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Focused on the 20% of the wine market doing things differently, Byron Hoffman and Tyson Caly, co-CEOs of Offset, are focused on enabling “Brand Differentiated Commerce.” At the intersection of design and technology for wine, Offset has significant experience operating allocated offerings of wine. These unique event-based sales methods, which limit how much customers can buy, create new challenges and best practices, unlike other sales channels.
Detailed Show Notes:
Byron & Tyson met while collaborating on Last Bottle, combining e-commerce and design
Offset - the intersection of design and technology for wine
DTC business models - open cart / online store, clubs, subscriptions, allocations
Allocated offerings (“allocations”) definition - the event-based, controlled release of wine
Differences in doing allocations vs. other models
Best practices
Examples of the intersection of design and commerce
Costs of allocated models
Hybrid approaches
Allocated offering research w/ professors from Kellogg & Peter - creating the data to get more insight and reduce guesswork for the industry
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With a California-like atmosphere, Texas wine country enjoys a strong local following. Eva Horton, the owner of Flat Creek Estate, shares how they are creating more than a Texas winery but a destination. With multiple venues, including a full-service restaurant and a disc golf course, Flat Creek is getting visitors to come back and enjoy the estate and wines.
Detailed Show Notes:
The goal is to be a destination, a real estate development play, not just a Texas winery
Texas wine country - west of Austin
Visitors to TX wine country
Flat Creek overview
Wine pricing - ~$30 whites, ~$40-50 reds, premium to other TX wineries
Estate destinations
Average spend
# of visitors - typical weekend - ~400-500/day, special events ~1,000
Sales channels
Hospitality sales & wine clubs
Capturing non-customer emails - using cards to capture emails, ~50% uptake
~20-30% of customers repeat purchases, using personalized communications to target customers
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In less than three years, Jen & Zach Pelka, the sister and brother co-founders of Une Femme, have taken what was supposed to be an in-house wine brand for their Champagne Bars The Riddler to the fastest-growing sparkling wine in the US. Leveraging data from The Riddler sales with a mission of promoting women and enabling the shattering of glass ceilings, Jen & Zach have taken a CPG approach to rocket Une Femme to become a national player.
Detailed Show Notes:
Une Femme launch
Wine portfolio
Product
Motto - “World-class women-made wines that give back to female-centered charities”
Each wine partnered w/ charities, which gets a lot of press
Fastest growing sparkling wine brand in the US
Packaging
Price - will be ~$24.99 from major retail partners as the product scales
Promotion
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In this episode, Robert Vernick and Peter Yeung interview Tom Lutz, Founder & Creator of Repour Wine Savor, one of the leading new inventions in wine preservation technology. We discuss the technology, how people have learned about it, the differences between Coravin and Repour, and what the future holds.
Other topics covered in this episode include:
Tom is a chemist by trade (he worked in biodiesel and aquarium products)
Repour was invented when he had a newborn son and ended up pouring half bottles of wine down the drain
Technology:
The capacity of the stopper
Uses recyclable materials. However, many municipal grids have 3”x3” grids that filter out small objects; for large customers, they do take back repours to recycle
Customers
Coravin vs. Repour - both work; Coravin is better for tasting and cellaring wine; Repour is for enjoying wine like you usually would and saving it
Marketing
Duration of effectiveness - weeks or months; Repour has tested out to 6-7 months
The future - potentially replaceable inserts, sparkling wine, and the possibly showing how much oxygen absorbing capacity is left
If you loved this episode, we would love for you to subscribe, rate, and review it on iTunes or wherever you get your podcasts. Until next time, cheers!
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Being the lead guitarist of the band, The Strokes, and with a celebrity roster of investors including Joaquin Phoenix, Owen Wilson, and Nick Hoult, one might believe that Albert Hammond Jr.’s new wine seltzer, Jetway, should have an easy path to take off. However, creating a product from ideation to quality in a can, starting a new business and raising money, and getting that wine seltzer into stores, restaurants, and people’s hands was more like launching a new band for Albert. It takes a lot of effort, and there are a lot of unknowns as to what might help it stick. Albert tells the story of the first year of Jetway and how celebrity has helped but is far from enough to make the product successful.
Detailed Show Notes
Albert’s background
Jetway’s founding - the idea came from drinking Aperol Spritzes in Italy and thinking it should be canned and modernized
Jetway product
Price point
Product launch
Raising money
Leveraging celebrity
Celebrity alcohol brands are growing, partially to diversify business interests and following the success of George Clooney’s tequila brand
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Catching the wine bug from the nudge of a physical trainer, Elton Potts, Founder & Managing Partner of Vine Vault, has built a business focused on enhancing the enjoyment of wine and wine collecting. From full-service wine storage to refrigerated shipping to hosting wine events, Vine Vault has grown rapidly and serves six markets in the US.
Detailed Show Notes:
Elton’s background
Vine Vault
Mission: to enhance the enjoyment of wine and wine collecting (beyond storage)
Additional services
Storage basics
Pricing varies by location
Scale is not that important for only storage
Arranges pickup & delivery of wines bought from wineries for consumers
Inflation and supply chain impacts - price not keeping up with cost increases
Developed boxes for storage & shipping
Traveling road show for wineries - organize and plan events
Business breakdown - all segments growing
Trends
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Library Release - Originally released as episode 26 on Nov 11th, 2020
With a 25-year history, WineBid is the oldest and largest online wine auction site. The original re-commerce platform, Russ tells us about the auction process from the buyer and seller perspective and all the data they collect and display for the wines. This includes innovations such as a 360-degree bottle shot, price history charts, and new functionality like their customized shipping feature. He spills the beans on a few tips and tricks to get the best deals on WineBid!
Detailed Show Notes:
WineBid - 25 years old, based in Seattle with operations in Napa, the oldest and largest wine auction site
Weekly auctions - open at 7:15 pm PST on Sundays, close at 7 pm PST the next Sunday
For Sellers of wine
Reasons people sell wines
Consignment vs. cash buyout for wine sellers - generally make more money consigning and capture more upside, but takes more time and can get paid sooner, at a discount, with immediate cash buyout
Business model
Buyer demographics - ~135-150,000 registered bidders
WineBid Innovations
Provenance premiums
The proliferation of wine critics and influencers has led to some influencers rivaling and outpacing traditional media
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The wine storage landscape has never been as dynamic as it is today. Primarily due to Vino Vault and its goal of “making wine collecting more enjoyable.” With six facilities today and the goal of getting to 40-50, Jeff Anthony, President & CEO, and Jeff Smith, Chief Wine Officer, describe how scale allows them to offer more products and services to customers. From a soon-to-be-launched marketplace to auction advisory, Vino Vault is taking wine storage to another level.
Detailed Show Notes:
Jeff Anthony (President & CEO) - wine enthusiast for 30 years, storage expert for 35 years (Iron Mountain)
Jeff Smith (Chief Wine Officer) - helped father catalog his wine collection and turned it into a business - Carte du Vin Wine Cellar Management and wine storage business that sold to Vino Vault
Vino Vault offerings
7 locations - 3 in LA, Dallas, Houston, NYC, Denver
Storage best practices - temp control, humidity control, security, racking
Wine Owners - proprietary software for full-service customers, can manage collection and schedule delivery
2 types of customers - private locker (~50%) and full service (~50%)
NYC is all full service, trying to get more people on full service
Supply chain and inflation have not impacted business as higher-end customers feel it less
Vino Vault differentiation - national reach, in 6 markets today, will be in 10 by early 2023
Scale benefits - can offer more products & services, can spread expertise and technology across a bigger business
M&A - goal is 40-50 locations, 80% North America, 20% Western Europe (UK), ~8-10 acquisitions / year
Storage market size - ~215-230 Facilities
Auction services - 20 years dealing with all auction houses
Marketplace
Data insights - anecdotally seeing a move away from high-end Napa Cabs and Sine Qua Non
Wine tastings and events - host some at some facilities, building event space in the flagship LA store (The Wine Hotel)
Storage is a sticky business vs. online wine retail which is transient
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What is the relevance of having 100s of gold medal wines and the competitions that hand them out? According to Doug Frost, MW, MS, it references back to the 19th century, when people were trying to describe what was happening in their wine regions. Doug describes the history, value, drawbacks, and key success factors of wine competitions. He delves into their changing influence in the era of the wine critic and the modern era of the sommelier. He contrasts this with the Wine Pinnacle Awards, now in its second incarnation in Singapore.
Detailed Show Notes:
Doug’s background
Wine competition history
Competition examples
Value of competitions - tells you about wines you haven’t heard about yet
Drawbacks of competitions
Keys to a successful competition
Competitions vs. wine critics/magazines
Competitions are still relevant in Australia; in the US, competitions gave way to individual critics, which may now be giving way to others (e.g., crowdsourced scores)
Still in the era of the sommelier
Wine Pinnacle Awards
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“Wine is an emotional sale, not a rational one.” according to Katherine Cole, Communications Director of Vin Agency, making storytelling and the immersive nature of web design critical for DTC wine sales, according to Katherine and Jon Krauss, Creative Director of Vin Agency. They explain how website design can improve brand messaging and create more DTC sales by making websites discoverable, drawing the consumer in, and making it easy to purchase once the thirst is built.
Detailed Show Notes:
Jon’s background - founded Vin in 2009
Katherine’s background - “recovering wine journalist,” has written 5 books, was a wine journalist for the Oregonian Newspaper, hosts The Four Top podcast
Vin is a creative agency and brand consultancy for wineries
Search Engine Optimization (“SEO”) - how people find a website
Wine is more of an emotional purchase, less rationale, so more immersive website experiences are powerful
E-commerce design is critical for wine websites
New technologies, e.g., chat boxes and texting, can improve performance but depends on the type of winery
Visitation/hospitality best practices
Website costs
Highest ROI areas
Website trends for wineries
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From the publisher's feed
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