Sunday, January 29, 2017

From a winery's viewpoint...

Our experience as an importer has been that DTC is often crucial for new wineries (immediate cash, healthy margins, emotional connection and gratification - not to be underestimated!), but growth and long-term sustainability require 'traditional' distribution channels to support higher volumes and economies of scale, as well as marketing/brand-building via on-premise sales. Some examples:

Rhys Vineyards started as a passion project for Kevin Harvey (Benchmark Capital), and for more than a decade they've largely relied on their mailing list (2 year+ waitlist, very limited allocations) for the majority of their sales. Distribution was largely limited to California, Hawaii and the East Coast. However, with the purchase of vineyard land in Anderson Valley and ambitious growth plans for their second decade, they've extended distribution to other large urban markets (e.g. Texas) and are pursuing export opportunities as well. Their wines are on the lists of all 6 Michelin 3* restaurants in the Bay Area and by-the-glass at 3 of them!

Inconnu is one of the few wineries started and helmed by a female winemaker, Laura Brennan Brissell, and while her first 2 vintages were mainly sold through word of mouth and a mailing list, she has been working with her distributors to gain placements in restaurants like Chez Panisse and Camino and working the export markets.

Lastly, an exception that proves the rule: Birichino, the brainchild of two Bonny Doon (an iconoclastic Californian producer if there ever was one) alumni, started with distribution to Canada and Northern Europe (both markets largely run by government monopolies), but are now building a tasting room in Santa Cruz to expand their DTC segment.


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