Wine Direct

November 30, 2008 | WineDirect Admin

BRAND INTELLIGENCE

Tools To know What’s Being Said About Your Brand

It used to be easy to figure out what was being said about your wines and your brand. It also used to be that the number of media outlets that covered wine was fairly small. And if you wanted to really know every single word the media was saying about your wines and brand, you engaged the services of a “Clipping Service” to monitor nearly every print publication in America, who would scan every media outlet for mention of your brand.

Today, it’s not just a matter of watching the media outlets, which have grown exponentially in number, but it’s also a matter of tracking what consumers are saying about your brand and wines in public, online forums.

Knowing what is being said about you and your wines is critical to understanding your place in the consumers mind and luckily you have a bevy of tools at your disposal that allow you to do this on a daily basis without using up too much precious time.

1. Google News Alerts

Do a search on Google for “ABCD Winery”. When the results are returned click on the “News” button at the very top of the results page. From here, click on the “News Alerts” text on the left hand side of the page. This will take you to a page form that allows you to tell Google to email you any new item that appears online that includes this search term. Or, sign up for your search terms of choice here: http://www.google.com/alerts. You can decide whether to have a Google News Alert sent when any new mention hits the web, or aggregated and sent on a daily or weekly basis. It’s a fantastic, NO COST, tool that lets you monitor not only your own brand’s online presence, but that of your competitors or even the coverage of specific topics related to your industry.

2. Google Blog Alerts

This service from Google works exactly like the News Alert, but it brings mentions from blogs to your mail box. When you hit the same ”News” button at the top of the page (after your search results appear from your query), click the “Blogs” button on the left hand side of the page and you will arrive on a results page which offers a “Blog Alerts” link on the same far left of the page. This will allow you to set up the same kind of alert for your search query. Blogs are being read by millions of people and you’ll be surprised just how often your brand and wines may be mentioned in this new media format.

3. Snooth and Cellartracker

Snooth.com and CellarTracker.com both provide wine drinkers with a place to write notes on the wines they’ve drunk. And boy do wine lovers love to type. At either site you can type in your brand name and up will come lists of your wines along with user generated reviews of the same. Both represent a terrific way to track consumer interest and opinions on your wines and brand.

These are just a few of the online services that allow you to ramp up your brand intelligence to a new level, with little or no effort and investment of only a small amount of time. As you know, it’s critical to any direct marketer to know what’s being said about their brand, where it’s being said and who is saying it.

Nov 30, 2008 at 4:22 PM

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November 26, 2008 | Matthew Mann

I’m Thankful For…Wine Shipping Advocates

Thanksgiving is the time for food, family, friends and your favorite glass of wine. As a lawyer with a keen interest in the great successes in wine shipping law accomplished this year I thought a brief list of “Thank You’s” to the people, advocates and organizations whose tireless and focused efforts have brought about these developments is well-deserved. Their efforts are opening new markets for wine and, in the greater scheme of things, expanding and defining the application of dormant Commerce Clause principles necessary to maintaining fair trade policies between the states.

I’m thankful for-

Family Winemakers of California president Paul Kronenberg and the crack legal staff of Tracy Genesen of Kirkland & Ellis. Their well-planned, wisely litigated case poked holes in the Commonweath’s case as Massachusetts’ defended discriminatory and protectionist laws that effectively excluded out-of-state wineries from shipping to Massachusetts consumers to the benefit of in-state wholesalers and wineries.
The lobbying efforts of the Wine Institute, Free the Grapes, Family Winemakers, and the Coalition for Free Trade, among others, to protect the interests of small wineries against the well-funded efforts to limit access to wine taking place in the legislatures as laws are shaped in response to Granholm and its progeny.
The insight of district court judges in Texas, Indiana, Michigan and Massachusetts who saw the dubious assertions by state’s arguing that discriminatory regulations were necessary to maintain an orderly market, collect tax revenue and prevent online wine purchases by minors. Their legal analysis was responsible for recognizing the discriminatory effect of otherwise facially neutral laws and reinforcing the requirement of that alternatives to discriminatory laws be enacted where alternatives exist. These judge’s upheld established constitutional principles requiring states allow access to their markets in a non-discriminatory manner.
Wineries that play by the rules of direct wine shipping. They understand that by following the rules they are establishing a foundation of compliance that will be useful in convincing currently prohibited states to open their markets to direct wine shipments without fear of the questionable arguments proffered by opponents that it will lead to an unregulated marketplace.
Consumers demanding access to all of the wine products legally made in the United States, regardless of in which state they were produced. Changes to discriminatory laws don’t happen in a vacuum. Consumers who have contacted state legislators and challenged laws denying their right to market access have benefitted all wine lovers and consumers in general who simply want to choose, rather than having the choice made for them by state-backed wholesale monopolies.

I’m thankful for being able to raise a glass of the wine of my choice at Thanksgiving with my family and friends and knowing there are passionate people fighting to make sure I have that choice. Happy Thanksgiving!

Nov 26, 2008 at 4:26 PM

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November 24, 2008 | Matthew Mann

Evidence of A Theme Developing

A consistent is developing in the wine shipping court decision’s handed down this year in Texas, Indiana, Michigan and now Massachusetts. The losing parties invariably are failing because they are unable to generate the evidence necessary to support their claims. One can argue that the legal claims presented are the reason these cases failed. The recent Michigan case is an example. The wholesaler’s claims that strict adherence to the 3-tier system is necessary to maintain an orderly market, ensure the collection of tax revenue and prevent alcohol from falling into the hands of minors seem particularly dubious. When stated alone these are admirable goals.

Mere Platitudes

The problem is they become mere platitudes when not supported by evidence. The courts have consistently ruled that when the discriminatory nature of a law is determined, simply stating claims is not sufficient to support the dormant commerce clause doctrine that an important public purpose must be served by the challenged law and that no alternate solution other than the discriminatory behavior is available.

Why is this important, you may ask?

For one, it could indicate that the claims are in fact merely platitudes and that no real evidence to support them exists. More importantly from a legal standpoint is that each of these cases establish a precedent. Courts, particularly at the trial court level, rely heavily upon precedent. Once set, precedents become hard to overturn, usually requiring clear cut distinctions in order to deviate to a new rule of law. Well-thoughtout litigation plans involve pursuing cases that are ripe for litigation but also marshaling sufficient evidence to make your case. Taking a case to court with insufficient evidence will usually lead to bad results for the claimant. This is the case in the wine shipping cases here. Precedents predominantly favorable to wineries have been set, in part due to weak legal arguments but also to the losing parties’ inability to present evidence necessary to their claims. As we continue down this path of litigating each hurdle the legislature’s place in the way of the free trade of wine between the states, litigants would be well-advised to make sure their evidence is strong before entering court.

Nov 24, 2008 at 4:28 PM

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November 19, 2008 | WineDirect Admin

The Wine World is Flat

We’ve talked about the changing nature of of marketing and consumer involvement here before, but a post at California Life got me thinking about the topic again. In general I believe that the movement toward a flatter more inclusive market empowers consumers and weakens the power of producers and marketers to shape their audience’s perceptions. When word of mouth is amplified and given wings by a global communication platform like the internet, it dwarfs the unilateral broadcast muscle of marketers.

Wineries may be uniquely positioned to take a more active role in the conversation. Thanks to the popularity of tasting rooms consumers are already used to the idea of talking directly to the wine producer and being educated by her. Wine drinkers crave information about what they are drinking and wineries have the opportunity to participate in the space that folks like Gary Vaynerchuk have already rushed into.

The hardest part of this is going to be that wine producers will have to trade the safe turf of their own tasting rooms and converse with consumers on an equal footing – on the internet there are no pourers, just fellow drinkers.

Nov 19, 2008 at 4:29 PM

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November 14, 2008 | Matthew Mann

Michigan Consumers Lose, But Precedent Remains

I see in the Chicago Tribune an article on the Michigan legislature’s move to eliminate Michigan wine retailers’ shipping privileges in response to losing a discrimination suit in U.S. District court in September. While nothing is final yet, the situation doesn’t look good to prevent the bill from passing. You may recall a few weeks ago that a U.S. District judge ruled that Michigan law discriminated against out-of-state wine retailers by preventing them from shipping wine to Michigan consumers, a privilege enjoyed by in-state Michigan retailers. At the behest of Michigan wholesalers, yesterday the Michigan legislature moved towards bringing state law into concordance with the court’s ruling. Unfortunately, it is doing so by “leveling down”, which is a euphemism for removing the privilege from Michigan retailers. This is not the desired result as it restricts consumer access and choice only to protect the interests of wholesalers.

Precedent Prevails

But all is not lost here. While the Michigan response to the court decision is not a positive for anyone except Michigan wholesalers, the good news is that, while Michigan can change the law, the important precedent set by the court that retailers fall within the Granholm rationale remains. Precedents such a this one, combined with other precedent-setting decisions like Siesta Village Market in Texas earlier this year, provide much needed legal ammunition for the argument that this type of disparity in treatment of in-state and out-of-state commerce is discriminatory and in contravention of the dormant Commerce Clause. Consumers may have lost in Michigan, but the movement towards consumer choice and access continues forward.

Nov 14, 2008 at 4:40 PM

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November 13, 2008 | WineDirect Admin

Direct-To-Trade is about Control

In determining your Sales and Marketing strategy, there are many reasons to take a fresh look at the Direct-to-Trade channel. Regardless of your goals, your size, your current distribution or your brand’s standing, winery sales and marketing managers should always strive to exercise more control over how, where and to whom their wines are sold.

When you sell a pallet of wine at FOB, you rarely get a chance to know where each of the cases ends up. What percentage goes into on- and off-premise accounts? Are your wines being sold at MSRP or significantly under-priced? How can count on repeat purchases from trade accounts? With Direct-to-Consumer sales, a great benefit of selling direct is getting the opportunity to better understand the identity and needs of the end-buyer. The same rationale applies to trade sales.

When your pallet is sold at FOB, you can lose sight of where you wines is going – kind of like bowling blind (see above). Your ball is ready to fly, but you can’t control where it goes. If you are lucky and your distributor rocks, you will get a strike, but you might not even see it… and how can you be sure you will get a strike next time? Selling Direct-to-Trade gives you full visibility into your trade sales, enabling you to better control them.

Control is Owning the Relationship
We all know that the wine industry is a relationship-driven business. When you are selling Direct-To-Trade, you take control of the relationship and are no longer dependent on someone else to forge and foster those vital connections. When a restaurant purchases a lot of your wine, by knowing the buyer directly, you will have a much better chance of getting a repeat sales or of pushing your new label to them. Sure, it’s more work, but it will pay off in the long run.

Control Who Buys Your Wine
When selling direct, you own the relationship - you can say “Yes!”.. or “No!”. If you do not want your brand to be on display in certain stores, you can make sure it is not. If you think your brand should only be available in fine restaurants, by selling direct, you can make sure this happens. If a retailer drastically under-prices your wines, you can elect not to sell to them anymore. When you do not own the customer, this is much harder.

By enabling wineries to sell Direct-to-Trade, Inertia aims to give them access to new markets but also to give their more freedom and control over their business. In providing cost-efficient ways to better monitor and control the down-stream sale of wine to trade accounts, Inertia is adding another weapon to a National Sales Manager’s arsenal as well as giving more power and knowledge to Brand Managers.

Take control of your destiny and don’t bowl blind!

Nov 13, 2008 at 4:41 PM

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November 5, 2008 | WineDirect Admin

Two Important Steps Forward for E-Commerce

Yesterday two votes paved the way for increasing the market for direct sales of wine. They both further the cause of broadband access in the United States, a major factor in the potential growth of the online market.

The first you’ve probably heard about: the United States has elected a new president in Barack Obama. According to Obama’s web site, “Barack Obama believes that America should lead the world in broadband penetration and Internet access”. Obama led other presidential candidates in his Tech policy, although McCain now declares on his web site that “John McCain has long believed that all Americans, no matter if rich or poor, rural or urban, old or young, should have access to high-speed Internet services”. This is certainly good news, showing common cause between Democrats and Republicans when it comes to broadband penetration.

The second (and more obscure) important vote yesterday was made by the FCC, who decided to free up the unused airwaves between broadcast TV channels, also known as “white spaces”. This would allow vendors to use this spectrum for wireless internet access the same way that they currently use the Wi-Fi spectrum. The white-spaces spectrum signals have much longer ranges than current Wi-Fi, allowing for what Google’s Larry Page has called “Wi-Fi on Steroids“.

Why is this good news for direct sales? According to the OECD, broadband users are 20% more likely to purchase online than narrowband users. The expansion of broadband access and the possibility of a new wireless broadband technology could be a shot in the arm for online sales of wine and everything else.

Nov 5, 2008 at 4:51 PM

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November 4, 2008 | Matthew Mann

e-File: WSLCB Option A Positive Step

I note with interest the November 3rd announcement from Annie Bones at the Wine Institute that the Washington State Liquor Control Board (WSLCB) has provided the option to file monthly reports and taxes online at their website. This is a tremendously positive step on many levels.

First, it saves time. Sure, there is a brief learning curve, but once overcome e-Filing systems are invariably easier to use and save time. Less time in preparation by the winery, less time in review by the WSLCB.
Second, they save paper and thereby trees. I think we can all agree that’s a good thing.
Together these equal a savings of money for both the winery and the state. In tight times where both private entities and the government are looking to cut costs, efficiencies created by e-File and e-Pay systems can make significant savings.
Finally, and maybe less obvious, they encourage compliance. This leads to a couple of benefits. One, they make it easier to be in compliance because it takes less work. Two, they create greater accountability through better tracking and document management.

This last point is important because better compliance and accountability will result in more states permitting consumer direct wine shipments since they have a higher degree of confidence that wineries will follow the rules. That in turn makes it more likely that states reluctant to open their borders will be willing to do so, creating new markets and opportunities. In the end, more tax revenue to the states is generated with greater accountability, which always makes politicians and bureaucrats happy.

As this trend towards e-Filing/e-Pay solutions evolves, be assured that REthink Compliance will evolve with it, as our goal is to provide the easiest, most cost efficient way for wineries shipping consumer direct to stay compliant.

Nov 4, 2008 at 4:54 PM

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November 3, 2008 | Matthew Mann

Variety Is What Direct to Consumer Shipping Is About

Halloween is now in the rear view mirror. As I sat on my front porch handing out my collection of Snickers, Butterfingers and Crunch bars to the elaborately dressed Princesses and Jedi Knights, I couldn’t help but notice that all of the kiddies’ bags were filled with the same variety of candy that I was giving. I thought, “what happened to the variety of candies I would get as a kid?” I quickly realized that the candy market had become very much like the wine market: a few key brands dominating the store shelves. I wondered if the candy wholesale lobby had as much control as the wine wholesalers, deciding which candies would be available to children in the same way the wine wholesalers decided which wines would be available to the wine consumer.

A stretch maybe. But it points out just how important the rise of direct to consumer wine shipments are in this country. The multitude of quality, small producers who can’t land a distribution deal in key markets can still reach customers desirous of their wines. Needless to say, both the consumer and the winery benefit. Variety is important in the wine industry. Maybe more important than in other industries where a widget is a widget is a widget. Limiting variety is harmful in a free market and the fundamental problem in the 3-tier system as it is presently operating. Consolidation among wholesalers is ongoing, with fewer and fewer major distributors dominating the market. With over 6,000 licensed wineries in the United States, the few hundred brands generally available in major markets is just a slice of all of the wonderful wines produced. Responsible, accountable direct to consumer shipping is the logical answer to this gateway that limits selection. The benefits are real and several.

Key Benefits of Direct to Consumer Shipping:

Access: New markets and customers
Profits: Higher margins per bottle than wholesale
Brand Recognition: Reaching the individual consumer with direct, word of mouth guerilla marketing
Availability: Reaching those consumers who can’t otherwise get your product
Franchise: Building a base of loyal, repeat customers who know where they can get your wine
Variety: More wines, more wine selection

As a leader of the direct wine shipping revolution, Inertia is all about variety. Our goal is to make the incredible selection of fine wines produced in this country available to any legal adult who wants it. Wine consumers shouldn’t be limited to the same small selection of wines available through wholesale channels. Even kids don’t want to eat the same candy bar every night after Halloween. Join the wine revolution!

Nov 3, 2008 at 4:57 PM

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