Getting Wine to the Market

Question 1

DTC stands for _______

Answer 1

Direct to Consumer

Question 2

What are the two categories that wine sales are split into?

Answer 2

• On-Premise: Hospitality

- Off-Premise: Retail

Question 3

What does HoReCa stand for?

Answer 3

It is a short hand used in some markets that stands for Hotels, Restaurants and Cafes/Catering

Question 4

What are the different options that producers have to get their products to market?

Answer 4

• Selling Directly to Retailers
• Appoint a Distributor
• Establish a Joint Venture
• Use a Broker
• Selling Direct to Consumer

Question 5

What is the main benefits with producers selling directly to retailers?

Answer 5

• Producers get to maximize their profits since they don’t need to pay any intermediary’s cost or margins
• Producers also have the power over who carries their wines, and how they are marketed. (Excluding large retail chains)

Question 6

What is the main disadvantage of selling directly to retailers?

Answer 6

There is a lot more administrative burden that needs to be done so the wine reaches its destination on time and safely.

This means that wineries will need to hire more staff, or lose time that could be spent in the vineyard.

Question 7

What are the benefits of hiring a distributor compared to selling directly to retailers?

Answer 7

While selling direct to retailers helps maximize profits, distributors help cut some cost by reducing the number of market visits that a winery will have to make to a foreign market.

Distributors also would be more familiar with the needs of its market by having relationships with retailers, which is something producers would have to establish as well.

Question 8

What is a good way for producers who looking to get into a market, or even already established in the market, to build repertoire with local retailers?

Answer 8

For the producers to come to trade fairs and tastings

Question 9

What is something that producers may lose control over when dealing with a distributor?

Answer 9

Producers who work with a distributor may lose control over how their wine is promoted, or where it is eventually sold.

Question 10

What are the different ways that DTC sales are conducted?

Answer 10

• Cellar Door Sales
• Events
• Wine Clubs
• Online