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From: lewis.perdue@wineindustryinsight.com

Subject: Trading Down Shows Legs, Wine Gets Hip To Private Fashion Sites - WINE INDUSTRY INSIGHT

Date: 2009-12-16 16:14:21

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EMAIL EDITION - VOLUME I, NUMBER 138 - December 16, 2009

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IN THIS ISSUE:

  • Wine Gets Hip To Private Fashion Sites

  •  Trading Down Shows Legs, Imports & $20+ Still Suck

SCROLL DOWN TO BOTTOM FOR LOTS MORE NEWS FETCH

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Wine Gets Hip To Private Fashion Sites

A small number of savvy wineries have started tapping into the hot new trend of hip fashion web sites that offer “private,” time-limited sales to online shoppers.

ruelala-swanson

Sites like:

originally sprang up as a way for online shoppers to get in on the action for fashion overstock and sample sales, but others like:

have expanded to include virtually every type of merchandise.

AN ATMOSPHERE OF EXCLUSIVITY AND URGENCY

The concept of “private sale” is only marginally true since anyone can shop at the sites as long as they register. While a trivial exercise, it seems to work as do the time limits imposed.

While a number of wine-only liquidator sites offer merchandise on a “while supplies last” basis, some of these new sites have established firm time limits — usually 24 to 48 hours. Others, like Gilt, also start a countdown when the shopper adds an item to their cart. If it’s not paid for in 10 minutes, the item disappears from the cart and is placed back in inventory.

NO LIQUIDATION STIGMA

Unlike wine liquidation sites like winestilsoldout.com, winewoot.com and thewineliquidator.com which sometimes carry the stigma of a liquidation sale, the new sites attract a hip, younger crowd looking for “must-have” items that they often didn’t realize they couldn’t live without.”

ACCESS TO A NEW MARKET

And while the total volume of sales is usually small — 100 cases or less — the sale on these sites offers exposure to a whole new — and mostly younger — market segment.

” They allow us to offer our wines to an audience who might not have the opportunity to visit our Salon for a tasting,” said Heidi Baron Godoff, Director of Consumer Sales at Swanson Vineyards. “Agility seems to be the name of the game.  It has been a delight working with Rue La La. They professionally photographed all our offerings and have been extremely organized. ”

Other wineries selling through Rue La La recently include Silver Oak,  Patz & Hall, Frog’s Leap, and Gary Farrell.

VENTURE CAPITAL SEES BIG BUSINESS

Although wines sales were not mentioned, the New York Times reported recently that the hip new category of sites have become big business.

“Private-sale sites are attracting brand-name investors,” said the article by CLAIRE CAIN MILLER and JENNA WORTHAM. “Kleiner Perkins Caufield & Byers, the venture capital firm that backed Google and Amazon.com, invested on Wednesday in One Kings Lane, which sells home décor. Gilt Groupe raised $55 million from Matrix Partners and General Atlantic, and Rue La La’s parent company was recently acquired by GSI Commerce for $180 million.”

STRICT TERMS AND RESTRICTIONS APPLY TO WINE

As might be expected, the terms and conditions for the sale of wine include more hoops to jump through than a sweater or pair of shoes.

The following come from recent RueLaLa.Com wine offerings:

Features

  • Please note: This is a Final Sale item. There are no returns.
  • Note: You must be 21 years or older to participate.
  • Due to state restrictions wine may be shipped to the following states:
  • Alaska, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, South Carolina, Tennessee, Texas, Virginia, Vermont, Washington (License # 079184), Wisconsin, West Virginia, Wyoming.
  • If you select a shipping address that is not one of the above states, we regret that we will have to cancel your order.

Terms & Conditions:

  • You must be 21 years or older to order.
  • By placing an order you represent that you are at least 21 years old.
  • Gift recipient, if any, must be 21 years or older.
  • Upon delivery, someone 21 years or older must be present to sign for delivery.
  • If visibly intoxicated upon delivery, you will not be allowed to receive the wine.
  • We recommend shipping the wine to your business address.
  • Wine is sold by a licensed winery.
  • Winery is the seller of record.
  • Cannot be delivered to a P.O. box.
  • Applicable sales tax is included.
  • Void where prohibited by law.

Nielsen: Trading Down Shows Legs, Imports & $20+ Bottles Suck

Trading down continued to hammer U.S. wine sales in November, with imports and the over-$20-per-bottle segments leading the decline. Domestic wines managed small to moderate gains according to The Nielsen Company.

Overall wine sales varied inconsistently with the time period being examined.

OVERALL SALES: U.S. UP, IMPORTS DOWN

Nielsen scanner data showed that, for the period ending Nov 14, 2009, overall U.S. table wine sales at food, drug, convenience, liquor stores and other select channels slid 0.2 percent for the four-week period, but increased 3.4 percent for the 52-week period versus one year ago.

VIP Subscribers click here to read the complete, un-redacted article.

nielsen-salesbypricesegmentnotvip-1114092

This is a small excerpt from the full Excel spreadsheet. Click here to preview the entire file available to VIP subscribers.

Domestic wine sales inched up overall gaining 1.4 percent for the four weeks and 5 percent for the 52-weeks.

Imports slid 4.4 percent for the 4-week period and 0.4 percent for the 52 weeks.

Also In This Article:

The full text of the following sections is available to VIP Premium Subscribers).

  • TRADING DOWN SHOWS LEGS, HURTS IMPORTS MOST

importversusdomesticpricenotvip

  • VARIETAL DOLLAR MARKET SHARE REMAINS STATIC

The relative dollar market share of  the top-13 varietals remained virtually static with changes that fall into the noise-level category.

nielsen-varietaldollarvolumenotvip-111409


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NEWSFETCH

December 16, 2009
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  • Sonoma Bride not liable for teen guest's drunk driving at winery
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  • Report debunking family wineries shows where farmworkers fit
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  • Nielsen & Catalina Form JV For Next-Gen Media Data Solutions
  • Dearden Leaves Benessere To Consult
  • Redwood Creek Winery Offers $130, 000 in Grants to Outdoor Non-Profits
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  • Goelet Wine Estates Restructures Operations
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  • UK: High-School Wine-tasting club aims to curb binging
  • Canada: Skinners invest in Penticton winery
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  • December 10, 2009
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  • Incredible Aussie private cellar up for sale
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  • Pomerol producers take protest to court
  • Wine-book crop is humbler but assertive
  • KY: Southern & Pernod Ricard Battle Hunger
  • Book focuses on Virginia wine history

  • ================= CONTACT DATA ====================
    Lewis Perdue
    670 W. Napa St., Suite H, Sonoma, CA 95476
    Phone: 707-326-4503, fax: 707-940-4146
    Email: lewis.perdue@wineindustryinsight.com