Global Wine Market & Marketing Trends Presentation NIBC Bank Conference feb 3 2014

Marian Kopp _ Lauffener Weingärtner eG _ [email protected]

- Marian Kopp -

Wine Markets Discussion

NIBC-Bank-Conference

Deidesheim, February 2, 2014


- Marian Kopp -

Marian Kopp

- Born 1966- MBA (Diploma), Frankfurt 1991

- 22 years of wine business experience- Negociant / Importer / Cooperative /

Winery / Ultra-Premium wines- Markets: USA / Europe / South Africa / Exports (Asia)

- Geschäftsführer / CEO Lauffener Weingärtner Cooperative, turnover EURO 23 Mil. / 870 ha vineyards


- Marian Kopp -

The 4 Key Trends in the Wine Industry

(…past 20 Years)


- Marian Kopp -

Part I: GRAPE GROWING‘Terroir, Terroir, Terroir’

or: what grows best where? Ethics of local consumption. A wine’s connection to the

land continues to be blessed by the consumer. GLOBAL


- Marian Kopp -

Part II: WINE PRODUCTION

Increasing production and broadening the source of production

USA; Europe (from grape-growing to to winery evolvement incl. own distribution)


- Marian Kopp -

Part III: SALES USA: Modifying the Three Tier System EUROPE: Off Trade, overall availability:

quantity vs. On Trade: quality

….the emergence of ‘alternative routes to the consumer’ that has allowed the explosion of wineries to occur over

the past two decades.


- Marian Kopp -

Part IV: CONSUMERS

Empowering the consumer to feel confident in ordering and buying wine.

“The global tasting panel”: Scan…/…’Google’…/…Comment /

Spread…/…Re-Read




- Marian Kopp -

The four major trends mentioned above in the four main parts of the industry have one fact in common:

The consumers’ actions and desires have driven and will drive the future the trend.

We have to guess what the consumer will do and want and how they will act to have a good idea of what is going to happen in the wine industry.


- Marian Kopp -

A view on:

Markets

Consumer Issues: Millennials, winery marketing 2.0

Winery-Management: taking the next step.

„The generational handover“. From dad‘s production driven approach to the passion of „cellar door“ - marketing


- Marian Kopp -

Between 2011 and the end of 2015, the US and Asia will drive a

6% increase in global wine consumptionto 2.8bn nine-litre cases.

(International Wine and Spirits Record, IWSR, 2012).


The current UK populationMillennial generation:

Currently 12 - 35 year olds

Busylives

Born in

1977 - 2000Born digital

The futureGeneration Y


Millennials and technology

93% of use the internet

Technology matters“..I text about 150 times a day. I go

check my e-mail every day,

Facebook, MySpace, Twitter, tag, all

the, you know, social sites, so, yes, the

iPhone.."

Joseph Mickens, member of millennial

generation

Source: Pew Internet & American Life Project report Teens and the Internet, 2009

54% read blogs

70% of online teens use social

networking sites


The current UK populationMillennials in numbers

~15.5 M of consumers21% of US regular wine drinkers

23% of UK regular wine drinkers ~6.5 M of consumers

31% of Canadian regular wine drinkers ~5 M of consumers

33% of Australia regular wine drinkers ~3.6 M of consumers

Source: Wine Intelligence Calibration surveys and Vinitrac® Global April, 2010


Which label wins?

The current UK population


The current UK populationWine label design:

A (modern) vs. B (traditional)

vs.

A

Modern design (A) was

more appealing to young

consumers

Traditional design (B)

achieved higher scores for

quality and price

expectationsSource: Wine Intelligence Vinitrac® online surveys April, 2010, USA,

UK, Canada, Switzerland, Belgium, Germany and Switzerland B


The current UK population6 things you must know….

DON’TS DO’S

Use overtly modern labels as

these do not reassure about the

quality of your wine

Rely only on social networking

sites to sell your brand

Launch your smart phone app just

yet…

Treat red and white wines as

different types of beverages, they are

rarely interchangeable

Invest in training staff to give these

consumers solid but gentle guidance

Have a back-label with simple,

straight forward tasting + matching

notes


An exciting opportunity for the

wine industry

19

Millennial wine drinkers are seeking

authenticity…and that is where the

wine industry is failing

Leah Hennessy, owner of Millennier USA


- Marian Kopp -

Unless you have something to talk about, all you have is fermented grape juice.


- Marian Kopp -

High

Low

Perceived Value

High Low

Delivered Costs

High Perceived Value Competitor

"Outpacing" Competitor

"Confused" Competitor

Low Delivered Cost Competitor

Brand strategy

Niche strategy

Cost leader-

ship

Focus: content

• Niche distinction

• Superior image + quality

• Distribution on-trade, specialists

Focus: consumer

• Brand (consistent quality)

• Innovation

• Distribution (Service) retailers

Focus: process

• Cost control

• Scale

• Distribution (discount) retailers

High

Low

Perceived Value

High Low

Delivered Costs









Brand strategy

Niche strategy

Cost leader-

ship

Focus: content




Focus: content




Focus: consumer

• Brand (consistent quality)

• Innovation

• Distribution (Service) retailers

Focus: process

• Cost control

• Scale


Focus: process

• Cost control

• Scale


(source: Rabobank research)


- Marian Kopp -

Wine Markets Discussion

-Thank you-

Marian Kopp

[email protected]

http://www.linkedin.com/in/mariankopp

www.wg-lauffen.de

mailto:[email protected]

http://www.linkedin.com/in/mariankopp

http://www.wg-lauffen.de/