In-market DTC sales can help kick off a domino effect of sales, loyalty and engagement.
By Kathleen Willcox
Selling wine through a third party — typically either a store or a restaurant — is foundational to the success of most wine brands. But increasingly, direct-to-consumer (DTC) sales are now essential for brands that want to grow their bottom line.
While wine sales generally have a negative forecast for 2024, DTC sales are expected to grow in value, even as their volume will likely decline. Those forecasts have been borne out by early indications on the market. A recent WineBusiness Monthly Tasting Room Survey shows that tasting room orders and median club orders were 10% and 17% higher, respectively, while the average tasting room order ballooned 46% to $369.
And wineries that combine the two channels — and manage to sell directly to consumers “in market,” at pop-up tastings or dinners, for example — are tapping the most powerful route to long-term success and growth.
“Leveraging resources you already have is the best way to increase revenue without a lot more expenses,” says Jennifer Warrington, a marketing and sales professional and educator at the Napa-based Wine Industry Sales Education (WISE) Academy. “Brands should ask themselves, ‘If a winery rep is already going to be in the market, are there other events that can be added around the key event?’”
The answer, frequently of course, is “Yes.”
And while in-market DTC sales aren’t going to transform a winery’s bottom line overnight, they can help kick off a domino effect of sales, loyalty and engagement.
Step One: Boost Brand Awareness
Getting more of the right people acquainted with your brand is, without a doubt, essential if you want to sell more of it to more people.
“Every winery has its own story to share,” says Meghan Delzell, director of sales and marketing at Sangiacomo Family Wines in Sonoma, Calif. “To effectively share that story, you need a legion of ambassadors. For us, these are devoted customers who want to share our wines and feel a connection to nearly 100 years of farming, along with a deep understanding that supporting a family-owned business makes an impact.”
Creating a legion that is quietly (or, in some cases, quite loudly) working behind the scenes requires a lot of troops on the ground.
“We do it through charity auctions, club member receptions, private country club events and wine dinners at restaurants,” Delzell says. “We’re beginning to tap into in-home educational wine tastings as well. We bring the wine, fun and entertainment, and the hosts provide the audience.”
Creating the opportunity to truly connect with new people mandates what Warrington dubs a “roadshow” mentality.
“The wineries that I saw hit their DTC goals in 2023 and 2024, including Rombauer, Far Niente and Crocker & Starr, have really leaned into roadshow events, whether they are wine dinners, charity auctions or club events with a ‘bring a friend’ element,” she says. “With less traffic coming to wineries, they had to go where their customers are and be strategic about it.”
Warrington also says that DTC “events” can be virtual. Sales by text and phone are on the rise and require much less budget and planning to execute.
Step Two: Enhance Consumer Engagement
If you want to engage consumers and make an authentic impression, meet them and their palates where they are. This includes the person who delivers your message with great care.
“Creating memorable experiences and relationships for consumers is tied to the employee representing your brand,” says Jessica Hart, founder of Jessica Hart Consulting, which specializes in HR consulting in the alcohol beverage space. “And you can’t just be present at in-market events, you have to create memorable experiences where the consumer connects with who they met.”
Hart recommends having people ready with advice on pairings and even suggests using non-traditional, but relatable pairings.
“Bring goldfish crackers, potato chips, and cookies to in-market tastings,” Hart says. “Bring a snack that works and brings the experience to life.”
Part of being relatable also means understanding who you want to embrace your wine story and your brand.
“Our faith-based wine labels let us connect directly with our Catholic audience by attending large Catholic conferences or hosting smaller, intimate in-home tastings for Catholic groups,” says Sonyia Grabski, general manager of Trinitas Cellars in Napa, Calif. “These events let us share not only our wines but also the story and mission behind the brand, creating deeper connections and loyalty.”
Leaning into what makes Trinitas unique has delivered “great success” in its mission to expand its customer base over the past two years, Grabski says.
Step Three: Motivate Wholesale Market
Even if you aren’t deeply focused on the wholesale market, working in-market can strengthen partnerships that will pay dividends down the line.
“Winemaker dinners or tastings in retail spaces, for example, drive foot traffic and increase the likelihood of customers making purchases both during the event and in subsequent visits,” Grabski says. “It’s a win-win. We have partnered with chain stores to host events and we invite our customers, which creates a bridge between our retail and DTC markets.”
During trade visits when you’re doing ride-alongs, educational seminars for the sales teams and distributor events, Delzell recommends going the extra mile.
“Your distributor is not going to do all of the work, and showing you can collaborate is important,” Delzell says. “Invite your top customers to the wine dinner that your distributor organized. They’ll feel so special. Of course we want consumers to buy wine directly from the winery, but we also want them to know the restaurants where they can go and order our wine, and where they can grab a bottle to bring to a friend’s house.”
Step Four: Increase Sales in the Short and Long Term
Sales now are great, but in-market DTC is also key for long-term sales strategy.
Some events have better track records than others: charity events are often long games with excellent conversion rates.
“We have a 100% success rate of conversion to new club members with people who visit Sangiacomo after meeting us at a charity auction lot,” Delzell says. “Nothing is more valuable than a personal connection and invitation to visit Wine Country. It’s not always about the instant sale in-market. It’s the person you met a year ago and invited to visit — when you’re there to welcome them with a glass of wine, it resonates.”
Wine has been with us for longer than any other alcoholic beverage, with family wineries dating back centuries, and planning well into the future. It is the ultimate long game, and sales strategies should reflect that.
***
If you are looking to learn more about how hosting in-market Direct-to-Consumer (DTC) events can help your winery stand out, drive immediate sales, and build lasting customer loyalty join us at the 2024 WIN Expo on December 5th for the session: Utilizing In-Market Events to Capture New Audiences.
______________________________________________________________________________
Kathleen Willcox
Kathleen Willcox writes about wine, food and culture from her home in Saratoga Springs, N.Y. She is keenly interested in sustainability issues, and the business of making ethical drinks and food. Her work appears regularly in Wine Searcher, Wine Enthusiast, Liquor.com and many other publications. Kathleen also co-authored a book called Hudson Valley Wine: A History of Taste & Terroir, which was published in 2017. Follow her wine explorations on Instagram at @kathleenwillcox
