My involvement in the UK wine trade at multiple levels allows me to encounter a multitude of successes and failures in decision making among wine producers, importers, distributors, retailers and merchants of fine wine. I am honored to be able to wear many different hats at once, but then again, few everyday fine wine traders have had the good fortune to work internationally for investment firms, have traded commodities across multiple continents, and have been able to apply the knowledge of multiple degrees of management. Business and economics to Master of Wine to their daily working lives.
Personally, I certainly do not deny that I have had opportunities that I fear few others who follow in my footsteps will have as we move into a more inward-looking world where volatility and insecurity rule the day, and where the international world rules. Travel is increasingly looked down upon, and often positively discouraged, by forces acting in the name of some kind of greater global responsibility. We seem to be entering a new era of anti-globalization, where growing isolationism is once again seen as a protective shield rather than a self-limiting vice. In this new world, how are companies, and I think wineries in particular, supposed to build their brands internationally when they're facing all these new and unexpected headwinds?
I'm not sure if it's the current stagnant and sticky market environment we all currently find ourselves in or if it's a greater concern in the business community, but every day I encounter more and more wineries, from all over the world, who are clearly dissatisfied with the status quo. , with existing importers, agents or distributors. There are two elements that always stand out to me as I gain the mental willpower to dig deeper and analyze some of the reasons why producers are dissatisfied. First and foremost, this is surely the biggest challenge all wine companies face: routes and market access, and the shrinking number of viable channels in these markets for many producers' products. The second and more important challenge is the general lack of brand building that wineries engage in, individually or in tandem with their agents and distributors, to build an identity for their products in a highly competitive and overpriced market such as the UK or EU.
While the issue of narrowing routes to market is certainly a topic worth focusing on in depth, for now I want to focus on the latter aspect of simply building a brand, which is a crucial element in indicating how a winery is positioning itself not only but Also identify the elements that set you apart from all the competition in a particular market. Recognizing that a wine brand is essentially a liquid promise that a winery makes to a consumer, points to why branding is an essential and important tool for a wine company if it wants to make a name for itself and its products, and forge a cohesive corporate identity for a successful long-term consumer relationship.
With so much focus on the basics of brand building, I've recently been trying to go back to basics to try to identify some of the key elements that some wineries may be missing or simply getting wrong in their overall messaging to consumers. I looked at the textbooks and tried to salvage some important lessons that modern wine companies of different sizes can re-examine when considering their brand building activities in various markets around the world.
For many of the fine wine brands I deal with in the UK every day, one of the most important fundamentals is authenticity, backed by delivering on the quality promise. In today's over-sold wine market, having quality individual wines that actually deliver, or as I prefer, over-deliver, is one of the most important building blocks of a strong brand, especially at a time of rising cost centers that make it very easy for producers to They take their eye off the ball and cut corners, thus compromising the quality and authenticity of their wine. In Cape Town, companies are keenly aware of dry goods scarcity, cost inflation, load shedding and associated high fuel expenses. But if a winery compromises on the quality of its wine, it in turn jeopardizes the core of its broader brand.
Another favorite fundamental of successful brand building is the issue of building loyalty and commitment to a winery or winery's brands. If a winery can build a loyal, committed base with an increasingly committed consumer through honesty mixed with quality and authenticity, loyalty should be forthcoming. Consumer trust over time turns into loyalty, and delivering on your quality promise will earn you consumers' trust. It all seems like a kind of virtuous circle, and in essence, looking at and focusing on core values helps complete the circle. For authentic wineries, branding is not just a marketing exercise. Effective and successful wine brands are lived on, embraced and integrated into consumers' daily lifestyles, ensuring, in most cases, repeat purchases.
Brand building, like wine itself, is an art that begins with strong, cohesive messaging to create an authentic story that can be consistently shared by the winery, but then also by the committed and loyal consumers themselves. Of course, correctly identifying your target market audience and then creating strategic signals that attract them is key to building a successful product brand, making a customer-first approach absolutely essential if a winery is to change and evolve with modern consumer behavior and consumption patterns. But ultimately, in an era of fierce competition, the only sure thing that can make a brand remain relevant is the impeccable quality of individual wines.
Greg Sherwood was born in Pretoria, South Africa, and as the son of a career diplomat, he spent the first 21 years of his life traveling the world with his parents. Sherwood holds a degree in Business Administration and Marketing from Webster University, St. Louis, Missouri, USA, and began his career as a commodities trader. In 2000, he decided to have a long-term interest in wine and took a position at Handford Wines in South Kensington, working his way up to the position of Chief Wine Buyer. Earlier this year, he moved to South African boutique brand Museum Wines to become director of fine wines. He received his Master of Wine degree in 2007.
