New Zealand Wine Marketing Programme 2014-2015

Marketing

How to get the most out of

from New Zealand Winegrowers New Zealand Winegrowers

I August 2014 I Issue 4

Partnership with NZTE in China & Europe

Over 50 Seminars & Masterclasses Liquor Board Liaison

74 TRADE

& MEDIA VISITS

Market Seminars with Information for Masters of Wine and Master Members Sommeliers in New Zealand Europe

Wine Collateral

Advice on Seeking Distribution

CONTENTS 2 3 5 6 8 10 12

Useful Tips International Visitor Programme Tips for Hosting Media/ Trade Guests

Seminars & Masterclasses Collaboration with NZTE

14 16 18 20 22

China - Asia

Canada Mainland Europe UK & Ireland Australia

Seeking Distribution in International Markets

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USA

international Visitors

NEW ZEALAND CONTACTS Chris Yorke Global Marketing Director T: 09 306 5551 M: 021 419 194 chris@nzwine.com

Felicity Johnston Global Marketing Executive T: 09 306 5645 M: 021 552 173 felicity@nzwine.com

Anne-Marie McKenzie Marketing Projects Manager T: 09 306 5550 M: 021 306 550 annemarie@nzwine.com

Jennifer Duncan-Marsh Marketing Office Administrator T: 09 306 5522 jenniferd@nzwine.com

INTERNATIONAL CONTACTS Natalie Potts Asia T: +852 2511 3883 M: +852 5428 5792 natalie@nzwine.com

Robert Ketchin Canada T: +1 705 444 0195 M: +1 705 444 3213 rketchin@ketchin.com

David Strada USA T: +1 415 567 5511 M: +1 415 806 0236 dstrada@earthlink.net

Chris Stroud UK & Europe T: +44 207 973 8079 M: +44 791 741 7388 cstroud@nzwine.com

Ranit Librach USA T: +1 212 254 2729 M: +1 917 705 8051 ranit.nzwine@gmail.com

Natalie Corkery Australia T: +61 3 9614 7577 M: +61 451 430 311 natalie.corkery@nzwine.com

For any event related queries, please contact the Global Events Team at events@nzwine.com.

New Zealand Winegrowers would like to thankthe following organisations for their support of the Marketing Programme

August 2014 I Issue 4

INTRODUCTION Welcome to the New Zealand Wine Marketing Programme for 2014-2015, the purpose of which is to develop and support the growth of New Zealand wine.

There is no cost to the programme enclosed, so please read this booklet carefully as it will illustrate how to get the most out of levy-funded Marketing. Please also read the user-pays Global Events Booklet which explains

DON’T FORGET KEEP your Brand Profile information up to date via the New Zealand Wine Portal; nzwine.com/members and click on NZW Portal under Online Tools.

SUBMIT your wines for our bi-annual blind tastings.

MAKE THE MOST of the market information made available to you.

USE the New Zealand wine collateral.

LET US KNOW when you are travelling.

READ THIS, AND FUTURE MARKETING NEWSLETTERS!

the international events that you can sign up to for an additional cost.

The levy-funded Marketing Programme is focused on the following markets: • North America, i.e. the USA and Canada, where we are seeing strong growth • Asia, in particular China, Hong Kong, Singapore and Japan, also seeing strong growth, particularly at premium price points • The UK and Australia, where we work to protect our competitive position, recognising that these markets have significant key influencers and still contribute a substantial slice of our exports • Mainland Europe The core elements of the programme are: • Visits to New Zealand for key influencers • Education of key trade, media and educators in market • Providing information to trade and media to build awareness of New Zealand wine • Providing information to members to enhance strategy development • Working with partners to support New Zealand Winegrowers objectives In 2014 New Zealand Winegrowers and Air New Zealand announced a Memorandum of Understanding to work in a more coordinated manner to leverage each other’s resources and to gain efficiency and extend marketing reach. New Zealand Winegrowers is also working closer with Tourism New Zealand and is looking to formalise this relationship also. The partnership with NZTE goes from strength to strength with projects focused on China and Mainland Europe. Exciting plans have been established for the year ahead, please see the relevant market sections in the booklet.

A major part of the levy investment is in our team overseas - you will see their details in the sections ahead.

Please let them know when you are travelling and look out for their communications. Please also check out the member’s Marketing section of nzwine.com which provides a whole raft of useful information including Guides to Market, Euromonitor reports, Wine Intelligence reports, Nielsen statistics, export and domestic reports as well as market specific updates and press.

As always, continue giving us your feedback and ideas.

I look forward to working with you throughout the coming year.

Chris Yorke Global Marketing Director

Published by New Zealand Winegrowers, for our members.

Editor: Felicity Johnston Designer: Lilly Johnson Contributors: Felicity Johnston, Chris Yorke, Anne-Marie Mckenzie, Natalie Potts, David Strada, Ranit Librach, Robert Ketchin, Anik Gaumond, Chris Stroud & Natalie Corkery

Information contained in this publication is correct at the time of printing and while care and diligence has been taken in the preparation of this magazine, we are all human and mistakes can happen. If you find an error please give yourself a pat on the back and drop us an email.

facebook.com/newzealandwinegrowers

@nzwine #nzwine New Zealand Wine Marketing I nzwine.com

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S P I T L U USEF - Read this, and future Marketing Newsletters.

- Keep your Brand Profile information up to date via the New Zealand Wine Portal (nzwine.com/members and click on NZW Portal under Online Tools).

- From an internal perspective, we use the information you provide on which markets you have or are seeking distribution in when considering wine selection for seminars and masterclasses, and when planning itineraries for visiting trade and media. We also use this information to determine who to send important market-specific updates to.

- Externally, it is also a good idea to include Twitter feeds, facebook feeds, videos, images and sustainability stories on your Brand Profile, to further engage viewers on nzwine.com.

- If you do not have your username and password, please contact: Jennifer Duncan-Marsh, jenniferd@nzwine.com.

- Submit your wines for our bi-annual blind tastings. These tastings are where we source the wines we use in our international seminars and masterclasses.

- Make use of the market information made available to you. The information we provide is an excellent tool for gaining an understanding of new markets, improving your understanding of existing markets, and making informed business decisions. This information is available on the member’s Marketing section of nzwine.com. Contact jenniferd@nzwine.com if you don’t have your login details.

- Use the New Zealand Wine collateral to ensure a unified New Zealand wine message in markets. Our current collateral and order information is available at nzwine.com/members.

- Let us know when you are travelling! Having winemakers, viticulturists, winery principals etc in market, and in direct contact with relevant trade, media and consumers is invaluable, and adds real substance to seminars, masterclasses and promotions.

- Make sure your vintage 2010 wines onwards are registered as sustainable via NZ Wine Registration at nzwine.com/members under Online Tools. Any 2010 or later vintage wines must be registered as 100% sustainable for participation in any New Zealand Wine Marketing activity.

GLOBAL EVENTS Don’t forget that in addition to what you already receive as a levy-paying member of New Zealand Winegrowers, there are supplementary events and promotions in all of our international markets. This is a user-pays scheme, and as such is voluntary.

If you are interested in being involved in the events please see the Global Events Programme.

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International Visitor Programme The Hows, Dos and Donts

Strategy and it is expected an additional 10 visitors (primarily buyers) will be funded via user-pays (guest/winery).

Hosting international media and trade has always been an integral part of New Zealand Winegrowers’ marketing strategy. With the partnership with NZTE, this year we have been able to expand the visitor strategy and bring a greater number of visitors than ever before from markets such as China, Germany, the Netherlands and Sweden. During this last year, itineraries have been formulated for a total of 74 visitors from 11 markets. 30 of these have been co-funded with NZTE, 27 by New Zealand Winegrowers, 5 from the New Zealand Winegrowers’ Sustainability Communication Strategy and a further 12 (mainly buyers) via user-pays.

New Zealand Winegrowers will continue to use nationally and regionally significant events as ‘hooks’ for visits, such as the Bragato National Conference, Air New Zealand Wine Awards, Central Otago Pinot Noir Celebrations, and Hawke’s Bay Food & Wine Classic.

We will also continue to develop relationships with Tourism New Zealand to ensure the guest has a fully-rounded experience while here.

With the industry’s limited advertising spend, the resultant press coverage from these visits has been a powerful tool in driving awareness and sales of New Zealand wines. To date, visitors from this current year have already generated 97 print/web/blog articles. The print circulation alone for these articles is over 8.6 million with an equivalent advertising value of NZ$3.6 million. Additionally nearly 700 tweets have been posted to 190,000 followers by the visitors, and some of the top sommeliers and writers have been used to conduct New Zealand wine master classes back in market (six conducted to date).

In addition to the extensive and positive coverage on the industry, the visitors have also provided very positive feedback on the quality and professionalism of the management of the visit programme, as well as their experiences with the wineries.

“I see no reason and no purpose to improve. For me it seemed to be perfect and I have no idea how you could make it any better.”

- Caro Maurer MW, Germany “We knew New Zealand has a lot of high quality wines, and is famous for its purity. But it surprised me when I tasted the quality, and experienced the environment, culture and people there.”

- Yanni Wu, China “(Most impressed…) By the genuineness of the people. Very little snobbery, lots of integrity, and really fun, interesting folks with great stories behind why they are doing what they do. I also loved the effort made by several of the wineries to give me a different experience from the norm…”

- Lauren Mowery, USA “The winemakers - perfect balance of respect, collaboration and healthy Kiwi competitive spirit.

There was nothing that didn’t impress me.” - Olly Smith, UK In 2014-2015 we aim to arrange a similar number of visitors (74), with the bulk coming from China and Northern Europe (35 in total) thanks primarily to the continued support of NZTE. A further 7 will come from the USA, 6 from Australia, 4 from UK/Ireland and 2 from Canada.

A further 10 visitors from across these markets will be funded via the Sustainable Communications

HOW ARE THESE VISITS FUNDED? For guests who New Zealand Winegrowers specifically target and fully fund, the monies are raised on a user-pays basis, with slots on an itinerary purchased by a combination of New Zealand Winegrowers (with levy funds) and wineries. For guests from the NZTE programme markets of China and Northern Europe, the winery visit fee is substantially reduced due to the NZTE funding.

The slots purchased by New Zealand Winegrowers encompass overview tastings, regional tastings, introductory/farewell sessions, leisure-time activities etc.

When appropriate New Zealand Winegrowers will also buy slots for guests to attend key regionally and nationally significant events (e.g Pinot Noir 2013, Air New Zealand Wine Awards, Central Otago Pinot Noir Celebrations, Syrah Symposium, Aromatics Symposium etc). This dual funding approach of levy and winery funds stems from the rationale that both industry and individual brand benefit is derived from subsequent press coverage and sales.

For ad hoc visits where media approach New Zealand Winegrowers seeking assistance, New Zealand Wine Marketing I nzwine.com

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often they will pay their own flights and all the domestic and organisational costs are covered via the user-pays system as per the above, with New Zealand Winegrowers and wineries purchasing slots. Most trade buyer trips are funded by their companies, and the domestic costs are covered by wineries on the itineraries or included in tastings on a user-pays basis.

HOW ARE GUESTS SELECTED FOR THESE VISITS? New Zealand Winegrowers in Auckland consults carefully with our in-market managers to ensure that the media chosen cover an appropriate range of channels and target audiences, and the trade guests are from appropriate establishments within our target price segments. Other factors such as the person’s standing in the market place, prior visits to New Zealand, future commissions secured etc are also taken into consideration. In China and Northern Europe, NZTE also play an important role in identifying and liaising with suitable targets.

HOW ARE WINERIES INCLUDED ON AN ITINERARY? As the first step in selecting wineries, the guests are asked to forward a wish list of wineries they would like to see. They are supplied with a list of exporters from their respective market in advance to aid this selection.

Please note, New Zealand Winegrowers uses winery Brand Profile reports as the primary sources to ascertain who is in the market/seeking to be in a market.

Please ensure you keep the profile up to date. In order that we have flexibility to introduce the guest to less familiar companies, we try and ensure that wineries from their guest list do not completely fill the itinerary. With visitors from China and Northern Europe where we are working with NZTE, wineries

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supporting the NZTE programme are automatically rotated on itineraries.

Regional Tastings are also included where possible on the itineraries to enable a greater number of wineries to gain exposure, and also to ensure the visitor has a solid, representative overview of a region.

During this last year, itineraries have been formulated for a total of 74 visitors from 11 markets HOW ARE THE ITINERARIES FORMULATED AND EXECUTED? The professionalism of the itinerary formulation process is greatly facilitated with the online visit programme within NZ Wine Marketing via nzwine.com/members.

The sophisticated reporting mechanisms within the site eliminate any risk of visit clashes, plus allow full analysis of visits by region, winery and guest.

Whilst New Zealand Winegrowers’ Marketing Projects Manager Anne-Marie McKenzie oversees the formulation of all itineraries, a number of Itinerary Coordinators (independent marketing specialists) are contracted as required to execute the detailed logistical requirements on each itinerary.

A very rigorous process for formulating and executing itineraries is followed as detailed below: 1. Target guests identified and invitation issued by market managers (including NZTE managers for programme markets), with possible story angles/sales opportunities pitched at this time and expected outcomes agreed upon.

2. Guests asked to complete a Profile & Requirements Template that asks a multitude

of questions ranging from “What are your key aims for the visit?” to “Do you have any special dietary requirements?”

3. Anne-Marie McKenzie reviews this profile and develops an initial outline itinerary in consultation with market managers and regional bodies.

At this stage the itinerary will detail how aims will be met, and provide an outline of who the guest will see in which region and on what day.

4. Once the guest has agreed to the draft, Anne-Marie briefs an Itinerary Coordinator who will then load the itinerary onto the website, including all the specifics on visit times, accommodation, flights etc.

5. Once the guest has approved the draft version online, the proposal and itinerary are issued to those wineries featured.

6. Wineries are invited to accept, decline or request a reschedule for the visits. Upon accepting, a winery completes all contact and visit location details which flow through to the itinerary.

7. When all visits have been accepted and all final bookings made, a final itinerary is issued to the guests and wineries online, and a welcome pack with a hard copy version is sent to the guest’s hotel for the first night.

8. To ensure the visit schedule stays on track, most media visits have the wineries collecting the guest from the prior visit.

9. After the trip a survey is sent to the guest to get feedback, which is then communicated out to the industry as appropriate.

10. Coverage/new listings resulting from the trip is carefully monitored and communicated to those wineries involved as it appears.

Tips for Hosting Media/Trade Guests Dos Ahead of Time • Carefully read the proposal/ background on the guest so you are familiar with what they do and what they require. Ensure full pricing/agent details are available, especially for trade guests.

• Ensure appropriate people are available - i.e. at least one or all of the following; owner, senior winemaker and viticulturalists.

• With media in particular, think about how you can ensure your visit stands out in the guest’s memory. How can you ensure they taste your wines/ get an understanding of your company, but in a distinctive, memorable manner? If time allows, you could taste the wines in a few different locations - i.e. take them to the particular vineyards to show the origin of the grapes, or set up part of the tasting in a barrel room, so you can try different tank/barrel samples etc. If providing lunch or dinner try and ensure the food/wine really match and compliment the wines. Think about the location for dining - if you do not have a restaurant, have a picnic style lunch in a particularly attractive vantage point of your vineyards/premises. If your premises is not particularly enticing then take the media out to a location (boat/beach/lake side etc) which captures the regional beauty and taste your wines/have lunch or dinner there. Many guests also really appreciate a break from restaurants and being taken to your home to experience some proper ‘home’ cooking in an informal, relaxed environment.

On the Day • Offer the guest some time for toilet/refreshments etc on arrival rather than launching immediately into tasting.

• Start by providing the guest with a summary of the visit’s agenda to assess if that suits their requirements and also so they can pace themselves accordingly.

• Provide a brief background to your company, where possible highlighting company history, vision, goals and product offering. Provide any media pack information on your company (e.g. profiles, high res photos etc) on a memory stick to avoid bulk.

• Ensure wines are all served at an appropriate temperature and all necessary supplies are available- i.e. spittoons, fresh water, crackers etc. Ensure also that there are seats and a table/counter top for a writer to make notes as they taste.

• Show wines that best meet their requirements. Do not be tempted to include your entire range. It can be good, however, to include a few special wines which whilst not necessarily meeting requirements, demonstrate the company’s abilities or a particular theme you are communicating.

• Provide a tasting sheet with the wines listed in the order they are being shown, plus local market pricing and agent’s details. Whilst the guest will want to refer to this during the session, they most likely will not want to take it away due to bulk, so have an electronic version also available either on memory stick or for emailing later.

• Be professional in what you say about the competition and industry in general. A few media look for opportunities to generate scandal, gossip etc to heighten the ‘newsworthiness’ of their stories.

• Keep a close eye on the time, so you have communicated what you need to before the winery next on the list arrives to collect the media.

Don’ts • Do not forget the visit date and time.

• Do not show a huge selection of non-relevant wines.

• Do not spend too long taking the guest on a tour of the winery, as most get quite bored with winery interiors.

• Do not introduce activities during the visits which have absolutely no relevance and prevent the guest getting a full understanding of you and your wines.

• Do not criticise competitors or the industry - this can be seen as unprofessional.

• Do not go over your allocated time.

If you have any queries on • Do not provide the guest with hard copies of all your literature - put as much as possible the International Visitor on a memory stick to avoid the guest being overloaded with paperwork.

Programme please contact Anne-Marie McKenzie, Marketing Projects Manager, on 09 306 5550 or annemarie@nzwine.com New Zealand Wine Marketing I nzwine.com

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SEMINARS & MASTERCLASSES Throughout the 2014-2015 Programme, New Zealand Winegrowers will fund over 50 New Zealand wine seminars, masterclasses and themed tables at New Zealand Winegrowers events, trade exhibitions and other industry events in our core markets. Targeted, standalone masterclasses are also conducted in Tier 1 cities in major markets.

The seminars are another strong tool for promoting the New Zealand wine brand and generating positive media coverage: “For a person in my position with the most comprehensive and successful selection of New Zealand wines it’s easy to sit back and get absorbed in the day to day business of helping to run this big enterprise. But the wines we tasted on Thursday just took my breath away with their style, complexity and sheer excitement and made me realize that I need to add several of them to keep Sherry Lehmann as the leader in showcasing what New Zealand is doing in the wine world.” - Ken Mudford, USA Throughout the 2013-2014 programme year, 74 seminars, masterclasses and themed tables were conducted, across all major markets, to over 4,600 international trade and media. Over 500 different New Zealand wines were poured, from almost 150 different New Zealand wineries. In China and Mainland Europe, the seminars and masterclasses were supported by NZTE and the collaborative programme in these markets.

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THEMES Seminar themes are developed in consultation with staff in overseas markets and are in line with the current/future industry supply scenario. Selected themes also take into account the previous topics covered, the nature of the audience, and stage of development of New Zealand wines in the market.

TARGET AUDIENCE Seminars are conducted to relatively small targeted audiences of influential trade, media and knowledgeable consumers.

FORMAT The formats primarily constitute: • A masterclass format with a panel of expert presenters • A self-pour, themed table format with wines set-up in flights and presentations rolling on LCD screens Standalone masterclasses tend to be extended (up to four hours) and are highly detailed, often including food and wine matching elements.

THE SELECTION PROCESS Wines are selected via two blind tastings which take place in early October and mid February. The wines are judged by teams of expert judges under standard wine competition rules.

ENTRY DETAILS AND CRITERIA FOR BLIND TASTINGS • Entry into the blind tastings is open to all New Zealand wineries. It is preferable, that the wines entered are available in export markets.

• The next blind tasting will take place on October 1st 2014 and all wineries will receive notification in early August that the proposal is available for completion in NZ Wine Marketing accessed via nzwine.com/members. The proposal will include all details on the selected themes for the seminars.

• For the first time this year the blind tasting will be conducted in two separate venues: Blenheim (for all wines of Marlborough origin), and Auckland (for all wines from other regions).

• There is no cost for entering wines into the tasting and wineries can submit as many wines as they wish for as many seminars as they wish.

• If selected for a seminar, freight (ex New Zealand) will be covered by New Zealand Winegrowers, provided wineries ensure the wine is supplied in time for the consolidated shipment.

• Wineries should ideally be exporting to the market where the seminar is being held (some exceptions may be made if the wine expounds the seminar theme better than any other which is exported there, or if it is a new market).

REGISTRATION DEADLINE FOR BLIND TASTING Friday 5 September

If you have any queries on the seminar programme please contact Felicity Johnston, Global Marketing Executive, on 09 306 5645 or felicity@nzwine.com If you have any queries on the blind tasting please contact Anne-Marie McKenzie, Marketing Projects Manager, on 09 306 5550 or annemarie@nzwine.com

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Collaboration With NZTE

NZTE is partnering with New Zealand Winegrowers to support a cohesive and sustained programme of activity designed to build the profile of the New Zealand wine brand. The programme is focused on China, Germany, the Netherlands and Sweden. These markets were selected after consultation with wineries and extensive market research. NZTE is investing significant funds and resources alongside New Zealand Winegrowers’ in-market teams to build on the impact of the levy and user-pays activities already delivered by New Zealand Winegrowers. The objective of the programme is to significantly increase market knowledge of New Zealand wine, as a platform on which wineries can build their own brands and marketing platforms.

The programme is centred around developing relationships with key market influencers to improve their knowledge on the diversity and quality of New Zealand wine, and to build a network of advocates. In the last couple of years, we have engaged over 300 of these influencers, and supported visits to New Zealand by over 50 high profile sommeliers, journalists, educators and bloggers.

This has resulted in over $6 million worth of coverage in wine, lifestyle and mainstream media. Particularly in Europe, but also in China, the programme provides the opportunity to reduce the risk of trialling new and innovative event formats in an effort to engage influencers who are typically in high demand. Online tastings delivered via Google+, Bring Your Bottle events, intimate Supper Club tastings with celebrity chefs, and the Dutch wine-bars.nl website have significantly built the profile of New Zealand’s wine offering and attracted a high calibre of influencers. In China, the added resource enables tastings and events to be delivered beyond first tier cities, and explores the merits of a New Zealand presence at trade shows such as Tangjiu Hui in Chengdu.

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In addition, the New Zealand Wine Certification Programme in China has been highly successful, with over 120 wine educators, sommeliers and importer sales staff now having graduated. Much of this work will continue through 20142015.

The programme started with a largely PR and “Brand New Zealand” focus, but will increasingly look to create commercial opportunities that will ultimately increase New Zealand’s wine exports.

NZTE WORKING WITH COMPANIES NZTE is the Government’s international business development agency. Its purpose is to grow companies internationally - bigger, better, faster - for the benefit of New Zealand. The agency works to increase New Zealand companies’ international success, by helping them boost their global reach and build capability.

NZTE leverages their Government connections and influence on behalf of businesses, and applies knowledge to help them enter and grow in international markets. NZTE’s extensive network comprises our staff as well as respected private sector executives, expatriate New Zealanders, and local business people who understand the complexities of their market.

NZTE helps businesses to build alliances and develop strategic commercial relationships overseas, to fast track access to international distribution networks, new markets, new skills and investment capital. The agency links businesses with services designed to improve efficiency and operations, spark innovation, refine strategy, enhance leadership, and access capital - building the capability they need to be successful. Services are customised to meet the needs of businesses at different stages of international growth.

NZTE works alongside businesses to help identify, plan and act on opportunities for international growth. Their focus is on smart, forward thinking businesses with excellent potential and ambition for international growth - growth that will provide real and lasting benefits for New Zealand.

More successful international businesses will provide jobs and raise the standard of living for all New Zealanders.

NZTE has ten offices in New Zealand and people in 40 locations around the world. NZTE currently works with around 4,000 businesses, and focuses intensively on around 500 of these customers, with the aim of increasing this to 700.

international markets. Intensive support means a customer and NZTE are working to an agreed plan, with particular programmes and international services aligned with their growth needs.

Some services are provided directly by NZTE in New Zealand and overseas, while others are provided through external organisations - such as regional business partners and expert advisors funded by NZTE, or agencies such as Callaghan Innovation. For those early stage businesses thinking about exporting, tools and support are available online at nzte.govt.nz or via the Regional Business Partners.

NZTE also works with industry sectors and alliances of like-minded companies in areas where New Zealand has a competitive advantage globally, to increase the speed and scale of customers’ international success. NZTE also helps to mobilise capital - assisting international investors to identify business opportunities in New Zealand, focused on target industries, and preparing companies for capital raising.

NZTE works alongside our NZ Inc partners within government and the business community to protect and build credibility in our national brand - helping businesses to open doors in global markets.

Participation in the programme is open to wineries with distribution in the target markets, who are prepared to commit to actively participating.

There is no up-front cost to join, but participating wineries should be prepared to travel regularly to the market, to provide wine for use in tastings, events and media sampling programmes, and to host inward visitors at their own cost. Companies will be required to provide annual sales figures for the target markets to NZTE on a confidential basis. Wineries should also be signed up for the Sustainable Winegrowing NZ programme. For more details on participating in this programme, contact Karyn Murray at NZTE, Karyn.Murray@nzte.govt.nz.

Building partnerships is an essential part of NZTE’s approach and their support becomes increasingly focused as companies gain confidence and experience in

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China NEW ZEALAND WINEGROWERS/ NZTE JOINT PROGRAMME Many of the activities in China during 2014/2015 are delivered with significant support and investment from NZTE via the China Wine Project.

As a result, some events give priority to companies that have opted to participate in the project.

INBOUND TRADE & MEDIA VISITS In conjunction with NZTE, we intend to bring 23 top Chinese media, Key Opinion Leaders and sommeliers in six groups, linked where possible to existing New Zealand wine events to provide a stunning all-inclusive experience. The aim of the visits is to generate additional listings and promotions, as well as widespread media exposure for New Zealand wine. Please note, as some visits are co-funded by NZTE, the costs to participate will be different from those solely funded by New Zealand Winegrowers.

NEW ZEALAND WINE CERTIFICATION PROGRAMME The Advanced Certificate is well established in China, with over 120 graduates since 2013. We will continue to run the Level 2 Advanced Programme to grow the number of educators, but our focus for 20142015 will shift to the Intermediate Certificate, or Level 1. Working with existing Level 2 graduates across China, we will reach their students with a 2-3 hour introduction to New Zealand wines in Mandarin.

SEMINARS & MASTERCLASSES In 2014-2015 we will hold nine seminars in Tier 1 and 2 cities to reach a wide range of wine trade and KOLs with information about New Zealand wine. Pre-selected themes allow us to offer detailed info about specific varieties for more mature markets, and introductory seminars for those cities new to New Zealand wine.

Seminars in Shanghai, Beijing and Guangzhou will be linked to New Zealand Wine Fairs, and are available to all wineries.

Available to Project Participants The events in Tier 2 cities will be stand-alone events with small-scale tastings hosted by local importers.

These events are delivered as part of the China Wine Project and are available to project participants.

To ensure relationships are maintained, we will also launch a ‘Kiwi Wine Club’ in Shanghai. The club will run quarterly events for key influencers who have visited New Zealand or are especially keen about New Zealand wine.

Advanced Certificate Textbook MARKET DATA & ANALYSIS

Chinese Delegates with Asia Market Manager Natalie Potts in Central Otago

A Guide to Market for China will also be produced in this financial year, as well as the annual reports from Euromonitor International.

PR & MEDIA RELATIONS Priority will be given to Project Participants As part of the collaborative project, NZTE has retained local PR agency Grebstad Hicks Communications, who will support a number of activities throughout the year, helping to generate media coverage for New Zealand wineries. A Mandarin-language version of nzwine.com will support events and provide broader information on New Zealand to local wine lovers.

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Terry Xu Presenting in Qingdao

Asia INBOUND TRADE & MEDIA VISITS Targeting six visitors from Hong Kong, Japan and Singapore, we will focus on providing a stunning experience for members of the F&B sector and media. Visits will be linked where possible to existing New Zealand wine events to give visitors a great impression of the vibrant industry.

Clearly identified objectives before the visit will help us to ensure strong results for New Zealand.

SEMINARS In Japan, we will work with the Japan Sommelier Association to host two seminars, as well as holding separate events linked to the New Zealand Wine Fairs in Tokyo and Osaka.

Themes will be seasonally influenced to make the biggest impact in this highly seasonal market. Seminars hosted by local experts will take place in Hong Kong and Singapore in conjunction with the New Zealand Wine Fairs.

New Zealand Wine Seminar with Japan Sommelier Association MARKET DATA & ANALYSIS Guides to Market on Singapore and Beijing created by Hong Kong-based Debra Meiburg MW, will be launched during the year offering a detailed insight into these markets. A Guide to Market for Japan is under production, and Euromonitor reports for many Asian markets will also be available throughout the year. Local language collateral will be developed during the year to bring information to a broader audience across Asia.

Asia Market Data

OTHER CHINA Various local partnerships will see us reaching out into Tier 2 cities: to support the Wine100 competition, New Zealand wine will have a presence at events in five Tier 2 cities across China in August 2014. In addition, New Zealand will be the lead sponsor for the China Blind Tasting Competition, offering the winning team a trip to New Zealand and reaching over 1,000 wine lovers in 23 cities.

If you have any queries regarding our Asia Marketing Programme, please contact Natalie Potts, natalie@nzwine.com

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USA

Bring New Zealand to the USA

INBOUND TRADE & MEDIA VISITS

New Zealand Winegrowers will look to host key influential members from both the press and trade for customised regional visits, as well as trips to key events. Focus will be placed on key sommeliers in New York City who can be used for educational efforts upon their return, media who will place stories and/or blog, and offpremise buyers.

MARKET DATA & ANALYSIS As the number of New Zealand wine producers entering the United States continues to grow, market data and analysis is crucial for all producers looking to establish and/or grow their business. Along with our updates to the Guide to Market, New Zealand Winegrowers will look to provide wineries with pertinent market info including The Wine Market Council report, and consumer trends and other key market updates. The USA based New Zealand Winegrowers team will also try to help with specific questions in trying to make sense of the complicated USA market. In addition, Euromonitor reports for the USA will be made available to wineries annually.

VARIETAL FESTIVALS New Zealand Winegrowers will continue to have a presence at the different varietal festivals taking place throughout the year; Pinot Days - San Francisco, Los Angeles, Chicago and New York, World of Pinot Noir and the International Alsace Festival. Participation in these shows will allow us to showcase the quality and diversity of our wines as well as position ourselves amongst the other top producers from around the world.

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New Zealand Wine Marketing 2014 - 2015

Oz Clarke Presents in San Francisco

HIGH LEVEL MASTERCLASSES Following the success of our Oz Clarke masterclasses in 2014, we will look to bring Oz back to New York City and San Francisco to host another round of these high level comprehensive sessions. We will once again strive to get the A-list influencers in attendance and continue with the ‘bring New Zealand to the USA’ concept. We will host two sessions per city - an extended session for trade and media and a second shorter session for sales representatives. Along with the Oz Clarke series, we will host masterclasses in two other cities (Chicago and Las Vegas or Miami). For these classes we will look at previous visitors to New Zealand as hosts, along with visiting winemakers and winery representatives.

New York Masterclass with Oz Clarke

E-NEWSLETTER FOR TRADE & MEDIA New Zealand Winegrowers will continue to produce its e-newsletter that is distributed to local trade and media. In 2013-2014 we shifted to a local editor and used influential guest writers for each edition (e.g.

Nick Stock), which we will continue to do in 2014-2015. We will look to produce articles that are informative, yet capture the attention of our readers without inundating them with too much information.

SEMINARS We will once again hold pop-up seminars at the annual Society of Wine Educators conference taking place in Seattle in August 2014.

We will also be sponsoring a lunch for educators during the three day conference. We will continue to host seminars in New York and San Francisco in Spring 2015, around the annual Wine Fairs. For 2015 we will look to include a new thematic in order to make the event more interesting and attract a new group of attendees.

Setting for New Zealand Chardonnay Seminar at the New York New Zealand Wine Fair

KEY INFLUENCER ACTIVITY Along with our seminars, masterclasses and tastings, we will also host other key influencer activity throughout the year in order to promote brand New Zealand and ensure we maintain contact with the trade and media. We will continue with our social media push, growing the @nzwineusa handle and add a blogger event to our plans. We will continue to promote #SauvBlanc day and look to make a bigger splash in 2015. #SauvBlanc Day Tasting at Twitter Headquarters in San Francisco

If you have any queries regarding our USA Marketing Programme, please contact David Strada, San Francisco, dstrada@earthlink.net; or Ranit Librach, New York, ranit.nzwine@gmail.com

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If you have any queries regarding our Canada Marketing Programme, please contact Robert Ketchin, Marketing Manager - Canada, rketchin@ketchin.com; or Anik Gaumond, anik.gaumond@ketchin.com

New Zealand Pinot Noir Self-Pour Seminar at New Zealand in a Glass Toronto NSLC Display

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Canada

New Zealand Wine Marketing 2014 - 2015

INBOUND TRADE & MEDIA VISITS New Zealand Winegrowers will host key Liquor Board buyers and Canadian media in New Zealand over the next year. The aim of these visits is to educate and build relationships, and to establish New Zealand wine ambassadors and grow the New Zealand wine category in each provincial market.

SEMINARS New Zealand Winegrowers will offer a series of educational seminars for the purposes of Liquor Board training of frontline staff (throughout the year). Plus trade training for students in Wine & Spirit Education Trust (WSET), Canadian Association of Professional Sommeliers (CAPS), Independent Wine Education Guild (IWEG) and continuous education for on-trade, media and wine educators.

PROVISION OF INFORMATION TO NEW ZEALAND WINERIES & CANADIAN TRADE Canadian agents will be briefed on the New Zealand Winegrowers Canada Marketing Plan for 2014-2015 at agent meetings, to ensure they are up to date and understand the importance of supporting this year’s promotions and events.

New Zealand Winegrowers Canada also provides wineries with latest news bulletins (regulatory changes) and promotion opportunities for each of the top six liquor boards.

PR & MEDIA RELATIONS New Zealand Winegrowers will continue to provide ongoing support of Canadian media, including day to day liaison, media enquiries for statistics, and samples. New Zealand Winegrowers will also pitch New Zealand wine focused stories, coordinate trip itineraries, educate media and organise one-on-one focused tastings. #SauvBlanc Day will also form a key element of New Zealand Winegrowers’ media liaison.

GUIDE TO MARKET New Zealand Winegrowers will release an updated version of the Canada Guide to Market, a comprehensive guide on the Canadian market. Information will include key players, legal requirements, market structure, statistics, current trends and tips for success.

This guide will benefit those who are in the Canadian market, and those who are looking to enter the market.

MARKET DATA & ANALYSIS New Zealand Winegrowers will provide wineries with a top line assessment of consumer trends and forecasting, as well as data on New Zealand wine performance in the retail sector. In addition CATMAN reports from the LCBO and Liquor Board annual marketing plans and reviews will be sent for the following provinces; Ontario, British Columbia, Quebec, and Manitoba. Euromonitor reports for Canada will also be available annually.

LIQUOR BOARD & KEY CHAIN ACCOUNT LIAISON & EDUCATION It is important for New Zealand Winegrowers to meet annually with all the key Liquor Boards (LCBO, BCLDB, SAQ, NSLC, ANBL, MLCC, PEILCC and NLLC) to build and maintain relationships and keep them informed on the New Zealand Winegrowers Canada brand strategy, key messages and supply chain status.

These meetings help the Liquor Board Category Managers define new strategies and promotions to maximise growth of the New Zealand category. This has resulted in the following user-pays promotions: Nova Scotia Port of Wines Festival - 24-27 September 2014 Liquor Control Board of Ontario (LCBO) Mini Thematic & In -Store Promotion - February 2015 Liquor Control Board of Ontario (LCBO) Vintages Release & In-Store Promotion - April-May 2015 British Columbia Liquor Distribution Branch (BCLDB) In-Store Promotion - May 2015 Nova Scotia Liquor Control Commission (NSLC) New Zealand Feature - May 2015 Société des Alcools du Québec (SAQ) Release & In-Store Promotion - 24 May - 20 June 2015 Manitoba Liquor Control Commission (MLCC) New Zealand Feature - June 2015 For further information on these user-pays promotions, please see the Global Events Booklet.

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If you have any queries regarding our Mainland Europe Marketing Programme, please contact Chris Stroud, Marketing Manager - Europe, cstroud@nzwine.com

Mainland

Europe INBOUND TRADE & MEDIA VISITS

In conjunction with NZTE we are targeting a specific list of media and key influencers from across the three European countries.

Where appropriate and possible, visits are timed to allow visitors to attend suitable events in New Zealand such as the Hawke’s Bay Food and Wine Classic in October/November 2014, and Pinot Noir Celebrations in Central Otago in January 2015. We are aiming to bring eight people to New Zealand to include four from Germany and two each from the Netherlands and Sweden.

Guests will include a mixture of lifestyle and wine journalists as well as sommeliers and educators. Please note, as some visits are co-funded by NZTE, the costs to participate will be different from those solely funded by New Zealand Winegrowers.

New Zealand Winegrowers are also looking to bring specific media with an interest in Sustainability to communicate our Sustainability programme. We will also assist with key retail buyer visits where requested - e.g. the Monopoly buyers from the Nordic countries.

Sebastian Braun from Systembolaget in Sweden will be judging at the Air New Zealand Wine Awards and visiting the regions too. For those targets we cannot send to New Zealand, we will invite them to New Zealand Winegrowers organised events in the UK, such as the New Release Tasting or the London Annual Trade Tasting.

New Zealand WINEGROWERS/ NZTE JOINT programme In Europe, we are working with NZTE in the largest joint programme ever between the New Zealand government and the wine industry.

NZTE is investing both staff and financial resource into the partnership with New Zealand Winegrowers to build a platform for future growth.

NZTE and New Zealand Winegrowers staff are working together to deliver a comprehensive programme of education, visits to New Zealand, market information and PR in three focus markets: Germany, the Netherlands and Sweden. Some activities in these markets are only available to wineries that have opted to participate in the North Europe Wine Project.

EDUCATION OF KEY INFLUENCERS A key aspect of the project in North Europe is to educate the local trade and other important influencers and create more experts and ambassadors for New Zealand wines. There will be a series of educationals using respected educators to deliver this programme.

In addition we will work with local educational institutions such as Sommelier schools and support their activities with updated materials, presentations and, where necessary, wines.

WINE PROFESSIONAL January 2015 - The Netherlands Wine Professional is a leading wine and food exhibition in the Benelux for fine gourmet products. Held in Amsterdam, it attracts all the key decision makers from the major wine and gastronomy industry within the Benelux region. Following the success of exhibiting for the first time in 2014, New Zealand Winegrowers will once again take a stand and use it to showcase and raise awareness of the New Zealand wine brand to this important group. As in previous years, we will also host a special VIP dinner for key influencers at a unique venue to showcase the best of New Zealand wine matched with high quality food.

GOOGLE + HANGOUTS Available to Project Participants

Hendrik Thoma MS Seminar at ProWein 2014 SEMINARS In 2014-2015 we plan to explore more of the current trends of New Zealand wine and develop relevant and interesting topics. There will be seminars at the Stockholm and Berlin Trade Tastings in October including a special session for Systembolaget staff in Stockholm to give them a deeper understanding of New Zealand.

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New Zealand Wine Marketing 2014 - 2015

The Google + hangouts are live online tastings involving New Zealand winemakers. The presentations will be prepared and moderated

by German MW Caro Maurer, and two wineries can participate live in each of them. The guests are selected influencers from Germany, the Netherlands and Sweden, and will receive the wines that are tasted in advance of the online tasting. In the tasting they can ask questions of the winemakers and discuss the wines with them as well as with the other participants. We are planning three to four editions of this new and exciting format throughout the year.

MARKET DATA & ANALYSIS

POST-PROWEIN MARKET WORKSHOP

In addition to the annual Euromonitor reports for European countries, we have produced a Guide to each of the three project countries, Germany, the Netherlands and Sweden, with the assistance of Wine Intelligence Research.

These will be published and issued to all wineries later in 2014.

March 2015

PROWEIN March 2015 ProWein is now widely considered one of the most important wine fairs in Europe and one that New Zealand Winegrowers feel is important to have a strong presence at. To augment the investment made by the wineries who exhibit, we want to ensure we drive as many people to the New Zealand pavilion as possible. On the stand, we will run a series of themed tastings in a specially designed educational area, with interesting speakers and current topics. We will also organise a bloggers event to encourage engagement, discussion and buzz on social media.

PROWEIN SNEAK PREVIEW March 2015 Available to Project Participants and ProWein Exhibitors As in 2014 we will again invite key trade and media people to a Sneak Preview of New Zealand wine on the Saturday afternoon prior to the show. In this event we want to show the depth of the New Zealand wine offering and the people behind the wines. This event is open to all wineries participating in the project as well as everyone exhibiting on the New Zealand Winegrowers pavilion.

Available to Project Participants and ProWein Exhibitors Held the day after ProWein concludes, wineries are invited to attend a programme of presentations by market experts from Germany, the Netherlands and/or Sweden, to provide wineries with insights into different aspects of these markets. Presenters and topics will be confirmed closer to the time.

PR & MEDIA RELATIONS Priority is given to Project Participants In each of the three project countries, NZTE and New Zealand Winegrowers have retained PR agencies to assist us in our communications and media relations, in order to ensure we reach the main media outlets and important journalists and commentators. Through constant contact with these influencers, the agencies are generating extensive media coverage, building our networks and ensuring the image of New Zealand’s wines are enhanced. Social media is a key element of the communications strategy, and the agencies are also assisting with delivering content via Facebook, Twitter, Instagram and a newly launched German language nzwine.com.

New Zealand Winegrowers staff will continue to travel to market for key events and are able to provide information and contribute to articles and features if required. We will also be available for comment where appropriate and ensure the key messages are communicated to maintain New Zealand’s positive reputation.

Supper Club

SUPPER CLUBS Autumn and Spring - Sweden Available to Project Participants Supper clubs have proven to be an excellent way to attract and build relationships with high profile influencers in Sweden. At the events, a wide range of New Zealand wine styles and varieties from the different regions will be presented to handpicked guests by a sommelier. The wines are served with food prepared by celebrity chefs. Both the sommelier and the chefs will interact with the guests to spark discussions on which wine pairs best with the served dishes.

BRING A BOTTLE PARTY Autumn - Germany Available to Project Participants The concept of the Bring a Bottle Parties is to showcase New Zealand wines to a lifestyle audience in an easy and enjoyable manner.

Guests bring a bottle of their favourite wine, and a sommelier/winemaker then matches it with a bottle of New Zealand wine. It is an interesting way to educate the attendees about New Zealand wines and show them the quality that New Zealand offers in a context that they can understand. These events have proved very popular and successful.

BEST WINE BAR IN THE NETHERLANDS Available to Project Participants

ProWein 2014 Preview Seminar with Hendrik Thoma MS

Leveraging off the Dutch wine bar directory website wine-bars.nl sponsored by NZTE and New Zealand Winegrowers, we are running a competition for the best wine bar in the Netherlands.

Until early August consumers can vote for their favourite wine bar. In October a jury of experts (wine journalists, sommeliers, New Zealand Winegrowers) will visit the top ten and select the winner. This activity will be followed by a New Zealand wine promotion in wine bars in November and December 2014.

Netherlands Wine Bar

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If you have any queries regarding our UK & Ireland Marketing Programme, please contact Chris Stroud, Marketing Manager - Europe, cstroud@nzwine.com

UK & Ireland INBOUND TRADE & MEDIA VISITS We are targeting a specific list of media and key influencers from across the UK to attend various events in New Zealand such as the Hawke’s Bay Food and Wine Classic in October/ November 2014, and the Pinot Noir Celebrations in Central Otago in January 2015. We are also looking to bring specific media with an interest in Sustainability to communicate our Sustainability programme. We will also assist with key retail buyer visits where requested.

SEMINARS In 2014-2015 we plan to explore more of the current trends of New Zealand wine and develop relevant and interesting topics. We will run a seminar at each of the London and Dublin Annual Trade Tastings in January, as well as explore tasting themes with self-pour tables. We can also assist regional bodies should they wish to run an activity to promote a specific topic from their region and assist with the invitation process for local media and trade.

EDUCATION OF KEY INFLUENCERS During 2013-2014 we will work with educational bodies to raise awareness and understanding of New Zealand wine.

Educational material will be developed and made available for use by the main educational bodies and independent educators. A one stop consumer brochure will also be produced and made available for tastings and events.

DEVELOPING AND MAINTAINING RELATIONSHIPS WITH KEY INFLUENCERS In the UK and Ireland, we have established strong relationships with key influencers such as media, importers and retail buyers. These will be maintained through regular contact at trade events and tastings, as well as occasional hospitality. We will continue to develop our network and ensure we keep our database up to date to target the right people to each event.

CONSUMER SEMINARS

During 2014-2015 we will be taking part in a series of consumer events and use the opportunity to participate in sponsored seminars to showcase the high quality of New Zealand wines to a wide consumer audience. Following his trip to New Zealand in January 2014, Olly Smith will present three seminars at each of the Three Wine Men events in Cardiff, Manchester and London in autumn 2014. Later, in late spring/ early summer, there are a series of Foodies Festivals around the country. Charles Metcalfe runs tastings and seminars at these events and we will support a selection of these to showcase the diversity of New Zealand Wines to a new audience.

Olly Smith

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New Zealand Wine Marketing 2014 - 2015

May 2015 Building on the success of #SauvBlanc Day in May 2014, we will once again create some activity to build awareness and encourage participation through social media channels. We will hold a tasting of a wide range of Sauvignon Blancs and encourage guests to come and enjoy a glass of New Zealand’s signature grape and tweet about it.

MARKET DATA AND ANALYSIS

THE WINE MERCHANT FEATURE Autumn 2014 The Wine Merchant is a specialist publication that is aimed solely for independent wine retailers. Over the past few years the independent sector has boomed and is now worth approximately £480 million and growing. The magazine goes out to over 700 subscribers including directly to 535 independent retailers in the UK. We will host an intimate tasting and round table discussion with some key retailers and show them the diversity of styles that New Zealand can offer across all styles. The result will be two features appearing in the November and January editions, one focusing on Sauvignon Blanc and the wide range of styles, while the other feature will be all about other varieties, the aim being to educate this key sector to expand their existing New Zealand selection. #SAUVBLANC DAY

#SauvBlanc Day

We purchase Nielsen and Euromonitor data to provide all wineries with an up to date snapshot of the status of the UK wine market, and to be able to talk authoritatively to the UK trade and media journalists.

The information and a management summary are circulated in January and June. We will produce a Guide to the UK Market with the assistance of Wine Intelligence Research. This will be published and issued to all wineries in 2014. Finally, New Zealand Winegrowers are here to assist wineries to identify opportunities for distribution. A database of UK Agents and Importers interested in working with New Zealand wineries will be made available and the UK office is always willing to meet with visiting wineries to provide information on the UK market.

PR & MEDIA RELATIONS The benefit of having a New Zealand Winegrowers office in Europe, staffed by experienced and respected wine trade professionals, is that all face to face media relations and all electronic communications with the important journalists and commentators have become very effective.

We will continue to engage with journalists and the key media outlets and provide information and contribute to articles and features if required. We will also be available for comment where appropriate and ensure the key messages are communicated to maintain New Zealand’s positive image.

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If you have any queries on the Australia Marketing Programme please contact Natalie Corkery, natalie.corkery@nzwine.com

SEMINARS & MASTERCLASSES To differentiate the education offering, New Zealand Wine will host a high level masterclass for A-list trade and media in Sydney. Presented by an internationally recognised wine authority, this masterclass will showcase the top echelon of New Zealand’s wine styles and reinforce our position as the New World’s premium wine producing nation. In addition, focused seminars exploring New Zealand’s answer to current wine trends will be held in conjunction with other trade and consumer Mike Bennie, Wine Front NZ

INBOUND TRADE & MEDIA VISITS Working closely with editors of the major wine publications, five influencers will be hosted at special events on the national calendar including the Hawke’s Bay Food and Wine Classic and the Central Otago Pinot Noir

events that have an established captive audience. Past visitors to New Zealand will be engaged to present, with a focus on New Zealand’s regional and varietal diversity.

INDUSTRY & TRADE SUPPORT New Zealand Winegrowers will work with distributors, industry associations and major retail education programmes to support their activity with up to date New Zealand wine information and resources.

Where possible, New Zealand Winegrowers will present the latest market analysis, national and regional updates and relevant industry trends at national/state conferences across Australia.

Celebration. To promote New Zealand’s diverse wine offering,

PARTNERSHIPS

guests will also spend time hosted

New Zealand Winegrowers is working collaboratively with Air New

in other regions during their tour.

Zealand, Tourism New Zealand and NZTE to promote New Zealand

To meet the changing landscape

wine and wine tourism to New Zealand. Where appropriate, New

of publishing in Australia, New

Zealand Winegrowers will support the New Zealand brand offering

Zealand Wine will coordinate

at activations such as Luxperience, an experiential travel trade event

annual tastings and regional tours

in Sydney in September 2014. A tasting and lunch for key influencers

for a further five influencers who

to celebrate the Air New Zealand Wine Awards is also planned in

publish wine reviews and features

November to further promote this relationship and New Zealand’s

on digital platforms, such as Wine

premier wine competition.

Front New Zealand. Outcomes focus on the promotion of New Zealand wine’s brand messages through editorial, increased wine listings and the development of ambassadors who can be used for educational efforts upon their return.

Luxperience Media Lounge

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New Zealand Wine Marketing 2014 - 2015

New Zealand Winegrowers will work with distributors, industry associations and major retail education programmes to support their activity with up to date New Zealand wine information and resources.

Australia

#SAUVBLANC DAY

MARKET DATA & ANALYSIS

May 2015

One of the most popular marketing resources

With two out of three bottles of this fair varietal

on nzwine.com, the Australia Guide to Market is

purchased in Australia coming from New Zealand,

updated annually with current statistics, market

New Zealand Winegrowers will engage the

trends and market information. ‘Cheat Sheets’ for

country’s keen Sauvignon Blanc drinkers with a

popular sections of the guide will also be created

‘Sauvignon Superheroes’ event, focusing on stylistic

in 2014-2015. In addition to these updates,

diversity and food matching education.

New Zealand Winegrowers will

E-NEWSLETTER FOR TRADE & MEDIA Taking the lead from New Zealand Winegrowers successful ‘NZ Dirt’ e-newsletter for USA trade and media, a quarterly digital publication for trade and media will be launched in 2014-2015 in Australia. New Zealand wine news and activity will sit alongside feature articles by guest contributors and support the day to day engagement with trade and media in promoting New Zealand wine’s key messages.

provide top line assessment of consumer trends and New Zealand wine’s performance in the on- and off-premise.

Euromonitor reports for Australia will be made available annually.

PINOT PALOOZA New Zealand Wine will host a Pinot Pilgrimage table at Pinot Palooza in Melbourne, Sydney and Brisbane - a not-to-be-missed event for Pinot lovers in Australia. The wines will showcase the incredible quality and diversity across New Zealand’s Pinot Noir regions to a highly engaged audience.

Image: Pinot Palooza, pinotpalooza.com.au

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Seeking Distribution

in International Markets

New Zealand Winegrowers can help you to answer questions about local markets. We have developed and researched a number of resources for your use, which are available in the member’s Marketing section of nzwine.com.

These are market dependent and include: • • • • •

Guides to Market Euromonitor Reports Wine Intelligence Reports Nielsen Data Independent Reports and Resources

These reports cover many questions relating to the local market, including market size, price points, pricing structures, distribution networks and more.

Other tips to ensure you get the most from the New Zealand Winegrowers team: • Let them know if you are travelling to a market • Ensure you are registered for user-pays activities in the markets you wish to develop - please speak to the user-pays events team regarding their event offering by market • Ensure your winery brand profile is up to date with respect to the markets in which you are seeking distribution Also make sure you are in touch with the NZTE teams in New Zealand and overseas. NZTE can help businesses to assess market opportunities, develop market entry strategies and identify suitable partners. For assistance please contact your local NZTE office. winesearcher.com also has a free list of wholesalers for all major markets, available on the website.

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New Zealand Wine Marketing 2014 - 2015

Asia China Given the huge population and large geographical area of China, it’s important to focus very clearly on what you want to achieve from selling wine there - are you targeting a particular channel, consumer, city or region? Identifying these factors will help narrow your search for a distributor who can meet your needs. Shanghai may appear the least challenging place to begin, but it is also the most competitive market in China. Consider looking outside the Tier 1 cities to ensure a larger market share, but be prepared for unconventional business practices and logistical difficulties.

China is not a place that values casual relationships. It will take time to find the right distributor, and once the relationship begins, it will take longer to cement than you expect. Business relationships are based on personal rapport and trust as much as quality product and mutual benefit. Be prepared for the time and financial cost of numerous market visits: If you can’t afford to go at least twice a year, you can’t afford to be in China!

Many distributors in China are strong at moving volume but lack the capacity to build brands, so be sure to get a clear idea of where your product will be distributed and what marketing investments will be made. Expect to negotiate on pricing and volume targets, so work out Chinaspecific prices and your ‘walk-away point’ before entering negotiations.

As part of its strategic work with New Zealand businesses, NZTE assists in researching and entering new markets or developing existing ones. If you need specific support in China, please contact NZTE for an initial discussion.

Hong Kong Despite its proximity to China, Hong Kong is a small, compact and competitive market in its own right. Do not come to Hong Kong searching for distribution in China!

Since import duty was removed in 2008, the number of

importers has rocketed - there are an estimated 3,000 importers in a city of 7 million. Make sure you find an importer who can support your volume, price point and level of market engagement by asking detailed questions about their customer base, distribution and brand building capabilities.

Japan Tread carefully when entering this highly traditional market, as impatience and a casual manner will not win contracts.

Feel free to make contact, but never push or chase people into a decision. A clearly outlined proposal giving information about your winery, products and sales strategy will win more attention, especially if it is translated into Japanese.

Japan is a market with huge seasonal trends and traditions, so consider this when pitching products: for example, Pinot Noir will mostly be consumed in Autumn, so approach importers in January to ensure negotiations are complete and stock is available in market to meet demand in September.

USA The USA is an attractive market in that upwards of 370 million cases of wine are sold each year. That is more than any other country. Wines in the marketplace are sourced from virtually every wine producing region in the world.

Sales of New Zealand wines in the USA have shown steady growth over the past fifteen years and there is good reason to believe that will continue.

Every export market is unique. The USA has what is referred to as the three tier distribution system. For wines originating in New Zealand that means that they must pass through a Federally-permitted importer, a state-licensed distributor, and then sold to consumers through either retailers or onpremise accounts. Each tier will take a percentage of pricing in order to cover their expenses and make a profit. There are fifty states and the District of Columbia, meaning that there are that many sets up rules and requirements. Despite demand, the structure of this system creates challenges.

Due to consolidation of the sales channels over the past twenty years, there are fewer and fewer importers and distributors in business. It is important that your wine is an appropriate fit within a portfolio. Do they have a history of selling to accounts that sell wines such as yours? Do your wines have a point of difference from others within their portfolio? Are you realistically able to meet supply and pricing requirements? Any successful brand must spend time in the market to train sales people and provide support by calling on accounts and offering attractive incentives.

You must be willing to spend time in the market, and to host educational and familiarisation trips to New Zealand.

Canada Key to Distribution and Listings through the monopoly liquor boards is finding the right agent in each province.

Liquor boards will only accept submissions through an agent and will not deal directly with the winery. Note that 94% of all sales are through four provinces, in descending order - Ontario, Quebec, Alberta, and British Columbia.

Finding a good proven agent depends more on the agent wanting to represent you and your wines. Most agents have more products than they can manage in their portfolio, therefore to convince them you must have compelling marketing support materials and your wines should have scored well in wine ratings (Cooper/Parker) or wine competitions.

Another important factor is strategy and expectations.

Most agents have a specialty, New World/Old World wines, others prefer to trade in certain channels, Liquor Board main stream (high volume), Liquor Board Specialty (small orders, ultra premium price), Private Order and Consignment, selling to on-trade (case by case). So it is important to find an agent with the right fit, culture and focus.

Before contacting New Zealand Winegrowers Canada, please read the Canada Guide to Market, this will answer a lot of questions on liquor boards, pricing, commissions, agent contracts etc.

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Mainland Europe Each market in Europe has different challenges and requirements so it is essential that thorough research is done to ensure your products are suitable for a particular market.

Key things to understand in Europe are: • Language and cultural barriers • Different pricing expectations between markets (legislation, taxation) • Different market dynamics and structure • Difference in volume expecations • Varietal mix of your wines

Germany

Sweden In Sweden, Systembolaget is the government controlled monopoly and is the only route to market for the offtrade. Systembolaget will issue tenders for a particular style of wine based on price and volume expectations.

Systembolaget does not have an import licence, and buys the products only from licensed producers and importers.

The key to listings is therefore successful local partnerships with the major national agency/distributors. There are a number of reputable importers, but also a large number of agents who work part time and try to get business once a tender has been issued. It is important to find the right importer for your business.

As part of its strategic work with New Zealand businesses, NZTE assists in researching and entering new markets or developing existing ones. If you need specific support in a market, please contact NZTE for an initial discussion.

Germany is generally seen as an aggressively priced market with a low average price. However, although the percentage share of wines costing more than €5.00 is small - around 5% of sales volume - it still represents a market of 1 million hectolitres. So there is room in the market for New Zealand wines which fit into the higher-priced segments.

Importing in to Germany is quite fragmented. There are only a few large national importers. The majority of importers are state specialists or regional importers who are often involved in both wholesaling and retailing.

The Netherlands The Netherlands is primarily an off-trade market, led by value-oriented supermarkets and larger discounters. Beyond the supermarkets, the Netherlands has a wide network of specialist liquor and wine retailers. The On-trade is supplied by a mix of smaller specialist distributors and larger wholesalers. Dutch wine importers may re-export to other European markets, as well as supplying the domestic market.

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New Zealand Wine Marketing 2014 - 2015

Uk & Ireland The UK is a well-established market, so wineries wishing to enter the market for the first time or change their current distribution arrangements need to be well prepared and have done their research. Compared to other markets where New Zealand is successful, the UK can deliver high volumes but due to the intensity of competition and supermarket dominance, can offer low margins due to a squeeze on prices, exchange rates and other regulatory pressures.

However, the independent sector is thriving and if you find the right partner, it can be very successful.

There are several options open to entering the market • Direct to retailer • National Importer/ Distribution Partner • Regional wholesalers • Set up own company • Direct to consumer (online)

Margins will differ depending on the option you use.

Key things to consider when choosing a partner are: • Where to position your wine (off-trade/on-trade/ independent merchant/supermarket) • Your available volumes and pricing and margin requirements • Pick an importer/agent/distributor with experience in your chosen channels • Understand your distributor’s business and requirements • Find your USP: Ensure there is a gap in their portfolio for you • Make sure there is a cultural fit - it is important to have a good relationship with your views and values aligned • Be prepared to support with staff training and education, market visits, sampling stock etc • Be realistic in expectations - take a long term view In the UK it is not unusual for an agent or importer to have several New Zealand wines on their portfolio. You are unlikely to be exclusive, but you may be the only New Zealand wine from a particular region.

Other elements to consider: • Where do you want your wine to be sold (Melbourne, Sydney, Adelaide, Brisbane, all states and territories)?

• In what channel(s) of business do you want your wine to be sold (on premise, independent retail, direct to consumer)?

• How many wineries does the proposed distributor have in its portfolio and how many of these are from New Zealand?

• How many competing products are in the proposed distributor’s portfolio?

• What price points are the existing wines and where will yours sit at trade prices?

As the most significant supplier of imported wine to Australia, New Zealand is well recognised in the market, but with this comes the likelihood that a distributor has several New Zealand wines in their portfolio. Competition for good distribution is strong - those that do their homework and are prepared to support with staff training, education, market

Australia

visits and sample stocks will be the most successful.

Further detailed information can be found in the Australia Guide to Market, available for download in the member’s

While highly developed and competitive, the Australian wine market offers a broad range of growth opportunities for New Zealand’s many and varied wineries. Wineries looking to sell into the Australian market need to be well prepared and carefully weigh up market entry options with sound market research and intelligence.

Marketing section of nzwine.com.

Very little movement between on trade and retail share of volume is forecast over the next five years. Retail volume is predicted to account for 81% of sales volume which is dominated by the two supermarket chains Woolworths and Coles. A route to market (e.g. national/state distributor, own company establishment, direct to retail) will depend on your business goals surrounding margin requirements and available volumes.

wine-searcher.com/merchants/australia,wholesale,13

A list of Australian distributors can found in The Australian and New Zealand Wine Industry Directory available for purchase via winetitles.com.au/wid/index.asp. Winesearcher also has a limited list of Australian Wine Wholesalers to view online at:

In addition, Wine Business Solutions publishes an on premise report that in the first chapter analyses Australia Distributor performance based on a data set of over 100,000 individual listings. This is available in hardcopy format for AU$495 at winebusinesssolutions.com.au/research#onPrem.

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N MORE AB OU T IF YOU WOUL D LIK E TO LE AR GA ZI NE PL EA SE TH E CONT EN T OF TH IS MA is@ nz wi ne .co m OR CONTAC T CH RI S YORK E chr nz wi ne .co m.

FE LIC IT Y JOHN ST ON fel ici ty@

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New Zealand Wine Marketing 2014 - 2015