Grape Expectations

When one thinks of wine, one often visualizes an elegant dinner by candlelight with the gentle sounds of a string quartet playing in the background. That's an image many winemakers are trying to wipe from the minds of consumers. Suppliers hope to dismantle the myths associated with wine and roll it out to the masses as an any-occasion beverage.

"We're always hoping to get retailers interested in cross-promoting and showcasing wine outside the wine aisle," says Debra Eagle, senior marketing manager at Sutter Home Winery in Helena, Calif. "If someone's thinking of having wine with a meal, it's not always an easy sell."

The big challenge, Eagle notes, is that relatively few consumers drink wine on a regular basis. "We're thrilled when we can get out-of-section displays," she says. "It's nice to be able to get Chardonnay or Sauvignon displayed by fish, for instance."

For the past 13 years, Sutter Home has staged its "Build a Better Burger" promotion, which starts in late May and runs throughout the summer. "It was conceived to tell consumers they can enjoy wine with everyday meals, not just with fine food," Eagle says. "It gets them to think of wine in an everyday context. While it's common in other cultures, it's not common in the United States. The idea is building a great barbecue meal, with burgers, salad, and bottles of wine."

Throughout the promotional period, consumers send in recipes, and Sutter Home selects a national winner.

The company pursues partnerships with appropriate CPG suppliers, such as Kraft with its Grey Poupon mustard, Lea and Perrins, and other condiment companies.

The wine industry as a whole, Eagle says, is on a mission to demystify wine. "There's still a lot of mystique wrapped up with the market, focusing on on-premises consumption and specialty wine shops," she says. "It makes it hard for consumers to enjoy wine, or it makes them uncomfortable about the possibility of making a mistake in wine selection. People are made to feel like they're making mistakes when trying to purchase wine, and that's unfortunate because it keeps the category very narrow."

However, that can be an advantage for the supermarket channel, which represents a friendly, comforting place for shoppers who don't want to be put off by the sometimes daunting task of wine selection. "Generally, people are intimidated by wine," says Ted Baseler, president and CEO of Stimson Lane Vineyards & Estates, based in Woodinville, Wash., which owns the Columbia Crest brand. "Supermarkets are less intimidating than going into some other areas, such as specialty stores. The fear factor can be tremendous with fine wine. What people look for is someone who knows wine to make a recommendation."

And that, he says, is an opportunity for supermarket retailers to step up to the plate. But retailers don't have to be connoisseurs themselves. They merely need to have a working knowledge of the category and to provide customers with some resources to help them along. In addition to supplying point-of-sale collateral materials detailing the various wines, retailers also can direct shoppers to Web-based primers.

The Wine Market Council recently launched wineanswers.com, intended as a simple and easy-to-use source of credible information about wine to the general public. "All of the information on wine answers is very direct and to the point," says John Gillespie, president of the Greenbrae, Calif.-based organization. "It's distilled information for the sort of everyday people who like wine, but aren't wine connoisseurs, meant as a resource that begins to raise people's comfort level about wine. We're making it as painless as we possibly can, and the response has been excellent." Consumers can download recipes, wine pairing ideas, and outdoor grilling tips.

The council regularly sponsors focus groups to get a feel for consumer attitudes on wine. "We get a bunch of people together of diverse ages from both genders and they give us their input on what they feel are wine occasions and what aren't," Gillespie says. "When you really get people talking about when wine is appropriate, they're willing to see themselves enjoying wine in many more situations than we consider traditional. People are becoming more relaxed with wine."

Getting consumers to relax a bit more about wine involves placement strategies in both the center store and the perimeter. "What really gets attention is the juxtaposition of wine in the produce, deli, or seafood sections," notes Gillespie. Retailers needn't spend a lot on wine marketing, he adds, noting that ceiling danglers, for instance, are highly effective and inexpensive. "Just the fact that wine is being displayed is effective in itself," he says.

Wine, Gillespie observes, is becoming "the thing around which the rest of the occasion falls." When one thinks of wine occasions, Thanksgiving, Christmas, New Year's Eve, and Easter often come to mind. But wine is not just a dinner or party item; it's finding its place as a gift as well. "What's really interesting is that during a trial promotion, women were asked what they wanted for Valentine's Day and one of the things they often said was wine," he says. "Indeed, it's a great wine time of year. Some of the more forward-thinking marketers and trade store promotion people are taking advantage of this."

Warrensville Heights, Ohio-based Heinen's has been proactive in promoting its wine offerings, going as far as publishing a monthly full-color wine newsletter. "In every issue we make food recommendations," says Ed Thompkins, director of wine operations for Heinen's. "For instance, there are poultry and cheese icons placed next to the wine. People would understand that's the best applicability for that type of wine. It's easy to understand and very effective."

What's also proven quite effective for the chain has been its couponing program. "We'll offer coupons with prepared foods, beef, and even the bakery," Thompkins says.

The chain's in-store displays also have played a critical role. But, Thompkins warns, retailers mustn't rely on suppliers for the appropriate promotional materials. "Always try to make sure the displays offer consumers clear and concise reasons to buy wine," he says. "Retailers should offer wine solutions, special prices, and promotions related to new releases [with displays] that go above and beyond the point-of-sale material that's supplier-generated.

"The key is to understand the customers and have a clear vision of the message you want to send," Thompkins adds. "You have to decide whether you just want to be a box mover or you want to take a position where you can incrementally increase business through education and creating an arena that enables customers to learn about wine while they're enjoying it."

Stimson Lane Vineyards believes creative in-store displays help woo the public into the world of wine. Baseler says the supermarket is the company's principal trade channel, and Stimson Lane creates themed display racks specifically for grocery applications. As a cross-promotion with the meat section, the company designed a rack shaped like a steer. Similarly, there's a rack shaped like a fish to cross-promote with the seafood section. "The key is to get wine outside the wine department," says Baseler.

Real growth in wine, Baseler says, has been in the above-$7 range. He explains that annual growth in less expensive wine has been 2 percent to 3 percent, while growth in the over-$7 group has been 12 percent. "That has a lot to do with demographics and the aging of the population," he says. "More consumers are in the above-40 age group, where people become more consistent wine drinkers. We expect that in the next eight years, 18 million people will move into the prime time of wine consumption."

At the same time, he adds, the younger age group will continue to be more selective about what they drink when they do drink. "They're more likely to drink a Chardonnay," he says. "The younger consumers are, flat out, more sophisticated than they used to be." Therefore, when that age group passes 40 and enters the prime wine time, retailers could enjoy a built-in future market.