Premiumisation of the beverage industry has been a growing trend and there have been many brands already working on providing top-notch products to their consumers. People are looking for products that not only contain high-quality ingredients but also provide a purpose to them to consume those products. Craft beers, artisanal spirits, and premium wines have all been seen to be increasing on the shelves and so does their demand. With the pandemic forcing people to drink at home, consumers are favoring quality over quantity. According to IWSR, premium-and-above spirits are forecasted to increase their global volume share to 13% by 2024. 

A major topic of discussion at The International Bulk Wine and Spirits Show was about building a premium brand. Carlton Mccoy shared some interesting insights from his experience of working as a Managing Partner with Lawrence Wine Estates, Heitz Cellar, Stony Hill, Burgess Brendel, and Ink Grade. Carlton earned the title of Master Sommelier at the age of 28 and since then he has been constantly involved in supporting estates to craft premium wines that are elegant, nuanced, and terroir-driven.

Carlton Mccoy. Image Source - Heitz Cellar Wines

What Makes A Wine Brand Premium?

Before thinking of starting your premium wine brand, it is important to understand what is premium wine. Although premium wine may be subjective to a consumer’s lifestyle, it will always have certain attributes that will make it stand out on a shelf. A few attributes that are common in premium wines are:

• It offers a sensory experience through its pairings with food, stunning pictures of the wine in a dynamic setting, or even a classy label that makes it distinctive on the shelves.

• It has a compelling story that keeps the consumers engaged and loyal to the brand.

• It offers good quality and focuses on the expertise of winemaking. The overall attention to detail of the brand is top-notch.

• It is authentic to its brand, committed to the values and vision, and takes inspiration from the story.

Heitz Cellar Premium Wines. Image Source - Heitz Cellar Wines

Before building a Premium Wine brand, the important question to ask yourself is “Why am I building this brand?”. You should be aware of the purpose behind building a wine brand and that will help you to be in sync with your vision and values. It is essential to focus on the longevity of the brand which is far more important than just producing wine.

Key Points To Focus On While Building a Premium Wine Brand

1. A Compelling Story

Having a story is a crucial aspect of building an identity for your brand which allows consumers to connect with it. Human beings are wired to respond better to storytelling and thus, having a strong and compelling brand story will be an interesting aspect. It allows you to sell wine for its purpose and add a personal touch to the brand.

The Story behind Melchor Concha y Toro, one of the premium wines of Concha Y Toro. Image Source - Concha Y Toro history

2. Passion

Your passion will drive your brand. If not every segment of the brand, it is important for you to be extremely passionate about at least one part of the brand, be it winemaking, logistics, or any other. Your passion will drive most of the business and enable you to make your brand from just a wine brand to a premium one. Being passionate about at least one part of the business will help you understand that part in-depth and know why it is essential to hire industry experts for certain segments of the brand.

An interesting example is the Calder Wine Company, which is producing premium wines in Napa Valley. Their passion lies in making wines from some of the not-known grape varieties in Napa and spreading awareness about them. They produce wines from Charbono which originally comes from the alpine vineyards of Eastern France. This has been the main inspiration behind this brand.

A harvested bunch of Charbono at the Calder Wine Vineyards. Image Source - Instagram

3. Quality Of Your Wine

The main attribute that will set you apart and make a consumer choose your brand from the rest of the brands is the quality of your wine. For your wine to be premium, it has to be high in quality, made with the best fruit, and made by the right people with good expertise. Your winemaking process must be extremely precise which allows you to produce consistent wines year after year. If you are not sure about your winemaking skills, hire someone who holds good expertise in winemaking. Make sure you are getting your batches tasted from a group of professionals and taking constructive feedback. 

Submitting your wines at the Sommeliers Choice Awards 2022 will enable you to Raise the profile of your wines and Get you in front of some of the renowned Sommeliers and Wine Professionals. Enter Now

Raise the Profile of your wines at the Sommeliers Choice Awards. Image Source - Instagram

4. A Great Distribution Network 

Producing a high-quality premium wine will only make sense if it can reach the right consumer. For your brand to be able to reach the right buyer and make it to the market, you need to have a great relationship with your distributor. Your distributor will have 50 other wines that have to be sold through him, what will make him sell your wine?  A distributor builds your brand behind your back and which is why it is important to have a strong relationship with yours. Thus, you have to find the right one for your brand and convince them to sell your brand. 

An interesting way to do this is by investing in a good sales force for your company. Through your sales force, you can sell your wine directly to retailers or restaurants and make your brand visible in the market first. Once the brand is visible in the market and if you are providing a premium quality wine, it would become easier to convince your distributor to add your wine to their portfolio.

Republic National Distribution Company (RNDC), A Distribution company based in the US. Image Source - RNDC

5. Focus On Your Buyers

Your first buyer is your Distributor and as we mentioned, it is important to build a strong relationship with them. The second buyer is the Restaurants, Bars, Pubs, and Retailers. An interesting idea shared by Carlton to reach out to them is by visiting them often. He mentions that you should visit a bar frequently where you want to sell your wine, get in front of the buyer, interact with them and come home and write to them about your brand the same night. This can be a very organic and easy way to build relations with restaurants and bars and eventually, you can even support by buying a few bottles from them.

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Your third and the end buyer is the Consumer. To sell to your consumer, it is important to understand what kind of consumers are purchasing your wines at the restaurants or retailers. You can work with them to come up with strategies or ways to sell your wines to consumers. It may seem like a tedious job but hiring a separate team to work on DTC sales will be an added advantage to build a premium brand.

Heitz Cellar Wine, a part of the Secret Cellar Club, an exclusive club for wine connoisseurs Image Source - Instagram

6. Marketing Efforts 

The marketing of your brand plays an equal role in making your brand a premium one as much as the buyers and your story does. Communicating your brand to the consumers in the right way is essential to make your brand visible in the market. Your focus should lie in making your brand visible and consistently informing people about why your wine is exclusive and premium. Marketing is a wider aspect and includes different verticals. It is also crucial to understand the verticals your brand should be tapping into, to reach the right target consumers.

Instagram Handle of Brendel Wines Image Source - Instagram

At the end of the day, building a brand is a people’s business, so never forget who your real buyers are and the thing that makes you feel the most passionate. And this will drive you to build a premium wine brand. 

Article by Shreya Kohli, Beverage Trade Network

Header Image Source - Château de Pommard