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  Newsletter
November 2002  

Quality is Indeed Job One

The association between wine and a longer and more healthy life helped spur on the wine boom of the 1990s. WineVision: American Wine in the 21st Century believes that in the first decade of the new millennium, a new understanding of the quality of American wine will usher in a new wave of consumer interest and buying.

The story of the impact on wine sales in America because of the wine-health connection is a tale of image and reality. When 60 Minutes first publicized the "French Paradox" in November of 1991, there had been no revolution in American wine itself inspiring the boom. Not in the bottles. Not in the labels. But the widespread broadcast of the scientific support of the age-old perception of wine as a healthy beverage created a "new reality" among consumers that encouraged many to make wine a greater part of their everyday life. It was simply a perception change that ushered in the biggest and longest boom in American wine sales in modern history.

WineVision believes enhancing the new perception of American-sourced wine as premium quality can become as compelling a factor in the decision-making process for Americans buying wine as the wine-health connection was in the 1990s.

The concept of quality in the wine business is more than an abstract. It comes from many directions--from the soil in which the vines are grown and where the wine takes its most critical characteristics, to the consumer, who is willing to pay for an assurance of taste, style, uniqueness and even personal preference.

And far from being optional, it is becoming clear in the 21st Century that quality in any product is an imperative for producers, distributors and retailers. This is all the more important in the current climate--a hyper-competitive environment created by growing worldwide competition and the increasing power of newly dominant domestic competitors emerging from unprecedented consolidation.

WineVision: American Wine in the 21st Century has, since its inception, has been engaged in a conversation with its participants and a dialogue with the wine community at large on how to focus the industry on quality rather than commodity. That conversation is now transforming itself and many of those involved in the discussions are moving forward with an effort to create a formal definition and role within the framework of WineVision for specific quality initiatives. A quality plank, while still to be defined, will specifically aim at both enhancing the quality of wine and grapes produced in the U.S. as well as the perception of the quality of American wine by consumers.

American winegrowers and producers are recognizing that they cannot be low-cost producers. They cannot compete in a global marketplace based upon price. They realize they have to compete on value. And value can either be perceived value, for example the value attached to a strong brand like Sony in electronics or Nike in tennis shoes, or the intrinsic high-quality of the products themselves.

The U.S. wine community is ready to pursue a two-pronged effort to delivering quality. First, initiatives will be developed that address the deliverable in the bottle. Second, initiatives will address the perception of what's in the bottle.

The concept of "Putting the Consumer First" will play a major role in defining and refining the quality of American wine. There has been a clear and consistent message from the wine trade over the last several years that it is critical for the wine community to make wine more fun and approachable, to take away the fear. And perhaps just as important--pay attention to consumer taste preferences in making wine rather than merely listening to technicians that might be concocting a blend that, rather than taking the consumer into consideration first, is developed according to their own concepts of taste and pleasure.

The American wine community some time ago began making wines that are made to drink far younger than those made in the European tradition. That was an adaption to consumer drinking patterns. Now, keeping the consumer in mind, the American wine community must enhance the quality of its products by listening ever more closely to the styles and preferences of consumers themselves. This will assure increased marketshare, increased "share of mind" of the consumer and a stronger, healthier and more diverse wine industry.

Quality is more than just another strategic objective in the WineVision 20-year plan. Quality is a strategic part and parcel of all the existing objectives--increasing the presence of American wine in global markets; getting wine to be a greater and more relevant part of American culture; and enhancing the sustainable business practices of American winegrowers.

Quality underlines all of these concerns and goals. WineVision anticipates that the concept of enhancing quality will be a new way of directing the industry's efforts in the future--a new way of guiding how the industry talks to its consumers, about it products and activities and how it presents itself in the public forum.

Quality will become the way that American wine differentiates itself in this world of increased globalization and consolidation. Where the American wine industry goes with the opportunity to enhance the quality perception and inherent quality characteristics of its wine remains to be seen.

This is a chance and a call for you to get involved. WineVision's task forces already are moving ahead quickly with the concept. The Sustainability Task Force is including quality discussions as part of the workshop introduction of its new Code of Sustainability. The Globalization Task Force is examining how enhanced quality and consumer perceptions can help create a unique and new position for American wine in world markets. A WineVision subcommittee also is compiling existing consumer research to determine how Americans decide to drink wine or choose other beverages. The American Culture Task Force believes quality perceptions will be a major factor in determining ways to integrate wine into the American lifestyle.

So, getting involved with WineVision and its new quality focus is a way for you to help ensure the continued success of the industry. Call us to join the movement today! WV

Global Task Force Sets New Agenda; Adoption of Wine to be Analyzed

The Globalization Task Force is focusing on new efforts to help those planning to enter global markets, as well as trying to initiate efforts to understand American wine in the "big picture." Three deliverables are on the planning table:

An export education program to move "new-to-export" wineries to an "export-ready"stage.

An industry-wide strategy to promote USA wines at the Beijing Olympics in 2008.

The development and/or distribution of information and mentoring resources for the global market.

A mini-think tank-which meets in the first week of December is being organized to reexamine the challenges of globalization and how American wineries can use their quality positioning to stake out a unique, worldwide reputation. And an new export readiness assessment tool is being developed in partnership with Sonoma State University's Wine Business Program.

A WineVision subcommittee also is working to compile consumer information and data (including an initial beta survey with wine industry professionals) for how, where and when a consumer begins wine consumption (adoption process), how, when and where they migrate from/to type (fortified, fruit wine, white Zinfandel, Chardonnay, Zinfandel), to size (box, 1.5 liter, 750 ml) and brand consideration set as well as other relevant data. The analysis, being led by wine marketing professionals Tim Hanni and John Stallcup, will include initial wine category adoption; intra category migration; present consideration set of brands/types/sizes; everyday vs. special occasion wine; retail channel; in-home/on-premise use occasions; flavor preferences for food, wine (sweet, salty, spicy, sour, chocolate, etc); and perceptions of self and other wine consumers. WV

Coming to the Unified Symposium? Attend the WineVision Forum Meeting Wednesday, January 29, 2003 11:30 a.m. to 1:30 pm At the Hyatt Regency on L Street in Sacramento. For more info: Contact Waunice Orchid at 707/261-8716 or check out our website: www.winevison.org



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