I have been pondering the concept of wine clubs recently. Many different styles of wine clubs exist: wineries, distribution companies, boutique group buying, Groupon-style models. They all take on a similar distribution theme – ‘Join our club and try all these amazing wines that we pick for you. You will receive a case a month or every two months, etc’.
Have you ever belonged to a wine club? Inevitably I end up feeling like I am getting a nice mix of their best and their lemons (i.e. bottles they can’t shift through other channels). Either way – even if they are giving me their absolute best in stock – I am a) paying for it and b) have precious little choice about the selection (except for ‘red, white, mixed’). It makes a lot of sense for the wineries and for the distribution companies. Who wouldn’t want a captive (or even obligated) group of consumers for your stock?
I have just read through the Naked Wines website and besides the grammar mistake on the homepage (10 points if you can spot it!) and the seemingly endless list of awards they have won based on their business model of bringing the small winemakers straight to the customer, there is one key ingredient missing. You. The Consumer. The real Buyer. What do YOU like? How are we going to find that out and cater to it? Or – better question – do we even care?
2 responses to “Wine clubs…”
Hi Kristen,
I have worked with wine clubs for over 12 years and I can say that there are some clubs that are more successful than others. The club programs are frequently very important for small to medium size wineries as it can often generates the primary recurring revenue and loyal customer base that keeps their doors open for business.
IS IT A DEAL OR BARGAIN?: Since it so easy to find “deals” on wine a club programs selling their club memberships with the PRICE being the driver will usually not be successful. The programs that are the most profitable work by providing an extended experience beyond the bottle and tasting room such as access to special events, insider-types of experiences, private tastings and special VIP releases, etc. When managed well, the club members become part of the winery community and I have seen loyalty increase from the average of 12 months to 5+years.
The case or half-case every other month is more a Canadian average. The majority of US wineries remain 2-3 bottles with double-up options.
Do you get lemons? Well, a lemon to one person may be lemonade to another. The thought behind the successful club releases is to provide a variety that you may not otherwise taste so as to expand your knowledge and exposure to the wines. I provide the example of people tasting wines at a tasting room. They may start by saying they don’t like late harvest wines or ports but when they do try it, some find they do like the one that is poured. Placing “lemons” into the club releases would reduce loyalty and decrease recurring sales. Does it happen? YES but I have not found this to be a practice that succeeds.
Fyi – The ability to select your own wines in a club release is provided by several wineries.
Many wineries have expanded to barrel and vine clubs and those can be fun and profitable as well.
All the best!
Thanks for your comment. I was speaking mainly from my experience while using wine clubs while I was living in Seattle. I joined a few clubs in the Hunter Valley but I really wasn’t living in Sydney long enough to make much of a judgement. Totally agree that the number of wines can vary – from a few bottles (especially if they are from a winery rather than a distributer like a wine society, etc) to a case. I loved the feeling of being part of a winery family while I was part of their wine club. It was one of the hard parts about moving abroad – I had grown so fond of the Oregon, CA & Seattle wineries whose clubs I was a part of! So, I think there is great value there.
I honestly don’t think I could agree more with your thought that one person’s lemon might be another person’s lemonade. I really think there is more that could be done to help the consumer figure that out before they buy it – know what I mean? Anyway – I really appreciate your thoughts. I’d also love to know more about your business if you’re keen to share!