http://gapingvoid.com/2006/06/25/on-being-in-the-wine-business/ "cartoons drawn on the back of business cards" Sun, 22 Nov 2009 00:03:19 -0600 http://wordpress.org/?v=abc hourly 1 http://gapingvoid.com/2006/06/25/on-being-in-the-wine-business/comment-page-1/#comment-12724 cammo Wed, 28 Jun 2006 14:32:41 +0000 http://gapingvoid.com/?p=2785#comment-12724 Hugh I reckon you're on the mark. Further to Jamie G's comments, Jamie I don't think its solely about the retailers, they are only one part of the distribution/sales channel, albeit a big one at the moment until people go huh, why do I pay the middleman to buck up the price when I can go direct to the winery? Thats what I think Hugh is getting at: direct word of mouth relationships with people that create ownership of the brand, which is where podcasting and blogging become so important, people can connect and breathe it in. For those that came in late, here in Australia, the retail value chain is almost dead because 2 supermarkets control 93% of outlets, and of that, the Fosters juggernaut controls 90% of the wine in those outlets. So other direct channels to customers is a key way that most (read small) Australian wineries will need to get to their customers in the future. Hugh I reckon you’re on the mark. Further to Jamie G’s comments, Jamie I don’t think its solely about the retailers, they are only one part of the distribution/sales channel, albeit a big one at the moment until people go huh, why do I pay the middleman to buck up the price when I can go direct to the winery? Thats what I think Hugh is getting at: direct word of mouth relationships with people that create ownership of the brand, which is where podcasting and blogging become so important, people can connect and breathe it in.
For those that came in late, here in Australia, the retail value chain is almost dead because 2 supermarkets control 93% of outlets, and of that, the Fosters juggernaut controls 90% of the wine in those outlets. So other direct channels to customers is a key way that most (read small) Australian wineries will need to get to their customers in the future.

]]> http://gapingvoid.com/2006/06/25/on-being-in-the-wine-business/comment-page-1/#comment-12723 Jamie G Mon, 26 Jun 2006 03:47:06 +0000 http://gapingvoid.com/?p=2785#comment-12723 Hugh Pretty insightful stuff. I think your analysis of the wine trade would be sharpened if you actually recognized that there were, in fact, two distinct wine trades. Let's call them, for the sake of convenience and brevity, (1) the wine trade selling wine to 'normal' people, and (2) the fine wine trade. Both operate under rather different sets of rules. Let's ignore (2) because it's not relevant to most people. That's not to say it isn't important. The big issue for (1) is access to market. The big retailers hold the winning hand. They have the customers. The footfall. In a world of over-supply, the people making the stuff tend to get stuffed. The retailers don't have to try harder because they are in the strong negotiating position. So your emboldened point is perhaps unnecessary. Also there's a widespread distrust of retailers by consumers, perhaps for good reason. If you make wine, your best hope is to create a strong brand that the retailers 'need'. Otherwise, you're always negotiating from a position of weakness, because they have what you need - customers. Hugh
Pretty insightful stuff. I think your analysis of the wine trade would be sharpened if you actually recognized that there were, in fact, two distinct wine trades. Let’s call them, for the sake of convenience and brevity, (1) the wine trade selling wine to ‘normal’ people, and (2) the fine wine trade. Both operate under rather different sets of rules.
Let’s ignore (2) because it’s not relevant to most people. That’s not to say it isn’t important. The big issue for (1) is access to market. The big retailers hold the winning hand. They have the customers. The footfall. In a world of over-supply, the people making the stuff tend to get stuffed. The retailers don’t have to try harder because they are in the strong negotiating position. So your emboldened point is perhaps unnecessary. Also there’s a widespread distrust of retailers by consumers, perhaps for good reason. If you make wine, your best hope is to create a strong brand that the retailers ‘need’. Otherwise, you’re always negotiating from a position of weakness, because they have what you need — customers.

]]>