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For the latest in Direct-to-Consumer sales.  Featuring posts on compliance, direct sales tips and trends in the wine industry.

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WineDirect Admin
 
July 30, 2009 | WineDirect Admin

Exciting Times Ahead

As you’ve likely heard, Inertia Beverage Group acquired the assets of New Vine on Monday, July 27th, in a public auction process. While there was a lot of media speculation and commentary leading up to the auction, I‘d like to share what we believe Inertia’s acquisition of the New Vine assets means for our clients, New Vine clients, Inertia, and the wine industry overall.

First, this acquisition means that all New Vine services will remain in place, up and running for everyone who is utilizing its logistics, fulfillment, and compliance services. In addition, there is no requirement that Inertia’s proprietary software be used in order to access the New Vine logistics, shipping and compliance services.

We are naturally very excited and feel fortunate to be able to incorporate the suite of New Vine services into Inertia’s offerings. As soon as possible we will clarify how this will be accomplished, what new programs and services this combining of assets will allow, and how we believe the combination of capabilities can positively impact the direct wine sales industry as a whole.

We are also eager to begin working with both businesses in a way which thoughtfully takes into consideration the needs and histories of both organizations’ clients.

IBG has always been a vocal supporter of the direct channel, especially on behalf of the smaller to mid-size wineries that struggle to gain market access via the traditional distribution system. Our vision is to improve the marketing and selling of wine by providing solutions at all levels of the wine industry supply chain.

This vision requires some very necessary components to ensure success, including marketplace technologies, compliance and fulfillment solutions. To date, IBG has successfully delivered on these components through our proprietary systems and industry partnerships, including the REthink Engine, the REthink Compliance tool, the WineRevolution.com Direct-to-Trade system, integrated logistics and shipping service partnerships, and many other essential tools. With the inclusion of New Vine into the IBG family of products and services, we will now be able to offer the first comprehensive and integrated set of direct sales solutions for the entire industry.

We believe we live in exciting times in the wine industry and that its best days are ahead as new sales channels, opportunities and solutions emerge for every segment of the industry. We welcome all those who are interested in learning more about Inertia’s integrated programs to contact us directly. Inertia clients may contact their Account Manager at any time, and I can always be reached at ted.jansen@inertiabev.com or directly at 707.603.2856.

In addition, Inertia is hosting several client gatherings in the next few weeks to provide an introduction to the ways in which we are leveraging our programs and partnerships to deliver new wine marketplaces for winery participation. We look forward to hosting more gatherings in the future, and providing New Vine customers and the broader wine industry with an opportunity to learn more about our programs and services.

Stay tuned – there are certainly exciting times ahead!



 

Karin Ballestrazze
 
July 29, 2009 | Karin Ballestrazze

Considering a Facebook Fan Page?

Over the last year, and particularly the last few months, Facebook Fan Pages have quickly risen in popularity. In fact, several of our winery clients have asked about putting Facebook Fan Pages on their websites. Since Facebook provides an icon and code, the task is as simple as copying and pasting directly into the content editor or kicker on your website. John from Olson Ogden Wines did this successfully on his own last week and is using his Facebook Fan Page to announce news and communicate promotions, events, pairing, etc. Take a peek!

Some tips that make an effective Facebook Fan Page are listed below and were taken from several articles on the web including one written by Spencer Spellman.

  • Make your fan page pop. Many fan pages fail because they don’t grab the user’s attention. Successful fan pages have at least some html or flash that is graphically appealing to users.
  • Offer incentives. Make your fan page a resource for people and they will return. You might create regular promotions on your products and use the fan page to answer questions from your fans.
  • Run contests for fans as they help build a loyal audience. Some contest ideas might be to invite your customers to send in pictures of them enjoying your wine or food pairing ideas.
  • Leverage your resources. Your customers and friends may be using Facebook and be unaware that you have a fan page. Use your website, email, instant messaging, printed material and other social networking sites to drive people to your fan page. Rather than competing, consider collaborating with your neighboring wineries. A group of Silverado Trail wineries joined together to create a multi-branded product offering which they advertise to their expanded list of customers. In another example, Ackerman Family Vineyard described how they collaborate with other select wineries to host a Winemaker’s Dinner event in which each winery represents a specific varietal to pair with one of the dinner courses. Combined efforts can oftentimes make a bigger impact than trying to do it all on your own.
  • Interact and have fun with your fans which can help spread and promote your fan page virally. A fan page is a fun way to show your corporate personality. For brands that want fan pages to have added value but don’t want to become a resource portal; consider offering consumers a reason to join by including Facebook only promotion codes. There’s no way to make sure the promotion code is given to only Facebook fans, however you can require an email be sent to you and email back a promotion code. If you are networking at an event and hand out take-aways that promote your Facebook page, the potential to reach new fans is exponential to the number of friends each of these new fans has on their list.

Creating a Facebook Fan Page is simple, though it will take some time, dedication and planning. Remember to build good content which is easily accessible, and let people know about it. While you may not have a huge following immediately, over time your community will begin to grow.

WineDirect Admin
 
July 28, 2009 | WineDirect Admin

Wine Technology - The Bridge that will be Built

2 weeks ago I attended my third WITS (Wine Industry Technology Symposium). Though I have yet to earn my badge of ‘seasoned industry veteran’, I feel able to reflect on the impressive in-roads technology has made in the wine industry. Only now am I able to catch a glimpse of the huge transformative effect information technology can have on the industry.

On display at WITS was a lot of cool technology, all with great potential. Yet there was little evidence of truly transformative technology – the kind that radically changes an industry and captures the attention of non-wine folk.

It’s no secret that the wine industry lags far behind others when it comes to living the great economic revolutions information technology is capable of unleashing. IT has completely changed the game in so many other industries, yet for most wine industry vets, that change still remains elusive.

“Technology does not drive change — it enables change”

New technology has already greatly changed the way wine brands are marketed and the traditional function of wine marketing has been revolutionized. For brand building and consumer engagement as key functions of the wine industry, technology has indeed enabled change.

When it comes to the sales function, new technology has revolutionized the way direct sales are conducted. Yet it is worth noting that while the direct sales channel and online sales have risen greatly in the past few years, it still remains a marginal portion of all the wine that is sold in the US. Whereas new technology has already altered the wine marketing function, it has yet to enable dramatic change for the wine sales function.

Contrary to what I once believed, “direct” is no clear salvation, or at least not in the next decade. It will be a long while before the US wine market will ever resemble a free market – there is no realistic mid-term alternative to the 3-tier system, not with what’s currently preoccupying state legislatures…

The “Wine 2.0” movement and the emerging ecosphere of wine marketing agents still face an uphill battle to change the way the industry operates outside of the direct channel. Even as direct sales grow with the astute combination of cool technology and clever marketing, this trend does not yet really change ‘business as usual’ for most of the industry.

Large retailers and large distributors are themselves working through intense and expensive technology projects to create even more efficiencies for the “traditional” system. Believe it or not, the established wine world is not immune to new technology; it’s just not sexy new technology like facebook (think dour SAP). So the big boys integrate large solutions to sell more and better, while the “new tech” folks upstream battle it out on the web to find a way to convert buzz into sales.

If a bridge is built to seamlessly integrate all these new tools into the 3-tier system, only then can the visions of so many wine tech entrepreneurs really take flight. The brave new world of wine technology will come about when the new world of wine tech meets the old 3-tier world.

To paraphrase the great W&S article summarizing WITS (zoom in on the ‘Tech and the three tiers paragraph), I want you to imagine a world where any small winery can participate in the 3-tier EDI (Electronic Data Interchange: the process of connecting trading partners on the same systems so they can communicate seamlessly).

  • I want you to imagine a world where it will actually make economic sense for the regional wine buyer of a large retailer or restaurant chain to actually pay attention to wine social networks and blogs to increase sales.
  • I want you to imagine a world where wholesalers of all stripes will feel comfortable in sourcing new brands whilst following the hum of online demand and user-generated content.
  • I want you to imagine a world where it will make economic sense for large distributors to care about suppliers with no deep pocket and for them to find profit in catering to niche markets.
  • I want you to imagine a world where wine suppliers of all sizes can build elements of control over the whole wine supply chain.
  • I want you to imagine a world were a Kafkaesque regulatory maze and a severely oligopolous distribution system will not severely hinder entry to market for new suppliers.
  • I want you to imagine a world where the long tail can actually work in wine.

Why has this bridge not been built yet? For those familiar with our industry, just ponder this concept and how it relates to 3-tier: path dependence. The barriers guarding the wine market are so complex that until those barriers are tackled effectively, all other efforts will be hobbled in their potential.

On a strictly operational level, this bridge will require a strong foundation of streamlined compliance tools and clearing models, optimized logistics and standardized dynamic product data systems. On these pillars a road will be built: it will be the multitude of plug-ins and APIs that will allow supply from any tier to connect to demand from any tier. The smooth asphalt will be an array of online tools to facilitate wine marketplaces. On that bridge you will see pedestrians, cars, semi-trailers and trains alike, easily go from one side to the other… you get the analogy: selling wine today is like trying to get around the Bay Area with no bridges.

Only once this bridge is (or bridges are) built, will the wine industry live to the full potential that is on display at WITS. The pillars supporting this bridge are still discreet, but the technology, the knowledge, the plans and the vision are in place. It’s just a matter of time.

WineDirect Admin
 
July 16, 2009 | WineDirect Admin

Leadership | Lessons I’ve learned from Marvin Sands

Richard Sands, Chairman of Constellation Brands, just published a book called Reaching for the Stars (the making of Constellation Brands). I ordered a copy, but haven’t had the chance to read it yet. 

However, the book did get me thinking of Marvin Sands, Richard’s father, and the founder of Canandaigua Wine Company,(CWC) which became Constellation. I had the good fortune to work for CWC in the early-to-mid 90’s. During that time the company grew from $70 million in sales, to over $1 billion. In those years, Marvin was the head of the company, though Richard was running the operation.

Over the course of my career, I’ve had the opportunity to work for capable leaders, poor leaders, and one great leader. That was Marvin. My favorite quote on leadership, which I’m told came from Abraham Lincoln, is “Leadership is getting people to do what you want them to do, because they want to do it“. That was Marvin’s genius. He made you feel important and empowered.

I started at CWC as a Product Manager, and eventually made it to V.P. Marvin treated me the same at every level. He would stop by my office, and ask how things were going. He’d ask about my wife by name. He’d ask about projects I was working on, citing the specific project. He would ask my opinion, and make me feel like what I had to say mattered.

I have two stories about Marvin that demonstrate his knack for getting the most out of people:

One time, I was in a meeting with him, and several others, and we were debating an issue (I can’t remember the specifics). The conversation got heated, but Marvin just listened, not speaking. Finally, after everyone had the opportunity to state their case, Marvin spoke. He summarized the issues, and then endorsed the position of one of the attendees. He never said, “this is what I think we should do“, instead he said “I agree with ____________“; which of course ended the debate.

After the meeting, I asked Marvin why he stayed quiet so long. He said he knew he would have a chance to speak when he felt it necessary, and he’d prefer to let others get credit for the answer. All leaders have an ego, they wouldn’t be in a position to lead without one. Marvin, however, didn’t let his ego lead his actions. He didn’t need to prove how smart he was, or to be right. He simply wanted to get the best out of those he worked with.

The second story goes to a meeting I was not at:

It happened before I was at the company, but I’ve heard the same story from multiple sources. In the late 80’s, CWC had introduced a wine cooler called Sun Country. The product had a couple of good years as the category grew. CWC then decided to make a significant push to be a market leader. They hired Ringo Starr as their spokesperson. This was the same year that Gallo launched Bartles & James, and Seagrams hired a young actor starring in a TV series called Blue Moon; the actor’s name was Bruce Willis, and he helped make Seagram’s the number two brand.

Sun Country fell behind the other leaders, and for the first time in it’s history, CWC lost money. Marvin called his V.P.’s to a meeting. He started be recounting the financial details. He then said, “In most companies, people in this room would be replaced. I’m not going to be that kind to you. All of you are responsible to our stockholders, and all of you will turn this loss around, and return value to our owners.“ That became the rallying cry at the company, and as they say, the rest is history.

My wife has a favorite quote, “Children don’t care how much you know, until they know how much you care“. The same can be said for employees. When you worked for Marvin, you knew he cared about you, and cared about his company. As an employee there, you couldn’t help but care, as well.

WineDirect Admin
 
July 14, 2009 | WineDirect Admin

5 Tips To Improve Your Email Templates

Email campaigns are fast and cost-efficient. However, unlike traditional methods of advertising such as print ads and direct mail, what you see is not always what they’ll get. How do you ensure that the messages you send will display correctly in your customer’s inbox? Below are five tips to help improve the success of your next email blast.

Use Alt Tags On Important Images
Many email clients disable images by default, prompting users to manually click to download images. To help prevent total loss of information, use alt tags which will display text descriptions when images are not downloaded.

 

Include Hyperlinks
Web users are trained to rollover images and text to access links. Within your email be sure to link all of your images and relevant text back to your website. If your email is focusing on a specific product, link to the product detail page to make it as easy as possible for customers to purchase. Also be sure to use concise language in your call-to-action links.

Avoid Rich Media and Flash
While animation can sometimes add aesthetic interest, the majority of email clients do not support flash. Animated gifs are sometimes used, but be careful because these can dramatically increase the size of your emails.

Test Your Email Across Multiple Browsers and Email Clients
To ensure your email will display consistently, create a testing environment including multiple email accounts. Listed below are a few of the more common email clients used.

Yahoo, Gmail, AOL, Hotmail, Outlook, Lotus Notes, Thunderbird, Entourage, Mac Mail

Make sure to test across different browsers (IE, Firefox, Safari…) on both Mac and PC.

Provide A Web Page With Your Message
Take one extra step to ensure the delivery of your message by including a link to a web page including your email promotion or content. This can easily be done by making an orphan page and dropping in your images and text.