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July 29, 2008 | WineDirect Admin

How effective is your distribution?

Recently, I was asking a luxury brand winery about their distribution in key states. The winery pulled up their order history with a various distributors and noticed the impressive dollar amount that was sold in a key market place we were inquiring about. The winery replied; I have great distribution. With a closer look, the owner noticed that the distributor had not taken their allocation this year. After I left, he phoned the distributor and learned that only a small percentage had actually been sold of the PREVIOUS allocation. In fact, the distributor went into detail about the economy, they needed sample bottles and extra enticements to help push the wine and possible discounts applied.

The next phone call I received from the owner, was “let’s talk about your direct to trade program.” The particular state is a top wine consumtion state and the owner learned that he was only in very few locations and not in the ”on premise” locations he had been promised. There is a difference between distribution and effective distribution and it’s time wineries pose the questions and take more control. I am not suggesting that all distributors are not effective; however, at the very least, wineries need to examine the options that are now available.

The North Bay Business Journal had this article yesterday and it spoke well to my recent experience and Inertia’s direct to trade offering; here is a portion of the article to share:

Napa-based Inertia, which has developed a system for automating order handling and regulatory compliance through the three-tier system, now is more actively promoting its program for direct-to-trade shipping, commonly called self-distribution, to a dozen U.S. markets with seven pending, according to Kristi Taaffe, vice president of marketing.

Previously, Inertia offered wineries that use its REThink system for direct-to-consumer shipping the ability to ship wine directly to trade accounts that place orders online, starting with New York in December 2006. Later, the company invited certain wineries to participate.

Now, Inertia has bolstered its salesforce to promote automated self-distribution.

Currently, Inertia offers direct-to-trade shipments to Arizona, California, Connecticut, the District of Columbia, Florida, Illinois, New York, Ohio, Oregon, Vermont, Washington and Wyoming.

Jul 29, 2008 at 10:11 AM

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July 28, 2008 | Matthew Mann

Good Things Happen When You Play By The Rules

Looking through the Family Winemakers newsletter recently I found a very interesting article on the positive results that can accrue when wineries play by the direct shipping rules. Here is the brief but important text:

Florida Direct Sales Solid
“Recent figures released by the Florida Department of Business and Professional Regulations show that direct-to-consumer sales remains strong. Florida has been open to direct shipping without permit for 2.5 years. In that time the state has collected $704,561 in excise tax from 867 individual wineries. As context it should be remembered that there is no permit required, no quantity limit and there have been no reportsof illegal access by minors. The monthly sales trend continues to nudge upward and it appears that roughly 450 Floridians order wine monthly.”
Source: Family Winemakers of California Friday Wine Chronicle, July 25, 2008

This is what I argue all the time – wineries play fair and play by the rules. Wineries will follow the rules, pay taxes and file reports if states would just give them reasonable rules by which to live. The court injunction in Florida has resulted in minimal rules and oversight, yet this article demonstrates that wineries will pay the excise tax due and not sell to minors even without onerous rules that some states put in place to prevent the feared abuse of an uncontrolled market. The rules are really designed to restrict access. The wine industry as whole abiding by a reasonable set of rules will put the lie to such fears. The result will be more open states and consumer access. Wineries want to be responsible citizens and have access to responsible consumers. The results in Florida are a perfect example of what can happen when given the chance to prove it. Good things happen for everyone - the consumer, the winery, and the state, when you play by the rules.

Jul 28, 2008 at 10:20 AM

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July 28, 2008 | WineDirect Admin

Going, Going, Going…Gone…Green Part 2

Kiz Dodds posted an article about sustainable farming earlier this month, and we’ve also had other blogs on similar subjects before. As our winery partnerships grow, we continue to meet more and more of wineries going green or greener. Who doesn’t want to save Mother Earth?!

But going green isn’t just limited to the vineyards and the grapes. It can happen anywhere. You can help the cause by driving a hybrid car to work every day. You can reduce our oil dependency by utilizing solar and wind power for your energy consumption. You can even save our planet by using recycled and green products as part of your business. And having said that, here are just a few of the many businesses out there trying to help others get green(er):

Greenerprinter
www.greenerprinter.com
Based in Berkeley, CA, you can have all of your collaterals, business cards, postcards, etc printed on recycled paper using soy and vegetable based ink in their 100% wind-powered plant.

The Green Office
www.thegreenoffice.com
Not only do they sell green office supplies from paper to furniture, they also have Webinards to help guide you go green.

Bay Area Green Business Program
www.greenbiz.ca.gov
Registered green businesses broken down by county and services. You can hire a green construction company, or you can have a green bakery cater your next event.

These are just a few examples. If you put on the thinking cap and do the research, I have no doubt that every part of a winery’s operation can be green. Every little bit helps and everything counts. And don’t forget to recycle!!!

Jul 28, 2008 at 10:16 AM

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July 27, 2008 | WineDirect Admin

A sad day for Napa

If you do not know it, we are the next generation of American wine professionals and we still walk among giants. These pillars of our wine community have built each region from nothing to world renown wine growing areas. Mondavi, Phelps, Seghesio, Parducci, Lohr, Barrett - I can go on and on. Many of these great men, or the men that helped build their empires, still walk among us. They give us guidance, counsel and prepare to pass the torch to our generation. Unfortunately these great men are also passing. This year marked the loss of two of my greatest heroes - Robert Mondavi and just this weekend - Tom Shelton. For those who do not know Tom, he was the President of Joseph Phelps Vineyards for 13 years. As a 16 year wine veteran, Tom has been a cornerstone of heroism and a man that championed Napa Valley and the entire wine industry. He was the head of the NVVA for years and I remember his bravery as he tirelessly spoke openly about consumer direct despite running a brand that was very much in wholesale distribution. He was an incredible person and everyone I have ever spoken to held him in the highest regard. Again, I consider myself lucky to walk among these titans who still disseminate knowledge with such kindness. In the last four years running Inertia I had called Tom for advice six times and every single one, without question, he would accommodate my schedule and give me his time to help guide our company and my future. I owe him an incredible debt of gratitude for his guidance and kindness to me, our company and our industry. His loss this weekend leaves another gaping hole in our industry and I plan to take a moment to spend more time with the remaining legends that have built the foundation to the American wine industry and whom we all owe our thanks.

Jul 27, 2008 at 10:07 AM

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July 17, 2008 | WineDirect Admin

Winery Blogging: A Second Look

At this year’s Inertia symposium I moderated a session on web site design in which we talked about the wonders of social networking and how it might benefit wineries. Facebook, blogging, twitter: we invoked these words in praise and wonder. But just two weeks ago our own Carole Loomis posted an article, So You Think You Want To Blog starting with the advice, “Think Again”. Two years ago Paul Mabray posted Wineries - to blog or not to blog - NOT whose title is self explanatory. I myself have never before encouraged wineries to blog, advising that blogging is a distraction from more important marketing efforts. So why was I bullish on blogging last week?

First of all, I blame Gary Vaynerchuk (pictured) of Wine Library TV. He delivered an inspiring talk at our symposium shaming the audience for ignoring blogs and social networking and saying that every winery had an obligation to blog or see their business go the way of the dinosaur. He exhorted wineries to stop whining about being defined by reviewers and the press and start defining themselves by expressing their own brand online through blogs and social networks. Gary’s persuasive talk had a lot to do with my attitude toward blogging all day, and has stayed with me since then.

Also, times have changed since Paul posted his warnings about blogging two years ago. Facebook is a multi-billion dollar business and has become a primary communication platform for many people. Barack Obama is the first serious presidential candidate to be able to turn down public financing largely because of his success raising funds online with the help of political bloggers. Bloggers have caught up to print and broadcast journalists as sources of news, analysis and opinion. Vaynerchuk has become a powerful force in the wine world thanks almost entirely to his online presence in video blogging and social networking. This blog has had some success in connecting Inertia to the larger wine community. The ways in which we connect to information and each other are more and more tied to networking services on the web.

So should wineries hop on the bandwagon? For the first time I now say: yes. But before you all go signing up for blogger accounts I have some words of advice on how to get started.

Start reading blogs: You wouldn’t sit down to write a novel without ever cracking a book. Read as many blogs as you can and get a feel for the craft of blogging. There may even be blogs unrelated to wine that you can learn from.
Be Promiscuous: Now that you’re regularly reading a bunch of blogs, join the conversation. Leave comments stating your point of view. Don’t explicitly promote yourself or your business - you won’t make friends by getting a reputation as a spammer. Instead use this opportunity to get engaged with the community and start finding your online “voice”.
Get Social: There’s a bunch of wine related groups on Facebook, as well as the Open Wine Consortium, which let’s you post blog articles, list your events and engage in community forums. One of the main benefits of blogging is community building and social networks give you the opportunity to do this with much less overhead than a blog you have to maintain yourself.
Do some research: One of the best things about the web is that there is so much information out there about the web. Problogger, Blog Herald and Copy Blogger are good places to find information on blogging and to get a sense of the issues that bloggers deal with.

Follow these steps and you’ll be engaging potential customers, creating a brand around your online presence and joining a growing community of wine consumers and producers and you haven’t even got a blog yet. When you’re ready to take it to the next level you’ll have to choose a platform, come up with a site design, get a domain and then put in the hours actually writing content day after day, all while keeping the rest of your business going. Yes, it’s going to require a bigger investment of time than emailing your current customer base or updating your website content every quarter and you’re not going to be able to let go of those old responsibilities either. Perhaps my point of view isn’t that different from that stated by Carole and Paul in their posts on blogging. They have a valid point: given the colossal effort involved, why bother blogging? All I’m saying is: when blogging gives you unprecedented power to connect with a growing audience on your own terms, why not?

Have questions on winery blogging issues? Let me know in the comments and I’ll follow up on this topic in the future.

Jul 17, 2008 at 10:38 AM

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July 15, 2008 | WineDirect Admin

A Successful 5th Annual Symposium!

This past Friday we hosted our annual Direct Symposium at COPIA in downtown Napa. This was our 5th year hosting the event, and the turnout was strong, with an energetic and engaging list of speakers on the agenda.

Our theme for this years’ Symposium was Innovations for Today’s Wine Marketplace. Ted Jansen, Inertia’s President & CEO, opened up the day with a thought-provoking talk on the concept of “Accidental Innovation”.

Following Ted was Gary Vaynerchuk, of WineLibraryTV fame. For those unfamiliar with Gary and his energetic style, visit his site… you’re sure to be entertained!

Breakout sessions followed the keynotes – and this year we tried something a little different. We asked attendees to vote on their topic of interest. Based on those results, we lined up the following breakout sessions and speakers:

Direct Shipping Compliance
Speakers Matt Mann, Mike Brown and Sheri Hebbeln of Inertia took the audience through the basics of compliance management and how a topic which appears on the surface to be overly complex and confusing, can actually be simple; especially with the right tools to help manage. Compliance is a necessary endeavor for anyone engaged in Direct Shipping in the U.S.; Inertia’s FREE REThink Compliance tool was designed to provide a solution to help ease the burden of managing a winery’s compliance needs. The audience was walked through REthink Compliance, and lots of conversation was sparked.

Website Merchandising
Inertia’s Carole Loomis and Angela Sanchez led a session on ways to manage and optimize a website for greatest sales. With this years’ holiday season just around the corner, they led participants in a discussion on preparing for OND (October November December).

Marketing Through Online Social Networks
One of the more popular sessions was led by Joel Vincent (Open Wine Constortium) and Gary Vaynerchuk (WineLibraryTV). Paul Mabray sat in on the session, as well, during an extensive question & answer period. The audience – and speakers! – were in no rush to head out for the lunch break, diving into questions on everything from how to engage in social media, through to whether or not there is a place for PR management in the social space.

Selling Direct to Trade
Andrea Johnston of Inertia, moderated a session on the nuances of selling direct to the trade across the U.S. A line up of panelists contributed input from various perspectives; John Hinman, from Hinman & Carmichael, Gillett Johnson, with International Vines, Inc., Cristin “Moxy” Castro from Impressa, and Mitch Schwartz, VP of Sales for Inertia. Conversations touched on everything from how best to engage with, and sell to, the trade, to leveraging Inertia’s Direct-to-Trade program to legally and effectively open new markets and engage with new customers.

Wine Blogging
Tom Wark, of Fermentation, Wark Communications and Specialty Wine Retailers fame, led a very popular session on Wine Blogging. On the heels of the morning session in which Gary V. expounded on the need for all attendees to get into the blogging habit, lots of attendees packed into this session to get more information on how and why. Panelists included Mike Duffy, of the Winery Website Report, Julie Ann Kodmur and Deb Harkness, of Good Wine Under $20.

Website Design
Four speakers brought perspectives on website design to their audience; Ben Chinn of Inertia, Aaron Rutledge & Tom Ajello of POKE/NY, and Dom Moreci of Plumbline Studios. Attendees learned how to design their websites for best user experience, and ultimately the greatest sales.

Finally, John Hinman wrapped up the day with his Keynote speech on how a dynamic wine marketplace in which consolidation is occurring in nearly all aspects of our industry, is creating a snowball effect for which it’s time to decide whether you batten down or ride the wave.

A special thank you to all of our sponsors:
Platinum Sponsors: Wine Tasting Network & Copper Peak Logistics.
Gold Sponsor: Card in the Box
Silver Sponsors: Wark Communications, Open Wine Consortium, Plug n’ Pay, POS Resources, & Payment Logistics, LLC

Thank you as well to all those who attended. Your participation and engagement in lively conversation with the speakers was appreciated by all. We look forward to seeing you all again next year – in the meantime, Inertia is continuing to expand on the workshops and training sessions that we hold throughout the year. If there are topics you are most interested in discussing, or speakers you’re interested in hearing from, let us know. Contact us at marketing@inertiabev.com.

Cheers!

Jul 15, 2008 at 10:26 AM

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July 14, 2008 | WineDirect Admin

Aligning Your Technology Stars: Lessons from Astronomy

At Inertia we believe that we’ve built the most complete online solution for selling direct to the consumer (and to the trade)—and we’re constantly dreaming up new ideas to enhance that solution even further. We’ve been busy building the next generation of our software platform, and so this is an exciting time for our company and its future.

However, as good as our solution is (and will continue to be in the future) we recognize that the typical winery has employed a variety of other technologies to help them run their business. These include solutions for vineyard, production and warehouse management, tasting room point of sale, and accounting/financial reporting, among others. Throw in the need to manage a wine club, perform state compliance, and send order ship notices to a third party logistics company (like WTN or Copper Peak Logistics) or a common shipping carrier (like FedEx or UPS), and you have a complicated web of data and processes. Each system has its own set of data and operational processes to manage.

Given the complexities of the individual systems, and the underlying data required to support them, many wineries are forced to resort to systems integrations patched together by the various software vendors—or even worse, manual processes to move the data from one system to the other. It’s quite a dilemma for most wineries, but it’s something Inertia has dedicated itself to helping our clients manage. My job is to live and breathe integration—to facilitate connecting our core systems with the technology of as many other partners as possible. Our goal is to reduce the burden wineries face in managing their technology—to allow them to focus more time on their core business—making and selling wine.

The dilemma of technology integration reminds me of something I’ve recently encountered in a hobby of mine, astronomy. While I’ve owned telescopes for many years, all of my experience has been in visual astronomy—out under the stars, looking through the eyepiece of the telescope. Until recently, taking pictures through a telescope was a difficult and daunting task, often requiring years of experience and dedication to produce acceptable results. The introduction of digital cameras (and CCD cameras specially designed for astronomy) has changed all that. Now, fantastic results can be obtained more quickly, and with a less steep learning curve.

My journey down the road to astrophotography began when I started renting telescope time via a network of remotely operated telescopes called Global Rent a Scope (GRAS), www.global-rent-a-scope.com. These telescopes, housed in remote desert locations in New Mexico, Israel, and Australia, are controlled completely via the Internet. This is very similar to the process professional astronomers use to control the world’s most powerful telescopes, like the University of California’s Keck Observatory in Hawaii, or the Hubble Space Telescope.

It’s simple. Buy telescope time with your credit card, select the appropriate telescope, choose the celestial object you want to image, provide parameters on the length and types of exposures—and poof, within a few minutes you have a series of raw images you can turn into a beautiful photograph. It’s amazing. Specialized software, like Photoshop, is required to process the raw images—but the techniques for doing that are within reach of the amateur astronomer. And despite their relatively small size, valuable science can be performed with these telescopes, and some ambitious amateurs are assisting professional astronomers with their projects. The most obvious example is searching for NEO’s (near earth objects) which one day might collide with the earth.

After using the GRAS system for awhile I was completely hooked. Thinking it would be more fun to do my own CCD imaging, I quickly decided to buy the equipment necessary to do it in my own backyard. It’s certainly been an adventure. While I recognized this going in, I quickly encountered first-hand the complexities of the entire process that the GRAS system had hidden from the end-user. Those complexities are many, including pointing a telescope at a very small patch of sky, focusing the CCD camera (which is much more sensitive than the human eye), accurately tracking the celestial object for minutes (or hours) as the earth rotates, managing an array of colored filters, dealing with a mess of wires and cables, etc. Whew!

The folks at GRAS have done what we at Inertia are striving to help our clients do—reduce the complexities of managing an interconnected set of technologies. They have stitched together into a seamless interface an amazing array of astronomical hardware and software. The “manual” processes that I must do now with my own CCD imaging rig, e.g. pointing the telescope, focusing the camera, etc, are akin to those manual business processes that many wineries now must do to operate their own array of systems.

My own personal goal is to help Inertia build a technology infrastructure that can help hide the complexities of the needed system integration from the winery—and to forge strong and cooperative relationships with other like-minded companies. We know that the wine industry in general and our own clients specifically, have been asking for solutions to connect their systems, and believe me, Inertia is listening!

Jul 14, 2008 at 10:44 AM

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July 9, 2008 | WineDirect Admin

Going, Going, Going…..Gone….Green

Ah yes, high oil prices, global warming, chemical waste, non-recycled plastics, pollution, pesticides and herbicides…

Amid current environmental impacts affecting our surroundings, there seems to be a lot of buzz about ‘Going Green - Staying Green’, and how it can benefit Mother Earth. Sustainable farming, renewable energy, alternative fuel sources, recycling, organically produced and eco-friendly products - these are all contributing factors toward solutions for “Saving Mother Earth”.

Therefore, with an increase use of harmful pesticides in our environment, it is not surprising to hear that more people are buying organic. The OTA (Organic Trade Association) reported in an online article that in 2002, 39% of the U.S. population uses organic products.

Well, a number of wineries and vineyards are also cognizant of the environmental impacts and are getting back to basics. They are engaging in biodynamic programs and producing organically grown grapes to fill a niche in a growing market of supply and demand for Organic Wines.

What is Organic Farming??

Wikipedia’s Definition: Organic farming is a form of agriculture that relies on crop rotation, green manure, compost, biological pest control, and mechanical cultivation to maintain soil productivity and control pests, excluding or strictly limiting the use of synthetic fertilizers and synthetic pesticides, plant growth regulators, livestock feed additives, and genetically modified organisms.

What is Organic Wine??

USDA of a National Organic Program: An organic wine is now defined as “a wine made from organically grown grapes and without any added sulfites”.

If you’re interested in tasting or purchasing Organic Wines, listed below are some of our clients who produce such wines:

BARRA (Mendocino)
BONTERRA VINEYARDS (Ukiah)
FETZER VINEYARDS (Hopland)
GIRASOLE VINEYARDS (Redwood Valley)
JERIKO ESTATE (Hopland)
MEDLOCK AMES (Healdsburg)

In addition, why not treat your self to a “Green Wine Country Tour”, check out the following companies - they both use vehicles powered by biodiesel fuel:

Incredible Adventures
Sustainable Vine Wine Tours

I believe we should all do our part and contribute where we can to help protect our environment. I believe we can all make a difference. Maybe that’s why I drive a hybrid, I recycle, I buy organic - and I’m conscious about what we put into our oceans and our dirt.

Go Green - Stay Green and play your part!

Jul 9, 2008 at 10:49 AM

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July 8, 2008 | WineDirect Admin

Direct Sales and Golf, what??

Yup, you betcha! Here’s the deal, if you’re learning to play golf, have played in the past, or play regularly, you’ll understand. Maybe! Recall how frustrating the game can be? Not to mention humbling? How inconsistent your swing is? Or, my favorite, you “think” from time to time that you’ve figured it out because you shot at or below your handicap. And then, the very next time out, you shoot 20 strokes worse!! Yeah, you get it. Sorry for the bad memories!

Now how about those direct wine sales of yours, great brand, good purple, and little or no direct sales. Hmmm, you try and try, sometimes too hard, just like your golf swing. You thought you had all the pieces in place. You try harder and it gets worse right? Back in my college baseball days, one of our coaches had a little saying, he’d say “Try easier”!

Well, let’s see, do we try easier, work smarter, do we keep our head down longer? I’d say we try and do all the above. It has to do with the approach, attention to detail, proper equipment and most of all, consistency! Like in golf you have equipment or “tools” available to sell wine direct online. The equipment you use in golf can make or break your swing, or at least your swing potential and the tools or equipment you use to sell wine direct can also make or break your potential!

At Inertia we Humbly recommend a custom (club) fitting to The ReThink Engine, your very own tool box full of “Best Practice” gems to help increase your direct sales online. Yeah, that was a plug, but I am part of the sales team after all!

No practice and your swing will be inconsistent, and you can expect poor scores. Same for Direct Sales. Poor setup and a weak foundation, and your sales will be inconsistent and possibly nonexistent.

On the golf side it’s your grip, your stance and your setup to the ball. Then, it’s a smooth take away and backswing, a nice transition and a smooth downswing through impact. For Direct sales it’s the same, your grip on the reality of the industry, your stance on how you’d like to manage your Direct Sales, and then your setup to help create more Direct Sales. And remember, all of this requires the proper tools, right? For reference it’s tod@inertiabev.com.

Selling wine direct is like when you first learn to play golf. The biggest mistake new golfers make is not keeping their head down, they tend to look up and see where the ball has gone before they hit it. When wineries first start selling wine direct they have the same problem. They want to see how much wine they’ve sold, before they actually build the foundation, remember grip, stance and setup? Later, as a golfer develops, he/she tends to focus too more on their score, and not on the swing. If you concentrate on making a good swing every time you strike the ball, the good scores will come.

By the way, if you happen to be a golfer and also have an interest in our help with your Direct Sales, feel free to sign up for our annual symposium, party and golf tournament. It’s coming soon, this Friday is the symposium and party at Copia and Saturday, at the Chardonnay Golf Club is when we “grip em and rip em”! Interested? Go here rsvp@inertiabev.com and let us know. I hope to see you there!

Happy Direct Selling and “Keep em on the short grass”!

Jul 8, 2008 at 11:04 AM

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July 7, 2008 | WineDirect Admin

Repeat Buyers and the Importance of your Trade Database

Everyone knows that the key to building a successful online marketing initiative is building a good database. The more contacts you have in your database the better, since these are the people who will continue to receive information from you on new wines or any special promotions. The people who know and enjoy your product will repeatedly purchase your wines, and will become your best customers. These repeat buyers are the cheapest to market to, and the easiest to convert. This is why it is always important to maintain customer contact and reach out to recent buyers on a personal basis to make sure you continue to nurture that relationship.
As we ramp up our Direct-to-Trade platform, we are finding that the same mentality holds true for trade accounts. A few weeks ago, Andrea spoke about the importance of building and segmenting your trade database on the REthink blog. By harvesting business cards from your tasting room staff or reviewing depletion lists to see what accounts have purchased in the past you are slowly building a list of reliable trade accounts that have tasted or purchased your wine. You should segment these by type of account, level of relationship, and what wines they purchased.
By using your DTT channel to sell wines direct to these accounts; you are enabling your winery to better build these direct relationships with the trade, which is what will allow you to have the personal touch you have with all of your consumers. So what are the first steps to make sure your trade accounts become repeat buyers?

Make sure all orders ship quickly and on time to trade accounts
Include materials that are directed towards members of the trade such as shelf talkers and detailed tasting notes
Always follow up with the account to make sure the wines arrived safely, this can be as simple as a short phone call made shortly after the wines are sent
Note what wines accounts purchase and buying patterns for follow up efforts

All of these simple steps will help you maintain a relationship with trade accounts that will encourage them to continue to purchase your wines. And remember, repeat buyers are easy targets so the better the relationships you have with your accounts in your trade database, the more sales you will see come through your direct channel.

Jul 7, 2008 at 11:07 AM

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