(Mr Marian Kopp Presentation Dwi Export Forum June 2012 Print Version

transcript

Marian Kopp – Deutsches Weintor eG, Germany

DWI Forum

June 21, 2012, Oppenheim / Germany

International Wine-Marketing

- Marian Kopp -

Outline:

Introduction

View on: Marketing

View on: Global Sales

View on: „Behavior to perform“

- Discussion -

Deutsches Weintor eG (Coop)

Founded: 1956

Staff: 90

Members: 900 Wine Farmers

Size: 1.000 Hektars

Turnover: EURO 35 mio.

Grapes in production:traditional grape varieties- Dornfelder- Spätburgunder- Grauer Burgunder- Weißer Burgunder- Riesling- Rivaner

„international“ varieties- Sauvignon Blanc- Chardonnay

Certified:International FoodStandard Version 5:higher level 100 %

One of Germanys largest wine-cooperatives, largest in the Pfalz, with NATIONAL distribution.

View on: Marketing

Increasing accessibility of wines

Wine consumers less beholden to tradition

Proliferation of brands, but: CONSOLIDATION => industry impact

Greater experimentation

But choice is still overwhelming

Seeking information online

View on: Marketing

Unless you have something to talk about,

all you have is fermented grape juice.

View on: Marketing

VIDEOS PRESENTED:

1) Cupcake RED VELVET

http://www.youtube.com/watch?feature=player_detailpage&v=Ft-

JjSDHW88

2) CUPCAKE „serious“

http://www.youtube.com/watch?feature=player_detailpage&v=4t83

FaG_p38

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BACKUP Videos:

3) CUPCAKE Vodka

http://www.youtube.com/watch?v=avNuJ3PrTVQ&feature=player_de

tailpage

4) Underdog Tasting Red Velvet:

http://www.youtube.com/watch?v=_17FO7etkaU

View on: Marketing

Cupcake, now selling at an average of $9.28 per 750-ml. in USA, first rolled out 2008. Cupcake more than tripled in volume 2011, reaching 1 million cases.

TWG followed up with Cupcake Vodka this past year, including Original, Frosting, Chiffon and Devil’s Food flavors and selling for around $17 a bottle.

View on: Marketing

Brands are STORIES to be TOLD.

Well: lets get real: imaginations to be triggered.

Plant the IDEA, and let the consumers

“ride along” (=> Social Media matters here)!

View on: Sales

Between 2011 and the end of 2015, the US and Asia will drive a 6% increase in global wine consumption, to 2.8bn nine-litre cases, as IWSR figures (International Wine and Spirits Record, Jan. 2012).

View on: Sales

Global wine consumption will increase faster over the next four years, but mature markets and a tough economic climate in much of Europe will leave the US and Asia to drive growth. Strong demand for wine in the US and China will force more wine companies to focus greater resources on Asia and North America.

View on: Sales

Premium California Wines Posting Torrid Growth: California wine’s premium-plus segment (above $10) is making significant gains in both the on- and off-premise, as luxury wines have rebounded in the restaurant channel and premium offerings further down the pricing ladder are showing big gains.

View on: Sales

The top 10 premium-plus ($10+) California wine brands grew by an aggregate 16.4% to 15.2 million cases in 2011, and eight of the top 10 posted growth. Meanwhile, wines over $20 continue to be the fastest-growing segment in the off-premise, rising 11% in Nielsen channels in the 52 weeks through April 28, 2012. (Impact Databank)

View on: Sales

Wine sales by volume are expected to rise by 10% in the US up to 2015. China, meanwhile, has overtaken the UK in the past year to become the world's fifth largest wine market by volume, if Hong Kong is included in the figures.

View on: Sales

There is a different situation in much of Europe, where consumption is set to continue falling in key wine producer nations, such as France and Italy.

View on: Behavior to perform

USA: Opportunities:�The super-premium continues to grow ($ 7-14)

But with greater price/quality demands!�Strong future growth consumption projections

(Millennials)�Strong prospects for imported wines

(limited growth in domestic production)

Challenges:�USD / EURO exchange rate risks / fluctuations�Margin pressure�Consumer pressured by economic climate & inflation�Large suppliers consolidating distribution networks,

demanding greater attention and pressuring distributor margins- small and medium suppliers struggle to maintain share of mind

USA: Key Success Factors�Adequate market segmentation,

budget for building brands

�Good price/quality relationship

�Develop and maintain good relationships with (1) importers (2) distributors (3) retailers

Perceived Value

High Low

Delivered Costs

High Perceived Value Competitor

"Outpacing" Competitor

"Confused" Competitor

Low Delivered Cost Competitor

Brand strategy

Niche strategy

Cost leader-

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

Perceived Value

High Low

Delivered Costs

Brand strategy

Niche strategy

Cost leader-

Focus: content

Focus: consumer

• Brand (consistent quality)

• Innovation

• Distribution (Service) retailers

Focus: process

• Cost control

• Scale

Focus: process

• Cost control

• Scale

Positioning Strategies

(source: Rabobank research)

Thank You!

Contact:Marian Kopp m.kopp@weintor.dehttps://www.xing.com/profile/Marian_Kopp

(Mr Marian Kopp Presentation Dwi Export Forum June 2012 Print Version

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