Mark Your Calendar to Join Me at the USA Trade Tasting, NYC, May 16/17, 2017
On May 16 & 17 at the Metropolitan Pavilion, join over 2,000 trade show visitors, that include buyers, importers, distributors and retailers and 132 exhibitors from 20 countries at a high-energy, global conference in New York City that has been designed to inspire and empower you with the best ideas from all over the world of how to market, sell and grow your business. It’s brought to you by Beverage Trade Network (BTN), the leading platform connecting the global beverage industry.
You’ll also have a chance to network with12 globally-recognized keynote speakers, including top thinkers from Beverage Media, Bevology, International Wine & Spirits Research, J..F Hillebrand and Newman Wine, and yes, me too!
Here’s what you can expect:
#1: Incredible networking opportunities: I will be emceeing two content-full days of learning and networking with some of the brightest minds in the wine and spirits industry. There will be extensive networking opportunities throughout the event, including USATT Office Hours, where you can have your specific questions answered by experts. I’ll be moderating one on importers/distributors with panelists Rob Bradshaw of Cape Classics, Mike Votto of Votto Vines, Martin Sinkoff of Frederick Wildman and Mick Yurch formerly owner of Sherry Lehmann. It will take place on Thurs, the 17th at 9:30AM.
#2: Best-in-class content: We’ve set up a speaker schedule of 12 TED-style talks that will challenge your view of the wine and spirits industry. In addition, we have scheduled three masterclasses, where you can learn more about the wines of up-and-coming wine production areas including Tejo Wines from Portugal, China and Beaujolais. View Full Schedule
Make sure to register for the Wines from Tejo Masterclass to be conducted by wine educator and In the Grape author May Matta-Aliah. Register here: https://www.eventbrite.com/e/2017-usa-trade-tasting-masterclass-registration-portal-registration-31683342731
#3: A peek ahead at new products: One special feature of this year’s show is Unique and Innovative Products (UIP), where you will be able to learn about new wine and spirits offerings before anyone else. Buyers will get a chance to look at new and innovative brands and concepts from all over the world in one dedicated area at the show. Suppliers will get key buyer feedback to help plan their go-to-market strategy.
See what’s on at USATT 2017.
Here’s why you should attend this conference…
#1: You will learn proven techniques for entering the U.S. market: If you are looking to grow your distribution in the U.S. market, you will have plenty of opportunities to connect with distributors, importers and retailers. Moreover, each of the12 TED-style talks have been geared to the specific needs of brands looking to enter the U.S. market. The focus is on practice, not theory.
#2: You will get valuable feedback on how to speed your time to market: Not only will you get insights from fellow conference attendees, you will also have opportunities to mix and mingle with 2,000+ trade show visitors who are attending the Grand Tasting event. This is a unique opportunity to see what sophisticated New York wine and spirits connoisseurs think of your product.
#3: You will build awareness of your brand: A new free program for USATT exhibitors, called Show Deals, will help you drive more traffic and close more business during the event. Show deals are two-day discounts for attendees of the show from the beverage industry. These specials are only available at USATT 2017 and provide a strong incentive to close business during the event.
#4: You will meet the world’s newest wine and spirits brands: This year’s show is a truly global event, with exhibitors from over 20 countries. As part of our focus on bringing you the very best from all over the world, attendees of the USA Trade Tasting show will also have a unique opportunity to learn all about Chinese wine regions and varietals, including the elegant wines of Chateau Rongzi.
See the agenda and the full speaker line-up at this year’s Conference.
#5: Full access to the content of the show including EVERY session – We understand that you may want to spend time on the trade floor of the Grand Tasting during part of the show, or may be involved in meetings while some of the sessions are going on. That’s why we will be providing each attendee full access to all of the great content at the event, including video and social media highlights.
Your “Last Ad”: The Front Label
A former creative director of mine stressed the importance of the label in communicating brand messaging as the “last ad” a consumer sees about your product. In the wine and spirits business, it very well could be the “only ad”.
I’ve seen a ton of market research on label design, but have always felt that for the majority of consumers, it comes down to a few key data points. On the front label—an attention-getting design, and sufficient information for a consumer to make a decision on the perceived value in reference to the price charged.
I’ll leave the very subjective design piece of the equation to another post and focus here on the second, and use this wine imported by Votto Vines as a point of reference.
What I think this label does spectacularly well is provide the basic information the consumer needs to “position” the product in their individual decision set.
It even includes a score…in this case a 94 from Wine Spectator. Many gatekeepers in the trade would say the score is probably the most important piece of information and I would recommend that it be positioned more visibly even if it violates the main label’s design.
Bottom line: the more informative your brand’s “Last Ad” the more likely it will make it through the consumer’s decision process to an actual purchase.
Markup vs. Margin: Two Sides to the Same Coin
In our work with both export and domestic wine and spirit brands, we commonly find clients are confused by the difference between “Markup” vs. “Margin.”
Understanding the difference is absolutely crucial to managing business in the U.S., and this is particularly true in the case of the U.S. Three Tier System where a mistake will be compounded at each level.
Markup is defined as the difference between the gross profit and cost. This can be expressed as an absolute number, or as a percentage by dividing the gross profit by the COGS (Cost of Goods Sold)
Markup is most useful for examining how much actual profit is made on each sale.
Margin is defined as sales minus the cost of goods sold. To express it in percentage terms, divide gross profit by revenue and multiply by 100.
Margin is most useful for helping ensure that a sale generates a profit.
Here’s a handy chart to use as a reference
USA Trade Tasting Returns to New York, May 16/17 2017
Mark your calendars to register and attend the USA Trade Tasting which returns to the Metropolitan Pavilion in NYC Tues/Wed. May 16 and 17th.
Some 160 producers of wine, spirits and beer from around the world will be sharing the main floor to show their wares. In addition, there will be an educational portion of the show upstairs with a broad range of presentations to address the needs and interests of attendees and exhibitors alike.
Additionally, Masterclasses will be put on by China, Beaujolais and Wines of Tejo (Portugal) respectively providing in-depth insights into those regions.
I’m honored to have been asked to emcee the seminar portion of the show which will feature the following speakers and subjects:
• John Beaudette, President of MHW, Ltd. on “The New Brand/Craft Phenomenon”
• Brandy Rand, VP at IWSR on current market trends
• Chris Mehringer, President of Park Street Imports on “Key Considerations on Route to U.S. Market Strategies”
• Donna Hartman of Olender Feldman legal firm returns to share insights on “How to Draft a Solid Distribution Agreement for both Franchise and non-Franchise States.”
• Stephen Fahy, Senior Buyer at the Wine Library on ramping up retail marketing to grow revenues and customers for the long term.
• Jonathan Newman, CEO Newman Wine on “10 Proven Promotional Programs That Will Get Your Brand Picked Up by National Chains and Large Retailers.”
• Perennial favorite speaker Josh Wand is back to talk about “How Importers and Distributors Can Build a Strong Sales Force.”
• Thomas Barfoed, MD of JF Hillebrand on optimizing logistics
• Bill “Tish” of BevMedia with tips on best ways to work with the press to get coverage of your brands
• Richard Halstead, CEO of Wine Intelligence on How to Win Retailers and Influence Them With Effective Merchandising and Programming.
• On Day 2, I will be moderating an “Office Hours” panel discussion on tips and tools brands can use to get the attention of importers and distributors. The panel will include:
o Martin Sinkoff, VP and Dir. of Marketing at Frederick Wildman
o Mick Yurch, Bluest Sky Group and former Sherry-Lehmann head honcho
o Mike Votto, CEO of Votto Vines Importers
o Rob Bradshaw, Pres. and CEO of Cape Classics Imports
It’s a fabulous line up of conference speakers that will complement the floor exhibits of suppliers from around the world. The goal for attendees and exhibitors is to foster connections to develop and grow business for all.
Register now for the USATT and the conference…tickets for the conference portion are going fast.
USA Trade Tasting Adds New Area: “Unique and Innovative Products Pavilion”
The USA Trade Tasting has recently announced it is adding a new area at the how called “Unique and Innovative Products Pavilion. The UIPP will showcase creative and cutting edge ideas and brands from around the world for U.S. buyers.
“The idea is to make New York the first test market for new concepts and ideas related to branded alcoholic beverage products. Suppliers can get key buyer feedback and plan their go-to-market strategy based on the feedback and buyer interest they get at the event,” said Sid Patel, USATT CEO and founder. Since the area will be separate from brands exhibited at regular booths, the program is capped at 100 SKU’s total among wine, spirits and beer. Early confirmation of participation is required to assure brands can secure the place.
“UIPP is a separate a feature from being a USA Trade Tasting exhibitors and represents an extra opportunity to get visibility for new brands. USATT will work with suppliers to secure TTB COLA approvals and sample shipments,” Patel concluded.
More details on the USA Trade Tasting and the Unique and Innovative Products Pavilion is available at www.USATradeTasting.com.
“The Future Ain’t What it Used to Be”
Prognostications on what’s next.
Yogi Berra might have garbled a few thoughts, but this one was a home run. Change is inevitable, accelerating and getting much more challenging to adapt to. So, in the theme of year-end predictions, here are some conjectures on what’s coming at us.
1. Pot Rocks
With MA, CA, OR, NV, CO and ME (Maine? Really?) on board, it’s probably safe to say more will follow. Given the dollars at stake, that will drive the feds to figure out a solution to change a cash business into one that can legally use banks and credit. My business focus is wine and spirits. And it seems to me the most logical, and politically acceptable solution to regulating the new marijuana industry will be to bolt it on to the existing “Three Tier System.” I say this for a couple of reasons: 1) It makes sense, 2) A regulating infrastructure/bureaucracy already exists, 3) Existing procedures for collecting taxes are in place at the state level.
2. The “Old Guard” of Consumer Magazines Need a New Paradigm
We’ve seen a decade of efforts to prop up an industry whose relevance is being challenged by Kindles, smartphones and social media. Hey, I still like to pick up a magazine and flip through it, but at its best the process is archaic. Content is by definition days old and reader interest is in large part still determined by demographics and psychographics. More importantly, physical distribution via snail mail embeds costs that are simply not scalable in a world where reader growth of news sources is counted in orders of magnitude rather than single or double digit changes.
On the flip side there are a couple of compelling reasons for certain aspects of it to survive: Photography that’s more than a quick visual fix, journalism by professional writers and editors using things like fact-checking, secondary validation of quotes.
Don’t get me wrong, I went to J-school, so all this stuff (and grammar…and spelling) is really important to me. I think the challenge the communications industry faces is how to manage in a new world where distribution is no longer limited or controlled by access to printing presses by an elite few. We are now in an era where everyone can be a publisher, but the corollary is certainly NOT true, that everyone who publishes, is a journalist.
3. Star Trek Got it All Right
It has occurred to me that Star Trek was even more than the incredibly visionary bit of entertainment fluff than I used to think it was. Pretty much everything they showed has come into daily use: phasers, check; real time non-invasive medical imaging, check; interplanetary space travel, check for machines, soon for people. So one thing left is to figure out a way to “Beam me up, Scotty.” Think that’s not going to be possible? Read #4.
4. So, Tell Me Again, WHAT is Gravity?
Scientific advancement is moving at warp speed and though we’ve plumbed the depths of physics both cosmic and atomic, we still haven’t figured out just what the heck gravity is. It’s sort of like the judicial description of pornography: I know it when I see it, but I can’t define it…yet. Given the fact that the discoveries of plate tectonics, black holes etc. happened in my lifetime, I’m really hoping somebody figures out this “Theory of Everything” while I’m still around. After this year’s election, I’m getting really nervous about what’s keeping my feet on the ground.
4. Wine Recommendations
I’m in the wine industry and I get asked all the time for wine recommendations. A friend of mine told me a story about when he first got into the business. Back when sommeliers were uncommon, imperious and French, he asked the one lording it over the Boca Raton Hotel dining room, “What’s the best bottle of wine?” The answer: “The one I just sold.” Let’s not forget, we’re all in the business of selling: things, ideas, ourselves.
If you really want the prediction on what’s next for wines: keep an eye out for Chenin Blanc, Cabernet Franc (both particularly from South Africa), and the noble Riesling which has been waiting patiently in the wings for the past 30 years to be appreciated in the U.S.
5. The Trump Presidency
This one has got me stumped. There is no point of reference, but it’s looking a lot like government by whim supported by Twitter bullying. However I’m reminded of one of the stories I heard about the Mad Men era, a quote from Bill Bernbach of Doyle, Dane, Bernbach: “Hey, maybe he’s right.” We can only hope.
Happy holidays!
Steve
USA Trade Tasting May 16/17, 2017
The 2017 edition of the USA Trade Tasting will take place May 16/17 at the Metropolitan Pavilion in NY and will capitalize on the success of the 2016 inaugural event which brought together 180 exhibitors from 23 countries and 2300 registered attendees.
This year the USATT boasts a few new initiatives. I will be moderating the “Office Hours” panels and presentations which will take place in four separate sessions, two each day structured so that exhibitors as well as attendees can efficiently schedule their time to attend. We’ve already confirmed a great line-up of speakers who will focus on providing practical information attendees can put into use immediately. Updated details of speakers and sessions can be found at http://usatradetasting.com/en/conference-speakers/2017/
As with last year’s event, the goal of the conference is to fill a need in the U.S. spirits/wine/beer industry where suppliers from around the world can connect directly with the leading American retailers, distributors and importers. The exhibition floor will be open both days and there will also be a series of masterclasses.
FYI, I did one-on-one follow up research with exhibitors and attendees and was really excited about some of the connections that were made including two deals that I watched being done live on the show floor. And while we all know the rules of the three-tier system, there’s still room for creativity. Example: One major retailer discovered several brands and helped them to get them imported, distributed and on display.
Media sponsors include publishers from U.S. and around the world including Beverage Media Group, Meininger’s, Wines and Vines, Modern Distillery Age, iSanté, Wine & Spirits, Wine Industry News, Wine & Craft Beverage News, Drinks.ua and Microshiner.
Industry and trade sponsors include the National Association of Beverage Importers (NABI), Tastings.com, MHW Ltd., IWSR, Bev Force Park Street Imports, Beaujolais region, P & M Beverage Imports, and Bevology.
So mark your calendars and I look forward to seeing you in NY next May.
Viral is an Outcome, Not a Strategy
So the client says, “OK team, here’s our new plan, we’re going to make a viral video.”
I’ve heard that statement or variations thereof a number of times. And the fundamental problem I have with it is that it confuses an outcome with a strategy. Sure, having a video (or a Facebook post, a tweet, or an Instagram image) “go viral” is a reasonable goal. Unfortunately, it’s not the kind of thing we marketers can actually control and cause to occur. If it happens, it’s a combination of components including timing, creativity, luck and a difficult-to-define thing called resonance.
The concept of going viral also presupposes an audience that is aware of, interested in and/or engaged with your category or brand.
That’s not to say you shouldn’t chase the dream, but given the size of the internet universe, you’ll have better luck betting all your chips on one number on a roulette wheel. Not a smart strategy for roulette, and a worse one for marketing.
Four Step Progression to “Data” into “Action”
I remember it clearly. I was on a plane (in domestic first class when it meant something) with a marketing mentor of mine, Dan Sherr. He has a way of talking that was really teaching. And the lesson he gave me on that flight that has stuck with me for decades. The most interesting thing is, it is now more relevant than ever.
It’s a bit of logic that is elegant in its simplicity:
Data—>Information—>Insight—>Action
Our job as marketers is to turn data into information, information into insight and insight into action.
It’s a simple but profound thought. We live in a world where we are overwhelmed with data. As marketers our job is to process all that stuff and turn it into something useful to sell stuff to people.
What I like about this logic path is that it forces the discipline of making sure you’re consistent with definitions and aren’t confusing or conflating one step with another.
Data are just numbers. They have little value until they are organized in a way that can convert them into information…charts, graphs, tables e.g.
The information that results becomes a useful tool when it is analyzed and that’s where marketers really add value turning information into insight.
And we really shine when it comes to turning that insight into marketing programs that motivate consumers to act.
So as experienced as I am, I find it very helpful to parse these steps out when working on a project. It provides the clarity that I need to help make sure I’m on the right track.
Hot Tip to Kick Start U.S Spirit/Wine Market Entry: Get U.S.- Recognized Ratings and Reviews
One of the first things we recommend to our clients planning for U.S. wine and spirit market entry is to get ratings and reviews from sources that are recognized and valued in America.
Four that I’d especially highlight are those that accept brands that are not currently imported into the U.S. The top four are Ultimate Beverage Challenge, New York International Wine and Spirits Competitions, Beverage Testing Institute (BTI) and the San Francisco International Wine and Spirit Competitions.
The Ultimate Beverage Challenge is headed by a triumvirate of industry veterans including noted critic, author and publisher Paul Pacult along with David Talbot and Sue Woodley. They manage Ultimate Wine Challenge and Ultimate Spirits Challenge and both are widely recognized and authoritative and significant competitions. The competitions are distinguished in terms of the rigorous blind judging by a slate of top flight experts in the industry including Doug Frost, Jennifer Simonetti-Bryan, Tara Thomas and Christy Canterbury on the wine side and Dale DeGroff, Steve Olsen and David Wondrich on the spirits side.
Results are published online, as well as in the Beverage Media Group publications which reach over 20,000 key buyers across the country as well as the BevMedia online product ordering platform and over 200 retail e-commerce websites reaching upwards of 6.5 million site visits per year.
One program I helped pioneer with the Ultimate Beverage folks is a bespoke review of individual wines and portfolios. Because they are individual reviews, they are not limited to the deadline windows of the larger annual competitions. That’s huge for many of our clients because the tailored timing means suppliers can get reviews at a time that fits their schedule rather than the competition’s. Ping David Talbot (talbot@ultimate-beverage.com) for more information on this program.
A second competition that’s emerged as a credible player on the U.S. market is the NY international Wine and Spirit Competitions. It’s run by Adam Levy and while it started out in the Big Apple, it has since expanded internationally and now has versions running Australia, Asia, Berlin and soon, in London. It is differentiated by the judging being done by only by key members of the trade: importers, distributors, buyers, retailers, F&B managers who have the purchasing power and the ability to make a direct impact on brand sales. Importantly, it also accepts brands that are not currently imported in the U.S.
NYI Wine and NYI Spirits and its sister events are promoted in the U.S. as well as at major international trade shows such as ProWein.
BTI is short for Beverage Testing Institute which has been running evaluation programs for nearly 20 years. In addition to the fact that they accept not-currently-imported into the U.S. products, they have a rolling schedule of deadlines which makes it easier for brands to participate and still fit into their development schedules. Evaluations run throughout the year. In the case of wine separated by domestic and imported, and among the imported wine, often has multiple entry deadlines for larger producing countries such as Italy (Sept. 15, Feb. 1), Argentina and Chile (July 15 and Jan 15), and Australia (May 15 and Dec. 1). They also have a rolling schedule for spirit categories. Deets on wine, spirits (and yes, they also do beer) contests and deadlines are at: http://trade.tastings.com/
And fourth on the list is the venerable San Francisco Spirits and Wine Challenge. The former has been running since 2000 and the wine competition for 36 years. One added value they offer is a traveling road show promotion to winners.
Check out my website for a regularly updated list of upcoming competitions with deadlines noted at http://bevologyinc.com/events.php. On the same page you’ll also find a comprehensive list of U.S.-relevant wine and spirit industry trade shows.
