, word of mouth
10:05 AM  Kayla K: Tasting room associates sell wine they are in love with
10:05 AM  anabawines: we give staff 2 bottles of each wine at release
10:05 AM  TomGortonNVPOS: randy: can't disagree more. Yes there are cheesy sales people, but those aren't the good ones
10:05 AM  Afreveletti: your on the clock 24/7
10:05 AM  Nellie: agree
10:05 AM  Crickett: Mondavi would give us a case per quarter; I would take a bottle to each of my favorite restaurants and share it with the owner/bar manager
10:05 AM  Rutherford Team: It’s a tool - like too many consultants are...
10:05 AM  anabawines: good sales people help fill a need
10:05 AM  elgordo: Hospitality without sales is a waste of time.  The key is to be good at both...
10:05 AM  Kayla K: We can stop beating the proverbial social media horse. We get it.
10:05 AM  Carrie: Social media advances a brand
10:05 AM  Brian: Mondavi employee buy Corona with their allotment $
10:05 AM  Erin: social media will get people to your tasting room, but then your staff has to sell the wine
10:06 AM  ScottR: Good sales people ASK questions
10:06 AM  Kayla K: Social media ENGAGES the people who already buy your wine.
10:06 AM  anabawines: yes ScottR
10:06 AM  Rutherford Team: Social Media is best at selling top level management discussions.
10:06 AM  elgordo: Correct Kayla!
10:06 AM  Kayla K: marketing puts so much $$ in bring in in new customers, we need to focus on keeping the ones we have.
10:06 AM  TastingRoomBuzz: social media can be effective in moving people to your shopping cart
10:06 AM  WineClubsOnline: Being a good salesperson requires a special technique. I have been training in many industries for years on this. Great salespeople can be created.
10:06 AM  Evalen: Industry needs to invest in professionalizing tasting rooms - tools and people
10:06 AM  SVB_Lindsay: At the Napa Valley Vintner's Luxury Marketing Seminar, it was noted that a good sales person gets the client talking about the brand, not the other way around.
10:06 AM  Mike A: Social media = brand awareness as long as you get it right. Totally 2nd Ahin's statement.
10:06 AM  LindySez: exactly Lindsay!
10:07 AM  ScottR: Social media is great but can be to broad - need focused, targeting social media
10:07 AM  Kayla K: He's so right
10:07 AM  ChateauDPTwines: We love social media, absolutely agree it's a customer service channel. Have made so many great connections on social
10:07 AM  AViader: I agree Lindsay
10:07 AM  elgordo: Yup
10:07 AM  TastingRoomBuzz: Right, Scott
10:07 AM  WineClubsOnline: True Mike, but very important to have a great brand.
10:07 AM  Evalen: Also, Tasting rooms need sales and marketing plans and support
10:07 AM  ScottR: Or do it through a mobile app Kelly!
10:07 AM  Carl G: SVB Folks - can you make this transcript available?
10:08 AM  Kelly Kel SVB: @Brent, a follow-up email with the replay will be sent to you in a day or two.
10:07 AM  Spencer: With Facebook's new Gifting Service, the two markets do intersect. It does well for us!
10:08 AM  DannyFay: More important for a winery: Twitter or Facebook?
10:08 AM  Kayla K: Social Media get people to the shopping cart
10:08 AM  JJK: nice calling staff "resources"
10:08 AM  JT: Twitter
10:08 AM  ChateauDPTwines: We like Twitter, Facebook and Pinterest
10:08 AM  anabawines: Facebook
10:08 AM  ChateauDPTwines: and blogging obviously...
8 AM  ChateauDPTwines: We like Twitter, Facebook and Pinterest
10:08 AM  elgordo: Don't forget Cellar Tracker!
10:08 AM  Sofia Horvath: facebook=customer connections, twitter=industry connections (typically)
10:09 AM  JJK: again, what does this have to do with running a TR?
Editor note: The survey was about tasting room, wine club and direct. I note the title of the event was “successful tasting room.” Perhaps not a full description of the event. Sorry for any confusion.
10:09 AM  winemaps: Use social tools to manage your social wine channels.  @vintank a great resource!
10:09 AM  Kaia: I agree, let's get back to TR
10:09 AM  elgordo: Social can drive come Tr traffic
10:09 AM  Kayla K: Brian Baker- Do you thank the people who wrote positive reviews? As well as the negative reviews
10:09 AM  ShaunMcD: Great protocol by Ch. Monty!
10:09 AM  anabawines: Twitter better for journalists
10:09 AM  JT: People who come to our tasting room Tweet immediately, Check in with FB and post their pix on Instagram.
10:09 AM  JJK: lots of things can drive a TR but let’s talk about running a TR
10:09 AM  Kayla K: Paul Maybry is awesome. Love Vintank
10:10 AM  elgordo: Everyone should be on Vintank's free social monitoring service.  If you're not, DO IT NOW!
10:10 AM  Mike A: elgordo speaks the truth.
10:10 AM  DannyFay: @JT what winery are you with?
10:10 AM  Todd: How much attention should we be paying to Yelp/Trip Advisor reviews?
10:10 AM  asabaird: Love the VinTank service and Paul
10:10 AM  Kelly Kel SVB: If anyone has a question today please be sure to send us your email address so we can follow-up
10:10 AM  Jen: Can’t stand YELP
10:10 AM  JT: Rocca Family Vineyards
10:11 AM  ChateauDPTwines: TripAdvisor is key in France. Yelp not developed here at all
10:11 AM  Tres Sabores: Our Yelpers are not buyers
10:11 AM  Todd: Agrred Tres
10:11 AM  elgordo: Todd- Always interact with Yelp and TA, these people have influence over future visitors
10:11 AM  ChateauDPTwines: Foursquare is also important too
10:11 AM  Tsweeney: Same problem with Yelpers - not our demographic but we still work hard for good reviews so prevent blowback.
10:12 AM  Todd: Do you offer any 2 for 1 tastings for check-ins on yelp/four sqaure?  What’s the benefit?
10:12 AM  Taste: avid Yelp users know how to filter through the BS and whiners
10:12 AM  Tres Sabores: Same here Tsweeney
10:12 AM  Sara: not sure if I have to request it but just in case, I would like the transcript/video as well. sara@daouvineyards.com
10:13 AM  Devinewine: can you please send me the video/transcript kristi@wilsonartisanwines.com
10:13 AM  three: Please send the video/transcipt to info@threewinecompany.com
10:13 AM  anabawines: yes, would love transcript too - michelle@anabawines.com
10:13 AM  Tsweeney: Can we get transcript of the viewer chat
10:13 AM  LHolley: That's great. Transcripts sent to everyone as well?
10:14 AM  Sonoma Passport: Transcript/Video Please ASimpson@SonomaPassport.com
10:13 AM  Caitryn: Can you please send me the video/transcript to caitryn@ponziwines.com??  Thank you!
10:14 AM  Winegirl: Please send transcript to: cindy@guglielmowinery.com. I want to share with our Wine Club Manager. Thanks!
10:14 AM  Tsweeney: please send transcripts to tracy@corison.com
10:14 AM  ColbySmith: Please send transcript and slides to colby@conciergealliance.com Thanks.
10:14 AM  Erin: erin@raffaldini.com I would love a transcript as well
10:14 AM  ParadiseRidge: please send transcript to rene@prwinery.com
10:14 AM  smileyneil: These are great topics but there's not enough dialogue between wineries, storasge facilities and cutting down shipping costs
10:14 AM  MICAHXIII: video/transcript to micah@raffaldini.com
10:14 AM  jill: transcript/video to moonstonecellars@gmail.com  thanks
10:15 AM  ChristineWVV: Please send the video transcrip to christine.collier@wvv.com. Thank you.
10:15 AM  Kayla K: transcript to kkoroush@gmail.com
10:15 AM  Spencer: Can I get the Marketing Survey again please. spencerb@parducci.com
com
10:15 AM  ShaunMcD: inglenook1941@comcast.net as well. Thank you!
10:15 AM  Carla: pls send the transcript and slides to cbosco@bouchaine.com
10:15 AM  Erin Sagadin: Please send a video transcript to erin@marketvineyards.com
10:15 AM  Shonda: I would also like the transcript: skroll@chateaujulien.com
10:15 AM  WineClubsOnline: @Kala Please send video and chat transcript to sue@wineclubsonline.com
10:15 AM  Kaia: transcripts please kaia@staglinfamily.com
10:15 AM  ChateauDPTwines: transcript to darcy_dpt@yahoo.com please!
10:15 AM  Cante: to Cante@viader.com
10:15 AM  smileyneil: please send transcript to neil@fiftyfivedegrees.com
10:15 AM  Sue: transcript to sue@sgibsongroup.com please
10:15 AM  Tiffany: transcripts to tiffany@patzhall.com, please.
10:16 AM  orpheuswines: transcript to marc@orpheuswines.com please
10:16 AM  James: please send transcript to: james@stewartcellars.com
10:16 AM  Nathan: transcript/video please nchambers@tfewines.com
10:16 AM  Mike A: Transcript can be sent here too mike.anderson@boisset.com
10:16 AM  KimS: kim@shannonridge.com as well
10:16 AM  celeste: please send transcript to celeste.cooper@blackstallionwinery.com
10:16 AM  sbothof: please send transcript to sbothof@me.com
10:16 AM  ChateauDPTwines: would love a transcript of the chat as well
10:16 AM  wjcollins: share transcript with kit@laurenashtoncellars.com
10:16 AM  ken: please send transcript to ken@cruwineco.com
10:16 AM  Marisa: Transcript please rockysridgevineyard@earthlink.net
16 AM  ZachW: please send transcript, slides, video to: zwahle@duckhorn.com
10:16 AM  LauraSkiles: I would also like the video and chat transcript  send to lauraskiles@ymail.com
10:16 AM  Modus Operandi Cellars: video transcript to moduswines@me.com please
10:16 AM  ScottR: please send transcript to:  scott@rohe.net
10:16 AM  michelleberger: transcript please. michelle@inmanfamilywines.com
10:16 AM  Alysha: Alysha@VesperVineyards.com
10:17 AM  rod: please send transcript to rod@sokolblosser.com
10:17 AM  el jefe: please: jds@twistedoak.com
10:17 AM  crushbro: please send video to gerard@deldottovineyards.com
10:17 AM  JJK: jimmy@edictwines.com
10:17 AM  JenniferPagano: transcript please: jpagano@winemarketcouncil.com
10:17 AM  Aura: Please send transcript to abland@stfranciswinery.com
10:17 AM  smileyneil: could you also please send video neil@fiftyfivedegrees.com
10:17 AM  ScottR: please send transcript to:  srohe@sommeyay.com
10:17 AM  winemaps: https://www.facebook.com/chwine
10:18 AM  Rich: please send video Rich@turleywinecellars.com
10:18 AM  Dutch: plaese send slides transcript to scott@dutchhenry.com
10:18 AM  KTsims: please send transcript:  katie@kms-communications.com
10:18 AM  VinoVisitTeam: Transcript please - dan@vinovisit.com - Thank you!
10:18 AM  smileyneil: can you send the chat as well to neil@fiftyfivedegrees.com
10:18 AM  Raf: transcript to rafaelrocamora12@gmail.com too please!
10:18 AM  ColbySmith: I'd love to get a copy of this chat stream. I know I must be missing some good posts. Colby@conciergealliance.com
10:19 AM  jenmsmith: please send slides and transcrip to jmsmith@paraisovineyards.com
10:19 AM  mark: slides and transcripts to mark@williamsselyem.com
10:20 AM  annak: slides and transcripts to anna@tasteplaces.com
10:25 AM  Jimacct: send me a video choppy transmission as well
10:26 AM  Wine Pirate: please send video and transcript to info@winepirates.com
10:27 AM  Melissa: please send video and transcript to mschwartz@sparklingpointe.com
10:28 AM  Jimacct: please send video and transcript to jcaven@pbllp.com
10:28 AM  jenmsmith: please send video, slides and transcript to jmsmith@paraisovineyards.com
10:28 AM  Kory E: please send copy of presentation and video to kory.erickson@tweglobal.com.  This has been a great presentation
10:28 AM  MelissaMiller: please send video and transcript to melissa@somerstonwineco.com
10:29 AM  Shannon: please send transcript to shannon@therevel.com
10:29 AM  Todd: please email video to tkerlin@hallwines.com
10:30 AM  sfwineguy: please send the transcript/videos to lorin@gustavowine.com
10:30 AM  JerrySass: please send transcript to sasswinery@aol.com. Thanks!
10:32 AM  Crickett: please send the transcript/videos to crickett_nicole@hotmail.com
10:32 AM  dobbeswinery: please send link to video and slide deck: mfrancisco@dobbesfamilyestate.com
10:12 AM  Kelly Kel SVB: Video replays and the slide deck will be sent to everyone who registered in a follow-up email in a day or two.
10:12 AM  DannyFay: What are Brian's 5 tasting room metrics?
10:12 AM  George: contact me and I'll be happy to share.  George@montelena.com
10:12 AM  Tsweeney: twitter gets us the most buzz and press and Facebook seems to be where our current customers like to go to see what's happening at the Winery
10:12 AM  Jon Bjork: We could do KPI, topping and FB all at the same time
10:13 AM  Kayla K: I don't think enough is done on retention. That’s about 50% of why I haven’t signed up for a wine club yet
10:13 AM  ColbySmith: Curious. What are the stats for longevity of employees?
10:14 AM  Pietro: 2001 Franciscan Napa is peaking, and I’m not kidding
10:14 AM  Nathan: emails can be dangerous as it reminds them you're there and they often cxl
10:14 AM  Kayla K: Very few of the wines I buy. Those wine brands don't engage me first ever.
10:14 AM  SVB_Lindsay: @ColbySmith: I'll take note for next year's survey on employee turnover
10:14 AM  Pietro: sorry Franciscan
10:14 AM  Jon Bjork: Nathan, the whole point of the wine club is to remind them you're still there.
10:15 AM  ColbySmith: CANVAS is engaged with Sonoma State. We've provided a Hospitality scholarship.
10:15 AM  Kelly Kel SVB: Transcripts of the chat panel will be available
10:15 AM  Kayla K: You can ! You need to send out scholarship first! lol young people want to be a part of this industry the WI just doesn’t really recruit from there
10:16 AM  Kaia: We don't want hugs
10:16 AM  Karen: i think they have our emails already- that's how you were notified of the link for today.
10:16 AM  Kelly Kel SVB: We will be sure to send follow-up emails to all.
10:16 AM  Carrie: what was the name of the FB page just mentioned??
10:16 AM  Steve: stevelay@imageofwine.com would like transcript with PP slides.
10:16 AM  elgordo: Cameron hughes
10:16 AM  Carrie: thnx
10:17 AM  Kelly Kel SVB: If you are registered we have your email address to send follow-up emails to you, but if you have a specific question during the presentation please send your email address.
10:17 AM  elgordo: Umm I disagree, if you're on SM you better respond to everything!
10:18 AM  crushbro: wine clubs must contain hidden perks
10:18 AM  Brian: 4 wines isn't exactly Zappos
10:18 AM  Kaia: ? We all have different demographics, how do we get the right buyer for our price point in our TR?
10:18 AM  SVB_Lindsay: Don't forget to participate in the survey next year if you missed it this year! More participants=better data for the industry. Only survey participants get the full set of information and slides.
10:18 AM  Brian: how do we make more choice?
10:18 AM  jenmsmith: yelp is so expensive how do you feel about paying for it?
10:18 AM  Kayla K: Brian Baker- Customers are definitely overwhelmed by long wine lists
10:18 AM  ChateauDPTwines: only three of us are tweeting? http://www.twitter.com/chateaudptwines
10:18 AM  elgordo: Brain- Create multiple experiences
10:19 AM  Rich: Please send slides -Rich@turleywinecellars.com
10:19 AM  Jen: We have 2 - 3 greeters. The first greets upon arrival, the second as you enter tasting room and the third on the floor to assist
10:19 AM  Kayla K: Brian Baker- It would be great if that greeter was also handed a glass with a  taste in it so take with them while they're touring the grounds
10:19 AM  ColbySmith: I hear direct feedback and not enough greet!
10:19 AM  Kayla K: Brian baker- Self guided tours
10:20 AM  crushbro: every so often good idea to have principles in the tasting room
10:20 AM  Kaia: We do greet all guests and with a splash of Chardonnay - people love it.
10:20 AM  Kayla K: Our winery's goal is greet every person who comes in
10:20 AM  Brian: I would like to see a survey of secret shoppers aggregated
10:20 AM  ColbySmith: Which winery are you kayla?
10:20 AM  crushbro: always good idea to canvas the customer
10:20 AM  Kayla K: Our winery's goal is greet every person who comes in
10:20 AM  Brian: I would like to see a survey of secret shoppers aggregated
10:20 AM  Susie: having the winemaker cruise though periodically is a sure winner for us.
10:20 AM  Jen: How many wines are most tasting rooms pouring for customers?
10:20 AM  jenmsmith: how do you feel about paying for yelp, it's so expensive
10:20 AM  Kaia: We taste 5 wines
10:21 AM  Sara: 5 wines for us Jen
10:21 AM  Spencer: We give them four choices out or 20
10:21 AM  elgordo: Don't pay for yelp
10:21 AM  Kayla K: Brian Baker- Helping customers intimately to help them find what they need with increase their sale.
10:21 AM  Melissa: We taste 4 wines and waive our tasting fee with a 2 bottle purchase
10:21 AM  Erin: We taste 8.  If the guests purchase a case they get a discount and free tastings.
10:21 AM  Winegirl: We pour 7, then have a special pouring for Wine Club Members only.
10:21 AM  Nellie: 5 for us
10:21 AM  Jen: 8 for me now but going to 6 wines (selling more with a lower number, we use to pour 10)
10:21 AM  Shonda: we taste 5 wines.
10:21 AM  Kayla K: We do (6) 1/2 oz pours to taste more variety
10:21 AM  Matthew Regan: VGS Chateau Potelle pours 4 wines plus one surprise
10:22 AM  Pietro: we only ask for 3 average when visiting
10:21 AM  Todd: 7 and 8 pours/guest seems very high, how many ounces
10:22 AM  Kaia: We pour approx. 2 oz of each wine.
10:21 AM  John: Are tasting rooms a revenue source or marketing expense?
10:21 AM  Tres Sabores: what is the $ amount to spend to give back the fee? Also what are the mark-ups on the wines?
10:21 AM  crushbro: One photo for a customer with the winemaker is endless marketing
10:21 AM  Nellie: John, good Q
10:21 AM  Melissa: We rotate the wines we pour to make a different experience for our guests who visit multiple times throughout a season
10:21 AM  Don: We give them the glass, how to reimburse fee
10:21 AM  WINESofWA: Ali:  Which winery are you with?
10:21 AM  Steve: What are general tasting room views of busloads of people descending on a tasting room?  The motivation of these people may be to drink only and not buy.
10:22 AM  Melissa: Steve - our region on Long Island has a lot of trouble with busses and limos
10:22 AM  Sara: sw2013- depends on the day. Busy holiday/festival weekends, we take them up front
10:21 AM  anabawines: we reimburse with $50 purchase
10:21 AM  WINESofWA: Ali:  Which winery are you with?
10:22 AM  Todd: What should the average pour size per taste be?
10:22 AM  SW2013: do you collect tasting fee up front or just comp when the purchase?
10:22 AM  Susie: we waive with a 2 bottle purchase, comp industry and cellar club members
10:22 AM  JJK: a fee establishes value and of course that value continues as you wave or refund it. No one is in business to sell tasting fees
10:22 AM  ParadiseRidge: 1 ounce
10:22 AM  MelissaMiller: we pour four 2 oz tastes and comp one tasting with every 6 bottle purchase
10:22 AM  Tres Sabores: 1 oz, legal limit
10:23 AM  Sara: 3/4 ounce for us
10:22 AM  Nellie: What's the threshold for fee re-imbursement?
10:22 AM  Jen: we collect fees upfront
10:22 AM  Spencer: We reimburse with a two bottle purchase. Conversion to buy is yearly around 82%
10:22 AM  Todd: What is the average tasting room fee?
10:22 AM  Taste: what is the average size of a taste?
10:22 AM  Rutherford Team: Pandering...
10:22 AM  Kaia: We only waive fees for club sign-ups.
10:22 AM  Kayla K: Not always the wines- I've joined a WC because the price was great and the winery had ton of options. Too Good winery
10:22 AM  crushbro: what happens if the wine received is corked? flawed? is wine replaced?
10:23 AM  Tres Sabores: we replace coreked or flawed
10:23 AM  Kayla K: Oh I like that question.
10:23 AM  Tiffany: Always replace corked wines!
10:23 AM  Kaia: We replace any corked wines.
10:23 AM  Jen: @crushbro - We will replace the wine without question. Easy and low cost way to keep a customer happy
10:23 AM  Sara: we replace
10:23 AM  el jefe: 100% replace, no questions asked
10:23 AM  JCT: having business owners being present in the tasting room, when possible, is a powerful tool to boost conversions and engagement. How many wineries are leveraging this as a tool?
10:23 AM  Todd: tkerlin@hallwines
10:23 AM  MICAHXIII: i agree JCT!
10:23 AM  KTsims: Thanks, George.
10:23 AM  Kayla K: @ George- Your tasting room host Patrick is awesome
10:23 AM  George: :) nice to know!
10:23 AM  John: If TR is a revenue source, then you are forced to pay low wages. If a marketing expense, then you can justify more pay for better customer service.
10:24 AM  FirstCrush: Any opinions on giving away tasting glasses?  I know often times, once the wine I purchased is gone, I see a branded wine glass in my cupboard from a winery and its like "Oh I remember them?"
10:24 AM  Kaia: I agree John.
10:24 AM  Taste: our regional tasting room is revenue for us but marketing for the wineries we represent
10:24 AM  Susie: we replace too  Some customers try to take advantage but you can usually spot them.
10:24 AM  Rutherford Team: Comcast is also a Revenue builder...  They’re the best at it.  So what would that mean for a winery over time?
10:25 AM  SVB_Lindsay: @John: If you pay greater compensation to employees-hopefully sales will increase and the TR will remain a revenue source
10:25 AM  Winegirl: Does anyone do things differently (like non-refundable tasting fees) for groups over 10 and/or limo groups?
10:25 AM  Jen: We do not currently give the glass but considering it. The glasses get taken anyway...we lose thousands every year.
10:25 AM  elgordo: TR shouldn't be a standalone channel, there's too much crossover between TR, Clbu and eComm.  Payroll in TR helps boost sales across all channels.
10:25 AM  Wine Pirate: +They can only get away with the corked reason once or possibly twice
10:25 AM  winemaps: Which wineries offer a full hospitality experience around their wine with overnight stays?
10:25 AM  Susie: We no longer include glass with tasting fee.  Didn't seem to make a difference in tastings but sure did in profits.  I don't like being in the glass sales business.
10:25 AM  Kaia: We don't refund any tasting fees and especially not with larger groups.
10:26 AM  Evalen: Most bus tours are tourists not buyers
10:26 AM  TR: How do other tasting rooms handle groups?
10:26 AM  Jen: Kaia - We do not refund fees either. They pay for the experience. Groups are charged more actually
10:26 AM  crushbro: If the tasting room is a marketing tool, how do you make sure the story is correct? or presented right?
10:26 AM  Tres Sabores: Yes no large group comps! Charge in advance at full guest count
10:26 AM  Sara: winegirl- yes we charge that nonrefundable fee because they are paying for the space as we set them up away from the tasting room bar and assign a tr attendant to them. They are paying a site fee
10:26 AM  John: Linsdey: Then why so many wineries require permanent part time no benefits for TR staff?
10:26 AM  elgordo: cruchbro, training
10:26 AM  elgordo: lol
10:26 AM  elgordo: John-
10:26 AM  Taste: this webinar is great - please do more
10:27 AM  ColbySmith: Value for determining customer is vetting by the Concierges and Drivers AND referrals from other wineries. Immediate experience knowledge.
10:27 AM  elgordo: They're wrong
10:27 AM  MarkL: Please alse send link to today's presentation.  I was disconnected for about 5 minutes.  Also, would like sharing the vid with the owners
10:27 AM  BusteroftheDesert: I wonder if I have the only tasting room not affiliated with any one winery?
10:27 AM  Sara: taste- I agree!!
10:27 AM  Casey: video and trans to caseyz@bonnydoonvineyard.com
10:27 AM  Casey: thanks
10:27 AM  Linda: How do you promote phone sales?
10:27 AM  SVB_Lindsay: @John: Good question! Perhaps these wineries are too small to employ full time TR staff with full benefits?
10:27 AM  Susie: Some of our best tr staff is part time....they're mostly there for the wine discounts!
10:27 AM  Taste: the side bar by everyone is also great
10:27 AM  crushbro: training is important but does this involve hands on training? walking thru the vineyard?  participating in crush experience?
10:27 AM  Alysha: @Busterofthedesert We are working on opening one. Would love to chat
10:27 AM  Pietro: blood and wine?
10:27 AM  Kelly Kel SVB: The video replay, slide deck and transcript of the questions will be sent to all registrants in a follow-up email in a day or two.
10:28 AM  Katie: @taste very much agree. Would love to see more!
10:28 AM  ChrisB: great
10:28 AM  Wine Pirate: Thanks Kelly
10:28 AM  LindySez: crushbro, whatever it takes to get them to understand your story.
10:28 AM  Kelly Kel SVB: #svbwine
10:28 AM  Susie: im sure it was great with audio.  Can't wait to HEAR it.
10:28 AM  ChrisB: Lock the doors?
10:28 AM  Taste: there's obviously a need for more of these types of presentations
10:28 AM  ChrisB: :)
10:29 AM  crushbro: so being at the crush site occurs?
10:29 AM  jeangray: Brilliant idea, Chris!
10:29 AM  Dan: movie stars are cheap! so true
10:29 AM  Jen: We greet busses in our circular drive, assess their "state" (drunk = stay on bus and no service), then explain what they can expect and user them to a private area so they do not inetrupt otehrs
10:29 AM  Kaia: We only take large groups that are sent to us from our handful of hotel/dmc partners.  They are already pre-qualified but of course, no guarantee.
10:29 AM  Jen: (usher)
10:29 AM  Sofia Horvath: Seems like some good topics for a #twitterparty...
10:30 AM  ColbySmith: Right on Kaia, colleague vetting.
10:30 AM  Kayla K: I love twitter parties!
10:30 AM  Kelly Kel SVB: #svbwine
10:30 AM  Melissa: We require groups to fill out a reservation form, pick a tasting package, and provide a credit card
10:30 AM  Kaia: Thank you Colby.
10:30 AM  Jen: Our groups that come by reservation are send a copy of our policies so there are hopefully no issues when they arrive. It has helped stop the problems
10:30 AM  Thomas_Crouch: VinNOW supports database segmentation and offers CRM functionality for internal telesales
10:30 AM  Sofia Horvath: Good to know, Jen. Sounds reasonable.
10:30 AM  Kaia: How many of you "compensate" your favorite hotel concierges and drivers and if so, how often?
10:31 AM  Susie: we have a love / hate relationship with groups....some are fantastic and interested in the wines....many are bachelorette parties just getting loaded.  We accommodate both.
10:31 AM  Dan: anything for tasting room/pos that works with QB online/Salesforce CRM?
10:31 AM  crushbro: you tube is an exciting tool for the tasting room..tasting experience, etc..
10:31 AM  Jen: Kaia - We invite them to experience our winery but never compensate with $, just experience.
10:31 AM  ColbySmith: Bringing in Event & Corporate meeting planners at Trade Show June 18. Do you think events lead to more direct business?
10:31 AM  Acquiesce: what is a good way to compensate the neighboring winery that sends lots our way?
10:31 AM  Michele: We try and do a hospitality party with hotel front desk and servers every year.  Also offer free tastings to servers.
10:31 AM  crushbro: yes
10:31 AM  ScottR: SommeYay - www.sommeyay.com  Direct engagement from winery to club members on their mobile device!  Sell wine on the app (POS), join clubs, respond to events - engage after they leave the tasting room
10:31 AM  Afreveletti: I do 40% of my sales by telephone
10:31 AM  cindy: bloyal integrates with quickbooks
10:32 AM  crushbro: telephone is old fashion
Thank you’s
10:31 AM  ChrisB: Thank you
10:31 AM  Jon Bjork: Great job again, SVB/WBM!
10:31 AM  SVB_Lindsay: We are running out of time, but will address all remaining questions via email.
10:31 AM  Acquiesce: Thanks, SVB
10:31 AM  asabaird: Thanks for a great conversation
10:32 AM  JCT: Great questions ColbySmith! would be curious to hear answers.
10:32 AM  SVB_Lindsay: Thanks for your participation everyone!
10:32 AM  DannyFay: That was awesome! Thanks
10:32 AM  Marina: Thanks SVB!
10:32 AM  APCharlie: Thank you!
10:32 AM  Casey: Thanks so much! Need more of these!
10:32 AM  ScottR: Great presentation - Thanks!
10:32 AM  Erin: Really great insight.  Thank you.  Please offer more discussions!
10:32 AM  januarythcw: Thank you!
10:32 AM  Deborah Brenner: Thank you!!
10:32 AM  timnord: super valuable use of time, thanks SVB!
10:32 AM  ColbySmith: Again, hope we can get the chat feed, too.
10:32 AM  LHolley: AWESOME!! Thank You All
10:32 AM  elgordo: Wrong cruchbro!
10:32 AM  Kelly Kel SVB: Thank you everyone!
10:32 AM  TR: thank you SVB
10:32 AM  Scott: Thanks much!!
10:32 AM  TastingRoomBuzz: Thank you for wonderful presentation. Happy to continue conversation on Twitter at @tastingroombuzz
10:32 AM  Todd: This was great, thank you!!
10:32 AM  pattersd1: Thnak you!
10:32 AM  juliana: thank for the great presentation. I have a lot of interesting take aways.
10:32 AM  Crickett: Thanks so much!
10:32 AM  Heather: Can i get the video? hlane@ninerwine.com
10:32 AM  Pietro: Ciao! Amo Foss Vly
10:32 AM  Kaia: Thanks for putting it together.  Next time let’s have a panel member or two that's actually working in the TR/hospitality positions.
10:32 AM  Kayla K: Yes thank you!
10:32 AM  Jen: Thanks! Great presentation and discussion!
10:32 AM  Rich: Excellent - seminar!
10:32 AM  LHolley: info@texaswineandtrail.com Transcript
10:32 AM  Dan: thank you!
10:32 AM  Katie: Thank you from Arrowood Winery in Sonoma!
10:32 AM  elgordo: Well done!
10:32 AM  ShaunMcD: Fantastic. Let’s do it again.
10:32 AM  Kat: really enjoyed this.  thanks
10:32 AM  Crickett: More of these events please!
10:32 AM  Sofia Horvath: Thanks! Good discussion!
10:32 AM  ColbySmith: Quality presentation thank you.
10:32 AM  PinotGrower: Great conversation, many thanks to WBM and SVB, plus all the panelists!  Really useful.
10:32 AM  dobbeswinery: great webinar filled with very interesting facts and numbers
10:32 AM  RachelatSullivan: Thank you! Much appreciated.
10:32 AM  Kaia: Great seminar. Thank you.
10:32 AM  jill: will this stream be available?
10:32 AM  LindySez: bye all...
10:32 AM  Sara: Thank you! Glad I could be here today!
10:32 AM  Ivy: thanks!
10:32 AM  jenmsmith: thank you!
10:32 AM  ChrisB: Kayla K - Heringer
10:32 AM  Susie: agree with Kaila....you need a tasting room worker in there.
10:32 AM  Sue: THank you ... very well done and appreciated
10:32 AM  Lauren: Lauren Barnes says Cheers and thanks!
10:32 AM  Spiotti: Nice job!!
10:32 AM  Kayla K: Great panel. Fascinating to hear from Brian Baker
10:33 AM  Taste: we need a winery chat room
10:33 AM  wjcollins: Very informative.  Thank you.
10:33 AM  Kayla K: @chrisB- who are you !
10:33 AM  EconErf: Will the chat also be available, if so please send. Thanks, Steve at Dickinson.
10:33 AM  Sue: agree with winery chat room...
10:33 AM  Fayette: Well done, thank you!
10:33 AM  winemaps: Thank You!  from WineMaps.com
10:33 AM  WineClubsOnline: Have a great day everybody!
10:33 AM  Linda: Chat topics should be more integrated into presentation, in the future.
10:33 AM  Jen: Cheers from Breaux Vineyards in VA!
10:33 AM  barbarapl: Thank you - wish it was longer! Barbara
10:33 AM  winemaker: Thanks for event - and Good point, Colby, about chat notes, too.  :)
10:34 AM  Kayla K: @ChrisB- How were you able to find that out so fast? Props on the expert level speed stalking
10:34 AM  WINESofWA: Drink Wine & Learn Something, It's Like College All Over Again!
10:35 AM  winemaker: Hope the study slide data will have break out info by region and case sales size. Thanks!
10:35 AM  Ali: @Wines0fWa - good one!