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Building Profitable Promotion Strategies for Modern Winery Direct-to-Consumer Sales
Most wineries don’t have a promotion volume problem. They have a promotion design problem. When you look closely at wineries delivering strong margins alongside steady consumer sales growth, patterns start to appear. Not because those promotions are trendy or copied from competitors, but because they are intentionally designed to drive revenue while protecting long-term customer behavior and brand value. Modern promotion strategy is not about running more campaigns. It is about structuring incentives that influence how, when, and why customers buy. Across the strongest performing wineries, promotions are increasingly treated as part of the revenue model rather than just part of the marketing calendar. They shape demand, influence order composition, and support long-term customer value. Why Promotion Strategy Is Really Revenue Strategy Promotions are no longer just marketing tactics. They are one of the most controllable levers inside a winery’s DTC P&L. For most wineri
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The Benefits of Transitioning From Cased to Bulk Glass: It’s All In The Numbers
Traditionally, the cost of purchasing a bulk glass depalletizer for bottling has been out of reach for many wineries. However, current market pressures bring bulk glass into reach for many wineries as the industry grapples with rising costs. In addition, fuel, labor and corrugated packaging costs have escalated, making cased glass increasingly expensive. According to data from the U.S. Bureau of Labor Statistics, glass prices have escalated 44% over the past decade and have risen steadily at an average annual rate of 6% since 2020. These expanding costs have transformed what was once a 5 to 6-year ROI for the bulk conversion into an 18-month to 3-year ROI. Given today’s economic challenges, it may be time for producers to reevaluate their math. Market Pressures Amplify the Case for Bulk Glass Transitioning from cased glass to bulk glass is not only cost-effective but also offers long-term benefits in efficiency, sustainability and competitiveness. “The numbers have cha
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Pricing Strategy Simplified: How to Harness Pricing Data for Maximum Profitability
It’s very tempting to lower prices to stay competitive in a down market like ours, believing that’s what’s required to be competitive. But this should never be an intuitive, emotional decision. The data will tell you whether you should get more aggressive with your pricing, stand pat, or even raise your prices.  The price-sensitive nature of the wine & spirits industry The wine and spirits industry is very competitive—extremely competitive if we’re honest—due to the overwhelming number of SKUs on the market (experts estimate that there are more than 175,000 wine brands for sale in the US).  There are so many similar products at similar price points that this abundance of choice causes price sensitivity in buyers (both trade and consumers alike).  However, not all consumers base their decisions on price. Need proof? Sales of wines selling for $50+ are up 1%. That’s nearly a 14-point swing from the overall market. Domestic win
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Flextank Helps La Mesa Vineyards Deliver Award-Winning Wines Sweep Gold Medals At Three Prestigious California Wine Competitions
Flextank Helps La Mesa Vineyards Deliver Award-Winning Wines Sweep Gold Medals At Three Prestigious California Wine Competitions  La Mesa Vineyards uses Flextank vessels to capture gold medals  and create top small-batch artisan-style wines of exceptional quality. Vancouver, Wash. – August 06, 2024 – Flextank, the leader in advanced oxygen-permeable polyethylene tanks for wine, cider, spirits and craft beverage fermentation and storage, today announced one of the company’s premier Flextank customers, La Mesa Vineyards, recently swept prestigious industry wine awards in three separate competitions. The Amador County, Calif.-based La Mesa Vineyards received several Gold, Double Gold and Best-in-Class awards at the respected 2024 Peninsula Underground "Under the Radar" California wine competition, 2024 Orange County Fair Commercial Wine competition, and at the 2024 California State Fair competition. Competition is Fierce. Flextank Helps Deliver Awar
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Silicon Valley Bank Releases Annual State of the US Wine Industry Report
US Wine Industry Enters Negative Growth Phase; Adoption by New and Younger Consumers Is Lagging  NAPA, Calif. – January 18, 2023 –Silicon Valley Bank, the bank of the world’s most innovative companies and the US premium wine industry, today released its 2023 State of the US Wine Industry Report. The 22nd edition of the annual report provides an assessment of the industry amid current market conditions and shares a unique forecast for the year ahead based on proprietary research and economic and behavioral trends among consumers. While the premium side of the wine industry experienced another strong year amidst an increasingly challenging marketplace – with revenue on average up 9.7 percent through September 2022 – the US wine industry as a whole experienced negative sales volume growth due to a decrease in sales of lower-priced wine. Silicon Valley Bank will host a live webinar with Silicon Valley Bank Wine Division founder and author of the
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FEBRUARY 2, 2022 | INDUSTRY NEWS & OUTLOOKS | MATT CLARK, SENIOR INDUSTRY ANALYST AND KALYN WALSH, CREDIT COMPLIANCE ANALYST, AMERICAN AGCREDIT In 2021, the wine industry began to recover from an unusual and challenging year in 2020. Wine sales sharply improved from the previous year, when pandemic-related restaurant and bar closures spurred a precipitous decline in wineries’ sales at restaurants and tasting rooms. Wine sales improved around 10 percent in 2021, according to Wines Vines Analytics and bw166, and analysts expect demand for wine to remain healthy in 2022. Overall demand for wine grapes has improved, driven by a limited reopening of tourism, restaurant and event traffic. Many expect to see modest improvements in wine sales and grape values in 2022. Rising input prices from supply chain disruptions, labor shortages, drought, and general inflation may narrow margins for some operators. As the economy was reopened in a limited fashion, wine sales bega
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