{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/62301a5c63c97500122f8a76/69137f1da17ebcde88b07bb2?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"US Wholesale Masterclass w/ Pete Przybylinski, The Duckhorn Portfolio (Part 2)","description":"<p>Having helped grow Duckhorn from $5M to $500M in revenue and the sales team from 1 to &gt;100 people, Pete Przbylinksi, former Chief Sales Officer of <a href=\"https://www.duckhornportfolio.com/\" rel=\"noopener noreferrer\" target=\"_blank\">The Duckhorn Portfolio</a> for nearly 30 years, has a deep understanding of managing US wholesale markets.&nbsp; In part two, Pete discusses selling into on- and off-premise chains, pricing, marketing, and more.</p><p><br></p><p>Detailed Show Notes:&nbsp;</p><p>Selling on-premise takes more time, need to present the wine, sell 1 case at a time, but more marketing value</p><p>ROI skews towards off-premise if you ignore brand equity</p><p>Calera / Kosta Browne targeted 65-70% on-premise, but hard to enforce</p><ul><li>Can’t tell distributor where to sell since they own the product</li><li>If retailer asks for it, some states legally require it be offered</li></ul><p>Selling off-premise chains</p><ul><li>Rely very little on distributor, need to build relationship on your own</li><li>If brand is small, can use agents/brokers or distributors to get initial discussions</li><li>Takes patience and perseverance, and need a compelling story</li><li>Big retailers don’t care about the winemaking process, they care that customers will buy the wine</li></ul><p>In-store displays</p><ul><li>Retail product managers fight with each other for displays</li><li>If displays don’t deliver value, they will lose floor space to others</li><li>Constellation research: most product pulled from shelf, not displays; displays act as powerful billboard for shoppers</li></ul><p>Shelf placement</p><ul><li>Cold box similar to displays - limited real estate, hard to get in and get the desirable locations</li><li>Need to communicate to wholesaler merchandising teams where you’d like to be (e.g. - x shelf next to y competitor); need to keep message simple </li><li>Stick w/ message for ~2 years, takes a long time to see impact, needs patience</li></ul><p>Large on-premise accounts</p><ul><li>Look at ACV (volume) to identify top targets</li><li>Similar to off-premise with limited real estate (wine list slots) and they need the wine to sell</li><li>Can take fewer wines vs off-premise (2-4 max)</li><li>Longer lead times, programs can be 1-2 years, need to be ready when windows open</li><li>BTG great, but creates some pricing complications</li><li>Need to show up where buyers are, e.g. - major events like Pebble Beach or Aspen Food &amp; Wine</li></ul><p>Decoy’s success driven by off-premise</p><ul><li>Safeway in CA launched brand, then went to other regions and retailers and grew from there</li><li>Duckhorn brand equity gave Decoy a springboard to launch, but was able to stand alone and now most Decoy drinkers don’t know the tie to Duckhorn</li></ul><p>Price increases</p><ul><li>Get all the data you can (competitor, consumer behavior, demand elasticity)</li><li>The nuances of consumers and differences in brand equity are impactful</li><li>Any decisions take time, may not affect retailers for ~120 days, could take 6-12 months before you see an impact</li></ul><p>Discounting</p><ul><li>Key for the grocery channel</li><li>Discounting should be done after all other options exhausted</li><li>The more it happens, customers think that’s the price of the product, erodes brand equity</li></ul><p>Impact of marketing on sales</p><ul><li>Duckhorn did very little traditional marketing, mostly sales support (spent ~1.5-2% of revenue)</li><li>LVMH spends ~30% on marketing, CPG average is ~10% of revenue</li><li>Did some testing of advertising in 1 market for 1 year and measured impact to determine if it should be expanded</li><li>Partnerships w/ other products good for grocery channel, can often secure displays</li></ul><p>Advice for a tough wine market</p><ul><li>Set up production to align w/ honest and believable sales plan</li><li>Long-term impacts of cutting opex will hurt growing the top-line</li></ul><p><br></p>","author_name":"Robert Vernick, Peter Yeung"}