XChateau Wine Podcast

With over 1,000 kosher wines from across all major winegrowing regions, Royal Wine is the largest importer (and producer and distributor) of kosher wine in the world. Gabe Geller, Director of PR & Wine Education, discusses the market for kosher wine, how and where it is made, and how Orthodox Jews hear about them.Detailed Show Notes: Gabe’s background, at Royal Wine >9 years, wine industry for 16 years (retail, consulting, marketing)Royal Wine - world’s leading importer, producer, distributor of kosher wineIn US, carries >1,000 kosher wines from every major wine producing regionOwns Kedem, Herzog, and other brandsCan’t taste kosher wine, similar to other winesProduced only by Sabbath observant JewsNo non-kosher ingredients or processing agents (e.g. - fining agents)Has kosher certification on the bottleMevushal (“boiled”) - for some kosher wines, uses flash pasteurization which is also used by some non-kosher wineries; tend to taste more approachable initially, but ages longerIsrael #1 producer of kosher wine (~5M cases), USA (~350k cases; mostly Herzog), France (~350k cases across many wineries)Kosher wine marketObservant Jews drink kosher wine year-roundJews use wine in almost every religious ceremony, considered the “holy beverage”Passover 1st night dinner (Seder), every adult is required to drink 4 cups of wine (can by any kosher wine or grape juice), each cup symbolizes 1 way God saved Jews from slaveryJews who don’t do kosher normally will for Seder40% of kosher wine in the US is purchased for Passover (used to be 60%, declining as more quality kosher wines available, so more is being bought year-round)Top markets - Israel, US (NY/NJ #1, FL, CA - CA Jews drink less wine than East Coast Jews), FranceIn top kosher markets, large retailers (e.g. - Total Wine) will have a kosher selection, some kosher wine stores, and online retailers (e.g. - Wine.com) also carry kosherOf the 15.7M Jewish people (2023), only a small portion keep kosherSome kosher wines sold to the general market (e.g. - Bartenura Moscato #1 imported Moscato the past 15 years, most don’t know it’s kosher; Jeunesse semi-dry wines have a distinct consumer appeal)Israeli politics / Gaza war have lead to people buying more to support IsraelMarketing to the Orthodox communityIdentify sects with stricter mevushal rules (e.g. - 101F vs 105F) and promote specific brands that meet thosePrint advertising big (English, Yiddish), many do not use as much internet, none on Sabbath, take in news via printWhatsapp #1 social media for Orthodox Jews (or Telegram) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Though one of the oldest wine-growing regions in the world, Israel is still exploring its potential after Muslim rule after World War I. Victor Schoenfeld, Head Winemaker, and Walter Whyte, VP of Sales for Yarden Imports, explain how Golan Heights Winery has set the bar for the quality of Israeli wine and spreads its wines globally, both within the Jewish community and beyond.  Detailed Show Notes: Victor Schoenfeld - CA native, went to UC Davis, recruited to Golan Heights Winery in 1991Walter Whyte - managed officers’ clubs in the military and learned about wineGolan Heights Winery (“GH”) backgroundFounded 1983 to export wine of high quality26% exported today (production to increase 30%, primarily for export)NE Israel, Syrian border, 33rd parallel (like San Diego)Volcanic plateau, Mediterranean climate, high elevation (1,200-4,000 ft)19 varietals, known for traditional method sparkling, Yarden CabernetZelma Long, former consultantPrice points range from $15 (Mt Hermon) - Yarden Cab ($50) - $80+ - $1,000 (Cru Elite)Manage 40% of vineyards (to increase), rest on long-term contracts500 vineyard blocks, harvested & vinified separatelyHas two propagation vineyards and a nurseryIsraeli wine historyJournal of Science (2023) - identified two winegrape domestication events 11,000 years ago - Caucasus (Georgia) and Western Asia (Israel)Discovered ~30 ancient wine artifactsGolan Heights is the coolest climate region in IsraelMuslim rule 738 - WWI - old varieties died outIsraeli war impactsMinimal grape growing impacts (1 missile fell on vineyard), but emotionally challengingSupport in the US for Israeli wine, reduction in sales in Europe after Oct 7, 2023 eventsIsraeli wine marketGH demand > supply in IsraelPer capita consumption is low; a large segment does not drink due to religionThe food scene has exploded in the last 20 years, but many restaurants do not serve Israeli wineTop 5 markets - US, Canada, Europe, Far East (Japan)Top US markets - NY, NJ, CT, FL, TX, IL, CAHistorically, wines went to religious markets, expanding into secularinternationally marketed as high quality, not as kosher; Angelo Gaja distributes in ItalyDifferentiating GH“Oldest new world winery in existence”Marketing messages: World-class wine, kosher, then from IsraelHigh elevation, volcanic soils on 33rd parallel (Etna is 37th)MarketingGrass roots, get people to taste the wineActive in Jewish organizations, ads in Jewish publications, tasting events sponsored by Jewish groupsStrong presence in Kosher wine storesAll GH wines are kosher2 types - Mevushal (cooked/pasteurized) - required for some, esp Kosher restaurants (catering, weddings, bar mitzvahs); Non-mevushalMany wineries do bothEverything used in winemaking needs to be certified kosher (e.g., yeast)Can’t use things like isinglassGH's whole facility is kosher“Could double business if made mevushal,” but will not to maintain qualityFood and wine pairing is not typical. Traditional Middle Eastern cuisine, “mezze,” has a lot of different flavors at oncePassover dinner is coursed, and every adult must drink four glasses of wine (or grape juice)Yarden Cru Elite - $2,000 per pair265 pairs related, including NFT, sold directly from wineryCelebrate the 40th anniversary with collectorsCabernet Sauvignon, single vineyard, single block, two single barrelsLaunched at an Israeli restaurant in Singapore Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Tracking vine trunk movements down to the 0.5-micron level, Phytech is leveraging technology to optimize vine irrigation. Cody Ashurst, Director of Vineyards, and Lex Palmer, Marketing Manager, discuss how their solution optimizes and automates irrigation today and how it can be extended to optimize fertilization, harvest dates, and much more. Detailed Show Notes: Phytech - a global SaaS company that optimizes agricultural irrigationTechnology includes dendrometers, irrigation pressure switches, soil moisture probes, and frost & weather stationsCrops include nuts (biggest), citrus, pears, getting into row cropsVineyard solution primarily West Coast / CA, pursuing Portugal, Spain, Italy, Chile, Mexico, TexasDendrometer - digital devices mounted onto vine or tree, measures expansion and contraction of plant trunks at the 0.5-micron level (70 microns = 1 human hair)Vineyard solution includes a dendrometer, soil probe, website, and mobile app with wireless comms and data loggers connected via cellular, satellite, or wifiThe solution can be adjusted based on the type of farming (e.g., quality or quantity), rootstocks, clones, soil typesTracks trunk size and soil moisture to signal irrigation needsOptional: pump/value control for irrigationCan schedule up to 2 weeks of irrigationCan monitor fertilizer inputs (cost of fertilizer up 600% last 5 years)Benefits:Don’t promise water savings, but see up to 60% less water useImprove quality by knowing when veraison happens and when vines stop growing or are stallingOptimize fertilizer, diesel, and electric pump costsReduce labor for irrigation if automatedThe system logs data, enabling knowledge transfer when people leaveCase study: High-end Napa vintner got WE94 points 1st vintage, then used Phytech in a heat wave year and got WE97 w/ tailored post-veraison irrigation; other growers had a 30% loss, the winery had a 3% lossCase study: one ranch was expecting a 50% loss, but down to 3% with irrigation changesPricing - depends on # of sites in a blockThere is a small upfront fee for installationMonthly SaaS fee (~$50-80/acre/year), includes maintenanceWeather station ~$700/year (vs ~$3,500 to buy)Case studies (videos on website)Ultra premium Napa winery NeotempoLarger Mendocino grower Bonterra Marketing most through word of mouth/referralsDigital media, video testimonials, trade shows & panelsVideo in digital media has been the most valuableConnecting 1:1 is very helpfulPhytech is more holistic than other solutionsThe most significant barrier to adoption is technophobiaThe subscription-based model eliminates “tech graveyard” growers haveProduct roadmapPredictive brix/pH model (growers input brix, system tracks weather, vine response) to predict harvest date by blockGDD (growing degree days) monitoring tracking temperature and humidity in the field at the block levelAI Advisor to look at past data and current practices and enable recommendationsOther exciting innovations - Autonomous spraying and tractors (Guss, Monarch), optical arrays for vine health (Scout), microalgae for soil health (MyLand) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

After struggling with tracking vineyard data firsthand, Shawn DeMartino, CEO and Founder of Sentinel, decided to create a solution with his partner. Enabling vine by vine mapping and data collection that could stand the test of time enables vineyard managers to increase the lifespan of a vineyard, manage viruses, and effectively create a “medical record” for each individual vine.  Detailed Show Notes: Shawn’s background - winemaking, viticulture, now general managementSentinel was a Covid project that became real, software that collects individual vine information over time“Patient medical system of record for vines”The solution includes a mobile app, desktop platform, and high-accuracy GPS (receivers that clip onto phones)Maps all the vines in the fieldConfigurable data collection formsAvailable in 5 countries currentlyMapping the vineyardCreate a 3D model with lat/long and elevationBasics (variety, clone), images, comments, discrete statuses (e.g., life stage, virus status)The vineyard mgmt team populates data, can walk up the vines and recordWork with/ Sentinel to put in bulk metadata (e.g., block info, varietal)A client mapped 100 acres in 1 weekWork order functionE.g., irrigation can be recordedRoguing, planting, and grafted statuses can auto-update when the work order is completedCore benefitsExtend the life of the vineyardsVirus/disease management, see the program more clearly, identify asymptomatic vines in hot spots (case study: ~10% of vines asymptomatic) Optimize pick areas (through mapping flavor profiles)PricingMostly software, hardware costs smallAnnual subscription based on acres, not users (<1% of farming cost)Biggest growers ~$2k/yearROI example: client roguing 1% of vines/year w/ growing virus problem, Sentinel enabled them to get ahead of the problem in 1 yearMarketing mostly organic searchArticles and podcasts helpedLast 18 mo, mostly word of mouthReferral program: The referrer gets a bottle of KrugBarriers to adoptionWorries about time requirements; the goal is to collect data when already in the fieldWorries about less flexibility to manage vineyard; full customization of data enables more flexibilityNext on the product roadmap - continue to flesh out more work order functionalityOther tech Shawn is interested inWinery management platforms (e.g., Innovint)Soil moisture probes for irrigation Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With the recent launch of a new $300 retail icon wine, Boulder, Kaiken continues to explore the potential for luxury wines from Argentina. Building on the last 15 years of Kaiken's other icon wine, Mai, Anita Correas, Commercial Director, and Gustavo Hormann, Director of Winemaking, discuss the global market for luxury Argentinian wines, how they approach launching them, and the brand-building impacts for the Kaiken brand.  Detailed Show Notes: Kaiken backgroundFounded in 2002 by Aurelio Montes (Chile)"Kaiken" is the name of a wild goose that crosses between Chile & ArgentinaExports to 60 countriesWinery in Vistalba, Mendoza (28ha), vineyards in Agrelo (60ha) & Los Chacayes, Uco Valley (150ha)60% on-premiseFrances Mallmann restaurant at the wineryRecently launched new luxury tier/icon wine - "Boulder"$300 retail price, 3,700 bottlesDeveloped over the last 10 yearsUnique 3ha block in Los Chacayes due to overflow of Arroyo Grande, full of big rocks/bouldersMalbec (64%), Cabernet Franc (28%), Petit Verdot (8%)Boulder launch planLaunched in Buenos Aires, Hong Kong, Korea, Brazil (São Paulo, Argentina's #2 export country), USBrazil's event had a more direct impact on salesMostly press/trade events that are smaller, in-personLikely less on-premise than Kaiken overall, more hand-selling to collectors and Michelin Star restaurantsVR w/ Google Glass to see the vineyard up close and go inside the soil has gotten positive feedback, but it is more expensive than a regular video (required 3 days of video shoots and a special camera)Mai - prior icon wine$100 retail price, 12,000 bottlesLaunched in 2009 from a 120-year-old vineyardMarketing more "maintenance" now2021 - redesigned packaging, got 98 pts and Top 100 from SucklingPrimarily sold in Argentina, then UK, US, Brazil, Japan70% of Argentinean wine is consumed domestically, delaying the need for exportsAverage export ~40% higher price than Chile (export-focused market, ½ the population, 2x wine production vs Argentina)More high-end wineries in Argentina vs ~5 in Chile>$100 market for Argentine wine - "not a huge market"Big domestic market - much of Mai, Boulder sold domesticallyConsumers looking at super high-end often do not look at the country of origin but more at the concept of the wineValue Prop for Argentine luxury wine - not influenced by oceans, high altitude, dessert wines, driven by the AndesReturn on Boulder is more than sales, but brand building for KaikenFocused on relationships with importersWant long-term relationships as they represent the brand globallyReach collectors through import partnersHas affiliated importer in ArgentinaMontes relationshipWas helpful on launch to piggyback on Montes brandNow Kaiken is more independent and only shares importers in a few countries (it used to have the same ones)Kaiken Ultra ($26) awarded Wine Spectator Top 100 (#30, highest Argentine wine)Wine drinkers can graduate from Ultra to Mai and othersKaiken's focus for each range of wines is to over-deliver for the price point vs linking the winesGood press in 2024 for Kaiken - #1 New World Winery from Sommelier Awards, Boulder rated best Argentinian red blend by Patricio Tapai (wine critic), Estate Malbec was Wine Spectator's best value wine Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With many macro headwinds for the wine world, Gino Colangelo, founder of Colangelo PR, felt the negative and often poorly fact-checked press around alcohol and health posed an existential threat. Teaming with Karen McNeil of The Wine Bible and fellow PR leader Kimberly Charles, they founded Come Over October, a campaign to create a positive narrative around wine. With freely available media assets and over 120 partners, the movement, in its first stretch, has shown the power of focusing on the positive elements of wine.  Detailed Show Notes: Macro wine challenges include marijuana, Ozempic, and RTDs, but “no alcohol is healthy” messages from WHO and other gov’t organizations potentially pose an existential threat to the industryCome Over October (“COO”) foundingCampaign to advocate for wineCommission research - 60%+ 21-39-year-olds would change consumption if alcohol health guidelines changed, 60%+ participate in Dry January or Sober October (which equates to 17% of the year)Karen McNeil, writer of The Wine Bible, got backlash over post against Dry January and ideated Come Over OctoberKimberly Charles, owner of an SF wine PR firm, joined as co-founderStarted the company in spring 2024 (Come Together, a Community for Wine) as a mission-driven company to advocate for wineFundamental principlesHad to reach consumersNo negativity towards other alcoholic beveragesInvolve everyone in the wine worldThe goal for success: turning the narrative around wine positive (e.g., more articles on the social benefits of wine)Measured by impressions of negative vs. positive articles about wineIn a battle for hearts and minds vs just getting the facts rightAsked for two things from partnersModest check - $1-10k to pay for campaign, website, social media, media asset creationActivation - use campaign assets (free to all) to run a COO campaignExample activationsTotal Wine - in-store signage, direct marketing, social media postsConstellation Brands - bought in-store radio ads for 800 Kroger stores under the COO banner (promoting Kim Crawford, Meiomi, & The Prisoner with Karen McNeil doing voiceover) and reversed negative sales trends in storesJackson Family - free tasting, events, cash support for COOCampaign success metrics120 companies participated>1,000 retail stores engaged (e.g., Kroger, Total Wine, Gary’s)~$100k donated media (e.g., Wine Enthusiast, Vinepair, Wine Spectator)Next Campaign - Spring 2025Focus on the food messageDifferentiate wine as food vs alcoholContinue togetherness messageBring in chefs, restaurantsThen roll back into OctoberWould like to hire a Director to run the companyHealth debateLoneliness epidemic - 30% of males don’t have close friendsWine has a unique ability for positive wellness in bringing people togetherDoes the industry need a positive health message/research to turn things around truly? (e.g. - wine → better relationships / friendships → stress reduction → better health)60 Minutes show on The French Paradox (1991) changed the wine world and led to 30+ years of growthNot yet seeing health impacts of marijuana usage as it has only been legal recentlyContact info: info@comeoveroctober.com or gcolangelo@colangelopr.com Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With a second year of volume declines, 2024 has been challenging for the wine industry. Digging deeper into what trends are shaping the wine industry’s malaise, Cathy and Chris Huyghe, founders of sales analytics software platform Enolytics, have uncovered important insights into the US DTC wine market, including the decline of women and the divide between the affluent and middle class in wine purchasing. Enolytics has also developed a free service for the industry called EnoInsights, which is worth checking out.  Detailed Show Notes: Enolytics launched b/c no one in wine knew what to do with their data Builds sales analytics software for the wine & spirits industry for both DTC and wholesale depletion dataCustomers primarily small (<$1M DTC revenue) & medium-sized, growing in larger wineriesUS, Canada, Australia - primarily US w/ 80% CaliforniaPartnership with WineDirectExchange anonymized data every quarter and analyze it to build reports for the industry~2k wineries in database, ~1k wineries analyzed after removing outliers2024 DTC trendsRevenue flat-ish, volumes down significantlyWomen purchasing less (-4%) - overall (-3%), men (-2%); reverses a recent trend of women buying more wine, not generationally different, impacting white (-5%) and rose (-10%) more than red (-2%)Affluent areas are doing better (flat revenue, lower volume), middle-class & poorer areas are down moreWineries increasing pricing (+5% through Q3 2024), AOV up due to pricingVA is doing reasonably well, CA - particularly Napa and Sonoma, hardest hit - they largely depend on tourism (70% of purchases from people outside CA), Central Coast CA is not down as much (70% of purchasers from CA)Hospitality/visitation declined 7% (# of purchasers) in 2024 (also declined in 2023)Impacts wine club sign-ups, with hospitality the main club sign-up engineWine club growth -3% (# of members) in last 12 months2020 +7%, 2021 +11%, 2023 -1% (20% attrition through Q3, 28% total; 19% sign-ups), 2024 -2% (19% attrition, 17% sign-ups)Club doing best of all major DTC channels - revenue flat, volume downLess expensive wineries getting hit more (less affluent customers)Customizations up - 20% of shipments, higher revenue per shipmentAvg club tenure fallingBest practices - better training of tasting room staff, use data to manage attrition (Enolytics has an algorithm to determine attrition risk; wineries that use it see 20% less attrition than average), use data to target customers to join the wine club (high spenders that are not in the club)Website sales have the most significant room for growth, -42% since 2022, still up from pre-pandemic2020 +250% in online salesTexting, “concierge” services, more targeted telemarketing (highest AOV channel, 6x tasting room; potential to leverage tasting room staff)Average winery emails the entire list, gets lots of unsubscribes, recommends hyper-segmentation, creates messages for 100-200 peopleEvents - same levels as 2022Opportunity to take tasting room on the roadRecommends targeted events with a specific goalGo to places where there’s an existing customer baseCross-channel marketing can be effective, e.g., using DTC data to sell out a restaurant eventWholesale data partner - VIP - includes “can buy” and “lost” accountsRegional wine marketing boards (VA, Paso Robles) engaging Enolytics to do studies on DTC data - currently doing baseline analysis and onboarding more wineries, sending quarterly reports Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Having “taught a computer how to taste” and using that data to help winemakers improve their processes, Tastry has turned to leveraging AI and their consumer preferences and wine chemistry databases to help wineries sell wine.  Katerina Axelsson, CEO, and Charles Slocum, Chief Business Officer, discuss Tastry’s Sales Accelerator Ecosystem, which includes the Wine & Consumer Insights Report, which gives wineries, distributors, and retailers tools to help them sell more wine.  Tastry has provided an example report for listeners. Detailed Show Notes: Tastry overview - see Ep 157 for a deeper diveTagline - “taught a computer how to taste”It has two unique data sets - wine chemistry, US consumer taste preferencesHelps improve winemaking, predict and react to changing consumer preferencesWorks with wineries, retailers, and distributorsTastry commercialization history1st 2 years - establish trust with winemakersLast year - focus on helping sell winesSales Accelerator EcosystemTakes data from 3 areas (winery input metadata, wine chemistry, Tasty validated wine market data) to feed accelerator (AI system)Consists of Wine & Consumer Insights (“WCI”) report, Sales Accelerator platform app, & integrations into other platforms (e.g., e-RNDC)Has AI search and chat functionalitySalespeople use data to sell to on/off-premise accountsSometimes, consumer-facing in-retailer displaysWCI - 2-page report to help sell winesUsed to train salespeople, it can be a leave-behindP1 - for the category buyer; P2 - for servers, staff to educate themWCI Components: Top left - bottle shot, label zoom in (helps for retention); name of wine; varietal; appellation; price (what it is actually sold for in the market); wine category (AI curates category to be highest scoring on Tastry score)Category Score - 200 point scale, 100 is average for the categoryNot a critic score>100 is better than the average, <100 less than average in terms of expected performance in its category against the Tastry consumer preference database (e.g., Cupcake Pinot Gris got a 181 score)Percentile rank - e.g., 129 = performs 29% above avg10,000s wines in database out of ~160k wines in the USNever <15 wines in a categoryCreating a new WCI for more rare and unique winesLower priced wines, terroir matters less; higher prices matter moreTastry Notes - AI-generated tasting notes, breaks into average and more experienced drinkersSegmented Consumer Appeal - insights into buyers of wine; if there’s at least an 85% match (roughly equates to Vivino’s 3.9-4.0 score or 88-90 critic score), consumers tend to notice they like the wine and will buy it againFlavor profile (p1) - e.g., fruitiness, oakiness, sweetnessP2 - flavor profile (major flavors), retail talking points, food pairings - used as a training tool to help people sell wineLaunching a new page for marketing teams to update dataRetailer recommender - has shown +3-12% sales in 90 daysTastry Pricing - $1,580/year subscription, $370/wine analyzedHow Tastry can help in the current macro environmentCreating low / no alcohol winesMarketing tools (Sales Accelerator) - addressing younger audiences (e.g., pairings with kale salad and frozen pizza rolls) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With 600 acres, a polo field, a lake dock, and even a zebra and camel onsite, the Folded Hills Winery and Farmstead in Santa Barbara is able to create unique and memorable experiences. Kim Busch, Founder and Co-Owner, and Kylie Enholm, Director of Operations, discuss how they bring this vision to life through the platform of Rhone varietal wines. From hiring for the “hospitality gene” to having a full-time events manager, Folded Hills is creating memories they hope to get people to tell their friends and add to their wine club program. Detailed Show NotesFolded Hills founding - intended to grow and sell grapes, vineyard manager convinced the Busch’s to start a label, Folded Hills ties into family historyHeritage labels - e.g., Lilly Rose after Lilly Anheuser (grandmother)Photo labels (reserves) - mostly from photos the Busch’s took themselvesFolded Hills overview600 total acres for Homestead, Farmstead, private ranchSouthernmost winery in Central Coast, right off 101The urban tasting room in Montecito, Homestead (winery tasting room), and Farmstead at the wineryRhone varietals (Grenache, Syrah, Clairette Blanche, Marsanne, Grenache Blanc)~5k cases/year98% DTC, would like to increase wholesale to 10% for more exposureHas its own polo fieldVisitation~8-10k visitors/year total~2.5k in Montecito (more club members, a “Cheers” vibe), rest at HomesteadMainly from Santa Barbara, Ventura, San DiegoCreating memories through events differentiates Folded HillsSparkling rose launch party in Montecito - brought in a mini horse with a unicorn hornLaunch vinyl nights (Thurs, Sun) in MontecitoDoes 1 large event/month at estate Homestead - e.g., polo games, tailgate contestOktoberfest - beer & wineAnimal feeding (including zebra, camel)Prices events to primarily cover expenses (range from $15 - 195 winemaker dinners)The focus is on creating memories vs selling wine to create word-of-mouth buzzAndy’s dad said “making friends is our business.” - he created beer and baseball while owning the St Louis CardinalsHospitality differentiation through events and experiencesHas a full-time events managerEnabled by lots of land (600-acre ranch), private lake dock, ATV group tours in the vineyard, animals to feedHomestead appeals to families (w/ Farmstead - U-pick fields, animal feeding)Hires people w/ the “hospitality gene”Wine club benefitsWine is the biggest draw (“purity” of wines believes does not lead to “stuffy nose” or “headaches”)Word of mouth around Folded Hills taking care of club members (access to private lake, private ranch)~10% of club members are local (live w/in 1 hour), next largest group from St Louis (does ~2 events/year, launched brand in St Louis)Get 15% off organic produce at FarmsteadPlan to relaunch farmstays on a adjacent private ranchFarmstead - “heart of soul” of brandBest sellers - animal feed, ice cream, baked goods~30% of visitors go to both Homestead and Farmstead, increasing as tasting room visitors now given free bag of animal feedSanta Barbara wine region differentiation - diversity, 75 varieties grown; unique climate (transverse mountain range) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With the health and wellness and moderation trends booming, the non-alcoholic wine market has been growing quickly off a small base. Launched in 2019, the Giesen 0% range has solidified its position as one of the leaders in the NA wine market. Duncan Shouler, Director of Innovation, explains how the 0% range was developed, the critical elements of non-alcoholic wine, the current market conditions, and what it will take for the non-alcoholic wine market to succeed.Detailed Show Notes: Duncan’s background - was in marine biology and shifted to wine ~20 years agoGiesen - family owned, 40 years old, large winery (crushes ~20k tons/year), a broad range of wines from large scale to single vineyardStarted non-alcoholic (“NA”) range 5 years ago (2019)~17% of production today, growingHas a more significant reach and impact on the market vs. regular winesThe creation of the NA range came from a fitness challenge in 2019, when he could not drink alcohol for 1 month and discovered there were no good choices in the NA space. Spinning cone technology (good for quality as it uses lower temps than other processes) also became available in NZ at that timeNA winemaking process - create regular wine, then remove alcohol; for red wine, you need to balance the tannins (need ripe, soft tannins)More expensive to make - costs 15-20% moreNeed to replace ~25% of volumeNeed to go through spinning cone technologyLower cost from no alcohol excise taxesNA taste - loses some of alcohol’s texture, body, heatNA wines age similarly to regular wine (except in cans)NA wine markets - still in growth mode, needs higher quality wines to succeedThe US is ahead of most markets, and the UK is slower with more traditional drinkersMainland Europe is booming, and NZ is behindMost off-premise, some growing pains (e.g., Boisson closed its stores), mostly bought where people buy alcoholOn-premise still embracing category (Giesen launching super premium range to target on-premise)Most large players (e.g., Constellation, Treasury) are looking at NA wineNA wine drinkers - originally abstainers driving growth, now people substituting wine driving growth from moderation trend; broad market from boomers to legal age Gen Z; 35-60 females largest cohortPrice points aligned with regular wine ($9 low end, up to $18/bottle, some products ~$55/bottle)Removed alcohol of high quality can be used for other things (e.g., gin, biofuel)NA wines can have up to 0.5% abv, Giesen wines 0.4-0.5% abvYou need to consume 5 bottles of NA wine to get 1 glass of 13.5% ABV wine.45% abv similar to ripe bananas, some fruit juices, breadNA wine should still be kept away from children as it is still a wine experienceMarketing NA winesLow calorie is significant; Giesen is low in sugar (drives calories), which plays into the health and wellness trendMost effective - social media and influencers - play well with Millennial and older Gen Z’s, essential NA wine growth categoryOlder consumers know Giesen from regular wineNutritional and ingredient labeling - mandatory for regular wine in the EU; NA is a food product and requires itGiesen back labels specific for each wine, the main driver of differences are in sugar contentNutritional data has some positive elements (e.g., potassium)Large serving size (12 ounces, ~½ bottle) driven by US FDA, looking to change back to a 5-ounce glass Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.