results from the second north carolina wine industry...
TRANSCRIPT
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Results from the Second North Carolina
Wine Industry Tracker Survey - 2010
Dr. Michael R. Evans
Professor of Hospitality and Tourism
Management
and
Dr. James E. Stoddard
Professor of Marketing
John. A. Walker College of Business
Appalachian State University
Boone, NC 28608
July 2011
1Evans & Stoddard
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Research Sponsorship
• Research assistance by:• The North Carolina Wine & Grape Council
4324 Mail Service Center
Raleigh, NC 27699-4324
• The North Carolina Winegrowers Association
P.O. Box 2495
Yadkinville, NC 27055
• From a grant provided by:• The U.S. Small Business Administration
• Grant managed by:• Appalachian State University Enology & Viticulture Center
9/1/2011 2Evans & Stoddard
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Purpose of the Research
To employ the industry tracker tool developed in 2010
to assess the financial performance of the North
Carolina wine industry and compare 2010 performance
data with the baseline study from 2009 where
appropriate.
9/1/2011 3Evans & Stoddard
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Research Procedure
• The survey was developed in conjunction with the
North Carolina Wine and Grape Council and the
North Carolina Winegrowers Association.
• The survey was e-mailed to all 106 wineries in North
Carolina identified by the North Carolina Wine &
Grape Council in 2011.
• This was followed by two successive requests for
wineries to complete the survey online. This
procedure resulted in a 31% response rate (N = 33).
9/1/2011 4Evans & Stoddard
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Winery, Vineyard or Both (N = 33)
9% of respondents were
wineries, 9% vineyards
and 82% were both.
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Percentage of Respondents from North Carolina Wine
Producing Regions: All Reporting Wineries
(N = 33)
9/1/2011 Evans & Stoddard 6
Map courtesy of the North Carolina Winegrowers Association
(http://www.ncwinegrowers.com/generalinfo/vineyards-a-wineries)
12.1%6.1%
39.4%
27.3%12.1%
3%
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North Carolina Winery Operations: 2010
Winery operation measures included:
• Winery Sales
• Months Winery Was Open
• Winery Customer Relationship Strategies
• Winery Varietals
• Winery Capacity & Capacity Utilization
• Average Wine Bottle Prices
• Winery Distribution Strategies
• Winery Visitors & Tourists
• Winery Employees
9/1/2011 7Evans & Stoddard
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Winery Sample Statistics
• Although 33 wineries responded to the
questionnaire, not all wineries completed all
questions. Therefore, the sample size varies.
• Where appropriate, comparisons are made
between data collected in 2010 (that is, winery
performance in 2009) and data collected in
2011 (winery performance in 2010).
9/1/2011 8Evans & Stoddard
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Average Number of Cases Sold in 2010
N Minimum Maximum Mean St. Dev.
23 40 10,000 2,368.04 2,827.48
9/1/2011 9Evans & Stoddard
Please tell us the number of cases of wine your winery sold.
Sub Sample of Wineries 2009
N Minimum Maximum Mean St. Dev.
32 100 11,000 2,067.39 2,353.53
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Please tell us the number of months your winery or vineyard was
open to the public in 2010.
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Please tell us whether your winery has any of the following in 2010:
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Winery Capacity 2010
N Minimum Maximum Mean St. Dev.
25 400 50,000 7,144 10,533
Please tell us the capacity of your winery in terms of the
number of cases of wine your winery can produce in one
year.
Sub Sample of Wineries 2009
N Minimum Maximum Mean St. Dev.
32 100 11,000 2,067.39 2,353.53
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2010 Winery Capacity Utilization
(Mean Cases Sold/Mean Winery Capacity)
2010 Sample of Wineries
N % Utilization
23 33.15%
Sub Sample Wineries 2009
N % Utilization
32 45.89%
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Please tell us the average price for a bottle of your wine.
2009 Average Bottle Price
N Minimum Maximum Mean St. Dev.
40 $8.00 $17.00 $12.99 $2.40
2010 Average Bottle Price
N Minimum Maximum Mean St. Dev.
26 $9.00 $18.00 $13.83 $2.42
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2009 Wineries
N Minimum Maximum Mean St. Dev.
40 50% 100% 86.7% 12.5%
9/1/2011 15Evans & Stoddard
Please estimate the percentage of your winery sales that comes
from wine alone.
2010 Wineries
N Minimum Maximum Mean St. Dev.
26 50% 100% 85.5% 11.85%
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2009 Wineries
N Minimum Maximum Mean St. Dev.
38 14% 100% 79.08% 22.11%
9/1/2011 16Evans & Stoddard
Please estimate the percentage of your total wine sales sold on site
at the winery or sold directly to consumers.
2010 Wineries
N Minimum Maximum Mean St. Dev.
26 50% 100% 85.5% 11.85%
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2009 Wineries
N Minimum Maximum Mean St. Dev.
40 0% 86% 6.19% 16.25%
9/1/2011 17Evans & Stoddard
Please estimate the percentage of your wine sales sold to wholesale
distributors.
2010 Wineries
N Minimum Maximum Mean St. Dev.
20 0% 49% 9.55% 15.55%
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2009 Wineries
N Minimum Maximum Mean St. Dev.
39 0% 50% 10.94% 13.26%
9/1/2011 18Evans & Stoddard
Please estimate the percentage of your total wine sales sold direct to
retailers, restaurants, and hotels.
2010 Wineries
N Minimum Maximum Mean St. Dev.
19 0% 48% 7.37% 12.29%
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2009 Wineries
N Minimum Maximum Mean St. Dev.
35 300 90,000 8,844.57 17,383.17
9/1/2011 19Evans & Stoddard
Please estimate the number of yearly visits to your winery or vineyard.
2010 Wineries
N Minimum Maximum Mean St. Dev.
27 100 76,000 9,110.56 15,500.68
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2009 Wineries
N Minimum Maximum Mean St. Dev.
38 20% 95% 61.08% 26.28%
9/1/2011 20Evans & Stoddard
Please tell us the percentage of your visitors that are tourists (i.e., come
from at least 50 miles from home).
2010 Wineries
N Minimum Maximum Mean St. Dev.
27 10% 90% 61.56% 24.95%
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2009 Wineries
Type N Minimum Maximum Mean St. Dev.
Full
Time40 0 51 3.6 8.58
Part
Time37 0 30 5.4 7.54
9/1/2011 21Evans & Stoddard
Please tell us the number of full-time and part-time employees that you have.
2010 Wineries
Type N Minimum Maximum Mean St. Dev.
Full
Time25 0 15 4.16 4.45
Part
Time27 0 25 6.93 6.53
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North Carolina Winery Costs, Expenses and
Profitability as a Percentage of Winery Sales
Revenue
• For the following data, only wineries reporting that
winery costs, expenses and profit as a percentage
of sales revenue that summed to 100% were
included.
• As a result, 13 wineries were included in the
analysis.
9/1/2011 22Evans & Stoddard
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9/1/2011 23Evans & Stoddard
2009 Wineries
N Minimum Maximum Mean St. Dev.
19 10% 60% 33.32% 13.28%
Please tell us the percentage of your sales revenue that represents your
cost of goods sold (e.g., grapes, bottles, corks, etc., but not labor).
2010 Wineries
N Minimum Maximum Mean St. Dev.
13 15% 70% 38.46% 13.96%
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Please tell us the percentage of your gross sales that represents your labor
costs.
2009 Wineries
N Minimum Maximum Mean St. Dev.
19 0% 68% 26.11% 18.17%
2010 Wineries
N Minimum Maximum Mean St. Dev.
13 0% 40% 18.31% 12.80%
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Please tell us the percentage of your gross sales that you spend on
marketing.
2009 Wineries
N Minimum Maximum Mean St. Dev.
19 1% 50% 10.47% 11.18%
2010 Wineries
N Minimum Maximum Mean St. Dev.
13 5% 20% 7.00% 4.32%
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Please tell us the percentage of your gross sales that represent the
rest of your expenses (e.g., general and administrative expenses).
2009 Wineries
N Minimum Maximum Mean St. Dev.
18 1% 68% 21.44% 17.09%
2010 Wineries
N Minimum Maximum Mean St. Dev.
13 5% 45% 19.69% 13.47%
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Of your gross sales, please tell us the percentage that represents your net
profit before taxes.
2009 Wineries
N Minimum Maximum Mean St. Dev.
18 -22% 50% 10.33% 17.32%
2010 Wineries
N Minimum Maximum Mean St. Dev.
13 0% 50% 16.54% 13.13%
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Please tell us the total dollar value of your in-kind or monetary charitable
contributions.
2009 Wineries
N Minimum Maximum Mean St. Dev.
31 $0 $200,000 $10,611.29 $35,697.33
2010 Wineries
N Minimum Maximum Mean St. Dev.
20 $100 $15,000 $2,962.50 $3,602.59
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Final Project Discussion
• The project provided insights into the performance of the
very young North Carolina wine industry and also
showed basic yearly trends.
• The survey instrument developed for the study worked
very well. We only changed a single question on the
marketing options used on the 2010 instrument.
• The North Carolina wine industry supported the project
and did provide data on a timely basis. However, future
efforts can still improve the sample size and response
rates.