Colorado Wine Industry
Development Board Update
CWIDB Update, VinCO, 18 January 2017
Doug Caskey, executive director
CO Wine Industry Development Board
Joan Mathewson,
Terror Creek Winery
• Studied at Changins l’Ecole du
Vin in Nyon, Switzerland,
where she earned the degree
of Maitre du Cave
• Passed away on Nov 23, 2016
• Survived by her husband John
Mathewson, their sons John
and Eric, their wives and six
grand children
Also, John Carlson of Rocky Spring Winery.
CWIDB’s Strategic Goals
Status Update
• Economic and Business Development
 Financing workshop at VinCO
 Business development workshops
beginning late this winter in
conjunction with Cultivar Camps
• Quality
 FSMA Compliance Workshops for
wineries in Broomfield and GJ
 Cultivar Camp tastings with “expert” moderator to explore
benchmarks for one specific grape variety or style; SCBG project
 Consulting Viticulturist, SCBG project, to present workshops and
offer one-on-one consultation for vineyard owners beginning at
pruning this spring; Warren Winiarski funding this project, too
 Pending NE industry response: Sensory Evaluation Program repeat
CWIDB’s Strategic Goals cont’d
• Marketing
 Nov-Dec: Installation in DIA Concourse B & C
train stations plus dioramas in A & B;
approx 25 million impressions
 Aug: Governor’s Cup event drew the Gov plus 200 people
 May-Aug: billboards in 11 Denver metro locations plus I-70
at Dumont; over 13 million impressions
 June-July: digital display ads; 7.5 million impressions
 Calendar Year 2016 PR earned media: 341 million views
valued at nearly $3 million
 Media trip
 Brochure reprint in July 2016 and again in spring 2017
CWIDB’s Strategic Goals
Status Update, cont’d
• Research
 Mapping project of Four Corners/Montezuma County vineyard
potential progressing
 More from Horst and Steve
in their presentations
 Phylloxera bulletin available
CWIDB’s Strategic Goals
Status Update, cont’d
• Research
Consumer research from Spring 2016:
• 2014 and 2015 sample groups were not
comparable so we switched consumer
surveying companies for better control
• 73% of monthly wine drinkers are aware
wine is produced in CO
(correction from 86% in 2015 survey)
• But 37% of monthly wine drinkers have
NEVER consumed CO wine
CWIDB’s Strategic Goals
Status Update, cont’d
• Consumer research from Spring 2016 (cont’d):
 Obstacles:
• where most consumers purchase their wine (neighborhood and
large discount stores) do not line up with where they expect to
purchase CO wines (winery sales rooms or wine specialty stores)
and where they actually purchase CO wines
• Perceptions of CO wine quality lag well behind perception of CA
and European wine quality
 Opportunities:
• CO wine drinkers very experimental
• CO wine thought to be fairly priced by 73%
• Less gap between awareness and consumption than anywhere
else but CA
Awareness vs. consumption:
• Notably, the gap between Co. wine awareness and Co. wine
consumption is only 10 percentage points – much lower than other
countries, including Italy (gap 20 points) and France (gap 21
points).
Wine consumed by region
(total sample)
Where heard of wine produced (aided)
(total sample)
2016
2015
(n=500) (n=513)
2016
(n=500)
96%
98%
California
2015
(n=513)
93%
97%
California
Italy
96%
96%
Italy
76%
85%
France
93%
95%
France
72%
83%
80%
86%
Spain
73%
Colorado
62%
Australia
60%
Argentina
50%
Washington State
33%
39%
New York State
Idaho
Slovenia
9%
10%
6%
7%
54%
Spain
74%
65%
42%
Argentina
67%
58%
35%
45%
Washington State
33%
42%
Oregon
16%
21%
New York State
Idaho
2%
4%
Slovenia
2%
3%
Q. 1 What geographic areas come to mind when thinking about where wine is produced? Write in.
Q. 2 From which of the following geographic areas have you ever heard of wine being produced? (check all that apply)
Q. 3 From which of the following geographic areas have you consumed wine? Check all that apply.
75%
50%
Australia
53%
62%
Oregon
86%
63%
Colorado
Open end Awareness
First mention
• 62%-California (&
Napa, Sonoma)
• 2%-Colorado
• 8%-Italy
• 8%-France
Recommendations from Focus R&S
Fill the gap between “aware” of Co wine and trial / “future PI” of Colorado wine.
•
73% are aware, but 37% have never consumed CO wine.
•
66% state future purchase interest in CO wine, but this lags California wines purchase interest at 89%.
•
Offer tastings, promotions and events for trial – consumers state strong interest in these events.
Increase distribution outlets for CO wine to locations where consumers shop for wine.
•
Restaurants, neighborhood liquor stores and discount – volume liquor stores are where consumers shop for wine.
•
Colorado wines must have a visible presence in these outlets.
Consider occasion-based advertising to help communicate that CO wine is a “fit” for multiple occasions.
•
Restaurant and in-home occasions are top wine consumption occasions that currently do not “fit” for CO wine.
•
As with other category advertising, occasion – based messages help “show” where CO wine is consumed.
Improve quality perceptions of Co wine - more in line with California and European wines:
•
Impressions of CO wine quality continue to be lower vs. California & Europe.
•
To convert consumption from California, Colorado wines must be perceived to have high quality and CO wines
must give consumers a reason why to convert from California wines.
•
Wine awards, honors, taste reviews in magazines may help. Social media “buzz” may help, as well.
Increase local advertising reach.
• The two ad campaigns in this test made 58% and 62% of respondents more interested in buying CO wine.
• Help consumers understand why Colorado locally grown wines are higher quality – why is local better?
• Let consumers know CO wine fits for multiple occasions.
Recommendations from Focus R&S
Consumers that have had Colorado wine in the past are key target consumers.
• They have already tried CO wine – no barrier to trial.
• The challenge is getting them to repeat purchase.
• Tactics for repeat purchase could be incorporated into the marketing plan. Social media / Internet is an excellent
tool to keep in touch with CO wine purchasers.
• Consider a CO wine purchaser panel / club with benefits for members online.
Target younger 21-35 wine drinkers (who are also cider drinkers – 42%)
•
21-35 are least aware of CO wine (62%) and least likely to consume it (57%).
•
But they are the most interested in future purchase (79% top 2 box PI).
•
Hard cider and younger drinkers are experimental, want to attend wine tasting events and likely access social
media often – again, potentially a good tool to increase awareness and trial among this key target.
Target males & appeal to older drinkers with messages.
• Consider younger, male-focused occasions in consumer communications.
• While not a direct target, older drinkers do consume wine frequently. 87% are aware of CO wine – so, getting
more of them to consume CO wine more frequently is a logical step.
Consider borrowing from the Colorado craft beer “local” message success.
• Colorado is the “craft beer capital” – and craft beer consumers take pride in their locally produced CO beer.
• Likewise, particularly among younger wine drinkers, buying local, visiting local wine tasting events and visiting local
wineries are popular areas of interest.
Other CWIDB Projects
Is your winery listing
up to date on
www.coloradowine.com?
Post winery events, too.
If you need log on help, call:
• Doug, 303.869.9177
• Kyle, 303.869.9178
• Megan @ Cultivator, 303.444.4134
Updating winery maps and Trade Resources
Other Topics
• Legislative Update
 Increasing term limits for appointed CWIDB members
to serve two consecutive 4-years terms instead of only one
 SB17-077: Making government agencies with a statutory
charge to promote Colorado alcohol products eligible for
special events permits and zero invoiced “donations.”
• Changes from SB16-197:
Full-strength beer and Wine in Grocery Stores
(Liquor-Licensed Drug Stores or LLDS)
SB16-197 Changes
An LLDS cannot sell products below cost—
maintain signed invoices diligently
Retail Liquor Stores (RLS) can now sell food
and other non-alcohol related products up to
20% of their sales
LLDS cannot sell any alcohol related products
such as hats, t-shirts, etc.
All products must be made available to all
retail accounts (no allocations)
Any LLDS licensed after Jan. 1, 2017:
• Must place all orders from an on-site,
licensed manager
• Can only purchase alcohol COD
SB16-197 Changes (cont’d)
An LLDS applying to transfer ownership of
an existing RLS must obtain an affidavit from
all suppliers that sold to the RLS within the
previous 180 calendar days stating that all
outstanding invoices are paid in full.
• Request form delivered by delivery method with
verification of receipt
• The Supplier must respond within 15 business days
or all invoices shall be considered paid in full. All
transactions after the affidavit has been returned
must be COD.
Thank you
Doug Caskey,
exec. director
CO Wine Industry Development Board
c/o CO Dept. of Ag
305 Interlocken Pkwy
Broomfield, CO 80021
303.869.9177
[email protected]
www.coloradowine.com