At the conclusion of this course, the student should be able to:
1. Describe wine distribution methods in differing wine markets, including the three-tier system and direct sales to consumers.
2. Define the role of wine distribution and distribution trends and recognize and discuss the roles of wine brokers: managing distributor's sales versus direct selling to accounts.
3. Calculate projected pricing in markets; wine costs, freight, taxes, broker commissions, distributors and retail mark-ups, and sales tax.
4. Describe the cultural, regional end user and structural differences in the United States wine market.
5. Define the difference between the retail wine market and restaurant sales and describe the "push" versus allocation method of wine marketing.
6. Describe successful methods of wine sales management, including classification of accounts, program preplanning, and management by objectives, sales incentives, and contests.
7. Describe the import and export of wines.
1. Introduction to Wine Distribution in the United States
A. History and economic importance of the wine industry
B. The development of wine sales and distribution methods and techniques
C. Social, economic, and regional trends in wine distribution
D. Regulatory requirements for wine sales and distribution
2. The Three-Tier System of Wine Distribution
A. The economic role of distributors and brokers
B. Trends in the use of distributors and brokers
C. Managing distributor sales versus direct account sales
3. Wine Marketing Pricing - Costs and Profits
A. Product costs - including product and packaging
B. Distribution and shipping costs - including freight, warehousing, taxes, broker commissions and distributor mark-ups.
C. Retail/restaurant costs - including mark-up or margin and taxes applicable to account type
D. Projected final price to consumer - based on all the cost components in the distribution system
4. Wine Market Differences in the United States
A. How trends in wine variety, quality, and price point vary by market
B. How consumer expectation of sustainable wine practices is impacting wine marketing
C. How wine consumption varies geographically
D. How social, economic, and cultural differences affect wine sales
E. How open states versus control states vary in wine distribution
5. Retail Versus Restaurant Sales
A. Methods for classifying, targeting, selling and merchandising retail accounts
B. Methods of targeting, selling, and training and motivating restaurant accounts to sell wines
C. Appropriate methods of merchandising wine - inventory "push" sales approach versus the allocation method of marketing
6. Successful Wine Sales Management Tools and Techniques
A. Target account lists
B. Goal setting by territory
C. Sales motivational incentives
D. Wine sales contests and wine trips
7. Import and Export of Wines
Wine Marketing and Sales: Success Strategies for a Saturated Market. 2nd ed. Wagner, Paul and Olsen, Janeen and Thach, Liz. Board and Bench Publishing. 2016 (classic).
The Wine Bible. MacNeil, Karen. Workman Publishing. 2000 (classic).
Instructor prepared materials