Regional Branding in California s Lesser-Known Wine Regions. The landscape of California s wine industry is rapidly changing as wine consumers

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1 Brett Greenbaum 05/05/10 Regional Branding in California s Lesser-Known Wine Regions Introduction The landscape of California s wine industry is rapidly changing as wine consumers become more educated and more adventurous. Napa Valley, undoubtedly California s most recognized and popular wine region, has built its brand image around lifestyle and high quality Cabernet Sauvignon wines. As wine consumers have become more educated, varietals other than Cabernet Sauvignon become more appealing; wines such as Pinot Noir and Zinfandel are attracting an increasing share of the red wine market. As wine consumers become more adventurous and open-minded, lesser-known regions are experiencing a great market opportunity to attract consumers in search of different varietals, lower price-points, and a more personal experience. These new market opportunities also create unique challenges: How do lesser-known wine regions market and brand themselves? How do small wineries cooperate and collaborate to position and differentiate their region s wines and wineries? Background Over the course of the past 25 years, the United States wine industry has grown from a small market to a powerful economic force. In the year 2000, there were 2,904 wineries in the U.S. By 2008 the number of wineries in the U.S. had risen to 6,368, an increase of over 100% in a mere eight years (Michigan, 2006 and Wine Institute, 2009). In 2009, U.S. wine consumption was estimated at $30 billion. California is the fourth largest wine producer in the world and the leading producer in the U.S., producing more than 90% of U.S. wine (Wine Institute, 2010). 1

2 California s wine industry is experiencing unprecedented levels of growth. In 2008, California s wine industry was estimated to have a $58.9 billion overall impact on the state s economy (Light, 2009). Also in 2008, California s wine regions attracted over 20 million visitors, making wine the state s second biggest tourist attraction after Disneyland (Light, 2009). As of 2008, California had almost 3000 wineries, up from 1,450 in 2000; this number is exponentially growing (Wine Institute, 2010). Winegrapes are grown in 48 of California s 58 counties; Over 110 varietals of winegrapes are grown throughout the state (Light, 2009). California has over 108 federally recognized American Viticultural Areas (AVAs) (Light, 2009). Research Approach: The bulk of this research consisted of direct telephone interviews with wine industry participants. Several types of participants were selected for interviews including winery association representatives, Winegrape Commission representatives, winery staff and owners, and winegrape growers. In an effort to conduct as many interviews as possible, 52 industry participants were contacted by requesting an interview. After the initial , I attempted to reach the individuals by phone. The individuals that responded to the or telephone call and expressed interest in doing an interview were contacted again up to three times. After three unsuccessful contact attempts, unresponsive individuals were eliminated from this study. The interviewees were asked a number of open-ended and leading questions regarding their region and regional branding. Some of the questions that were routinely asked during these interviews included: What is your role in the wine industry? How large is your business/ production? 2

3 Are you involved with any regional organizations (winery associations/ winegrape commissions etc)? Does your region have brand recognition? What is the story or your region? What differentiates your region s wines from the rest? What kind of marketing/ branding strategies does your region employ? Do both wineries and grape growers share the same interest in regional branding? What do the wineries/ growers do to market themselves? Would they/ could they/ do they support regional marketing initiatives? Do wineries market themselves to outside audiences (other states/ international)? What type of visitors visit your winery (local, Northern California, business tourists etc.)? What is your view of the value your appellation/region/ county/ Northern California/California as a brand? Do AVA s help distinguish wines? Do consumers recognize AVAs? Regional Branding and Wine The wine industry has a long history of recognizing the importance of regional branding and place-based marketing. European regions such as Bordeaux, Burgundy, and Champagne have emphasized and capitalized on the importance of regional branding for many years. Recognizing the success of regional branding internationally and domestically, lesser-known wine regions throughout California are actively pursuing marketing efforts to promote, position, and differentiate their brands. Regional branding is especially useful in regions with large numbers of small wineries, which all can share the benefit of collective and organized marketing efforts. Many of California s lesser-known wine regions are made up largely of small-production and boutique wineries. These wineries have a unique product and experience to offer, but often lack the marketing budget to effectively promote their wines and tell their story. California s wines are often recognized and labeled by their region, county, appellation or AVA. In order to be labeled as being from a certain region, the wine must consist of at least 85% grapes from that region. An appellation is a broad term referring to the area in which grapes are 3

4 grown. An appellation can be defined as a county, state or country. An AVA is a specific grapegrowing area legally recognized for its distinctive and identifiable character. Many federally recognized AVAs also have additional AVAs or sub-appellations that exist within their boundaries. Lodi, for example, is a federally recognized AVA but the region also contains 7 additional AVAs or sub-appellations. Regional Branding: Support and Objections Support for regional branding is widespread in California s wine industry. All of the industry participants that I spoke with during the course of this research expressed support for regional branding. The main objections to regional branding initiatives are rooted in two main issues: 1. How is the region defined? 2. Who stands to benefit from specific regional branding initiatives? These two questions provide a framework for understanding the areas in which different interests diverge. Support for Regional Branding Regional branding is widely supported among both wineries and winegrape growers. Successful regional marketing initiatives lead to stronger levels of brand recognition among consumers. Increased brand recognition and reputation leads to increased sales, increased tourism traffic, and increased demand for grapes. All of the growers and wineries I spoke with expressed support for regional branding, however, variation did exist in defining regional branding and how it should be done. Objections and Issues with Regional Branding 4

5 While none of the interview participants that I spoke with directly objected to regional branding, many different opinions were expressed regarding how region should be defined. All of the interviewees belong to the California wine industry; some individuals believe that California wine is an important component of branding while others feel that marketing the name California dilutes the value of their region s brand. Another discrepancy in support of regional branding is the timeliness of the return on investment. Wineries with tasting rooms will experience the direct benefits of successful regional branding initiatives much faster than the small-scale grape grower will. The different opinions on regional branding are largely dependent upon who is asked and their role in the wine industry. A grape grower or large scale producer in the San Jouquin Valley has a great deal of interest in the brand recognition of California; many of their wines are distributed outside of the state. On the other hand, a small boutique winery in the Sierra Foothills that sells 80% of its wine through its tasting room is much more interested in branding and marketing Sierra Foothills than it is in marketing California. These differences can largely be deduced to an issue of production size and distribution. AVA, County, Region: Which Brand to Promote? Interview participants were asked to express their feelings and impression about various regional brands as they applied to wine. The interview participants were asked about to express perception of California, Northern California, their county, and their AVA (if applicable). The responses were largely varied by region. Most industry participants believe that it is the most important to promote their county (e.g. Lake County) or local appellation (e.g. Livermore or Lodi) first. Winery associations and 5

6 winegrape commissions usually represent these larger regions (as opposed to sub-appellations) in an effort to achieve brand recognition on behalf of the region. Regions like Lake County that sell 80% of their grapes to outside regions (especially Napa Valley) have a strong interest in increasing the recognition and perception of their region. Lake County grape growers often refer to themselves as Napa s best kept secret because Napa Valley wineries purchase so many grapes from Lake County. Industry participants generally feel better about marketing and labeling their wines according to their local regional brand than they do about marketing and labeling by their sub-appellation, broader region (e.g. Northern California), or California. Many regions have expended significant effort to distinguish their region and its grapes as unique. There is a general feeling that promoting California as a brand detracts value from the efforts these regions have made to differentiate their brands. While most wineries and winegrape growers have the strongest affinity for their local region s brand, exceptions to this rule do exist. Areas such as the San Joaquin Valley, California s largest winegrape growing region, have a strong interest in promoting California as a brand. Interviews with industry participants in the San Joaquin reflect the sentiment that smaller regional branding initiatives are less effective and that marketing efforts would be better directed if they included initiatives focused on the larger California brand. Another exception to the notion of branding by region exists when sub-appellations have had more success at building a stronger brand image than the larger region in which they are located. Anderson Valley is an AVA within Mendocino County that has its own winery and winegrape grower organization. Anderson Valley wineries and growers specialize in high quality wines (largely Pinot Noirs, Chardonnays, Gewürztraminers and White Rieslings) and a scenic wine-tasting experience, differentiating them from some or the large-scale and lower price-point 6

7 wineries of the larger region, Mendocino County. Anderson Valley has had success at building brand recognition and positioning itself as a distinct destination and wine-producing region. North Coast is another large AVA that consists of grape growing regions in six different counties which traditional only market wines by their local region (Napa, Sonoma, Marin, Mendocino, Lake and Solano). While the North Coast AVA has not been used much in consumer marketing or labeling, lesser-known wine regions such as Lake County stand to benefit from a positive association with regions like Napa and Sonoma. As the dynamics of the wine market changes and preference increases for lower price-point wines, some Napa Valley wineries have considered labeling lower price-point wines as North Coast in an effort to capture a larger share of the market without diluting the value of the Napa Valley brand. Wineries and Winegrape Growers: Different Perspectives on Regional Branding? Many interviews with both wineries and winegrape growers indicated that the interest in regional branding may differ between wineries and growers in the same region. Both wineries and winegrape growers have a clear interest in the branding and recognition of their regions: wineries build a reputation and sell more wine, while growers can command higher prices for their grapes. In regions with high concentrations of winegrape growers, growers play an important role in regional branding efforts because they have a strong interest in increasing the value of their grapes. Large producers that purchase the majority of their grapes fear that a better regional reputation will drive up the prices of their suppliers. These large wine producers tend to produce lower price-point non-appellation specific wines sold through major distribution chains. This issue is exemplified in Lodi where industry participants feel that some of California s largest 7

8 wine producers worked to keep the quality of Lodi grapes a secret in an effort to keep prices low. In Lodi, the region s grape growers voted to create a winegrape commission to help build brand recognition and to market their region. Most of the wineries in California s lesser-known wine regions are small producers. These small producers do not have the same distribution channels as major producers and hence rely on direct sales (winery to consumer) for the majority of their transactions. These wineries understand the importance of regional branding and are often the first ones to see immediate results of successful marketing initiatives in their testing rooms. Successful regional branding initiatives that increase tourism and recognition of a wine region can affect the revenues of small wineries immediately. Small growers in lesser-known wine regions are often more reluctant to support regional branding initiatives than smaller wineries in the same region. Increased tourism to a region, for example, does not immediately benefit the small grape growers. Winegrape growers will not experience the benefits of regional branding until the actual demand for their grapes rises, which results from a gradual process. While small wineries are often able to see some direct benefits of regional branding initiatives, the benefits are often slower to affect the growers. Marketing Initiatives The various industry participants interviewed were all asked what kind of marketing initiatives have been done on behalf of their regions and which initiatives have been successful. The following list is composed of the major marketing approaches that have been undertaken on behalf of regional branding. 8

9 Media outreach: Media attention is considered to be a key component of effective regional marketing initiatives. Winery associations place a great deal of emphasis on attracting local, regional, and national wine-journalists to their region. Articles in local newspapers, the San Francisco Chronicle, and national food and wine magazines play a large role in helping these regions gain recognition. Lake County uses a helicopter to provide aerial tours of their region and its unique landscapes to wine-journalists. Trade shows: Many regions participate in industry trade shows, taking their wines on the road to share the story of their region and its wines with journalists, distributors, and other industry members. Regions like Paso Robles have had success receiving grant money from the US Department of Agriculture (USDA) to take their wines on the road to trade shows and events, doing direct-grower marketing. Consumer events (local and nonlocal): Regions such as Lake County, Lodi, Livermore, and Monterey County have experienced a great deal of success by hosting weekend consumer events. These events range from Lodi s Zinfest to Livermore s Barrel Tasting Weekend. Wineries that specialize in specific varietals also participate in variety-specific tradeshows and consumer events (Like Pinot Noir or Sauvignon Blanc events and the Treasure Island Winefest) Signage: Regions with wine trails and signage (e.g. Lodi) improve the experience of winetourists and make it easier for visitors to find the wineries. Other regions without adequate signage (e.g. Lake County) express the desire for more signs and the importance of signage. Wine regions in proximity to major highways or thoroughfares have engaged highway authorities such as Caltrans to attract visitors passing by on the highway or in route to other destinations. 9

10 Social media and internet marketing: Social media, especially Facebook and Twitter, is a growing trend in the world of marketing. Many wineries and wine regions are capitalizing on social media as a way of communicating with the millennial generation and engaging with new customers. Many wineries expressed that radio, television, and print advertising are all too expensive; internet marketing is becoming an increasingly large part of their advertising strategies. Partnerships and collaboration: Winegrape commissions and winery associations place a great deal of importance on building strategic partnerships with other businesses in the region. Winery associations work closely with concierge groups to assure that wine tasting and wine-tourism are considered to be a valuable tourist attraction or excursion in their region. Winery associations also work with convention centers, hotels, casinos, and local chambers of commerce. Creating a story and communicating it: Regions such as Lodi that are experiencing success at building a regional brand understand the importance of creating a clear message about their region s unique qualities. Lodi offers a unique and personal wine-tasting experience and is home to numerous multi-generational family wineries. Lake County boasts its high elevation vineyards, natural beauty, and one of Northern California s most popular lakes. Mendocino County claims that it is California s most sustainable wine region and that its "green credentials are unsurpassed by any other wine region in the world. Creative regional labeling: How to geographically label wines is an emerging issue in California s lesser-known wine regions. Appellation-recognition is often very small among consumers, yet wineries have a desire to promote their regions. Wineries in Lake County have 10

11 begun placing a small map of California on their labels to help consumers distinguish the geographic location of their region or appellation. Promote the region s distinguishing characteristics: Regions that market themselves based on distinguishing characteristics (especially grape varietals) have experienced success at gaining brand recognition. Regions such as the Anderson Valley and Monterey County have positioned themselves as cool climate regions that produce excellent Pinot Noirs. Lodi has positioned itself as a leader in quality zinfandel production. Lake County has positioned itself as a leader in high elevation grape-growing. Conclusion: Emerging trends in the wine business have created an unprecedented opportunity for lesser-known wine regions to build their brand and increase their recognition. California s lesserknown wine regions are rapidly expanding as the number of small-production wineries grows exponentially. These small wineries generally do not have the budget or marketing experience to develop and implement successful marketing plans. Successful regional branding strategies provide an opportunity for small wineries and grape growers to pool their resources and participate in collaborative marketing efforts which can result in significant return on investments for all industry participants. 11

12 References Light, N. (2009) California: Liquid Gold. Visit California. Retrieved March 10, 2010, from McMillan, R. (2008, May 1). Silicon Valley Bank State of the Wine Industry. Retrieved March 10, 2010, from U. S. Wine, Grapes and Grape Products Contribute $162 Billion to Economy. (2006, January 17). Michigan Wines. Retrieved March 10, 2010, from Wine Institute. California Wine Facts & Figures - The Wine Institute. (n.d.). The Wine Institute - The Advocacy Group for the California Wine Industry. Retrieved March 12, 2010, from 12

13 Douglas Stewart Anderson Valley Winegrowers Breggo Cellars Highway 128 Boonville, CA Interview Notes Winegrowers Association works on promoting growers from the region and protecting their interests. Association was formed in addition to the Wine Grape Commission because growers in the area are very unsatisfied with commission and felt the need to begin doing marketing work themselves Association works on communication with media, but no tradeshows or typical wine association work Participate in a couple of focused events Difference between the association and the commission is the membership base Commission benefits the larger region Anderson valley does certain things well and wants to emphasize them Region does best with sparkling wine, pinot, cold weather varietals winegrowers need to promote that better Top wine press refers to Anderson Valley regularly Mendocino County has not been successful at regional branding which is why Anderson Valley felt the need to position themselves as distinct Parducci labels different that other wineries Not a lot of quality in the farming in Mendocino County Median price is $30 Anderson Valley wines Internal conflict between the two interests, Anderson Valley vs. Lake County North Coast as a brand has a lower consumer image Mendocino has done well at creating a positive association w/ sustainability commission has made Mendocino an epicenter of sustainability Consumer perception that organic wines are bad is a result of the inability to differentiate between organic grapes and organic wines Mid-sized enterprise like Rhoderer does a lot of out of state marketing Navarro is 85-90% direct sales, great job at marketing through tasting room and wine club Marketing need is constant and continual work and efforts to get wine writers food and wine magazine etc. Paul Dolan has been great at getting media attention 13

14 Christian Ahlmann VP, Six Sigma Ranch Lower Lake, CA office (707) mobile (707) Wine is all estate grown 2,000 case production 60% are direct sales= tasting room/ online Distribution in a few other states like Oregon, Midwest- Missouri/ Kansas and New York, some in Bermuda (mainly through family travel) Tasting room demographics depend on the season. The majority of people during the summer are from out of town. During the winter/ off season, the majority come from locally Those that come from out of town come specifically for the wine-tasting- it s the destination Small winery association does trade events, publicity Don t do typical advertising, but do some traveling to outside of county to visit distributors which draws people in to the region 10 years ago, 10 wineries in region, now over 30 Rent a plane or helicopter to get wine writers to come out Associations/ grower commissions are good about working together and developing talking points Cleanest air in CA Laidback atmosphere Associations do a good job at marketing Growers understand that having a good image drives up prices It is the most important to promote region (Lake County), but also label the Wines as being from CA 14

15 Adawn Woods Shed Horn Cellars Most distribution is to local restaurants, in Mendocino and Lake County Some social media could be very helpful. Six sigma does well w/ social media, blogs, flyers Membership is 80% in the winery association in just 2.5 years (very successful) Printed advertising in magazine for SF and Marin county in the wine country guide. Monthly advertisement. Work with sales guy who has taken wineries down to SF to talk to concierges etc. Promoting Lake County as a whole associate members- hotels etc. fun to be here. Some face to face, some flyers. Wine adventure weekend is huge attraction a lot of time and money on that new spring event: auction dinner and dance Wines are sold through winning medals and word of mouth What are the primary marketing needs? Different demographics in winery owners. Most are laidback. Hand shake and face to face other wineries like six sigma and Shannon Ridge using lots of social media Biggest marketing needs would be face to face and social media Is there a disconnection between growers and wineries? 50/50 a lot of growers who sell out of lake county are promoting Lake County Big events are 90% locals 2.5 hours from Sacramento or San Francisco. Not easy to get to, people from SF to go to Napa instead. Could be in High Valley AVA but Lake County has a better name We promote Lake County not the AVA. High elevation. Lots of soil types. More diversity in varietals. 15

16 Peter Molnar Partner and GM of Obsidian Ridge Vineyard Chair of the Lake County Winegrape Commission Chair of Winegrape Commission Has 100 acres in Mayacamas range (Napa), rest is in Lake County Grows grapes for sale and produce wine 6000 cases Most sales are through distributors/ direct wine club 8500 acres of grapes in Lake County Before prohibition, Lake County had more grapes than Napa Evolution of Lake County has been in last 15 years 80% has been planted or re-planted (in the last 15 years) Vineyards are taking the lead in regional branding. Winegrape commission levies the tax on the growers Winegrape Commission (and the growers)have always has worked closely with the wineries 15 years ago there were 20 lake county wines, now over 300 Winery Associations does more consumer events Commission has been focusing more on winemakers. Focusing on technical aspects of wine, geography of region The unique aspects of growing in Lake County work well with winemakers Did a two hour talk with ASA on technical aspects Hosted and put together symposiums on Sauvignon Blancs, elevation etc. Holding events in Lake County get a lot of press sponsored event in Sacramento. Associate region as high elevation!!! In terms of press etc. region is pushing the envelope to learn and share. Events help a lot! Press outreach targeting A and B publications. Helicopter tours- help show it from air, emphasize geography, and show that its not as far as people think Have found the traditional show route less effective press and technical work better for marketing 15 years ago was only 1 AVA in Lake County, now several North coast is an AVA which ties Lake in with Napa and Mendocino AVAs have worked because they are very specific areas North Coast has not been used much in consumer marketing Consumer recognition is in single digits (percentages) for almost all of California s AVAs- except Napa (70%) and Sonoma (20%) Whole wine industry is currently in flux in terms of pricing 16

17 Historic cabs will be a rough road in the future hard for wines like those from Napa to come up with a 70$ wine and a 30$? Dilutes the value of Napa Valley Could the safely come out with a north coast wine? Broad and more flexible in terms. North Coast doesn t dilute, help or hurt because it s unused. Being part of north coast helps us (Lake County) Lake County as a Winegrape commission has made sustainability a focus. Emphasizing sustainability to growers and then outwards that growers are improving their practice Two reasons: 1. It is good stewardship and 2. It looks good for the county. Professional, responsible Wineries don t worry about it (sustainability) making the quality (or association of quality) of wine worse... maybe natural wine movement? Do not go into better or worse quality wine. Broad comment- these efforts do work. Napa has been the major success. Just because one effort worked in the past does not mean it will work in the future. Napa focused on lifestyle The America wine drinker is a very different person than they were 30 years ago. ¼ of drinkers now understand different varietals etc. 17

18 Monica Rosenthal Executive Director Lake County Winery Association High Elevation growing conditions Excellent sustainable growing conditions such as clean air, low pest pressures, and volcanic soils. Money to finance marketing programs. needs to have established businesses such as restaurants, lodging, and evening entertainment venues to support the wine industry as a destination wineries are making great strides forward in learning about the region as a wine grape growing area and making the necessary adjustments in their farming practices to produce high quality, intensely The results in the number of Lake County Wines receiving recognition from wine writers and wine competitions both in and outside of California. The growers and the wineries have different and distinct marketing and branding needs. Lake County: all factors of our wine industry work closely together to promote Lake County as a re-emerging wine region. Good wine starts in the vineyard. Wine clubs, tasting rooms, newsletters, campaigns, social media, networking, participation in charitable events, wine competitions, etc. Would they/ could they/ do they support a regional initiatives? They are members of the various organizations such as the Lake County Winery Association, Lake County Winegrape Commission, Wine Institute, CAWG, Family Winemakers, Northcoast Winegrape Growers, etc. Does being branded as Lake County have a positive association to wineries? Yes, especially as the region gains attention, recognition, and notoriety. What about California/ Northern California? Too large of an area. Wine is more specialized. The quality and character of the grape is determined by the land in which it grows. California is a huge state with many different growing regions and conditions. Each produces a variety of flavors and is best suited for a variety of wine grapes grown and produced in a variety of different styles. In general, grape growing regions are not better or worse, but each region produces different characteristics in its grapes and therefore, in its wines. Marketing sometimes portrays one region as better than another, but wine is about farming the land correctly--identifying the strengths and weaknesses of the land and planting the right crops in the right locations and using sustainable farming practices to preserve the essence of the land and the environment. 18

19 Stephen Sterling Esterlina Vineyards & Winery Everett Ridge Winery Ext. 15 Wireless/Direct Vineyards in Mendocino and Sonoma 80% direct sales Distribution system, 10% outside of the state Direct marketing and special events Marketing based on winery and regional Label differently for different wines: Anderson Valley, Mendocino, Sonoma, Dry Creek Regional shows and events Varietal events, Pinot Noirs Ava labeling; Depends. Some sub-appellations are perceived as better General North Coast (or CA) is perceived as lower quality Do collaboration w tourism sources- like hotels so that tourists know about the Winery Some internet marketing, but need to do more TV and radio is too costly More wineries in Sonoma is using Facebook just starting to catch on in Mendocino Social media is different. % of consumers that can count on magazines is less Anderson valley only wants to put Anderson on label (not Mendocino) Anderson valley average is 35$, Mendocino 10-12$ Dry Creek, Alexander Valley etc. only want their AVA (not county) Winery marketing (by the associations) is secondary Tourism is mostly people from within the state, but get people from all over country If budget is limited, better to market to local area. Get more bang for the buck 19

20 Nils Venge VEN-CAL RANCHES, LLC Saddleback Cellars/Venge Vineyards P.O. Box 141 Oakville, CA Telephone: Fax: First vintage was 1998 has 35 acres in Lake County 1000 cases Additional vineyard and winery in Napa Primary sales is direct (tasting room) or e-commerce Tasting room is seasonal Traffic/ tourism is primarily locals from the area, passport weekend Kelseyville wine and chocolate weekend was very successful Three different AVAs: Red hills, lake county, obsidian Significant differences in pricing between Napa wines and Lake County wines $20-30 in lake, $40+ in Napa Lack of nutrients because of volcanic soils makes it require more caretaking Biggest marketing need is signage, signage, and signage! 20

21 Nick Buttitta Rosa d'oro Vineyards 3915 Main Street Kelseyville, CA phone fax cases per year Focus on Italian varietals- Barbera, Primativo etc. Became a bonded winery 9 years ago Trying to push wine outside of ca with some luck- working with a distributor in Oregon and one in WA Also working with Inertia beverage group to get distribution in NY and DC It is hard for small wineries because people that we are not connected to (e.g. east coast) in restaurants, stores etc. depend on the distributors Winery has wine club events Wine Adventure is big regional event WG commission helps wineries, but is mainly set up to help growers Winery association works on drawing tourists from out of the area Lake County People s Choice event is a successful wine judging event. Event has credibility because big name judges pre-select wines and the individuals judge them in 18 categories Does individual marketing to wine bars/ restaurants that use Italian wines 50% is sold through tasting room Lake is the big attraction and region has a lot of other attractions (bass fishing etc.) Not a lot of Bay Area people in tasting room more people go to Sonoma/ Napa More people from Sacramento. The people from san Francisco who do come here, come to avoid the lines and crowds of Napa, Lake County is more personable and casual Lake County has a good relationship between wineries and growers although in other places like Sonoma and in the past relationship has been more tense Labels wine Lake County, but just re-designed labels with a map showing where Lake County is. A couple of other wineries are also doing that. Has to be 85% from that region to say Lake County AVAs in region are clear lake, high valley, red hills An application is currently in process to make two new AVAs in Lake County- Big Valley and Kelseyville If I get in an AVA would still prefer to use AVA and Lake County and California Very comfortable with the Lake County brand 21

22 California as a brand would just come into play if the grapes were not 85% regional or from a region without a good reputation 22

23 Kris O'Connor, M.S. Executive Director Central Coast Vineyard Team th Street Suite 204 Paso Robles, CA CCVT Central Coast Vineyard Team Grounded mostly in education, research, outreach don t do much marketing Do have certification program is open to people Certifying vineyards wines are automatically certified if they come from a certified vineyard Paso Robles Wine County Alliance does more marketing and branding work for the region Paso and Monterey events, press events, tradeshows, distributor Program set up to be a distinguishing factor. 300 members, Central Coast, San Benito 11,000 acres certified 50,000 cases certification Sipthegoodlife.org Don t really deal with branding and marketing, should contact Paso Robles Winery Alliance for more information 23

24 Mark Chandler Executive Director Stuart Spencer Program Manager Sustainability is major cornerstone of Lodi s brand Encourage wineries to be in teens or higher (in terms of price-point) Utilizing high quality smaller production wines to emphasize the rest of the wines Data shows that most of the action is for wines priced between $10-20 Winegrape commission is a quasi-governmental agency. Has the authority to tax growers When they started there were 8 (wineries?) Commission has been instrumental in getting Lodi on the label of wines Has to be 85% Lodi grapes to be labeled as Lodi Big wineries don t like the Lodi name because raw material prices go up 7 Deadly Zins a good example of successful and well marketed Lodi Zinfandel Commission would only focus and help a winery s Lodi-labeled products (if they make other products). Funding for commission comes from grape growers. Need the small wineries to tell the Lodi story. Need to establish a contemporary view that Lodi has quality grape growing Website needs to be more wine oriented Visitors center- to facilitate wine tasting for consumers (unique model) Weekend wine events e.g. Zinfest Tradeshows/ seminars Treasure Island wine fest TV shows Biggest problem- many smaller wineries can t get distribution and hence get their wines out of the regional market. Hence, even once the marketing is done, distribution needs to be in place Work closely with Chamber of Commerce Weddings. Business tourists. Had billboards on highway 99 Wine Trade Associations to have their meetings their Lodi could share tourism with the foothills. Work with Wine Institute Work closely with other regions to keep market share up in California Story is of Multigenerational family farms. Authenticity, genuine experience. History. 24

25 Green message is a supporting point, but not a buying point Need is growing the brand and getting it through the distribution channels Grape growers are reluctant to pay more. Winegrape commission exists because big wineries like Gallo worked to try and keep Lodi anonymous Growers are more comfortable with buying into regional initiatives than wineries Online advertising: face book/ list Biggest challenge is helping medium sized producers grow grow the brand, but also be able to get it though the distribution channel Hardest part is getting representation and getting people to sell the wine Advertising is always the variable activity, based on revenues Even grape growers are reluctant to pay more although some feel that the commission should asses more Strategic plan needs to be compelling Outside research to detail benefits of regional branding. Board members need to take the lead 25

26 Peterangelo Vallis Executive Director San Joaquin Valley Winegrowers Association 7030 N. Fruit #115 Fresno, California Office: Fax: Mobile: San Jouquin Valley Winegrowers was created in 2002 as a 501c3 to address economic issues facing San Jouquin winegrowers Switched recently to become a trade organization 55-65% of all ca grapes come from this region 42 wineries are members. Approximately 78% of wineries in region are members. approximately 60% of growers are members Everything from here gets labeled as CA, can also label by county. Region has three appellations Many regions try to differentiate themselves by labeling sub-appellations and marketing their specific area Bronco winery, for example, only likes to use CA because it is more broad Outside of CA, people don t know California regions anyway. They just buy for the name California Big problem is little areas trying to distinguish themselves/ market themselves as separate from California. This practice hurts everybody else Most of us wines comes from CA (some in OR, NY, WA) Wineries are god at selling an image, poor at selling a product Most of the wineries don t do much marketing Napa is only 4% of California s wines Big disconnect between wineries/ growers Wineries tell growers what they want which is different every time/ year Only has been one regions where growers initiated regional branding (Lodi) San Jouquin has the most grapes.lodi is commanding higher prices, some growers near the border of Lodi have stopped growing grapes because the Lodi higher prices have driven their prices down Many regions neglect to market California/ promote California.. marketing high end stuff and disconnecting from Ca, hurts Ca People who get the grants are small areas because the regions make more money per acre San Jouquin is 70-80% of all US exports 26

27 Most go to Europe, some to Asia. In London you will see lower end CA wines with high prices grouped with higher end stuff. Most big wineries only market their own brand and have less interest in regional branding Biggest marketing need is awareness of the region. Several small wine trails which are underfunded. The region as a whole does not look at agro-tourism seriously Very sustainable region could do more marketing around that. The problem is sustainability implies the need for constant improvement no room to improve (because already very sustainable) Assistant ranetta@idrinkwine.net 27

28 Greg Baiocchi Baiocchi Family Vineyards 2145 Hidden Ranch Rd FairpLay, Ca El Dorado County First harvest was 2007 Young grower, first harvest for wine production in 09. Baichiowines.com Will produce a few hundred cases Will produce 2500 cases in 8 years In negotiations, lobbying between grape growers association and winery association for more cooperation and a formation of a commission Winery is in a sub appellation- fair play Everyone does what they think is best for themselves, in terms of labeling Some wineries will label one wine by AVA, some county El Dorado is Looking towards what Lodi and Lake county have done with the WG Commissions Small internet presence from some wineries, not too much social media or web 2.0 most of the growers or older farmers, do not have a background in business or marketing Younger grape growers and newer wineries do a much better job. Lots of very small growers in el dorado county 5-10 acres Wide range of wines: both quality and type. 100%- premium wines down to bulk wines. Lots of varietals types Marketing/ branding efforts tend to be more effective when you market to a more specific project. Marketing efforts work towards more of a niche presence rather than a larger presence so that consumers can attach emotion or experience to it. 28