WISCONSIN WINERIES ASSOCIATION

1. WISCONSIN WINERIES ASSOCIATION Brandon Scholz, President & CEO Wisconsin Grocers Association

2. The Grocery Biz in Wisconsin Retail Wholesale Distributors Distributors/Suppliers/Vendors

3. The Grocery Biz in Wisconsin Retail Chain Stores (Pick, Aldi’s) Independents (PW, Sentry, County Market, Festival, Woodman’s) Single & Multiple Store Operators

4. The Grocery Biz in Wisconsin Wholesale Distributors PWM, Supervalu, Affiliated Foods Certco, SpartanNash, Roundy’s, Aldi’s, Great Lakes

5. The Grocery Biz in Wisconsin Distributors/Suppliers/Vendors DSD – Dairy, Beverage, Chips, Bread

6. The Grocery Biz in Wisconsin Store Owners Wear Multiple Hats Size & Number of Stores Support Staff

7. The Grocery Biz in Wisconsin Getting Your Product to Market

8. The Grocery Biz in Wisconsin Getting Your Product to Market • Surveyed WGA members across the state. • Reflects independent owners, large & small.

9. The Grocery Biz in Wisconsin Getting Your Product to Market What is the point-by-point list of steps local wineries should take to reach out to their local grocery store? • 1. Stop in store with the wine you want them to sell and have case and unit costs. • 2. Depending on your business. Offer a case deal.( leave a sample bottle or two if Possible) • 3. Have a selling sheet that describes your wines and winery. (points of difference, grapes used, etc..) • 4.) Coop sellers agreement (credit ap) *Make it as easy as possible for the grocery store to sell your wine. Stores are busy and if it's a hassle to get your wine into our store, the less chance we are to carrying it.

10. The Grocery Biz in Wisconsin Getting Your Product to Market Should wineries go directly to grocery stores or should they work through a distributor? • I prefer working with a distributor when working with just a few SKUs, the price may be higher but the service is more consistent, less back door deliveries, less bills to pay, have relationships already in place. They could ride along with the sales people to introduce their products. Demos are great, offer periodic promotions, discounts on case quantities and displays.

11. The Grocery Biz in Wisconsin Getting Your Product to Market • This can be tricky. If they get with a smaller distributor they have a good chance to get exposed to more retailers. If they try to go with one of the big guys, its likely they will get lost in the shuffle as the big wine companies dictate a lot of what the Distributors do including what they sell. Selling direct can work but will take a lot of effort on the wine companies part. A distributor already has relationships with the buyer so it can take some time to get established selling direct. • All the wholesalers are listed on the Dept of Revenue website. For all I know there are a couple of regional small guys who are working with the various Wisconsin wineries.

12. The Grocery Biz in Wisconsin Getting Your Product to Market • I have one local winery that was originally selling to me direct. It worked fine. They either called or came in to see if I needed an order. If I did it was billed through their wine coop that they were a member of. • This winery decided they didn't have enough time to get out and sell so they went with a distributor. When the distributor came to sell the local wine, the cost was substantially higher and we couldn't come close to the retail we had been selling it for. We have since stopped selling the local wine. • If you have a good product and can offer a tasting/sampling to the person doing the buying. Your well ahead. Your grocer can retail your wine to sell at 10-15% cheaper going direct rather than through a distributor. This business is about the pennies!

13. The Grocery Biz in Wisconsin Getting Your Product to Market Benefits of Distributor for Retailer • Products are tended to weekly dust, P.O.S. hung, pricing etc. • Damage/breakage/spoiled product can be picked up more efficiently. • Better rapport with salesperson vs. winery salesperson who seldom comes in. They know the buyers/stores routine/procedures. • Stock is worked and rotated by the rep not the buyer. • Delivery is taken care of by merchandisers promptly and not sitting until the buyer can tend to the order. • If winery goes under there is less risk to store. Distributor can help to sell through the rest of the product. The store is not stuck tending to it.

14. The Grocery Biz in Wisconsin Getting Your Product to Market After the sale, what should wineries do to maintain the relationship? • Maintain contact with the stores. Continue to do what is necessary to promote their product. Products do not sell themselves. • Demos are absolutely crucial. Especially once the wine gets above that $10 retail or so. If the product is good and you get people to try it, they will buy it. if you just send it in and put it on the shelf, its much more difficult. • Don't sell and ignore the store. You don't have to stop in every week but after a week or so call and see how the wine is going. Again after 3 or 4 weeks. If wine isn't moving offer a tasting if possible. Work with the retailor. Life is about relationships. If you work well with them. They are more likely to help move your product.

15. The Grocery Biz in Wisconsin Getting Your Product to Market • They need to do as many tastings as possible • Store personnel, clerks and Department Managers should be encouraged to visit the winery. Get the store people to have “ownership,” and develop a personal relationship with the winery. • Wine is an emotional product. People like feeling the winery is part of their life-style. That includes both grocers, their personnel, as well as consumers. And, grocery people are consumers, too. • Wineries should be involved in any legal ways possible in the community outreach programs grocers participate/initiate.

16. The Grocery Biz in Wisconsin Getting Your Product to Market What are other factors in your decision making process on whether or not to carry a product from a local winery? • Besides making a quality product (which many do not understand how what they make fits in the market), winery owners need to understand the selling and distribution side of the business. If we are going to have to spend too much time training and holding winery owner’s hands, then we don’t need them relative to the financial return on our time and energy investments. They need to have a clear understanding where they fit in our world. • Type of wine. Pricing. Promotions. Quality- Everyone's wine in their opinion is the best. Customers make that call. • Key factors for me as to should I carry it or not Do my customers recognize the name Is it good quality Is it affordable Is it consistent, both from a quality and availability

17. The Grocery Biz in Wisconsin Getting Your Product to Market What are other factors in your decision making process on whether or not to carry a product from a local winery? • If it's local and I can get the supply chain to flow properly to me it's in!  There were so many products at the show that WGA puts on that I would like to carry because of uniqueness or Wisconsin based but I can't get it, because the question how do I get this to market has never been addressed properly.  In addition to that the question of how do I support the product once it's in the market has never been addressed properly. • When it comes to local product, I'm a big believer in "grass roots".  In other words, play small ball, no need to hit a home run, get the base hit and the way to do that is for the local small guys come out and get relationships with the retailers and the customers.  Get on base, you'll score eventually!!

18. The Grocery Biz in Wisconsin Getting Your Product to Market Is it important that the winery offer to do sampling in the store? • It’s not only important, it’s critical! • It is absolutely critical • Critical • Definitely • Most of our best selling wines have all been tasted here at least once. • With sampling, you have to have someone (from the winery) know something about the win. That’s what our customers are looking for. • Customers are excited when they talk to the product “creator”.

19. The Grocery Biz in Wisconsin Getting Your Product to Market Questions Comments Catcalls