Branding of Cold Hardy Wine/Grapes Bill Gartner, University of Minnesota The Northern Grapes Project is funded by the USDA’s Specialty Crops Research Initiative Program of the National Institute for Food and Agriculture, Project #2011- 51181-30850 Northern Grapes Initiative  Wineries have told us branding their wines is #1 priority  Very few mentioned branding of cold hardy grapes is important  Branding Study in Hong Kong (2014)/Oregon (2015) using cold hardy grape wines Brand Dimensions  Awareness—outside of the northern states cold hardy grapes are relatively unknown  Image—cold, snow, ice, humidity are not often associated with grape growing  Quality—must be earned. Competition helps establish quality  Loyalty—the holy grail of a producer  Value—not relevant to cold hardy wines. Branding at Winery Level  Awareness—wine trails, industry connections, events, media (Marquette in Washington)  Image—use of social media, focus on grape characteristics, climate and soil attributes, media  Quality---awards, industry initiatives (e.g. VQA), media  Loyalty---customer centered programs, new releases, best customers receive preferential treatment Branding at Viticulture Level  Awareness—what is special about growing conditions in the north, regional marketing campaign, media  Image—new grapes, new wine, something the market has not seen  Quality—new wines, something worth looking for, supported by awards  Loyalty—Create the buzz, share the product, new wines from new regions Research Findings to Date  Cold Hardy wines scored fairly high when tested blind  Cold Hardy wines rated lower when grapes and when grapes and region known  Willingness to pay was lower for unknown grape varieties  Willingness to pay was lower when region was known  More results being analyzed So What?  Cold hardy wines will remain a local product unless awareness and image dimensions are enhanced  Study results reinforce the need for cooperative marketing efforts for grapes and viticulture regions  Strategic marketing initiatives need to be developed to enhance image  Branding is more than a focus on an individual producer Thank You! Bill Gartner Professor of Applied Economics University of Minnesota Marketing,  Branding,  and  Tasting   Room  Studies  with  Cold  Hardy  Wines   Dr. Dan McCole Dr. Don Holecek Crystal Miller Becky McRoberts Michigan State University Department of Community Sustainability February 24, 2016 Over  3,400  Completed   Surveys  from  Tasting  Room   Visitors  in  MI,  WI  &  MN Who  Visits  Winery  Tasting   Rooms  in  the  Midwest? Demographics ~  47  years  old ~  95%  Caucasian ~  62%  Female   ~  70  %  Married ~  60%  at  least  bachelor’s  degree   (~  24%  post-­‐graduate  degree) ~  50%  have  annual  household  income  >  $70,000 Age of Michigan TRV’s 26% 21% 16% 17% 15% 4% 2% 0-20 21-30 31-40 41-50 51-60 61-70 71+ Age of  WI  &  MN  TRV’s 28% 23% 16% 17%15% 2% <21 21-­‐30 31-­‐40 41-­‐50 51-­‐60 60+ Where wine  is  sold   impacts  how it’s   sold? What  are  the  3  most  Common     Distribution   Points  for  Wine? What  are  the  3  most  Common     Distribution   Points  for  Wine? What  are  the  3  most  Common     Distribution   Points  for  Wine? Where  do  you  sell  your  wine? 90%  sell  more  than  ½  at  winery 2/3  sell  at  least  75%  at  winery What  do  people  buy  at  wineries? “We sell the ability for a 42 year-old accountant to ride through neighborhoods making people nervous. Something he don’t get in his everyday live.” What  kind  of   experience  do   visitors  want  at  the   winery? Primary  Reason  for  Visiting  Winery 34% 17% 18%15% 6% 2% 2% 3% 2% Primary  Reason  for  Visiting  Winery? 80% 72% 70% 64% 60% 50% 40% WI  &  MN 30% 30% 25% MI 20% 10% 0% Wine  Reasons Leisure  Reasons Tasting Room Visitor Satisfaction Dr. Miguel Gomez & Erin Kelly (Cornell University) • Friendliness • Wine quality • Atmosphere • Wait times • Presentation of wines • Cleanliness • Elbow room • Wine prices • Appearance of grounds • Lighting & sounds What  factors  lead  to  wine   purchases  at  winery? Does  charging  a  fee  for   tasting  Influence  how  much   wine  people  buy? Does  the  visitor’s  experience   at  the  tasting  room  impact   how  much  wine  they  buy? Tasting Room Visitor Satisfaction Dr. Miguel Gomez & Erin Kelly (Cornell University) Tasting Room Visitor Satisfaction Dr. Miguel Gomez & Erin Kelly (Cornell University) Does  information  about  the   wine  increase  how  much  a   consumer  values  it? LLooccaal lM  Mesessasgaege Information All four of these wines are made with Marquette grapes. Compared to many other red wine grapes, Marquette grapes tend to better endure extreme winters and they ripen in a shorter growing season. These grapes flourish in the soils and microclimates of the upper Midwest and are helping wineries across the northern United States to produce local wines with local grapes. The wine tourism that is generated by these wineries is benefitting the rural communities around them. Winien Dee  Dscerispctiorniption Information All four of these wines are made with Marquette grapes. The Marquette grape is a “grandson” of Pinot Noir. The wine made from these grapes has desirable notes of cherry, berry, black pepper, and spice on both nose and palate. These grapes produce a medium-bodied wine with an attractive ruby color. AAwwardasrds Information All four of these wines are made with Marquette grapes. The Marquette grape is a “grandson” of Pinot Noir. The wine made from these grapes has desirable notes of cherry, berry, black pepper, and spice on both nose and palate. These grapes produce a medium-bodied wine with an attractive ruby color. A relatively new wine varietal, Marquette wines have won many awards at national and international wine competitions over the past five years. Overall  Willingness  to  Pay: $15.75 Effect  of  Different  Types  of  Information  on   Consumer  Value $1.15 $0.60 $0.58 $0.04 All  Bids Description  of  Wines Local  Information Awards Effect  of  Different  Types  of  Information  on   Consumer  Value $1.15 $0.60 $0.58 $0.04 All  Bids Description  of  Wines Local  Information Awards Effect  of  Information  on  Consumer  Value $0.60 $0.58 $0.04 All  Bids Description  of  Wines Local  Information Awards Effect  of  Different  Types  of  Information  on   Consumer  Value $1.15 $0.60 $0.58 $0.04 All  Bids Description  of  Wines Local  Information Awards Effect  of  Wine  Name  on  Consumer  Value $15.87 $15.62 Marquette Artistic  Name How  much  wine  do   visitors  buy  from  wineries   on  their  trip? Michigan WI &  MN %  Purchased  Wine 91.2% 92.5% Michigan WI &  MN %  Purchased  Wine 91.2% 92.5% Avg.  #  Bottles 7.4 6.9 Michigan WI &  MN %  Purchased  Wine 91.2% 92.5% Avg.  #  Bottles 7.4 6.9 Avg.  Price $16.56 $14.14 Michigan WI &  MN %  Purchased  Wine 91.2% 92.5% Avg.  #  Bottles 7.4 6.9 Avg.  Price $16.56 $14.14 Total  Spent $123.21 $97.57 Knowledge  of  Cold-­‐Hardy  Wines Familiarity  with  Cold-­‐Hardy  Wines 18% 12% WI  &  MN MI Familiar   or  Very  Familiar If  you  have  had  the  opportunity,  which  best  describes   the  degree  to  which  you  liked  the  cold  hardy  wines? 28% 30% 22% 12% 5% 3% Have  Not   Strongly   Disliked It  was  okay Liked  it  a  little Liked  it  a  lot Tasted Dislike Which  of  these  have  you  heard  of?   Marquette Frontenac La  Crescent St.  Pepin La  Crosse Edelweiss Have  not  heard  of  any  of  these Brianna Snowbird Crystal  Lago Alpino  Rouge 0% 10% 20% 30% 40% 50% 60% Which  of  these  have  you  heard  of?   Alpino  Rouge Crystal  Lago Snowbird Brianna Have  not  heard  of  any  of  these Edelweiss La  Crosse St.  Pepin La  Crescent Frontenac Marquette 0% 10% 20% 30% 40% 50% 60% 70% Which  of  these  have  you  heard  of?   Marquette Frontenac La  Crescent St.  Pepin La  Crosse Edelweiss Have  not  heard  of  any  of  these Brianna Snowbird Crystal  Lago Alpino  Rouge 0% 10% 20% 30% 40% 50% 60% 70% How  much  did  you  enjoy  these  wines? Alpino  Rouge Crystal  Lago Snowbird Brianna Edelweiss La  Crosse St.  Pepin La  Crescent Frontenac Marquette 4% 4% 4% 4% 4% 4% 4% 4% 4% Wineries  are  good  for   rural  areas Survey  of  tourism  organizations  in   wine  regions? “I think the recent growth in the number of wineries in the US is a good thing.” “I  think  the  recent  growth  in  the  number  of   wineries  in  the  US  is  a  good  thing.” Tour Rec. Hotels & DMOs B & Bs Restaurants Operators Providers Motels 9.7 9.4 9.1 8.3 10 7.3 To  what  extent  do  these  tourism  organizations   think  wineries  improve  this  tourism   destination? • “The presence of wineries in this region is good for this organization.” • “The presence of wineries makes this region a better tourism destination.” • “The wineries in this region can improve the tourism experience for visitors.” To  what  extent  do  these  tourism  organizations   think  wineries  improve  the  tourism   destination? Tour Rec. Hotels & DMOs B & Bs Restaurants Operators Providers Motels 30 28.5 26.1 25.9 22.0 21.5 Total Scores Range:1-30 How  important  was  visiting  a  winery/   wineries  to  your  decision  to  travel  to  the   area?   35% 32% 31% 30% 22% 24%25% 23% 20% 17% 16% 18% 15% 11% 10% 6% 5% 0% Of  No           Not  Very               Somewhat   Very                           It  Was  the                 Importance Important Important Important Only  Reason WI  &  MN MI Overall  Trip  to  Area Michigan WI  &  MN Planned  trip  <  1  week  before   53% 58% Traveled  > 100  miles 58% 37% Traveled  <25  miles 17% 26% Avg.  #  of  wineries  visited   (Entire  Trip) 7.1 2.3 Overnight  Trip? WI  &  MN Michigan Yes No 43% 33% No Yes 57% 67% Avg.  3.7  Nights Avg.  3.5  Nights How  much  do  your  visitors   spend? Trip  Spending  (per  Spending  Unit) Category WI  &  MN MI Lodging $    119.53   $271.32 Transportation $        71.14   $ Restaurants/Bars $        72.39   $172.19 Wine $        101.31 156.87 All  other  Food  &  Beverage $        38.17   $55.10 Other  Shopping $        38.44   $80.56 Entertainment $        15.20   $25.22 Recreation $        23.32   18.96 Total $479.50 $780.22 What  devices  do  your  visitors   use  for  their  trips? Which  Influenced  Decision  to  Visit  Winery 56% 39% 40% 22% 19% 22% 15% 11% Devices  Used  During  Trip 39% 8% 9%7% 1% Desktop/Laptop Phone  Calls Smart  Phone Tablet Other Pre-­‐Trip Planning  Devices 40% 37% 35% 30% 30% 25% 20% 14% 15% 10% 5% 4% 1% 0% Desktop/Laptop Phone  Calls Smart  Phone Tablet Other Devices  Used  to  Book/Reserve  Travel   28% 17% 16% 10% 0% Desktop/Laptop Phone  Calls Smart  Phone Tablet Other What  does  your  website  look   like  on  a  smartphone? How  do  your  visitors  use   social  media? 46% Posted  on  social  media   about  some  aspect  of   their  trip 40% Posted  about  winery  on   social  media Which  Social  Media  Used  on  Regular   Basis 77% 25% 18% 16% 16% Facebook Trip  Advisor None Yelp Instagram 8.2%  (12%  of  overnighters)   Posted  online  reviews Posted  Online  Review  About…   62% 52% 43% 24% 5% 5% Winery Restaurant Lodging Other  Tourism   Retail  Store Other Attraction Reasons  for  Posting  Online  Reviews 66% 66% 50% 45% 41% Positive   Negative   If  You  Have   Upon   If  Given  a   Experience Experience Time Request Discount Dan  McCole mccoleda@msu.edu