Wine Brand Equity stabilizing after COVID, but yet to fully rebound

Building on feedback from over 25,000 wine consumers in 25 markets; representing over 400 million global wine drinkers, the fifth annual Wine Intelligence Global Wine Brand Power Index reveals a stabilization of wine brand equity, following the steep erosion of brand equity seen in 2021 amidst Covid disruptions. The 2022 data also suggests that global wine brand equity has yet to recover to pre-pandemic levels.

The Wine Intelligence Global Wine Brand Power Index 2022 incorporates consumer feedback on key brand health measures and an index is calculated at a global level as well as at a country level across 25 key wine markets. This year’s index saw Denmark featuring as a substitute for the Russian market, which was not surveyed.

At an aggregate level, the top 15 global brands collectively scored higher (6.5 points more) in 2022 compared with 2021. However, on a two-year view, scores remain substantially lower than in 2020, noting that the 2020 result was based on consumer surveys that took place in 2019 (before the Covid pandemic). Across the two-year period (2020-22) awareness levels tended to be more resilient; the main driver of change in the index during this period appears to come from the recalled purchase and connection scores, which both fell significantly for the top 15 global brands in 2021.

Yellow Tail and Casillero del Diablo claim the #1 and #2 spots (again) respectively in the 2022 Global Wine Brand Power Index, with their brand power index scores remaining well clear of all other wine brands. Both brands place as the #1 brand in three out of the 25 markets, with Yellow Tail also claiming a top ten ranking in 10 markets and Casillero del Diablo in 14 markets. Yellow Tail’s strength in the US market is cementing its #1 global ranking in the index. Barefoot now ranks as the 3rd most powerful wine brand globally, rising every year from its 13th position in 2019.

Other notable climbers within top 25 of the 2022 Wine Intelligence Global Wine Brand Power Index include Santa Carolina, which continues its rise to now rank #7; Apothic rising five places to #14 and Dark Horse – which has jumped eight places to #25.

Commenting on the rankings, Lulie Halstead, CEO of Wine Intelligensaid: “In a year characterized by relatively less upheaval for consumers, it’s a relief to see equity for wine brands has stabilized in terms of consumer connection as wine drinkers have returned to more frequent touchpoints with wine in both retail and the on-premise.”

She added: “Successful wine brand owners will be those with a focus on restoring the fundamental positive connections that have propelled their brands to such widespread success on the world stage in the first place, while doing their best to maintain availability and the value proposition amid input cost increases and supply chain disruptions.”

Source:  Wine Intelligence

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The Wine Business Institute Celebrates 25 Years on May 31st

The Wine Business Institute, of the School of Business and Economics, at Sonoma State University will be celebrating its 25th anniversary on Tuesday, May 31st, 2022, at the Wine Spectator Learning Center.

Twenty-five years ago, forward-thinking leaders envisioned a new kind of partnership between academia and the wine industry, and the resulting vision became the Wine Business Institute at Sonoma State University. Founded in 1996 as a brainchild of Gary Heck of Korbel Champagne Cellars and Sonoma State, “We wanted to create a program that would prepare the next generation to run our businesses, a viable succession plan for the wine industry. Great grapes and great wine were already the norm.  Professionalizing the business of wine was the next frontier to tackle“ explains Mr. Heck. “Over the past 25 years, our faculty has built the most comprehensive suite of wine business education in the world with the support of our wine industry, generous donors and board members,” noted Ray Johnson, WBI executive director. “Today our alumni occupy positions of leadership across the wine industry value chain, in organizations large and small.”

“The WBI is an exemplar of successful collaboration between industry and academia,” said Jean-Francois Coget, dean of the School of Business and Economics, within which hosts the WBI. “We will continue to provide diverse talent for the business side of the wine industry and conduct research and other activities that can help the industry address its keenest opportunities and challenges.”

Sonoma State’s School of Business and Economics is the first in the United States to offer an undergraduate degree (since 1998), an MBA (since 2008), an Executive MBA (since 2012) and a new Global EMBA (since 2020) focused on the business of wine. In addition to the degree programs, the WBI offers professional certifications in subjects such as Wine Business Data Analytics, Wine Business Management and Wine Entrepreneurship.  The institute regularly brings together wine industry leaders to discuss the opportunities and challenges in the current landscape and those on the horizon.

Looking back on the past 25 years, the WBI celebrates three major achievements: the awarding of 257 Wine MBAs, the launch of the Global Wine EMBA, and the opening of the Wine Spectator Learning Center.

 

#wine #winebusiness #wineeducation #winenews #wineeconomics #winestudy #winemaking

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Exclusive Interview with Olivier Staub CIO Cult Wine Investment – London

Olivier Staub is the Chief Investment Officer (CIO) of Cult Wine Investment. He has previously held senior trading and portfolio management positions at international financial institutions including JP Morgan, Barclays Capital, BBVA, and London Clearing House.

I recently interviewed Olivier to learn more about the inner workings of Cult Wine Investment and their Investment Management Team.

Liz:

It’s wonderful speaking with you today, Olivier. Why don’t you introduce yourself to my readers and tell us how you got into working with Cult Wine Investment.

Olivier:

I’ve been involved in finance for over 25 years and have held various positions across the world at international firms like JP Morgan, Bear Stearns, and Barclays Capital. I’ve spent time in Japan, Spain, the USA and the UK working for notable financial institutions primarily in asset management, as a trader and as a portfolio manager. My passion though, has always been wine. I was born in France and I studied in Burgundy [Burgundy School of Business] where I graduated with a master’s degree in Economics, Accounting and Finance before moving to UK.  Throughout my life I have been collecting wine, buying wine, selling wine, and talking about wine – it’s always been a great passion of mine.

My first professional venture with wine was co-founding a private members club in London called 67 Pall Mall with former colleagues and friends. Obviously, it is more of a hospitality business than what I am doing now; but setting it up was a very rewarding part of my life.

I had always wanted to mix my passion for wine with my professional background.  Wine is a great investment – I’ve personally profited from buying and selling wines and thought it deserved more attention. Several years ago, I had the opportunity to meet Tom Gearing (CEO & Co-Founder of Cult Wine Investment) and discuss our various ideas of how we could work together.  I then joined Cult Wine Investment as the CIO in 2019. As CIO, I lead the complete investment function including the portfolio management and investment process for our clients.  It’s been a great adventure so far!

Liz:

Can you tell me about your Investment Management Team and their roles?

Olivier:

As the CIO, I run the research and portfolio management side of the business. The Investment Management Team has two primary objectives: we provide an investment framework ensuring that we have a structure in place to do the research and analyze and model fine wine. We are currently developing our quantitive models to assess what wines have the best potential for returns. The second part of what we do, is actively manage client’s portfolios.  We make decisions in terms of what should be done for client portfolios to deliver the performance that the clients are seeking.

We have team of portfolio managers who are responsible for constructing and managing client portfolios based on individual’s risk/return profile.  We apply a top down/bottom-up approach across AUM and at all client portfolios level including executing trades, repositioning portfolios, and taking gains or rebalance where we need to do. We apply the same care, process, and due diligence as we would if they were invested in equities, bonds or any other financial  asset.

Our portfolio managers are each based in the various regions in which we operate: Singapore, Hong Kong, Shanghai, Canada, US, and our head office in the UK.  We are the wine investment firm with the highest number of CFA charter-holders- four out of six Investment team members which is a very good ratio!

We also have two research analysts who develop models, write, and publish about wine investment, and the rationale behind what we do.  They also report on macroeconomics and advise on strategy.

Liz:

Olivier, can you give us a (general) profile of your investors, including male vs female?

Olivier:

It’s interesting question.  It’s very difficult to give you “a profile” because we cover so many different people and so many different regions – we have several thousand clients in 80 different countries.  Regionally speaking there some very big differences in our client profiles. If you look at the European regions and the UK regions the investor profile would be quite different from US/Canada or Asia.  What I would say is because of the collective aspect of the asset class we are lucky that we have interest from millennials, young aspirational professionals as well as people who are well-established, in their late fifties, are wealthy and are very interested in wine.  The common thread is that most of these people have an interest in wine and alternative investments. They don’t invest in wine just as an asset, they invest in wine because they understand that it can be used as an asset, and they appreciate wine at an emotional level as well.

Liz:

What is the ratio male vs female investors?

Olivier:

In the western world, I would say, male investors probably have the higher ratio. Whereas, if you look at Asia, we have many young females investing with us.  Interestingly, I think wine in the far east, at least in Asia, is something that is embraced by young, wealthy females.  In Asia, they value wine knowledge, so they make an effort to understand wine, study wine, and as a result they are very knowledgeable about wine.

In the US and Canada, it’s harder to say as the business is still nascent – we launched in North America just under two years ago. Currently, it’s probably equal – we have a fair proportion of female investors.  Interestingly, we also have a lot of couples investing with us. In many of these cases, the women are driving the passion side and desire to gain knowledge about wine.  They often are investing as a couple, but really interested in it as an experience and product that they like and want to learn more about.

Liz:

What criteria does your team look for in finding Investment-Grade Wines?

Olivier:

Our team’s experience is key in identifying investment grade wines.  We have proprietary models that we use to analyse past performance of wines and model the future price performance. Part of what we do is to develop these models, based on pricing, on experience, and also on hard statical facts and probabilities – i.e data – as you would with any other investment.

With respect to criteria, the brand and vintage quality are both important. The producer will give you a certain guarantee in terms of brand credibility and quality over years. However, vintage variations are also quite important, so understanding variations from one vintage to another is key. We also look at weather and past history of weather patterns and what wines are trending up or down and why. Social media is also very impactful, so we are doing a lot of work in trying to read and anticipate brand awareness and collectability as more people get interested in wine.  Critic’s scores are absolutely crucial to how a wine might perform.  Finally, we pay attention to macro & local trends across the world. For example, in Asia they might be consuming more Burgundy, whereas the US might be focused on wines from the US and Bordeaux.

Liz:

What is next for Cult Wine Investment?

 Olivier:

We want to continue to develop wine as an alternative asset class, particularly in North America where the category is not as well-known as in Europe and Asia. Beyond performance, a big part of what we do is providing unique experiences for clients alongside the pursuit of good returns on the asset class. We know our customers love wine, so it makes sense to take our community on a journey of wine discovery, connecting them with like-minded wine enthusiasts and providing a plenitude of exclusive experiences.

We believe that investing in wine should be as simple and enjoyable as drinking it. And to that end we have several exciting developments and products coming later this year that address key areas of friction for consumers in investing in wine as an asset class.

The key to our success is our unique blend of wine and financial investment knowledge, the expert guidance of our relationship managers, the powerful technology underpinning the portfolio management, and the human expertise from our investment committee and portfolio managers.

Liz:

This is my final question – what is your favorite Wine?

Olivier:

I really love that question.  It depends on three factors:  the time of the day, who you are with, and where.  If I had to take a bottle of wine and it’s my last one forever.  It would be a Musigny from a producer called de Vogue, which is in Burgundy.

#wine #finewine #wineinvestment #alternativeinvestment #alternativeasset #winenews #winelovers #winecollectors #champagne #bordeaux #burgundy #finewinelovers  #winebusiness #vin #frenchwine #vintagewine #wineinvestors #cultwines #cultwinesamericas #cultwinesUSA #cultwinescanada #cultcru #bourgogne #mycultcollection #winewednesday #WW

 

Cult Wines Americas – New “Innovative” Investment Platform [Part 2]

Cult Wines, the global fine wine collection management and investment company launched a new innovative investment platform in Q4 2021. They have shaken up their client offerings by introducing four new tiers of investment, allowing investors to build their personalized wine collection starting from $10,000 USD/$12,500 CDN. This new investment platform will now allow anyone from novice investors to experienced investors to build a customized collection of investment-grade wine.

The “Four Tiers” Cru Classe, Premier Cru, Grand Cru, and Cult Cru provide various levels of investment, starting with core features at $10,000 up to $700,000 USD/ $12,500 up to $850,000 CDN for the Cult Cru Membership. Some of the benefits of the higher tiers include priority access to wine releases, exclusive events and experiences, from access to private vintage releases, food and wine pairing experiences with famous chefs, and bespoke trips to prestigious partner estates.

Cru Classe – from $10k USD/$12,500 CDN
Entry category offers investors core features.
This Investment includes:

  • Full storage and insurance
  • Buying and selling with 0% fees
  • Portfolio created based on investor’s risk appetite and investment horizon
  • Direct ownership
  • Live prices/values with account support through client portal
  • Automatic portfolio rebalancing

Premier Cru – from $35k USD/45k CDN
The flagship offering at Cult Wines provides investors access to full customization and personalization of their wine portfolio through a dedicated Relationship Manager.
Investment includes everything from Cru Classe plus:

  • Active management of your portfolio through your dedicated portfolio manager
  • Regular consultations with a personal Relationship Manager
  • Customization of investor’s portfolio based on their objectives
  • Access to wine tastings (US only), events, education, and trips
  • Buy/Sell recommendations
  • Annual warehouse open day

Grand Cru – from $150k USD/$175k CDN
Investment includes perks of Premier Cru, a dedicated Relationship Manager, plus:

  • Priority access to wine releases
  • Privilege pass to all Cult Wines events
  • Invitations to sought after masterclasses, winemaker dinners (US only)
  • Vineyard tours upon request

Cult Cru – from $700k USD/$850k CDN
The Cult Cru tier will give you the most comprehensive package.
Investment includes everything from Grand Cru plus:

  • Curated vineyard experiences
  • Cult Connoisseur’s Club

Innovative Approach

This is interesting to note – Cult Wines also provides digital tools for its investors so they can manage their own portfolios. One key tool is based on Vintel (a web app), a proprietary technology, that will automatically analyze, allocate wines, and actively manage portfolios. The client portal also allows investors to track their portfolio and receive buy and sell recommendations from the company’s investment committee.

“We looked at what we had done previously and explored optimising user experience and how we build, balance and allocate portfolios using proprietary tools and modelling to seek the highest yields possible for our clients,” stated Corey Parkinson, Global Head of Product. “Every aspect of the platform, from digital onboarding, automated portfolio generation and our client portal have been re-imagined using a best practice tech stack and data science approach. These tools enable our team to maximise their insights and experience to deliver an unparalleled customer experience.”

“Historically, the wine investment category has been perceived as only for the wealthy, or those with considerable wine knowledge. We know that is not the case and are enabling more people to invest effectively while maintaining the client service, impeccable standards, and returns for which we are known,” Atul Tiwari, CEO, The Cult Wines Americas “Equally important is the investment we have made in developing technology that gives our team of experts unrivalled tools to complement their market expertise.”

Cult Wine Investments website: www.wineinvestment.com

#wine #finewine #wineinvestment #alternativeinvestment #winenews #winelovers #winecollectors #champagne #bordeaux #burgundy #finewinelovers #wineindustry #winebusiness #winetrade #winetrends #vin #frenchwine #winemarket #winenews #wineeconomics #vintagewine #wineinvestors #cultwines #cultwinesamericas #cultwinesUSA #cultwinescanada #cultcru #bourgogne #mycultcollection #winewednesday #ww

South Africa’s Wine Exports Bounce Back After Two Years

The South African wine industry is making a comeback after facing serious challenges the past two years.

There was a distinct silver lining when wine exports recovered to a healthy“volume of 388 million litres, which amounted to R10.2-billion” according to a statement by Wines of South Africa.

There was a strong demand from UK, US and China, these three countries helped South African wine exports increase by 12.1% in value to R10.2bn in 2021.

Top Export Markets

The UK remains South Africa’s largest export market. Volume sales to UK increased 12% to 92.5 million litres; value sales up 20% to R2.5bn.

Germany was the second largest export market, with volumes at compared to the previous year.

Shipments to the US increased 134% by volume and 39% by value to reach R887m.

The Netherlands was the fourth largest export market (by value), followed by other African countries, with exports increasing 50%. Canada and France were also very strong.

The fastest growth came from China, with exports increasing 189% by volume and 59% by value to R458 million. China is now South Africa’s eighth largest export market.

The South African alcoholic drinks industry suffered a very challenging few years as the government imposed a series of domestic sales bans and export bans during the pandemic.

“It is good for our recovery efforts, as the alcohol industry has suffered almost five alcohol bans which amount to about 26 weeks of non-trading,” said National Liquor Traders Council spokesperson Lucky Ntimane. “So the announcement is a welcome relief, but people need to understand that this is also not a licence for non-compliance. It does not mean that Covid-19 is gone or disappeared.”

The popular trade show Cape Wine is set to take place in October, which could give the industry an added boost. It was initially scheduled for September 2021, but it had to be postponed due to a coronavirus outbreak.

#southafricawine #wosa #southafrica #winewinewine #winelover #winelovers #instawine #instagramwine #winetime #wineculture #cheers #wineinsta #wineinstagram #winenews #wineeconomics #winetravel #wine #redwine #whitewine #rosewine