6. Reaching the End Consumer - Hospitality

Question 1

Give an example of volume vs value of retail vs hospitality sales in a country?

Answer 1

UK retail accounts for 80% of volume but 60% of value; Hospitality 20% of volume but 40% of value

Question 2

What might a specialist wine bar’s offerings consist of? What don’t they stock?

Answer 2

• Small, regularly changing list, or a wide range, and sometimes rare or premium wines
• Focus on small producers, lesser known regions or varieties; or single region or style
• Larger chains (ie. Davy’s in UK) can have own label wines, usually high quality from a med-size producer
• Big-name brands, as they cannot compete on price w/ volume chain bars
• Possibly retail of wines (hybrid)
• Often serving food

Question 3

What is a benefit of selling in a specialist wine bar?

Answer 3

• Well trained staff hand sell to high involvement consumers for higher prices
• Suitable to small producers, lesser known varieties/regions, premium or super premium

Question 4

What is a general bar?

Answer 4

Not exclusively focused on wines; selling inexpensive or mid-riced, approachable wines.

Might be themed (ie. Irish Pub) which impacts range

Question 5

What type of wines might you find in a general bar?

Answer 5

• Inexpensive or mid-priced, approachable
• Limited range with major brands, well known regions and varieties
• Might be dominated by local wines
• Might look for wines not available in retail to avoid consumer price comparison

Question 6

What are features of non-destination restaurants?

Answer 6

When the consumer is not making the meal the main focus; it’s visited out of convenience. Often chains, some independent. Might be country-themed.

Question 7

What wines might you find at a non-destination restaurant?

Answer 7

Approachable, well known producers, regions or varieties. Low to mid priced.

Might have local wines or wines to suit the country theme, if applicable

Question 8

What is a casual restaurant?

Answer 8

Sits between a non-destination and find dining restaurant. May have quick or longer meals. Usually independent but sometimes a small chain.

High quality food and wine, but without fine dining formality. Staff are trained to recommend wines

Question 9

What offerings might you find at a casual retaurant?

Answer 9

• High quality food and wine
• Mid to premium priced wines selected for pairing, with a mixture of better known regions/varieties and lesser known regions
• Might be dominated by local or country-themed wines

Question 10

What is a fine dining, aka destination restaurant?

Answer 10

The meal and experience is the purpose of the visit for the diner. It may have a Michelin star or famous Chef (ie. Le Bernardine)

Question 11

What sort of wine programmes are run at fine dining/destination restaurants?

Answer 11

• Pairings are centre, with a sommelier and well-trained staff handselling
• High quality and super premium wines; small quantity wines
• Might use brokers to source rare wines

Question 12

What are the benefits of selling in a fine dining/destination restaurant?

Answer 12

• Producers can build a reputation this way
• Suited to high quality, super premium, limited qty producers
• Attract high involvement consumers