WTN Blog

This new years weekend 2010 is a time to party, to watch football, to eat black-eyed peas, ham and greens and enjoy our family and friends. Most of us make a few resolutions knowing, deep down inside, they are hard to keep. The new years weekend for me is also a time for reflection – a convenient benchmark for measuring what I’ve learned so far, not just in the last year, but all along the winding and unpredictable road, I’ve traveled to date.Such reflections make me aware that whatever wisdom I possess is not of my own making but is the influence of those I have encountered along this journey. Most of the worthwhile ideas I have acquired have been inspired by the wisdom of others in work, politically, personally and spiritually. I’m a perpetual student, most of my truly significant learning has come from experience – very often the experience of listening to the wisdom of others.I’m fortunate enough to know a few people who seem to have achieved a high level of serenity prosperity and balance, people who appear quite content with themselves and who deal with life’s circumstances with compassion and patience. I know them well enough to know that it’s not a facade; they are really happy balanced people. I listen to what they say because I have learned from what they have created for themselves and I am thankful for their inspiration..

www.wtnservices.com Wine Serviceswww.ambroisiawine.com Memorable Wines of Note

www.geerwade.com Quality, Value Priced Wines 

In our post from October 25th concerning the wine market battleground the the evolving models I asked the question of what models are beginning to gain traction in the US? The three models I presented were…

•  The German model is based upon low cost (one euro per liter) and hard discount sellers like Aldi. Certain retailers in the US have begun to take note of this model due to the recession.
• The American model historically has been all about corporate brands like Gallo and Constellation Brands but that model is in flux as the big boys aren’t moving wines like they were a year ago via the traditional method.
• The British model is built upon upscale supermarkets and the house brands they sell.

Recent trends suggests that the British model is gaining ground, both in the UK and here in America, where it is the model that drives Costco sales (Trader Joe, on the other hand, uses a version of the German system).
Interesting on that subject 7-Eleven announced that they were entering the wine market with a 7-Eleven house blend at a value price.  In an article titted “Sauvignon to Slurpees” on Daily Finance.com 7- Eleven responds to the market shifts…. Interesting and timely to our questions..,

http://www.dailyfinance.com/2009/11/04/sauvignon-and-slurpees-7-eleven-launches-in-house-brand-of-wine/

Chris Edwards

Vice President and General Manager WTN Services

The Wine Marketers battleground for wine sales…

The world’s wine markets are a battleground for three models of wine sales, each evolving in their own right.

• The German model is based upon low cost (one euro per liter) and hard discount sellers like Aldi. Certain retailers in the US have begun to take note of this model due to the recession.
• The American model historically has been all about corporate brands like Gallo and Constellation Brands but that model is in flux as the big boys aren’t moving wines like they were a year ago via the traditional method.
• The British model is built upon upscale supermarkets and the house brands they sell.

Recent trends suggests that the British model is gaining ground, both in the UK and here in America, where it is the model that drives Costco sales (Trader Joe, on the other hand, uses a version of the German system).
It will be interesting to see if this trend persists once the recession eases up and which model prevails as a part of the post economic bounce back in the US. A thought to ponder…

As American society becomes increasingly more fast-paced and hectic, fewer families are sitting down together for dinner. This may not a positive sign for American wine consumption as few people open up a bottle of wine to drink with their drive-thru or take-out dinners.

On a more positive note, the American population is aging, and older, more affluent people tend to enjoy wine more than other demographic groups. Hopefully they will pass their appreciation of wine to the next generation.

In many ways, the history of wine consumption in the U.S. is a microcosm of both the positives and negatives that have come with the innate American experience. Studying the history of wine consumption in the U.S. illuminates the political, cultural, religious, and racial diversity that has made the nation what it is today.

America has a relatively small but growing population of wine-lovers. Although the number of regular wine drinkers are far from being a majority, they will continue to grow as the population ages. Future trends will probably include an increase in consumption of quality varietals grown in specific, terroir-driven locations.

Wine enjoyment is symtomatic of relaxation, and these days American society is anything but relaxed. The history of wine is also synonymous with stable family relationships, and the divorce rate in the U.S. is currently about 50% and now we have an economy in flux with a holiday period that looks to be challenging at best given the political uncertain government response to health care, budget contraints, unemployement etc. What is next for wine in the US economy? For the savy marketers it is still a catagory that is growing.

WTN Services is seeing growth among those opportunistic in the wine space. Those viewing the challenge of market softness as an opportunity to review staffing, process improvement and use of new technologies are those that are growing or will in the long run. We see a consolidation of some businesses in the market. We see some competitors remaking themselves, filing bankruptcy and teetering. We see others consolidating their operations into others. We see many changes in the months ahead post harvest and post holiday. 

What will the holidays and new year present to your wine brands? The strong will get stronger, the innovators will prevail. Wise decisions on partnerships today will yield results tomorrow and the months immediately after. WTN Services is positioned for growth and solid partnerships for this holiday and the months and years to follow.

It has been a while since I updated our blog but decided there is no better time then the present to begin anew.
I was privileged this month to get to travel extensively into the wine regions of eastern Europe and to South Africa.
Those travels were real eye openers. The eastern European region of wine making in eastern Germany near Dresden and
Meissen has been making wine for hundreds of years. I was fortunate to be introduced to some great wines by the local
wine critic of the Napa Register Pierce Carson. I met him three weeks ago in Prague. He challenged me to explore wines
of the Czech Republic and East Germany. 

One of the greatest  value priced wines that are not yet available in America were from the estate of http://www.schloss-proschwitz.de/
The estate was taken away from the family post World War 2 while east Germany was under the iron curtain. Post fall of the wall in Berlin
Prince Zur Lippe has been able to purchase the family estate and winery back into his ownership and is again making great wines under his
family crest on the family estate. The wines are great, value priced and we were treated to a day of great food and wines at the estate.
We are hoping to form a partnership and ultimately bring some of these great wines to the American market in the next few years. If you ever
have a change to visit Uber Meissen in eastern Germany I’d encourage you to do so. It is a 2 1/2 hour very fun train ride from Prague.
While visiting Meissen visit the porcelain factory and the historic castle as well as the wine region. You will never forget the experience.
Next post will be on my visit to South Africa and it’s many wonders…

Our own Francis Sanders & David Griffin are at it again with episode 18 of CORKED

http://www.corkedthecomic.com/

Our own Francis Sanders & David Griffin present Episode 16

http://www.corkedthecomic.com/

A few weeks ago a member of the WTN Team participated in the International Wine Club Associations conference in Krakow Poland.  One of the presentations came from Direct Wines one of the largest direct to consumer sellers of wines in the world. Wine direct to homes in the UK and the US is the business of Direct Wines’ enterprises. The firm now ships more than 30 million bottles of wine a year through three business units, Laithwaites (formerly Bordeaux Direct) and the Sunday Times and the Wall Street Journal wine club.

Both operations sell wine online. Founder Tony Laithwaite first entered the wine business by importing French wines and selling them from a rented railway arch in 1969. When the Sunday Times in 1973 published an exposé on some of the dirty tricks of the British wine trade, Laithwaite wrote to distance himself from the bad press. The letter drew 2,000 reader responses and prompted the newspaper to establish a wine club with Laithwaite’s help.

They did a very basic presentation but the simple presentation speaks volumes to how they are driving success…

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