Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
- Marian Kopp -
Wine Markets Discussion
NIBC-Bank-Conference
Deidesheim, February 2, 2014
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
- 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 _ Lauffener Weingärtner eG _ [email protected]
- Marian Kopp -
The 4 Key Trends in the Wine Industry
(…past 20 Years)
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
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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
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Part II: WINE PRODUCTION
Increasing production and broadening the source of production
USA; Europe (from grape-growing to to winery evolvement incl. own distribution)
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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.
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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 _ Lauffener Weingärtner eG _ [email protected]
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
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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.
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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 _ Lauffener Weingärtner eG _ [email protected]
- 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).
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
The current UK populationMillennial generation:
Currently 12 - 35 year olds
Busylives
Born in
1977 - 2000Born digital
The futureGeneration Y
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
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
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
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
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
Which label wins?
The current UK population
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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
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
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
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
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
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Unless you have something to talk about, all you have is fermented grape juice.
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
- 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
High Perceived Value Competitor
"Outpacing" Competitor
"Confused" Competitor
Low Delivered Cost Competitor
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: 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
Focus: process
• Cost control
• Scale
• Distribution (discount) retailers
(source: Rabobank research)
Marian Kopp _ Lauffener Weingärtner eG _ [email protected]
- Marian Kopp -
Wine Markets Discussion
-Thank you-
Marian Kopp
http://www.linkedin.com/in/mariankopp
www.wg-lauffen.de