ontario wine - insight conference, march 1 2016
TRANSCRIPT
Damien Wilson/Insight Ontario, March 1, 2016
A presentation for the Ontario Insight ConferenceMarch 1, 2016
Wine Business Institute Wine Sector Outlook
American Route To Market Hourglass…1995
2016
~1,800 Wineries
~3,000 Distributors
9,461 Wineries*
~700 Distributors
Damien Wilson/Insight Ontario Conference
The difference in branded, premium wineFrom Silicon Valley Bank 2015
Boomers number more than 3x Millenials in highest price categories
Damien Wilson/Insight Ontario Conference
The Outlook in Wine ConsumptionSVB STATE OF THE WINE INDUSTRY 2016
Damien Wilson/Insight Ontario Conference
What we know about wine consumersAN ILLUSTRATION OF HOW CONSUMERS COME INTO THE CATEGORY
Damien Wilson/Insight Ontario Conference
From the OIVWINE CONSUMPTION OVER THE PAST 50 YEARS IN BILLION LITRES
Boomers coming of age window
Xers coming of age window
Damien Wilson/Insight Ontario Conference
Millennials’ Coming of Age WindowFrom Euromonitor 2015
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
50
100
150
200
250
300
350
Market Size at Retail Selling Prices in Billion US$, 2014 valueWorld +15%
Western Europe -15%
N.America & Asia +50%
Damien Wilson/Insight Ontario Conference
The Unknown…KNOWING THAT WINE PREFERENCE CORRELATES WITH LIMINALITY…
Millennials coming of age window
Damien Wilson/Insight Ontario Conference
In France: decline. No other way to explain itFrom France AgriMer
~45Million ~31Million
Damien Wilson/Insight Ontario Conference
In case you missed it…• Awareness of French wine>Bordeaux>Every AOC• Regions with salience attract a price premium - From Combris
(1997) to Schamel (2006), to Oczkowski (2010) and numerous others
• Tellingly, there’s a premium from generic to specific but loss of awareness brings pricing discounts through loss of potential sales (Gillespie 2005)
• Specifically, AOCs in France have doubled since the 1970s• So, as the prestige of French wine has increased, no mechanism
existed to bring new drinkers to category
Damien Wilson/Insight Ontario Conference
Beginners choose yes/no wine…Novices on the left, the enthusiast on the right….
Damien Wilson/Insight Ontario, March 1, 2016
Use evidence more than emotion
• Alex my Nemesis
1. Wine Making gets the attention. Deal with it.
2. Make sure they know your value
• VQA Riesling outsells PG more than 2 to 1 • But consumers otherwise don’t
gravitate to Riesling• Don’t assume your customers understand. Find
out• Measure your brand’s character
Just because you want it to be that way….
Own Image
Damien Wilson/Insight Ontario Conference
Brand CharacterMeasuring Character: How you
behave when no-one is watching
BRAND CHARACTER: How consumer’s behave when you’re not watching
Damien Wilson/Insight Ontario, March 1, 2016
Research has found…
• Sales rely on two things:
1. That consumers are aware of your wine, and
2. That your wine is available where they like to purchase
• Millenials are growing, and they like wine• But they are influenced differently to
previous generations• Know how they perceive you
• The journey from Novice to Expert provides the answer to the riddle behind sustained growth in the wine sector
How the boffins are trying to make your job easier
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Damien Wilson/Insight Ontario, March 1, 2016
For my details, photograph the QR code
• Getting growth back will rely on understanding transition from wines of style, then variety, then….?
• Enthusiasts love the minutae of wine trivia, but non-wine enthusiasts just want a wine that’s not bad!
• With tomorrow’s market witnessing the end of boomer dominance, wine needs to embrace the transition process from novice to enthusiast, and encourage transit through that process
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Damien Wilson/Insight Ontario, March 1, 2016
Growing the Ontario wine market…
• Trading-up (only) is a false economy• Refresh the market with new
consumers. Constantly• We suspect that every time a wine
consumer is irritated by a wine snob, a kitten dies.
• Please think of the kittens when encouraging more consumers to drink wine from Ontario
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