How to leverage email marketing to sell more wine & spirits to the TRADE

Don’t let anyone tell you email marketing is dead. It’s only the people who don’t know what they are talking about that spout such nonsense. Almost all wineries and many distilleries currently leverage email marketing on the DTC side of their business. But, it’s on the TRADE sales side of the business that email marketing is drastically underutilized. A big reason for this is the actual people (team members) who design and execute DTC email marketing campaigns are not the same people responsible for TRADE sales.

Opportunity is missed by most people because it’s dressed in overalls and looks like work. Email marketing – done right- IS hard work. There is also a steep learning curve because you’ve got to master a new piece of software (i.e. Constant Contact or MailChimp, etc). Besides, isn’t it the distributors’ job to sell wine to the trade? Right. So, how’s that workin’ for ya?

If your winery or distillery is not using email marketing now to sell more products to the trade, you might want to take a few minutes and read the rest of this article.

Just imagine for a second you had in your possession, say, one thousand email addresses of sommeliers, restaurant owners, independent package store owners, and other various buyer roles in the trade AND you understood how to market your wares to them using email marketing. You would have one of the lowest-cost, highest return routes to market on the planet. You could generate so much new revenue you could easily afford to pay a person to do this full time at a fraction of the cost of a “traditional” sales rep. No company car, no travel allowance, no bloated salary. When Archimedes said, “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world,” he was surely talking about email marketing.

This strategy should appeal to smaller producers of wine & spirits with a tiny (or no) sales team because they don’t stand a chance in the 3-tier environment. Once you know how to a) reach potential buyers and b) get them to “opt in” to your email list your fortunes will surely improve. This is best accomplished by using a magical combination of Facebook ads + Landing Pages + Email Marketing. You use the Facebook ads to target potential buyers and you collect their email addresses along the way. That’s where the Landing Pages come in – this is the key to “converting” all the traffic you’ve generated to actual email addresses. Once you have the email addresses, you can start building relationships directly with the buyers.

Sounds too far-fetched? Sounds too good to be true? Well, truth be told, there is a catch. Using Facebook advertising linked to Landing Pages that are integrated to your Constant Contact account is very difficult to do without expert assistance. But so are a lot of things in life that hold great value and potential. The good news is whatever it costs you to acquire this knowledge will be returned to you many times over. What would it be worth to control more of your own destiny? What would it be worth to rely less on your distributors? What would it be worth to have steady, predictable sales results?
I realize this very modern, very new approach to trade sales is tough to fully grasp and accept. But don’t let that discourage you from forging ahead. There are capable, knowledgeable people standing by to help you get started. Among these is our firm, of course, but also Merchant 23 and LibDib. Demand for smaller wine & spirits producers IS skyrocketing. Retailers DO benefit when distribution is done differently. And I’ve got news for you, many small wineries and craft distilleries are already doing it – even as you read this post!

Until May 6, 1954, no human being had ever run a mile in less than 4 minutes. Just 46 days later, a second person broke the barrier. A year later, three more did the same (in a single race, no less). In the 50 years since, over 1,000 runners have bested the 4-minute mark. My point is it’s too late for you to be the Roger Banister of email marketing trade sales. But, for heavens sake, don’t wait 50 years to get moving on this stuff!

About the Author

Ben Salisbury is the Founder and President of Salisbury Creative Group, Inc. which specializes in helping wineries and craft distilleries achieve high levels of sales effectiveness. Leveraging his knowledge and experience from three decades in the industry, Ben and his team deliver sales, marketing, and distribution expertise to a wide array of adult beverage clients. Prior to starting his own company in May of 2014, Ben spent 17 years as VP of On Premise National Accounts for both Ste Michelle Wine Estates and Constellation Brands.

Contact info:
ben@salisburycreative.com
469-265-2210

Keys to success selling wine in the US -What’s IN and what’s OUT?

I recently completed a survey from a wine trade organization that was seeking insights about what wineries from outside the US need to know to be successful in this market. I could tell by the questions they asked, this organization was clueless. I kept looking for “none of the above” as a response to the questions they asked.

So, once again, I find myself providing a public service to all wineries (both foreign and domestic) who are still operating under the delusion that somehow their story, their wines, and their marketing programs are unique enough and distinct enough to merit placement on wine lists and store shelves.

“Winning” in the marketplace today requires much more than product, package, price, and promotion. The four P’s are important, no doubt, but they are no where near enough. So, the big question is, if those things aren’t enough then what CAN you do?  What, then, ARE the keys to success selling wine in the US Market?  For those who are ready to hear it, here’s my list of what’s “in” and what’s “out.”

What’s “IN”

Working smarter not harder.

Less is more. Leverage the 80/20 Rule in everything you do. For heavens sake STOP confusing activity with achievement. Too many sales people spend their time on extremely low value activities. Selling one case of wine at a time should be a first-degree felony if you’re drawing a salary plus a company car and an expense account. Don’t step over a dollar to pick up a dime.

Direct to Trade.

Just about every major retailer – both on and off premise- plus any wine buyer with an IQ above room temperature has realized cutting deals directly with small, independent wineries and using clearing distributors to fulfill their orders is the way things get done nowadays. Why? Fatter margins, that’s why. Go to the websites of Merchant 23 and LibDib and read everything you can. Or don’t- and continue to wander aimlessly in the desert of despair.

Data and Technology

Buy your own RAD data. Implement CRM and then develop the intestinal fortitude to have everyone use it. I’ve got a short message to owners and sales leaders who pay good money for these things but let their highly paid sales team skip out on using them: grow a pair.

Key Account Targeting

Don’t rely on anyone outside your organization to determine where your products should be sold. Don’t rely on anyone outside your organization to identify the 20% of the accounts that drive 80% of the volume. Use your data and technology to restrict sales activity to only these accounts.

What’s “OUT”

Distributors

This is really very simple. If it’s important to your winery and your brand, you’re going to have to do it yourself. YOU take responsibility for your own outcomes. Don’t blame it on the distributors if you’re not meeting your distribution and volume goals. They are doing the best they can amidst unimaginably challenging circumstances. The best they can do is amplify YOUR efforts. Help them help you. I guess it’s not so much that distributors are “out” as your unrealistic expectations of them are “out.”

Wine Education

Is it important? Yes. Is it compulsory? Yes. Will it drive sales and distribution? F— No! Wine knowledge is important but it’s nowhere near enough. Put down the wine glass, pick up a calculator. This is a BUSINESS! In fact, it’s one of the most capital-intensive businesses on the planet. Go have coffee with your CEO. Ask her about the company’s return on assets. Ask to see the Statement of Cash Flows. Ask her which she thinks is more mission critical to the company’s success – achieving the next level wine certification or a shit ton of revenue.

Excuses

Our prices are too high. We didn’t get a good score. We sold all that wine to Costco last year and now we’re lapping those numbers. Our label won’t stand out on the shelf. We need better POS. We need to spend more on incentives. We need more salespeople. On and on it goes. Excuses are crutches for the weak. This is a very tough, very competitive business. Winery owners and sales leaders, here’s a nickel’s worth of free advice: Fire every sales person who can’t consistently deliver their numbers and use the money to implement the things on the “IN” list above. Don’t put up with excuses for one second. Don’t put it off, either. The best time to plant a tree? 20 years ago. The second-best time to plant a tree? Today.

Our industry puts up with too much coddling. We’re WAY too in touch with our “softer side.” Times have changed. Times are tough and tough times call for INNOVATION, new methods of operating and modern strategies. As a consultant to wineries – both inside and outside the US – one of my greatest joys is watching the light bulb come on for a winery owner. Seeing their eyes brighten as they realize there IS a better way to consistently sell all the wine they make and do it much more profitably. Then we BOTH smile as we realize so few people have really caught on to this. They are still running plays out of the old wine-sales playbook.  And that is great news for the rest of us who are all ready implementing the new one.

About the Author

Ben Salisbury is the Founder and President of Salisbury Creative Group, Inc. which specializes in helping wineries and craft distilleries achieve high levels of sales effectiveness.  Leveraging his knowledge and experience from three decades in the industry, Ben and his team deliver sales, marketing, and distribution expertise to a wide array of adult beverage clients.  Prior to starting his own company in May of 2014, Ben spent 17 years as VP of On Premise National Accounts for both Ste Michelle Wine Estates and Constellation Brands.

Contact info:

ben@salisburycreative.com

469-265-2210

The Pointlessness Insanity of a Wine Market Blitz

While I’m sure occasionally successful sales blitzes do exist, most of them are a giant waste of time and money. I know I’m going to get some vitriolic responses to this post but someone has to tell the emperor he has no clothes. Might as well be me.

There’s only one reason you would want to keep doing something that is not effective and that is if the thing you’re doing is really about something else. In the case of the time-honored wine market blitz (or crew drive), It’s about demonstrating activity. It is not really about selling more wine or building distribution. For proof, just look at the evaporative nature of these “new” points of distribution.

The standard playbook for the wine sales game has not changed very much, if at all, in the last 30 years. And, by far, one of the most dog-eared pages in that book is the market blitz. The idea is to send lots of people into the market place for a day (or multiple days) to present and taste a supplier’s wines to lots of buyers for the purpose of securing new distribution. In theory, it makes total sense. And, to be fair, there was a time in the late 80’s and early 90’s that it really worked. But here in 2018, anyone with a I.Q. above room temperature knows very few if any of those new placements “stick.”

Our industry venerates activity. It’s why we tally the number of sales calls we make. It’s why we want to see our sales people scurrying around having meetings with distributors, “working the market,” and filling out reports (so we can make sure there’s lots of activity). After all, it costs a fortune to have a sales team! To justify the expense, we expect to see people being “busy.” I read a lot of ads on winejobs.com and most of them include a bullet list of “essential functions” of a sales job. These dockets are rife with activity especially those activities having to do with the distributor.

Now, I have written extensively about the futility of expecting your distributors to get much done for you so there’s no need to belabor those points here. Suffice it to say most of the items on the list of activities to do with (and to) a distributor are useless. But, of all the activities you could squander precious resources on, the sales blitz is the most colossal waste of time imaginable. So, why do so many wine companies still do it? Do they really not “get” that none of those placements stick? Do they not realize the entire charade is orchestrated in advance even to the point of retail and restaurant buyers playing along?

The best way I can explain it is like eating one of those king-size Snickers bars. It feels fantastic when you’re in the middle of doing it. Managing distributors and their accompanying geographical scope is a very difficult job. It’s really hard to get a meeting with their management. It’s like pulling teeth to schedule salesperson ride-alongs. At times it feels like you’re getting nowhere. But a blitz! Oh, my heavens. It feels like everyone at the distributor has stopped what they are doing for a day or two and is focusing solely on you and your products. The happiest day in a winery salesperson’s life is at the end of the blitz day crowded around a small table in a dive bar quaffing cold beers (it’s always beer) with their “crew” swapping war stories and tallying the cases and placements. Sheer euphoria!
There’s only one problem. It was all for show. An illusion. A farce. A charade. And, if you ask me, a very poor substitute for doing the real, very un-sexy work of building high quality distribution that STICKS. Not sure how to do that? Give me a call and I’ll be happy to help you out of your straitjacket.

I Have A Distributor! Now What? (guest blogger, Sue Jones)

Congratulations, Mr./Ms. Supplier!  You’ve pitched your brand(s) and product strategy to a distributor, and they have agreed to sign you up.  Distributors have the warehouse capacity, teams of trained sales reps, and relationships with accounts across the state to grow your brand.  Time to roll up your sleeves and get to work.

Wait, what?  Unfortunately, having a distributor does not equate to immediate and automatic distribution, particularly for new brands.  Having worked in two tiers of the three tier system, I’ve experienced this painful reality many times.  Signing on with a distributor does give your company and brand(s) broader visibility to a statewide audience, but that’s when the selling really begins.  More opportunity means more work.

In the current economic climate, competition is especially fierce across all channels.  The beverage alcohol industry has gone through rapid and continuous transformation in recent history.  Consolidation in all three tiers of the industry has changed the dynamics dramatically.  The major suppliers are in acquisition mode and getting bigger.  Distributors are joining ranks and consolidating across state lines.  Retailers are constantly changing their business models to maximize profit, making slow and thoughtful brand building very difficult.  Add the increased number of new categories and entrants into an already crowded space, and we have quite a challenge.

Even so, there is still opportunity for success in beverage alcohol; you just have to be smarter and more focused than ever. Following are some DOs and one big DON’T for new or small suppliers that want to make their mark in the beverage alcohol space and impress their distributors.  Maybe some gentle reminders to large, more established suppliers too?

DO optimize your website for mobile devices.  Truly, this needs to be on top of the list.  Everyone has a cell phone, and everyone searches the Internet if they have a question.  When a user clicks on your website on their phone for the first time, the experience needs to be engaging and informative.  If your website takes too long to load or is hard to navigate, the user will lose interest and move on.  It seems so obvious, but how many websites have we clicked out of because it just took too long to get what we wanted?  There’s so much opportunity with social media, but that is a separate conversation!

DO spend time honing your brand strategy and priorities as well as developing the communication, marketing, and sales tools to support that strategy.  Make no mistake.  This is a lot of work, but the brand message needs to be a clear and concise conversation, from the supplier all the way to the consumer.  If you don’t have those defining points of differentiation, the only selling tool you really have available to you is price.  Price is a hard game to play in and even harder to win, especially when you’re trying to make a profit.

DO get out into the market and sell.   You developed a great brand and story to support it. You and your team are by far the most knowledgeable brand champions that can tell the story most passionately and eloquently.  It’s also the best way to find out how your story is resonating in the market and who is responding to it.  Here’s a little secret:  Distributors know which suppliers are out working the market and the ones that are not.  They will respond to your efforts accordingly.  It may sound strange that they notice, especially for larger distributors, but it’s true.

DO keep it simple.  Sell sheets, PowerPoint presentations, programming elements, the mantra is this:  Less is more.  If a sell sheet has the fine print of a car leasing contract or a PowerPoint presentation reads like War and Peace, it’s too much.  It’s not focused.  Think sound bites, especially when you are working with sales.  They have dozens and dozens of brands to sell; help them help you get your brand message out into the market quickly and easily.

DON’T assume.  A very sweeping statement, but this happens all the time because of lack of priorities and focus.  I have lots of stories around this topic because it’s an easy trap to fall into.  In short, if you find yourself saying “Well, they should know,” there’s likely a reason why they don’t.  From vague or incomplete brand information to lack of clear priorities, there’s lots of room for confusion and miscommunication.  Trust your gut; if you sense something is not happening as expected, proactively ask.  You won’t regret it.

Daunting.  I like the word “daunting.”  It sounds like what it means:  intimidating, difficult, discouraging.  Introducing a new brand in a new market is a daunting task, but it is not impossible.  Start small and build on your successes.  Once you get traction, it does get easier.  Well, maybe a little easier.

We would love to hear from you if you’d like more information about how to accelerate your sales using “modern” strategies and tools.

About the Author:

Sue is currently a Senior Consulting Director for Salisbury Creative Group, Inc. She has been in the beverage alcohol industry for over two decades in various sales finance leadership roles for companies such as Constellation Brands, Ste. Michelle Wine Estates, Edrington US, and Young’s Market Company.  She has moved across the country on purpose to get a better understanding of the intricacies of the beverage alcohol industry across geographies.  She is passionate about finding and sharing best practices.

Putting the Business Back in the Wine Business

People get into the wine business for various reasons but the most obvious one is they love wine. A quick Google search of the phrase, “Why I love wine” yields more than half a billion results. Half a billion! Once you’ve been bitten by the wine bug, you are helplessly and hopelessly carried along on a never-ending quest for knowledge, discovery, and hedonistic pleasure. Wine quenches not only your soul’s thirst but your mind’s as well. History, tradition, geography, and health are just a few of the more cerebral facets of wine.

But, for all its romance and sensuality, wine is also serious business. Its commonly accepted that the best way to make a small fortune in the wine business is to start with a large fortune.  Between land, buildings, equipment, employees, and reams of regulations, starting a winery is one of the most capital-intensive endeavors on the planet. And even if you do everything right, you still must wait many years before you’re ready to bring your precious vino to market. And that, my friends, is when the proverbial s*#t gets real.

Selling all the wine you make is a hundred times harder than it was ten years ago. The consumers are there, no question. With the Baby Boomers on one end and the Millennials on the other, there is no shortage of people who want to buy wine. The problem is two-fold: tens of thousands of competing brands and fewer and fewer distributors. There is a bottleneck that continues to gets more constricting every year.

What remains shocking to me (and I addressed this at the Wine Industry Technology Symposium this week) is how few wine companies have made the appropriate adjustments. A reasonable person would think, in the face of massive headwinds, sales executives would be ripping pages out of the old playbook by the dozen and sweating feverishly in front of their war-room whiteboards. But, nope. They just keep running the same old plays. Wine education. “Managing” the distributors (it hurts just typing those words). Creating incentives. Planning crew drive and “work-withs.” Organizing trips to the wine country. Standing up and boring the snot out of people at a wine dinner.

So for those still asleep at the switch, and as a free public service, allow me to put a few modern strategies on your clipboard. It’s time to put the business back in the wine business. First, stop depending so much on your distributors. The days of distributors being able to do everything for you are long gone and they are never coming back. Next, invest in data, technology, and the best practices that go with them. Put down the Riedel and pick up a keyboard and mouse (or better yet, an iPad). The 80/20 Rule is real, and you ignore it to your peril. The data and the tools exist to be much more strategic in the use of your sales resources (time, people, dollars). The key to accelerating sales growth is to narrow the focus of your activity to only the most attractive and responsible accounts. The data will tell you what accounts those are. Thirdly, throw out the “old school” measurements like shipments, depletion, and accounts sold and start tracking POD against target accounts, sales per point of distribution (velocity), and level of market penetration. Lastly, hold people accountable for results. CRM is the answer and since you now have a keyboard in front of you, start searching the internet for articles on why it’s so valuable. Don’t worry about how your sales team will respond.  If you can’t change your people, change your people.

Nothing I said in the previous paragraph is sexy. None of it is romantic or hedonistic or even remotely sensual. But it is absolutely mission critical if you want to survive. There will be a time and place to put up your feet and watch the light play off your magical elixir. But not before you’ve sold all that wine stacked up in the warehouse.

About the author

Ben Salisbury is the Founder and President of Salisbury Creative Group, Inc. which specializes in helping wineries and craft distilleries achieve high levels of sales effectiveness.  Leveraging his knowledge and experience from three decades in the industry, Ben and his team deliver sales, marketing, and distribution expertise to a wide array of adult beverage clients.  Prior to starting his own company in May of 2014, Ben spent 17 years as VP of On Premise National Accounts for both Ste Michelle Wine Estates and Constellation Brands.

 

 

Contact info:

ben@salisburycreative.com

469-265-2210

Wine Knowledge Matters, But WAY Less Than You Think

I’m sure to draw some fire for uttering such blasphemy, but if you take a very hard, very honest look at what’s really going on in the wine business today, you’ll see that wine knowledge, while very necessary, is no longer sufficient to compete and win. And, that’s my whole point. No matter how much you know or what levels of certification you’ve achieved, it’s not enough to overcome the intense competition for wine menus and shelf space. Too many wines, too few distributors, and a generational shift in buying habits have changed the rules of the wine-selling game so dramatically, most wine companies who operate in “traditional” ways are struggling. A quick look at the latest US Nielsen data shows that of the 67 manufacturers who produce and sell 84% of all wine in the Nielsen universe, 55% of them are down in volume over the last year.

It should be no surprise that focusing on the where, how and by whom each wine is produced would be first and foremost in our minds. With the possible exceptions of cheese and child-rearing, wine is the most complicated and difficult subject on the planet to master. And this fascinates us because in addition to being complex, it’s also intensely pleasurable. For most of us, wine is literally essential to joyous living. But, wine is also a business. And being successful in business requires skills and knowledge that are as far less stimulating to our base instincts.

Take for example the chore of selling wine. For whatever reason, our industry is stuck on the notion that if salespeople just knew more about the product, they’d be able to sell it much better. I can’t tell you how many times I’ve showed up at the annual national sales meeting of a wine company, saw “training” on the agenda, and knew exactly what that meant: we’ll be tasting a lot of wine.

OK, so now I’m really going to piss a lot of people off. The key to successfully selling wine (or anything, for that matter) has very little to do with product, presentation or persuasion and far more to do with solid business acumen and strategy. This is so difficult for most wine sales people to grasp because they didn’t join this industry to be “business people.” They want to learn and teach and pair stuff and feel superior and memorize as much as their brains will allow. Now, hear me out, please. There is nothing inherently wrong with these things. The problem comes when there’s too much of the former and not enough of the latter.

The scales are tilting. It’s a dog fight. New abilities are needed. It’s about margins, not mid-palate. It’s about segmenting, not seamlessness. It’s about prioritization, not phenolics. While most are left-banking it and right-banking it, the REAL bank wants their money! I am not exaggerating when I say there are salespeople on the street today that can rattle off all the Crus of Beaujolais but don’t know the difference between markup and margin.

Even the measurements of success have changed but very few are paying attention. We think because (after 90 minutes of talking and tasting) we sold a case or two of wine that we’re doing our job. Distribution is one thing, but QUALITY distribution is something altogether different. Business savvy wine companies today measure the “stickiness” of high quality placements and the “velocity” that each point of distribution generates. There is rigor and discipline in their ground game.

Wineries today (especially those who are not profitably and consistently meeting their business objectives) need to take a hard look at their sales strategy and sales process. It is too skewed towards product knowledge? A solid foundational mastery of the product we sell is compulsory. But, it’s not enough. Let me just rewind that for emphasis: it is not enough. It’s time to start weaving in the disciplined best practices so essential to the business. If you’re not sure where to start of where to go for THIS type of training, my door is always open.

About the Author

Ben Salisbury is the Founder and President of Salisbury Creative Group, Inc. which specializes in helping wineries and craft distilleries achieve high levels of sales effectiveness.  Leveraging his knowledge and experience from three decades in the industry, Ben and his team deliver sales, marketing, and distribution expertise to a wide array of adult beverage clients.  Prior to starting his own company in May of 2014, Ben spent 17 years as VP of On Premise National Accounts for both Ste Michelle Wine Estates and Constellation Brands.

Contact info:

ben@salisburycreative.com

469-265-2210

Stop Depending So Much On Your Wine & Spirits Distributors, Part II

When I first published the original blog post almost 2 years ago, it went completely viral receiving over 5,400 views, 52 reshares, 34 comments and 180 likes. You can read the original post here.

Clearly, this article struck a nerve which wasn’t a complete surprise. But, what DID surprise me was how supportive distributors were of the piece. It became apparent to me that I was delivering a message that desperately needed to be sent to the vendor community, but no one wanted to be the one to send it.

The key takeaway from the article was, “Times have changed.” What used to work (educating distributor sales teams, creating meaningful incentives, and holding sales crew drives) is no longer nearly enough. The simple reason is distributors, in this age of consolidation, are completely overwhelmed. They simply cannot do for their vendors what they used to be able to do – especially if you are expecting them to do it all for you.

In this “refresh” or what I’m calling “Part II,” I want to expand on that theme. As an expert sales consultant to wineries and craft distilleries, when I encounter a client that is unhappy with their sales, the first thing I ask is, “To what extend are you relying on your distributors to build distribution for you?” It is shocking how many continue to believe that finding and retaining the services of a distributor is the end goal of their distribution strategy.

For further proof, just scan through a few of the classified ads for wine & spirits sales jobs. In the “Essential Duties and Responsibilities” of the ad, you’ll see phrases like, “establish and maintain strong relationships with all levels of distributor management personnel,” or “provide clear goals and supervision of distributors,” or “adequately motivate, educate and incentivize distributors to achieve volume and distribution goals.” So, let me get this straight, the key to building high quality distribution is to motivate, educate, and incentivize the distributor?” And, “clarity of the goals” will somehow move the needle? Man, oh man, are you ever stuck in the 80’s!

I’d like to provide a public service to all stuck-in-the-80’s wineries and craft distilleries out there by making two very important points:

  • Even the very best distributor can only magnify your efforts in the market. So, if you or your people don’t work on your own behalf in a market, don’t expect your distributors to work on your behalf. Help them help you. It’s that simple.
  • If it’s important to you, you must do it yourself. Do you want to gain placements in an important regional chain? Then put in the time, energy, and hard work it will take to establish solid, business-based relationships of your own. Don’t expect the distributor to just set you up with an appointment so you can piggy back on their years (and in most cases -decades) of hard work. Do you want to have your high image wines on the wine lists at high image restaurants? Then YOU must not only put in significant time in the trenches but be very patient. There is nothing so special in your sample bag that these restaurants just “have to have it.” The relationship has to come first and it will only happen if you earn the right to sell to them.

So, if you can’t rely too heavily on distributors to build your sales and distribution for you (like in the good old days), what can you do? You can start by waking up to the reality that is 2018. It’s a new day, a new environment. Like the old Vaudeville joke where the guy goes to the doctor and says, “It hurts when I do this…” and the doctor responds, “So, stop doing that!”

Once you’ve accepted the new reality, you can begin taking steps towards the do-it-yourself end of the spectrum. Decide which key accounts you want to be in. Commit to investing in RAD data and CRM. Restructure your sales team into two distinct roles: those that manage distributors and geography and those who call on chains and key accounts. Lastly, leverage digital and social media focused on both trade and consumers. It’s a new day and time, folks! And some of you need to go “back to school” to learn the NEW ways of building sales & distribution. To that end, my door is always open. I’ve shown others how to adjust. I’d be happy to show you and your team as well.

Ben Salisbury is an industry veteran and former sales executive with Constellation Brands and Ste Michelle Wine Estates. He now operates his own sales consulting practice for the wine & craft spirits industry. ben@salisburycreative.com

 

How Mature is Your Wine Sales Management Model?

I recently became familiar with the concept of CMM (the Capability Maturity Model) during an ideation session with a tech-pro friend with whom I frequently collaborate. Maturity Models come from the field of software development, but I immediately began to draw correlations to the wine industry.

The term, “maturity,” relates to the degree of formality and optimization of processes. On the immature end of the spectrum, you have chaos or informality.  From there, the organization “matures” through various stages culminating in “sustainable, predictable results.”

 

As a consultant specializing in helping wineries accelerate their distribution and sales, my mind began immediately thinking of ways I could help clients “move up” the ladder of maturity in their sales process.

I’ve been writing for some time about how the model our industry’s been using for 30+ years now is “broken.” What once worked to grow sales and distribution in the US no longer works for various reasons. You can read about those reasons in other posts.

Of course, there is a wide array of maturity levels among winery sales teams. So, here I offer a little self-assessment every winery can use to evaluate their current state.

Chaos

You operate with a highly informal, just-do-it mentality. This is a more intuitive model driven primarily by strong relationships with distributors. You’re so afraid of burdening your sales team with “admin work” you leave it up to them to mostly manage themselves. One of the attributes that characterizes this level of maturity is your sales team tends to more closely identify themselves with their distributors than their own company by defending them and helping them justify poor performance. Account selection could best be described as “go-with-your gut” or “ask-your-distributor.” You believe your wines are so unique and so distinct, all that is lacking between you and success is more education.

Documented Process

You have developed some repeatable processes which may include establishing goals by brand, channels of trade, and premise. You even have a rudimentary process for targeting key accounts (but it’s based upon highly subjective and qualitative inputs like Zagat lists rather than hard data and empirical evidence of potential). You do a great job of measuring performance but tend to use lagging metrics (shipments, depletions, and accounts sold) rather than leading metrics like sales per point of distribution potential (velocity) and # of wines by the glass for specific product sets in specific account sets (right wines in the right places).  You are still clinging to the fantasy that the right incentives or the right amount of portfolio education will somehow cause your distributor to meet your expectations of them.

Predictable Results

You’ve identified the 20% of the accounts that drive 80% of the business and have the systems and disciplines in place to monitor sales activity and results against them. You don’t rely on your distributors very much beyond maintaining inventory and delivering the products your team has sold to accounts. You’ve taken complete responsibility for your own results and have separated your sales team into two distinct functions: those who manage distributors & business units and those who actively sell to key accounts (on, off, chain, and independents). You fully leverage all available data and technology to set goals, conduct surveys, record daily sales activities, and meticulously track compliance against your on and off premise chain authorizations -all using a mobile device.

Of course, there are more than just three stages of maturity – probably closer to five. But, I hope these three broad “buckets” have given you something to think about and discuss with your team. If, after some self-reflection, you think you might need some help from outside experts like me,  send me an email at ben@salisburycreative.com or visit my website www.salisburycreative.com

6 Reasons You Don’t Sell all the Wine You Make

The wine business is the most competitive consumer product group in the world. I defy you to come up with a category with more choices and more complexity. Oh, and guess what- every vintage is different!
Not to belittle the talent it takes to grow grapes and make wine, but you could be awesome at both those things yet if you suck at selling it, you’d better have a fat bank account from which to hemorrhage money.
If you (profitably) sell all the wine you make consistently every year, stop reading this post. You sure don’t need to waste one more second listening to me. But, if you’re among the THOUSANDS of winery owners who lay awake at night because the grapes for the new vintage are ripening in the vineyard while the current vintage remains stacked in your (or worse, your distributor’s) warehouse, please read on.

1. Depending too much on your distributors. Bottom line, distributors can only magnify YOUR efforts. If no one from your sales team has been in the market for six months (and I mean to work that market), don’t blame the distributor for your piss-poor results. All they are doing is magnifying your effort which, of course, is zilch. You’ve got no business asking for meetings or anything else if the remnants of your sales team’s shoe leather isn’t strewn all over town.

2. Too much emphasis on product knowledge. Let me preface this by saying I have the palate of a wolf and in a million years I could never become a Master Sommelier. My hat is off to anyone who can do it. They are the rock stars of our industry and they deserve our unwavering respect. But, I’ve sold millions of cases of wine in my career and made a handsome living for my family with only a slightly above average knowledge of wine. Wine knowledge is great- in fact its compulsory. But if you own a winery and you think “more education” is going to help you sell more wine, get used to disappointment. If your job is to sell wine or manage a team of people who sell wine let me give you some sobering advice: no one makes any money in this industry until someone BUYS something. I know this sounds blasphemous, but our industry revers wine knowledge at the expense of commerce. If the word “sales” is anywhere on your business card, you should sniff & swirl less and pound the pavement more.

3. Success in selling wine is not about persuasion. It’s also not about giving a great presentation or expertly overcoming objections. And, it sure as hell isn’t about features and benefits. I swear if I hear one more salesman tell me how often they stir the lees or how great their wine pairs with seabass, I’m going to drop an f-ing toaster in my own bathtub. Success in selling is about targeting the right customers and helping them improve their business. You can get anything you want in life if you’re willing to help enough other people get what they want. Shut up. Do your homework. Come back when you can add real business value. Rinse & repeat.

4. Treating all customers as if they had the same value. It’s shocking to me how rare it is to find a sales leader in the wine business that not only believes in the 80/20 rule but has the discipline to apply it. “Accounts Sold” is the worst metric in our industry because it assumes an account is an account is an account. A better metric is sales per point of distribution (velocity). Identify the 20% of the customers who sell 80% of the wine in each market and ignore the rest until you’ve met your volume goals. And for heaven’s sake, don’t ask your distributor to do this for you. It’s 2018 for crying out loud. The data and technology exist for you to do this yourself.

5. Most salespeople suck at time management. It’s a fact: left to their own devices, salespeople rarely act in the best interest of the company (or even themselves, for that matter) when it comes to how they spend their time. Sales people need direction. The single fastest way to accelerate your sales volume is to restrict all sales activity to only the most attractive and responsive accounts and ignore the rest. Sales people everywhere confuse activity with achievement – and shame on you sales leaders for letting them do it. Being “busy” is worthless unless its accompanied by a large stack of orders. So, the reverse is also true- if a salesperson consistently meets their sales goals year after year, they should be allowed to do whatever they want whenever they want to. They’ve earned it. For everyone else, though, the solution is CRM. “Oh, it’s too expensive. Oh, it’s so complicated. Oh, it’s so ‘big brother-ish. Oh, we don’t want our salespeople doing all that admin.” Let me clue you in- they’re already doing admin, they’re just doing it poorly. Fire your 2 or 3 worst performing sales people and use the money to invest in CRM. Don’t look at the cost. Look at the ROI. Which is more expensive? A fork lift or a hand truck? Fork lifts, while more expensive than hand trucks are worth every penny when it comes to moving wine around in your warehouse. If you want to move lots of wine in the market, invest in CRM.

6. You don’t know enough about where all your wine is sold now. Complacency cannot exist in an atmosphere of knowing. The data exists right now to know where every bottle of your wine was sold (talking retail level depletions here a.k.a. RAD). By store address. By SKU. By channel of trade. Chain or independent. You get the idea. This data should be on every winery owner’s desktop in a format that can be sliced and diced and analyzed with just a few mouse clicks. Another great reason to use CRM. Not only should you know who your best accounts are all over the country, you should be able to communicate directly to them. It’s been said, “The best thing to put in a vineyard are the owner’s footprints.” Well, “footprints” in the market is equally important and business intelligence at your fingertips is what makes those footprints. I want to make a very significant point, here: I’m not talking about the depletion reports you get from your distributor. I’m talking one centralized source that collects, aggregates, and delivers the data for you. You can’t afford not to be buying this data and the tools to analyze it.

It is so easy to get caught up in the romance of wine in this industry because wine is romantic. After 34 years in the industry, however, I can credibly say there’s a terrific paucity of business acumen. I hope this blog post makes lots of winery owners stop and think about the business part of their wine business. And, as always, I’m here to help with that.

Ben Salisbury is an industry veteran and former sales executive with Constellation Brands and Ste Michelle Wine Estates. He now operates his own sales consulting practice for the wine industry.

The High Cost of Unrealistic Sales Goals

One of the greatest thrills of a top-performing salesperson comes from hitting their sales goal. Not just once, but consistently. So when you, as a leader, habitually put the targets out of the reach of even your best performers, it’s like shooting yourself in the foot and them in the heart.
Stretch goals are fine. Stretch goals are healthy. But there is a big difference between a stretch goal that offers a tantalizing challenge for your sales team and one that sucks the very life out of them.
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The first and most costly part of unrealistic goal setting is silent non-compliance. Your best salespeople will just “check out” and the worst part is you won’t event know it. They’ll put on a rah-rah face and go through the motions, but inside their own heads they know full well there is no way that goal is getting met.
I would like to come right out and say that goal setting for sales teams is a fine art. I’m glad I own my own company, though, because if I’d used the word “art” in relation to “sales” in my former life (flesh pressed into the sweaty ranks of a corporate sales scrum), I’d be staked out on the ground and gagged with the sales leader’s tube socks. I’ve never been much of an athlete but, having spent a career in sales, I’ve had a belly full of sports analogies. Arms locked; head down; throw your gut into it; never quit; never say die. Second place is the first loser and all that.

I know I’m going off on a tangent here but this is a big part of the problem – especially in the adult beverage industry – sales teams led by frustrated “athletes” with pseudo-macho swagger. I’ve got no problem with “leaving it all on the field,” but last time I looked, a P&L wasn’t printed on Astroturf. Ironically, “winning” with customers from a sales perspective has absolutely nothing to do with “drive” and “guts.” It’s about much softer skills like dependability and trust. When I look for great salespeople, I don’t look for the drive of an athlete, I look for the heart of a servant. I place a much higher value on promise-keeping than butt-kicking. No doubt there are plenty of former (and current) athletes that are excellent sales pros doing a great job year after year. My point is unrealistic sales goals are too often created because of the macho mindset so prevalent in our industry.

OK, back to the main point. The second most expensive cost of setting unrealistic goals is that it fosters a culture of failure. What normally happens when a salesperson continually misses their goals? That’s right: they either quit or get fired. Either way, it’s failure through and through. Now, for those who might say, “Good riddance,” keep in mind it’s impossible to keep great salespeople on the roster in an environment like this because culture is important to sales pros and, as I’ve said before, culture eats strategy for breakfast. Per my previous post about why sales incentives don’t work, great salespeople aren’t going to respond to your “carrot and stick” approach. Nothing will drive them away faster than goals that are too high because nobody likes to feel like a failure.

So, what am I saying? Create a soft, cushy environment? Give everyone a trophy? Of course not. This is business we’re talking about. A business has goals and they need to be met consistently. Just be smart about it. Be mindful of the cost of unrealistic goals. One way to tell if your goals are too high is to ask yourself how often your team achieves them. If everyone on the sales team is missing the goals, they are probably too high.

The last cost of unrealistic sales goals that I’ll cite is poor quality of distribution. In the pursuit of aggressive goals, salespeople and distributors will do things that are not in the best interest of the brand. For example, a common tactic is to write lucrative incentives for distributors to go out and gain new distribution. While this might look good on the surface, what you end up with in reality is placements at restaurants and retailers where the account buys just enough to qualify the distributor sales rep for the incentive –and no more. A very large percentage of those accounts never purchase your products again. This goes on every day of the week all over the country. Is the equity of your brand truly enhanced when you gain 50 new points of distribution but 45 of them never purchase your product again? These “one-and-done” sales come back to bite you because there’s no stickiness to them. Now, for those companies wise enough to invest in a CRM system that is embedded with RAD data, this can be monitored. Without CRM, however, you may not even know this is happening.

Setting goals that stretch an organization to full potential is a critical business imperative for any consumer product company – especially within the hyper-competitive wine, spirits and beer industries. Goals that are unrealistic and un-achievable, however, are not only counter-productive but very costly in terms of failing to keep salespeople engaged and the erosion of precious brand equity.