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Newsletter August 2009

INNOVATIVE MARKETING SOLUTIONS FOR THE AUSTRALIAN WINE INDUSTRY

WHY ARE WE HERE?

This is the big question. Why are we in the wine industry and what are we doing? Many grape growers and winemakers have asked themselves this very question after vintage 2009, when the profit that they received for their harvest was non existent.

If this is your core business then you need to be asking yourself every day "How am I going to build my sales and sustain an acceptable profit margin?"

It it often easy to get lost working IN the business rather than working ON the business. Here's a few key questions that you need to address in order to continue to build a sustainable wine business.

1. What is my core business? Don't waste resources on areas that are not profitable.

2. What are my strengths? Look at this with regard to wines styles, viniculture, markets, sales, etc. Build on your strengths and get help with your weaknesses.

3. Have I developed a great team to work with me? Think about distributors, vineyard workers, PR support, accountants, etc.

4. Where am I losing margin? (eg, winemaking, vineyard management, distribution, freight, overheads, etc). Can I change my business model to increase profit. Think of profit  as margin times volume. Change one and it changes the profit.

5. The value is in the brand. Look after this and protect it in order to increase its value. Remember, marketing is as important as winemaking. There's no use having a winery full of great wine if there is no demand, or no one knows you exist.

6. Do I have balanced sales? Is there a sustainable balance between (high margin) retail, wholesale and distributor sales? Are my wines being sold in the right places?

Of course there are other areas to look at in order to build a sustainable business, but these are a few to get you thinking. Give us a call if you want to discuss any of these issues.

Cheers, David & the team at Define Wine

"To come home after a hard day's work and to anticipate the evening meal is one of the rewards of the toiler. To anticipate a glass or two of wine with that meal is an added reward that only the constant wine drinker knows.

With food, wine tastes good, feels good and has a pleasant effect. There is no pleasure simpler than that."

The Australian Wine Guide, D.F.Murphy 1966

Orange Blossoms

"The Central West of New South Wales proves a surprising gourmet destination for (wine and travel journalist) Winsor Dobbin."

Click here to read the full article which was published in the August edition of Australian GOLF Magazine

Every winery and brand has a story to be told. Are you getting your fair share of the media? Define Wine can help build and implement a public relations strategy for your brand.