XChateau Wine Podcast

Having struggled to manage and maintain distribution for her family winery, Cheryl Durzy, CEO of LibDib, decided to start her own distributor. In comes LibDib, a tech-enabled distributor that lets any alcohol producer have distribution in most of the key US markets. Cheryl provides background on the US 3-tier system, the role of a distributor, and how LibDib is helping producers get distribution, enable wine sales, and become a tech platform for other distributors. Detailed Show Notes: US 3-Tier SystemPut in after prohibition to keep one tier from owning alcohol distributionTiers - producer, distributor, retailerUS distribution heavily consolidated into 3 large ones, lots of smaller specialty distributors vs. many distributors in the 70s/80sDistributor functionHelps consolidate suppliers for trade accounts; accounts don’t have resources to manage each supplier separately (e.g., invoices, checks)Pay taxes, do complianceLogistics (heavy, fragile product)Customer service (mistakes, breakage, returns, samples)Sometimes act as a winery’s salesforceGetting a distributor2024 - distributors are shedding brands vs. taking on new onesTypically - look for fit w/in a distributor’s portfolio, pick someone with a good reputationDistributors will ask - what will be your investment in the market? How often will you be here? Do you have feet on the street?LibDib - enables wineries to sell themselves, a tech-enabled distributorStarted as a wholesaler in 2017 (CA, NY), enables distributor for any producerThe platform enables rich content and e-commerceHas license in 9 states, enabled through RNDC in 6 states (e.g., Texas)~1,500 suppliers w/ active accounts, ~700 wineries w/ ~450 actively sellingOriginally focused on spirits, wineries have increased by ~50% in the last few yearsUses FedEx to send wine, integrated API to track status, negotiated good rates <50% of DTC rates; have cold chain, ice pack options for hot temperaturesNew markets launching late 2024 / early 2025LibDib use casesGet wine to specific accounts in a marketEnable wine brokers in other statesImporters sell directly to accountsShip special projects from large wineries that distributors don’t want to touchPros/cons of LibDibPro - always have distribution, good communications/customer service, good technology experience for producers and trade accountsCons - no salesforce, need to be a little tech-savvyBusiness modelMarkup of 14-18% on sales (vs. 30-35% for most distributors) + producer pays for shippingSubscription service (Gold, Silver, Plus) - get lower markups and services (e.g., portfolio management, VIP chain assistance, advertising on platform)~250 subscriptions (of 1,500), mainly on Gold for chain servicesRNDC partnership - OnDemand divisionOnboard w/ both RNDC and LibDib, no sales support28% markup, inclusive of shipping6 states, ~400 suppliersMost people want to get regular distribution, which can act as a trial for RNDCTrade account benefits~30k accounts (~50% active), not including RNDC statesNo minimum shipmentsEnables direct contact w/ wineriesAccess to smaller items not available elsewhereLibTech (launched Jan 2024 in TN)RNDC invested in the last round, and LibDib built e-RNDCSelling e-commerce platform as SaaS to other distributorsLibDib is developing AI tools for suppliers, early 2025 launch

With ~2M monthly sessions on their newly unified commerce and media website, Wine Enthusiast continues to be a beacon for the wine industry. Jacki Strum, President of Wine Enthusiast Media, details their new wine review platform and global wine travel directory, democratizing access to wine and wine experiences globally. These initiatives help bring more people into the world of wine, including the younger generations, a critical part of building a vibrant wine industry.  Detailed Show Notes: Covid altered the business model, led to re-structured organization and unified media and commerce divisions on wineenthusiast.com2022 - WE paused reviews for emerging wine regions to recalibrate systemsExisting tasting process1 of 2 publications that review every wine blind (high cost), taste in flights w/in region and price bracketsNeed to store, archive, organize wines, set up tastings (in paper bags with numbers), and hire reviewers50% of reviews are done at HQ (imported wines), and West Coast wines are done locallyThe manual process of filling out a pdf and putting that into the box with wines, manually inputted into J Guide (legacy system, 20 years old), then stored and organized for tastingNew tasting platform (Sept 2024) - anyone can submit a wine for review and all will be reviewedNew digital platform - bar code scanners, printed tabs, can track shipments and deliveries, a more fluid databaseReduces large volume of questions from people submitting wine (can track digitally)It has the same # of reviewers, but a more flexible infrastructure can allow for more wines to be tasted$65/SKU processing fee - all reviewers charge in some way (e.g., require subscription, membership, or advertisement)6-month processing time (same as before) - hope to reduce this over time, based on the schedule of reviewersPrinted reviews selected by the tasting dept, all scores published online for freeTasting platform benefits for new and small wineries Opens up reviews to all regions across the globeThe US market is still heavily score-driven for distribution (some major retailers, e.g., Costco, Kroger, Albertsons, require scores from major publications)Helps with tasting room and local distribution salesMedia trendsPrint is still doing well (e.g., books outsold movie tickets last year), and magazine subscriptions are increasing (free tote bags help)Advertising up slightly Digital media is growing, with a targeted advertising focusEvents - biggest growth area - launched Sip of South America, Sip of Italy, and biggest event is Wine Star Awards (25th Anniversary in SF this year)TikTok now allows alcohol advertising, getting Gen Z engaged with wine knowledgeNew travel division for WETasting room directory, partnered w/ Tock - 1st agnostic travel global wine travel guideLeverages Tock’s wineries as launching list (~1,200 wineries, CA focused), building out globally with WE relationships (~100 wineries reached out in 1st month to be included)The 2nd most trafficked page on the siteWE revenue mixCovid - led to explosive commerce growthToday - back to 2019 levels, ~80% commerce / ~20% mediaGetting Gen Z engaged with winePrint enables content absorption without ad bombardment (e.g., book reading bars in NYC)Need to change content for each channel to target audience (e.g., Google as people’s “secret diary,” article on how to hold a wine glass became a top 5 article)Influencers, infographics, video - bring in new consumers (e.g., wine & potato chip parking article led to major influencer doing every pairing on TikTok)

During a career sabbatical from wine PR at a yoga teacher retreat, Morgan Perry tried combining wine education and yoga with great success. Her classmates practically forced her to found Vino Vinyasa, which has blossomed into six cities. With a focus on creating great experiences rather than selling wine, Morgan has created a platform where people learn about wine and end up seeking out the wines featured in classes. Detailed Show Notes: Morgan’s background - wine PR, been in wine for ~15 years, became a yoga teacher in 2017Wine & Yoga synergiesBoth are about mindfulness - yoga and the wine tasting processNot for hard-core wellness or yoga peopleVino Vinyasa For the yoga teacher exam, the teacher encouraged something different, tried yoga & wine, and got a fantastic reception6 cities - NYC (2017), Austin (2018), Nashville, Chicago, LA, HoustonVino Vinyasa programming45 min Vinyasa yoga (all levels), followed by wine tasting of 2 winesTaste wine after yoga - people are relaxed and have “yoga brain” in a quiet, focused environment → people may be better tastersEmbed wine facts during yogaA comparative tasting of 2 wines, usually themed (e.g., Rose, Sauvignon Blanc)All instructors have a wine background (min WSET 1)2-3 classes/month, 20-25 people/class for intimacy (capped at 30)~30 classes/themes developed to dateVery intentional class structure, certain poses not suitable for teachingBusiness modelThe core business is to get people to do more classes and events, not be overly salesy with wineDo private events (90% are bachelorette parties)Sell swag (t-shirts), co-branded bottlesLook to be good value (avg class price $30) vs. regular yoga classes (avg ~$20-25, range from $10-35 for drop in class)Students often seek out wines after classesWine selection for classesVenue dependant, venues carry liquor licensesCity Winery (NYC) - chooses the wines based on their selectionOther venues - can get wines donated for classesPrivate events - Customers can select wines/themesHave worked with PR clients for winesSome wineries sponsored virtual classes during CovidMarketingPR background has helped and got early press (e.g., digital Good Morning America), mostly wine marketEmail newsletterIG is the best channel, does some boosting, and is focused on growth during Covid (~11k followers)Digital marketing has focused on both wellness and wine people~15-20% of people have attended multiple classesPrivate eventsBachelorette parties, birthdays, corporate events (e.g., Binny’s in Chicago)The focus area for growthSame format as classesWellness & wine marketOther wine + yoga classes are not educational; some are tied to multi-level marketing wine programs that have long sales pitchesSees more yoga at wineriesThey have been approached by a couple of spas for partnerships, but the economics were not favorable yet (i.e., yoga teachers often are not paid well, ~$30/class)

Taking over an iconic estate can be both exciting and terrifying. When EPI purchased the iconic Brunello di Montalcino producer Biondi Santi in 2017, they asked Giampiero Bertolini to take over as CEO. Giampiero was excited to join the “Champions League” of wine but also had to convince the local community that this outside investment would be good. He delves into how Biondi Santi has been pushing toward creating more value for the brand while maintaining its core essence.  Detailed Show Notes: Biondi Santi’s historyFamily invented Brunello di MontalcinoFounded in 1888 - Ferruccio Biondi Santi had a vision of quality wine with longevity during a time when people focused on quantity with wine as part of the dietBottled in Bordeaux-shaped glass (a sign of quality) vs. standard Tuscan fiascoTancredi Biondi Santi - one of the top consulting winemakers of the time, was asked to write appellation rules in 1967Franco Biondi Santi (“the doctor”) - selected the BBS11 clone in the ‘70s and organized a 100-year vertical tasting (1888-1988) in 1994 with important wine writers that boosted the image of Brunello. One writer gave the 1891 vintage 100 pointsLa Storica (wine library) - has all vintages since 1888, releases one old Riserva with a current Riserva each yearPath to Iconic StatusThe vision of the family - be good winemakers, high-qualityIn the global market regularly → elevated the Biondi Santi to a different levelThe wine offered to Queen Elizabeth II in 1967 was a favorite of Frank Sinatra’sEPI acquired Biondi Santi in 2017 and installed Giampiero as CEO; the community was skeptical of French owners for an iconic estate had to convince neighbors by being transparent about what they were doing at the estateBefore the takeover, prior 20 years, the business was not run wellRebuilt global distribution, did not have US distributionRe-connected with trade, critics, and consumers/collectorsWhat they kept the sameReinforced market positionStyle of the winesWhat they changedNew vineyard philosophy (regenerative), replanted vineyards to improve quality, conducted soil studiesIncreased communications and more selective to the right people and thproperht channelsManaged pricing to reposition the brand to increase demandKeeping the brand freshwant s to be closer to the trade and consumer, spend more time in the marketStorytelling of what is happening at the estate, not just the history, but today’s actions that protect the futureLa Voce di Biondi Santi - started 3 years ago, selects one word each year that is part of their philosophy (this year is “respect”); creates novel/audiobook based on a keyword (e.g., Joanne Harris, author of Chocolat) and podcasts with winemaker and Giampiero around the keywordThe most effective initiative so far - repositioning the brand by increasing price → gave higher credibility and put the brand up another step, old vintages increasing in price on the secondary market, high demand on Liv-ex (one of few growing while price increasing), one of the top 35 wines in the world on Liv-exGrowth for Biondi Santi = value growth; volume is complex to growValue-driven by increasing distribution globally to rarify the brand further, not just taking price, but increasing value, which is a consequence of many conditions, and not rushing value creation in the marketBiondi Santi is now in 2.0 after 1st five years, and the next step is to increase the quality of its presence in the world and be closer to partners and consumers

In part 2 with Stevie Kim, Managing Director of Vinitaly, she explains how parent company Veronafiere invested in the various Vinitaly products and allowed her to experiment.  Stevie also dives into her prolific content strategy, including the Italian Wine Podcast, which has over 2M downloads to date and where she sees value in marketing.  Detailed Show Notes: Italian Wine PodcastInitially created to develop content for VIA candidatesSomething different every day - up to 9 episodes published / weekExample shows: Ambassador’s Corner - Italian Wine Ambassadors go deep with their favorite Italian producer; US Market Focus - different perspectives on the US wine marketNow ~2,000 episodes, they had to switch podcast distributors to Megaphone (Spotify) as most only host up to 500 episodesAudience - early on, was ~80% US & English speaking countries (the podcast is in English), and VIA students~6M total downloads with a broader audience than Vinitaly attendeesFunding the Vinitaly complexSignificant investment by Veronafiere, which is majority-owned by the city of VeronaItalian Trade Agency subsidizes some events - e.g., pays for transport for judges for 5 Star WinesSome ticket sales and sponsorship revenuePodcasts funded by Stevie personallyVeronafiere saw value in investing in Vinitaly productsWanted to become more internationalAllowed Stevie to experiment with new products and invest in themStevie’s team has a large staff of content producers (video, social media)Document everything they doCreate tons of content, of which only ~50% is usedStevie believes in being prolific - promotes discoveryMarketing productsNever advertise on LinkedIn - it is too expensiveInstagram - sometimes does advertising, conversion doesn’t happen on IG, try to drive to the website to convert, more for attention vs. conversionFacebook - most wine producers on FB, more effective and efficient, can get ~$100k subscription revenue from ~$5k ad spendLess concerned with “vanity” metrics like views and engagement, more interested in conversionsLooking forward - wants to bring more people to Italy and Vinitaly - it is the best way to convert people to Italian wine

As the world's most prominent Italian wine fair, Vinitaly attracts ~4,000 producers and turns the entire city of Verona into Vinitaly. As Managing Director of Vinitaly, Stevie Kim has built a vast, international community around Vinitaly and its many other products surrounding it, becoming a "Vinitaly Marathon." Stevie goes into depth about why each product was started and how it plugs into the entire Vinitaly ecosystem in part 1 of this 2-part series. Detailed Show Notes: Stevie's background: born in Korea, grew up in New York, married an Italian, and moved to Italy; Veronafiere recruited her to lead VinitalyThe Vinitaly "Marathon" (2025 schedule)Vinitaly Int’l Academy ("VIA") - 5 days 5 Star Wines - 3 days (April 1-3)OperaWine - 1 day (April 5)Vinitaly - 4 days (April 6-9)Also, do events outside of Verona (New York, China, Hong Kong)Vinitaly - established in 1967 in VeronaIt started as ½ pavilion, now 14 pavilionsLargest Italian wine event, primarily B2BThe entire town of Verona becomes VinitalyVinitaly in the city events for consumers~4k wineries (~60% of export market), accessories, winemaking equipmentAbout building long-term relationships - "the Italian way" - not just about doing business vs. Prowein's more business-orientedOperaWinePartnered with Wine Spectator as the most influential entity for Italian wineThe winemaker or principal must pourBy invitation only, each producer chosen (130 producers) gets 10 invitesVIA1,300 candidates so far, 398 certified Italian Wine AmbassadorsUsed to do Vinitaly tours and masterclasses globally, now transformed to VIADeveloped based on Stevie's experience building a medial master's program that created a deep communityFaculty - Sarah Heller MW, Attilio Scienza - vine geneticistDifficult exam, deep and wide syllabus primarily based on grape varieties, uses Italian Wine Unplugged 2.0 as the textbookHas a course that includes 4 days of tasting ~300 wines before the examRequires a group video project to ensure ambassadors can speak about winesCreates a big community around candidates and ambassadors - more important than the material itself5 Star Wines (fka Vinitaly Int’l Competition)Gets international judges & VIA community opportunity to taste and rate Italian winesHelps producers - 90+ scores get a diploma during Vinitaly to display, which helps attendees navigate boothsDid a masterclass for producers w/ top scoring wines on why they scored highly, which helped them understand quality betterEvery tasting panel has an enologist, enabling the international community to connect with Italian winemakersWine2Wine business forum (Nov - after harvest, before Christmas)The goal is to help producers better prepare for VinitalyHistorically, they had 40-70 workshops on business topics2023 - did tastings where wine critics taught how they assess and rate wines2024 - getting an overhaul, no parallel session, 8 plenary sessions, 6 tastings, new structured networking - rooms led by specialists w/ 10-12 attendees

Written by the Biondi-Santi family in 1967, the appellation rules for Brunello di Montalcino are some of the strictest in Italy. This has led to Brunello vineyard land becoming some of the most expensive in the country and led Brunello on the pathway to becoming one of the world's iconic wine regions. Giampiero Bertolini, CEO of Biondi-Santi, explains the terroir, regulations, and market for Brunello di Montalcino and his belief in pursuing value and quality over quantity. Detailed Show Notes: Giampiero's background - studied economics, worked at Procter & Gamble, entered the wine industry by chanceBrunello di Montalcino - hill in Tuscany, b/w coast and Apennine mountains, protected by mountains and with altitudeThere are lots of different soils, and each location on a hill is differentSangiovese - only appellation in Italy with only one varietal, >150 clones (Biondi Santi uses 46 clones)1967 - 78 producers; today >250Quality has improved over the last 20 years, with more emphasis on viticulture1970s - Franco Biondi Santi trialed 40 clones and chose BBS11 for their soilRegulated production systemCreated by the Biondi-Santi family in 1967Limited yields (Brunello - 8 tons/ha; Rosso - 9 tons/ha)Strict aging requirements - barrel min 12 months (Rosso), 24 months (Brunello, Riserva); bottle min 4 months (Rosso), 24 months (Brunello, Riserva); Brunello min 5 years totalSamples tasted by the Commission panelAppellation expanded ~20 years ago, now frozen at 2,100 ha2023 - Rosso appellation expanded (550 → 900ha)Biondi-Santi has a target style for their wines and matches vineyard lots to create style (~60% Brunello, 25% Rosso, remainder Riserva when made)Some producers make single vineyards now (both Rosso and Brunello), but Biondi-Santi is not focused on thatThe most expensive vineyard land in Italy ~₠1M/ha, a significant rise in 2015 when the 2010 vintage was releasedForeign investors (France, Brazil, Belgium, Swiss) are increasing the value of the landMarket for BrunelloThe biggest is the US, developed by producer BanfiOther vital markets: Switzerland, the UK (higher-end wines), Hong Kong, ItalySales ChannelsRosso - more casual restaurants, wine bars, BTGBrunello - 50/50 on and off-premiseRiserva - mostly high-end retail as it is for collectorsFuture of Brunello - hopes the focus is on value and quality and not higher volume

Making natural wines right out of university, Arianna Occhipinti, founder of Azienda Agricola Occhipinti, has quickly built a strong following globally, particularly in the US. Discovered by Louis/Dressner at a natural wine show around Vinitaly, Occhipinti’s focus on expressing terroir through natural farming and winemaking and doing everything with passion has led to continued success.   Detailed Show Notes: She finished university in Milan, started making wine in 2004, and is interested in natural wines that speak of terroirBased in Vittoria, Sicily, she makes wines from reds (Frappato, Nero d’Avola), whites (Albanello, Zibbibo, Grillo)Started w/ 1ha farm in Fosso di Lupo (Frappato, Nero d’Avola)Cultivates a pluricultural farm for biodiversity - vineyards, orange, pear, wheat, vegetable garden2006 - built a small winery2013 - moved to another farm in BombolieriTerroir - limestone (lots of fossils), red sand, 250m above sea level, 8 km from the sea, 8 km from mountains, windy and dry -> lead to low pH wines1st meeting with Louis/Dressner in 2006 at a Vinitaly adjacent natural wine fair1st presentation of winesKevin McKenna tried the wines and got Jules Dressner to try them, where they immediately asked if they could import themStill working together, they are “very pure people”One of the 1st Italian producers that Louis/Dressner represented1st trip to US (“Real Wine Tour”) - Louis/Dressner organized a young group of producers, with a lot of energy that toured the USTraction partly from being an early mover in the natural wine movementAt the time, San Francisco (and Paris) were leading the world for natural winesNatural wine bars (e.g. - Terroir Wine Bar)Leading restaurants (A16, Bar Agricole)LA (Domaine LA) and NY followedSommeliers promoted the wine and created strong relationshipsTraction was a combination of wine quality and consistency, restaurant promotion, and good communicationsConvincing people who know a lot about wine (e.g., sommeliers) helpedIn the US market ~1x / yearLouis/Dressner did a great job of selecting wine producers and having good relations with their clientsAdvice for others - do everything with passion, potentially spend more time on trips to spend more time with people