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Rías Baixas Trade Study Rías Baixas Trade Study December 28, 2011 PO Box 536 • St. Helena, CA 94574 • (707) 967-9299 [email protected] • WineOpinions.com Table of Contents Introduction 1 Objectives and Methodology 2 Trade Respondent Profile 4 Rías Baixas and its Competitors 9 Trade Perceptions of Rías Baixas Albariño 17 Rías Baixas Wine Strengths and Weaknesses 25 Promotions Exposure 28 Conclusions 33 Survey Questionnaire 35 Introduction Wine Opinions is an Internet-based research company focusing on the attitudes, behaviors, and taste preferences of the segment of U.S. wine drinkers who are the most frequent purchasers and consumers of wine. To this end, Wine Opinions maintains one of the largest online panels of highly involved wine consumers ever assembled. In addition, Wine Opinions maintains a U.S. wine trade panel that includes wine producers, growers, importers, distributors, those who work on-premise and off- premise, members of the wine media, and others. Cornerstone Communications represents the Rías Baixas wine region of Spain in the U.S. and is engaged in a promotional campaign on behalf of the region. This campaign is aimed at U.S. wine consumers and members of the U.S. wine trade with a goal of increasing the awareness of the Rías Baixas wine region, and its Albariño wine in particular, through an advertising and promotion program. Wine Opinions was retained to conduct a study among the U.S. wine trade to gauge the current perceptions of Rías Baixas. This report summarizes the findings from this study. 1 Objectives and Methodology The primary goal of this research was to measure awareness and attitudes toward Rías Baixas wines and Rías Baixas Albariño among the wine trade and determine how the trade perceives these wines in comparison to key competitors. Specifically, the goals of this survey were to: Identify trade attitudes toward Rías Baixas Albariño. Measure trade opinion of the quality and value of Rías Baixas Albariño compared to wines from other wine regions. Determine sales of Rías Baixas wines and Rías Baixas Albariño compared to the competition. Compare Rías Baixas promotions with those of other leading trade groups. Obtain commentary from all trade respondents on market strengths and weaknesses of Rías Baixas wine, and flavor profile of and best food pairings for Rías Baixas Albariño. Gauge perceptions of appropriate Rías Baixas Albariño pricing and target markets for Rías Baixas wine. All Wine Opinions trade panelists were sent an email invitation to the survey, with a link to the online survey embedded in the invitation (a copy of the survey questionnaire may be found at end of this report). Completion of the survey entered the panelist into a lottery for various cash rewards. In addition, some participants were obtained from a trade mailing by Cornerstone, linked to the same survey. 2 A total of 310 members of the trade participated in the study (290 Wine Opinions trade panel members, 20 Cornerstone respondents). After eliminating the grape grower, wine producer, and wine association segments, total completions numbered 257. In some instances, questions were analyzed by: Industry tier – a comparison of wholesalers/importers, respondents who work on-premise, retailers, and a segment that includes media/education/consultants and marketing and public relations specialists. East Coast vs. Other States – those who live in Maine, Massachusetts, New Hampshire, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Washington DC, Virginia, North and South Carolina, Georgia, and Florida vs. those who live in all other U.S. states. Where statistically significant results are reported, these have been calculated at a confidence level of at least 90%. For the entire sample, the confidence intervals range approximately from ±2% to ±5%. 3 Trade Respondent Profile There are no nationally established norms for the demographics of members of the U.S. wine trade. Therefore, the profile of the respondent population that participated in this study may not be demographically representative of the national wine trade as a whole. Respondents in total were 67% male and 33% female – a male skew, but in line with previous trade research conducted by Wine Opinions. The generational segmentation of the respondent group was in conformance with previous trade respondent demographics. Some 13% of respondents were Millennials, 27% were of Generation X, 55% were Baby Boomers, and 5% were aged 66 or older. 4 Winery/producer, grape grower, and trade association respondents were eliminated from the respondent pool to better focus this research on segments of the trade of most interest to Cornerstone Communications. After eliminating these industry segments, the respondents were distributed across the remaining industry tiers with 12% representing importers, 25% describing themselves as employed by the distributor tier; 16% in the restaurant/hospitality tier; 20% in the retail tier; 20% in a tier comprised of wine media, educators, and academics; and 7% in wine industry-related marketing and public relations jobs, wine consultants, and others who provide services or supplies to the wine trade. Among the trade tiers that were not filtered out, 21% worked in California, 13% in New York, 4% to 6% each in Florida, Illinois, Maryland, Massachusetts and New Jersey. Only Alabama, Alaska, Iowa, Nebraska, Oklahoma, the Dakotas, South Carolina and West Virginia had no respondents. 5 An assessment of media usage examined the respondents’ usage of online media and social networks. In the website and blog arena, Wine Spectator online is the most “frequently” visited (38%). There was a large gap between the “frequent” visitation rate for Wine Spectator online and all other online media. The second most popular website/blog was eRobertParker (27% visit “frequently”), followed by Eric Asimov’s blog (21%) and Wine Enthusiast online (19%). Wine Spectator online was the only website that more respondents visit “frequently” than “occasionally” (35%). The largest proportion of respondents visit most websites “occasionally” (one-quarter to one-third of respondents). Significant minorities have never heard of Nat Decants (45%), Vinography (31%), Terroirist (42%), Jon Bonne’s Blog (41%), and 1WineDude (44%). The majority of respondents were unaware of Bigger Than Your Head (61%). 6 In examining blog and website usage by trade tier, it was observed that respondents in the media/other segment (this includes suppliers, consultants, PR, and marketing) tend to read blogs far more often than other trade tiers. Compared to respondents in other tiers of the trade, these respondents were more aware of and have visited nearly all of the blogs included in this survey. In contrast, wholesalers/importers generally look at the more popular websites that focus on reviews more often than other respondents. The most utilized social media service for posting, discussing, or getting information about wine is Facebook. One-third use it at least once a day (32%), and one-quarter weekly (26%) for wine-related purposes. Used by fewer respondents was Twitter, used at least daily by 24% and weekly by 13%. At-least-daily usage rates for LinkedIn and Google+ were higher than YouTube (13% and 14% vs. 6%). However, nearly half of respondents don’t use Twitter (47%), Google+ (48%), or YouTube (45%) for wine- related purposes at all, compared to 39% who don’t use LinkedIn and 25% who don’t use Facebook for wine-related purposes. 7 8 Rías Baixas and its Competitors Trade respondents were asked to rate the typical quality and value of Rías Baixas Albariño and white wines from a variety of other wine regions that cost under $20. They used a four-point scale: “excellent,” “good,” “fair,” and “poor” and could also indicate if they had “no opinion.” The wines rated included: • Albariño from Rías Baixas • Albariño from California • Sauvignon Blanc from New Zealand • Sauvignon Blanc from California • Sauvignon Blanc from Chile • Pinot Grigio from Italy • Torrontes from Argentina • Gruner Veltliner from Austria • Riesling from Washington State Rías Baixas Albariño and New Zealand Sauvignon Blanc were statistically tied for the lead in quality. Half of the trade respondents rated Rías Baixas Albariño (50%) and nearly half rated New Zealand Sauvignon Blanc (47%) “excellent” on quality. There was a fairly large gap between these two top rated wines and the next tier. Over one- third rated Gruner Veltliner (39%), and close to one-third rated Washington Riesling (32%) “excellent.” California Albariño does not seem to be a competitor at this time, as it suffers from a significant amount of “no opinion” responses (37%), indicating a lack of familiarity by survey participants. In addition, this wine was rated “fair” by the largest proportion of respondents (28%). California Sauvignon Blanc and Torrontes from Argentina were seen favorably. They received “good” quality ratings by the most respondents (57% and 60% respectively), but significantly fewer “excellent” ratings than Rías Baixas Albariño (21% and 20% respectively). Chilean Sauvignon Blanc and Italian Pinot Grigio were rated lowest on quality, with the majority rating them either “good” (46% and 40% respectively) or “fair” (28% and 35%). 9 Quality ratings for Rías Baixas Albariño were fairly consistent across tiers of the trade, with “excellent” ratings higher than “good” ratings for all tiers except for the on-premise segment for which “good” ratings beat “excellent” ratings by only three percentage points (38% vs. 35%). Off-premise retailers were especially enthusiastic about the quality of these wines (59% “excellent” ratings), as were importers and distributors (54%). 10 In terms of value, Chilean Sauvignon Blanc and Torrontes from Argentina rose to the top with 35% rating it “excellent.” Rías Baixas Albariño was among the second tier of wines that received “excellent” value ratings by approximately one-quarter of respondents. Within this tier, Rías Baixas Albariño had a slight edge (29% “excellent” value ratings) over New Zealand Sauvignon Blanc (27%), Gruner Veltliner (25%), and Washington Riesling (24%).
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