How to Apply DTC Sensibilities to the 3-Tier System

Paul Mabray of Emetry shared an article on LinkedIn the other day about how the direct-to-consumer model is infiltrating the alcohol industry and I haven’t been able to stop thinking about it since. In case you’re not familiar with Paul’s work, I consider him the EF Hutton of the wine industry. When he talks, I listen. When he posts and article, I read it.

The take-away from the article that’s induced my insomnia for two nights in a row is this idea of “applying DTC sensibility” to the 3-tier system. My post is all about expanding on this idea.

When the supreme court case, Granholm v. Heald, was decided in 2005, it kicked off an avalanche of investment and innovation the likes of which our industry had never seen. It was our Y2K. Only this time instead of stocking up on freeze dried foods and filling our bathtubs with fresh water, it was all about rushing to install CRM systems, e-commerce platforms, legally compliant order fulfillment and a whole slew of new marketing strategies & tactics. Wineries found themselves face to face with the ability AND the platform of permission to connect directly with consumers in a context other than their own tasting rooms.

It’s also quite interesting to recall that, at the time, the formidable Wine & Spirits Wholesalers of America had a singular focus for the funds in their lobbying coffers which was to stop the DTC train from ever leaving the station. I remember this well because I was heavily involved in helping to recruit new members to the American Beverage Institute which was up to its eyeballs in the battle against the (successful) attempt to lower the BAC level to .08 in all states. Despite strident efforts by some of the most powerful buyers of alcohol in the country, WSWA’s standard response in refusing to support the ABI financially was they needed to keep all their powder dry for the DTC battle. In the end, consumer choice won out as it inevitably does.

But the Granholm decision was 14 years ago. No one can deny most if not all the wineries in the US have been working overtime ever since to capitalize on the opportunities ushered in by the ruling. I’d go even further to say the epic proliferation of US wineries was enabled by this newfound marketplace. It allowed for small wineries to sell their entire production without ever having to darken the paneled hallways of a distributor. We’ve come a long way and learned a great deal about CRM, email marketing, targeting & re-targeting, data sets and a host of other tech and data driven best practices. And yet, from where I sit, I’ve seen very little of this transfer over to selling efforts in the 3-tier system. I certainly have my own theories of why this is. At most wine companies, the DTC team is siloed away from the “regular” sales team that oversees the wholesale network, which is a shame, in my opinion, because many of the same SENSIBILITIES can and should be applied to the trade side.

For example, take email marketing. What is your strategy for acquiring well-qualified email addresses of trade buyers from all over the country? How large is your list now? How is it segmented? How dialed-in is your messaging and your use of email service software such as MailChimp or Constant Contact? Many wineries have their email marketing tool as a plug-in to their e-commerce system, so they’re not used to operating it as stand-alone platform. What a missed opportunity! Especially considering the low cost of this technology.

Next, let’s talk digital advertising. How often do you upload lists of trade buyers to your Facebook Ad Account, save it as a Custom Audience and then create Lookalike Audiences so you can launch highly targeted ads on Facebook aimed at wine buyers both on and off premise? How well are you leveraging Facebook’s Audience Insights tool to research and create trade audiences with titles like Restaurant General Manager, Bartender and people who have an interests like Master Sommelier and WSET. Do I hear crickets?

And don’t even get me started on CRM! News flash: CRM is not just for DTC! Talk about DTC sensibilities circling the drain (instead of being leveraged). As powerful as CRM is and has been for the DTC channel, it’s TEN TIMES more powerful in the 3-tier realm. I’ve been a street-corner evangelist on this topic for more than 5 years. My poor, ragged cardboard sign is in tatters. But don’t cry for me, Argentina. Cry for yourselves. Because while you’ve been doing what you’ve always been doing (believing the distributor is the center of your universe), many of your competitors have been going to night school at places like the University of GreatVines and KARMA College, putting in the time required to learn CRM sensibilities- but this time for the trade. And now, while you’re asleep at the wheel (blissfully unaware just how dramatically this business has changed in the last 14 years) a new breed of wine companies (armed to the teeth with said DTC Sensibilities) are quietly eating your lunch. Nom Nom.

So let’s go back to the DIGIDAY article that launched this rant in the first place. It’s called, “Direct-to-consumer is coming to the alcohol industry” (dated July 9, 2019). Just for fun, let’s Key Word the crap out of it. Here goes: “infiltrate, shift, branding, opportunity, content, growth playbook, hit mainstream, making an impression, brand equity, natural evolution, growing competition, healthy results.” By the way, I don’t meet a lot of wine sales pros who eat, sleep and breathe key words. Case in point.

Since it’s a Friday, I’d like to end on a positive note. It is by no means too late to start applying these DTC Sensibilities to the trade. If fact, if past performance is any indication of future results, you’ve still got a gigantic head start on the rest of the field.

The Greatest Paradox in Wine Selling

The wine business is full of contradictions. But, nowhere are the illogical absurdities more abundant than on the selling end of the game. The tragedy is the beliefs wine sales pros hold most deeply are the very ones in desperate need of some serious myth-busting.

Take for example the dogmatic notion that there is a direct correlation between the amount of wine knowledge someone has accrued and their ability to sell it. I’ve spouted off on this misguided perception in other places, so I won’t belabor the point here. Ironically (and paradoxically), the higher you go on the learning scale, the less in touch you are with the mindset of the average wine consumer.


Another incongruous and highly unsound bit of reasoning is the belief that the best way to sell wine is to blather on endlessly about its flavor, its provenance, and its “story.” Everything about this approach makes complete sense to our brains. People love stories, we say. Stories sell, we say. The problem is the vast majority of conversation and persuasion around a wine’s “distinctiveness” (in quotes here because there’s a lot less distinction among wines than people think – yet another paradox) takes place between the employees of the company that produces the wine and the employees of the retail/restaurant community. The consumer rarely if ever partakes in this supposedly game-changing storytelling.

But the wine selling paradox that frustrates me most is the persistent belief that the more accounts in which you have distribution the more wine you will sell. The widely used and highly revered metric of “accounts sold” is held up as one of our industry’s most important KPI’s. Yet, while it could be true (and makes perfect sense to our brains), it seldom IS true. The reason, quite simply, is not all accounts are equally capable of moving lots of wine through their operation. Like it or not, the 80/20 Rule is real. A fatally ironic twist in this more-is-more fallacy is it is now 100 times more difficult to put your wine into distribution than it has ever been. So, in reality it’s a very a good thing that not all accounts are equal and wineries who have the presence of mind to aim their time, money, and manpower with great precision will enjoy consistent and profitable sales results year after year.

The massive explosion of the number of wine brands for sale in the US combined with the ever-shrinking pool of distributors has created a very unworkable situation for ALL sizes of wine companies: large, medium, and small. Never in the history of the wine sales game has it been more important to choose your points of distribution as wisely and strategically as possible. My suggestion is to trade off a little bit of time spent amassing wine knowledge and use it to more thoroughly research the market opportunities.

The key takeaway from this blog post is to do your homework and choose your targets wisely. The single biggest determinant of volume in any given account is foot traffic. The best accounts in which to seek distribution are incredibly busy – packed every day. THESE accounts are worth pursuing above all others because they sell so much more wine than all others. So, how can you tell which accounts fit this profile? For restaurants, look for “indicators” of volume like lots of private dining space, outdoor seating, and massive numbers of reviews on Yelp. BTW, “most reviewed” is a much more reliable indicator of volume than “highest rated.” Ratings are subjective. Foot traffic is not only objective but a rock solid gauge of volume potential.

On the off premise side, one of my favorite targets are retailers who sell as much or more wine off their website than they do inside their brick-and-mortar store. These accounts are not limited in any way by their shelf space and can carry a virtually unlimited “inventory.” They are very easy to find if you know where to look, what to look for and are willing to spend time on it.

Taking time to understand, research, and target highly desirable account types is one of the most important ways modern wine salespeople can spend their time in this highly competitive environment. And the good news for those of you reading this post is most of your competitors will continue to cling to the “old playbook” and look elsewhere for keys to sales success.

Less really is more. Not all accounts are equal. Narrow the focus of your sales activity, don’t widen it. Truly, one of the great paradoxes of our time.

The More You Act Like A Salesperson, The Less You Will Sell

I predictably get strange looks whenever I tell salespeople that “real” selling isn’t necessarily about the product. It’s such a counter-intuitive concept to the untrained, amateurish seller of goods that they convulse involuntarily when I espouse the notion.

If you look as closely and as frequently as I do at the profession of selling (which already ranks among the most maligned of occupations), you’ll see very distinct camps or schools of thought and these demarcations are easily put into a hierarchy representing progressive levels of expertise. In a fairly simplified way, I’ve arranged them for you here:

At the very lowest level is the “TRANSACTIONAL” approach. This is the bastion of the much revered but hopelessly obsolete features-and-benefits style of selling. I have a product to sell. You have money. I’m going to keep spewing facts until you buy. The seller sees features and benefits as a logical, linear pathway to fulfilling your prospects needs but the buyer sees only trivial BS. Need proof? Just look at the expression on your prospects face when you’re engaging in transactional selling. You can always tell you’re amid a transactional sale because the salesperson is the only one talking. In the very worst cases, the seller has never bothered to even qualify the need of the buyer with a few simple questions. For those of us who know better, it’s excruciating to see the profession of selling being clubbed to death before our very eyes.

The next level “up” is (clear-throat, put hands around own neck in a choking position) the much touted “CONSULTATIVE” approach. While this was certainly a breakthrough in sales technique when Jimmy Carter was President, this selling style, too, is as outdated as a public payphone. I know, I know! Many of you reading this believe this is cutting edge stuff! For a lot of you, this is as far as you’ve progressed in your sales skills. Completely unaware that “modern” selling has evolved significantly in the last two decades, you continue to hang your hat on the idea that once you’ve asked a few off-the-shelf, qualifying questions, you’re free to launch a diatribe of your products’ features and benefits. The central pillar of both the transactional approach and the consultative approach is still the presentation. And that, my friends, is how you can tell whether you are truly a professional salesperson – how much emphasis you put on the presentation.

Jeff Thull, in his book, Mastering the Complex Sales, says that presentations suffer from 3 major flaws. Too much information presented too early in the sales process to the wrong people. This overemphasis on presentations is so ubiquitous it’s very hard to get anyone to see its futility. A practical tip for getting out of this “trap” (which is exactly what it is) is to ask yourself, “Is this presentation focused on my products or the buyer’s well-qualified, well-researched needs?” I think everyone reading this knows the answer to that question.

The highest level of sales expertise, in my well-qualified opinion is what I call a “MODERN” approach. The distinguishing mark of this level of sales proficiency is that it doesn’t look like selling at all. In fact, in all my training classes, I frequently use the following phrase to vividly capture the spirit of the idea, “The more you act like a salesperson, the less you will sell.” As proof that I’m speaking the truth here I ask you to take a moment right now to conjure up in your mind what it means to “act like a salesperson.”

If you aspire to this level of professionalism (and effectiveness), I know of no better place to start than Daniel Pink’s book, To Sell is Human. Among the many pearls of wisdom put forth by Mr. Pink, my favorite is the shift from buyer-beware (Caveat Emptor) to seller-beware. This caution flag truly conveys why a more modern approach is needed today. The relationship between buyers and sellers has changed dramatically due to the astounding availability of product information, social proof, and transparency via the internet. Buyers no longer lack access to high-value expertise, product information and category insights previously offered by sales people decades ago. As a result, THE SKILLS REQUIRED to be successful in sales have also changed.

A modern selling approach is about taking the focus off yourself and your products and placing it on he needs of your customer. It’s about postponing the urge to talk about your products and services long enough to find out what the buyer really wants. Sometimes THEY don’t even know so you’ve got to do a lot of research and bring real solutions/suggestions to the table. A modern approach is about empathy because, truth be told, quite often your product is not the solution they need. You have to EARN the right to ask for the business and that takes time. So a big part of the modern sales approach is patience. A saying that very much captures the spirit of the modern approach is this: You can get anything you want in life if you help enough other people get what they want.

In almost every instance, I begin my sales training classes with the question, “Selling has changed- have you?” It’s natural to blame individual salespeople for not taking the initiative to keep up with the times and continually upgrade their selling skills. But, instead, I prefer to put the blame squarely on the shoulders of sales leaders and training departments who perpetuate antiquated sales approaches in their organizations. I do a lot of recruiting of salespeople for my consulting clients and I make it my personal mission to eliminate candidates with “old school” sales approaches as early as possible in the hiring process.

I’m sure the same can be said for a lot of sectors of the business world these days that if you’re still operating in the same ways you did ten years ago, you are already obsolete. “Transactional” sales people are a dime a dozen and offer no enduring value to an organization. By contrast, a “Modern” salesperson is one who truly understands a sale is merely a by-product of a much larger relationship and that adding real business value is the key to achieving greatness in sales.

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 3 best and worst sales tools for small wine & spirits brands

The modern sales environment has never been more challenging for small wine & spirits brands, and it won’t be improving any time soon. But thriving and surviving IS possible if you’re wielding the right tools for the job at hand which is building high quality distribution and lots of it.

At the top of the list for the 3 BEST tools is your mindset. “If it’s going to be, it’s up to me” should be your mantra. “If it’s important to us, we’ll have to do it ourselves,” is what you should say every day to the face in the mirror. With every fiber of your being, you must avoid the temptation to reach for one of the 3 worst tools (below). YOU are responsible for building distribution. YOU are responsible for generating demand. YOU are responsible for absorbing the learning curve necessary for survival in the modern era.

Next is leveraging digital & social media to generate demand for your products. Facebook advertising, landing pages, email marketing and, of course, your website. Everything must me optimized to capture data. Data that can be used to target and build relationships with both consumers and trade. Some of this data will be captured by the Facebook Pixel. Some accumulates via your various lead-gen forms on your website and landing pages. If you think this stuff is confined to the realm of fancy pants marketing gurus, you’d be wise to reconsider. YOU or someone on your team needs to not only learn about this but master it. If necessary, find a TRUSTED expert to help you.

The third best tool is awareness of your options. It continually amazes me how shockingly unaware most small producers are of the options for selling, distributing and managing sales activities of their products. If you’re not familiar with following companies, strategies, and platforms, I suggest you give yourself a crash course asap. LibDib, SevenFifty, GreatVines, Provi, BevStrat, Green Glass Global, Equinox Technology Partners, Bevology, winery direct programs, clearing distributors, Merchant 23, BlueCart, Tennessee v. Blair just for starters. What you want to be aware of is anything that disrupts the status quo because, quite frankly, your livelihood and life’s work depends upon it.

My list of the 3 worst tools is counter-intuitive for most and downright offensive to some. But, don’t shoot the messenger. Somebody must tell you the emperor has no clothes. Might as well be me.

For decades and decades, working with distributors was the number one tool in the small brand sales tool box. Unfortunately, due to the astonishing proliferation of new brands (most of them small) and the rich-getting-richer consolidation of the wholesale tier, this is no longer the case. I can’t overstate this enough: when it comes to small brands, distributors just can’t do much for you. The best they can do is match your efforts and even that is a big stretch. Accept it. Adjust to it. Move on. The good news is most of your competitors simply refuse to accept this new reality so, for at least the next 3-5 years, you’ve got a first-mover advantage. Start relying less and less on your distributors now so you can enjoy a thriving enterprise for many years to come.

The second worst tool is product knowledge. Nothing wrong with it. Got to have it. But having it, investing in it and spending time on it won’t move the needle on your sales in any meaningful way. It’s simply not enough. Most of the wine & spirits industry reveres product knowledge over business acumen. I implore you to get the heck off that train. Again, nothing wrong with product knowledge, just don’t expect too much from it. The wine & spirits industry suffers from two powerful but opposing forces: romance & hedonistic passion on one end and cruel & pitiless competition on the other. While your top salesperson is describing soil types and degree days through moist eyes and tremored discourse, his competitor is on the phone confirming a winery-direct order for a 20-foot container.

The third on the list of worst tools for wine & spirits sales is activity. Not really a “tool” per se but it is high on the list of things-to-do-to-sell-more for most small brands. I’m talking here about the flawed mindset that more sales calls equal more sales. Or that more activity means more achievement. Not necessarily. When a small family winery or craft distillery goes out of business, a post-mortem analysis will reveal they had no regard for the 80/20 Rule. They tolerated way too much low-value activity from their sales team. They sacrificed the best on the altar of the good. The path of the productive, however, is one of prioritization, focus, and discipline. Less really is more. And it’s a good thing because small brands have so much less of everything than the larger players.

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 Single Best Way to Accelerate Your Wine & Spirits Sales

Of all the things you could do to accelerate your sales, this one is by far the most impactful -shift your time, energy, investment and focus away from low value accounts and restrict yourself to only the high value target accounts. Not all accounts are equal – not by a long shot. In fact, the accounts capable of the most volume do about 20 times more volume the average accounts.

But, please don’t take my word for it. Look no further than the Comptroller’s office in Austin which shows the top 50 on premise accounts in Texas buy 19 times as much wine as the average of the top 10,000 accounts. (I didn’t even include the bottom 16,000 accounts in my analysis). If I had, these comparisons would be even more dramatic. Even if you narrow the analysis to just the top 500 on-premise accounts in the state, the top 50 do 3 times the volume of the average of the next 450 accounts. The 80/20 Rule is real, folks!

So, let’s say the average wine & spirits salesperson can reasonably take responsibility for 50 accounts over the course of 1-2 months’ time. WHICH 50 ACCOUNTS ARE YOU GOING TO CALL ON? Keep reading for a few clues.

Now YOU know the single best way to dramatically grow your sales. Narrow the focus of your time, energy, and investment to ONLY the most attractive and responsive accounts. This means if you’re not already practicing this discipline, at the very least you should be able to triple your sales by adopting this simple strategy.

Naturally, this begs the question: why don’t more salespeople do it? Several reasons. First, no one above them is directing them to do it. Second, they allow themselves to be led around by the distributor sales folks who, in spite over their best efforts, lack the freedom to apply the 80/20 Rule to their jobs. Lastly, very few if any sales people or sales leaders stop to analyze the account base and identify the highest value targets in each market. Even if they committed themselves to the exercise, most wouldn’t know where to begin. BTW, don’t waste your time asking the distributor and lists like Zagat and Wine Spectator don’t show you where the VOLUME is being done.

Texas makes it easy. They identify the exact accounts for you (for free). But what about the other 49 states? How do you identify the richest targets in those states? Well, the truth is all you need is a high-speed internet connection and a little help from someone like me who knows exactly where to look and what to look for.

Just one last thing. For those skeptics reading this article who might say, “Most of the top accounts aren’t accessible to small family wineries and craft distilleries,” or “What you say is true in theory, but in the real world the top accounts are controlled by the big suppliers and big distributors.” To these doubters, I simply reply, “Would you like to visit The Post Oak Hotel, the Gaylord Texan, Pappas Brothers Steakhouse, B&B Butchers, Nick & Sam’s and III Forks (all in the top 10 on premise accounts in Texas) with me to see if we can find evidence of them buying wines or spirits from the ‘little guys?’” If you accept, you’d better bring a toothpick because crow tends to get stuck in your teeth in the worst way.

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 Secret to Selling Wine & Spirits On Premise

I call this is a “secret” because, it seems, so few people know about it. I recognize there are a solid number of you reading this who will say, “Duh, I’ve been selling this way my whole career.” And, I for, one salute you for it. We need more of you so keep setting a good example. But, for the rest of you ham-handed, self-centered hacks who don’t have a clue what makes someone buy one product over another, allow me to use this forum to enlighten you. Selling wine, spirits, beer (or anything) is not about you or your product.

Here’s what else it’s NOT about: price, taste, ratings, presentations, and all manner of “product attributes.” I’ve got news for you. Your wine is not that special and there are a thousand others just as good at the same price. You can sit there and talk until your blue in the face (or the buyer’s is red) and babble on about your oak regimen and lees stirring and soil types. At the end of the day, in a restaurant operation, none of that matters.

The best place to start having success selling wine and spirits (or anything else) to restaurants is to take the focus off yourself and your wares and put it on the buyer and the restaurant operation you are selling to. Nobody cares how much you know until they know how much you care. As I mentioned in the previous paragraph, what makes a restaurant buyer choose one product over the other rarely has anything to do with the product itself. It has to do with the person selling it and that person’s ability to service the account.

Service. Dependability. Trust. THESE are the things that matter to restaurant operators! Will you make sure they don’t run out of product? Will you be there for them when they need an emergency delivery? Will you take the time to educate their staff (not just on your products but on all their products)? Will you honor the price you quoted? Will you keep all the promises you made? Can they reach you when they need you? Will you keep your excuses to yourself? Will you put their needs ahead of yours?

You see, restaurants are all about service. They “get” service and place a very high value on it because that is the “currency” of their business. As a seller to restaurants, you must understand what is important to your buyers. Every restaurant wants three things above all else: grow revenue, control costs, and improve guest satisfaction. How will doing business with YOU help them achieve those objectives?

Put down your spit cup and your aroma wheel for a second and ponder these things: The keys to growing revenue in a restaurant operation are to increase foot traffic, increase incidence, and raise the check average. Can you help your buyer do that? Controlling costs is about reducing inventory, increasing efficiency, minimizing waste, and stabilizing prices. Can you help your buyer do that? Improving guest satisfaction is all about delighting guests with quality, value and experiences. Can you help your buyer do that?

When you walk in the door with your sample back full of products you need to sell, where is your focus? It’s certainly not on the customer. When you do more talking than asking questions, are you exhibiting sales professionalism? Absolutely not and your ineptitude offends not only the buyer but every professional salesperson out there. You give sales a bad name.

Would you like to sell more wine or spirits? Would you like to blow away your quotas and consistently pocket hefty bonus checks? Would you like to win more incentive trips? Would you like to keep your boss off your back? Then, here’s the secret: the more you act like a “salesperson,” the less you will sell.

Selling is not about product presentations, overcoming objections, and closing skills. Not real selling, anyway. It’s about service, dependability and trust. It’s about providing business value to your customer relationships. If you consistently seek to provide these things to restaurants, bars, and hotels, you will “own” the by-the-glass list, the wine list, the room service list, the banquet list, the happy hour list, the late-night list, the well, and the back bar. You will have earned the right to dominate your territory. And all your competitors will scratch their heads and wonder who you slept with or who you bribed because their feeble minds are incapable of “getting it.” To the amateur, success in selling will forever remain: a secret.

The No 2 Problem in the Wine Sales Game

What makes wine sales a “game” is there are winners and losers. These days, the losers outnumber the winners by a significant margin. And, like all games, there are strategies and tactics to not only increase your chances of winning but decrease your chances of losing. Pat Riley, one of the smartest coaches ever in the NBA famously said, “Figure out what causes you to lose and stop doing it.”

The No. 1 cause of losing in the wine sales game is depending too much on your distributors. But a close second is tolerance of low value activity. I call this “heat loss.” A lot of time, energy, money, and sweat poured into activity with extremely low return on investment. Lots of “heat” being generated but most of it evaporates into the atmosphere.
Examples? Treating all retailers and restaurants as if they had the same value. Selling to accounts incapable of buying serious volume (say, 5 cases per week or more per SKU). Selling one case at a time to an account that never buys that wine again. Ever. Spending lots of time and money traveling all over the place. Wasting precious marketing funds on trade activities that are more show and not much go.

Whatever you measure, you get more of. Measure accounts sold, you’ll get a lot of accounts sold. No two ways about it, this is an industry metric that needs to taken out behind the barn and put down. It’s a “hollow” metric that assumes all accounts are equal which they most certainly are not.
While there is some value in knowing how many accounts in each market are buying your product, it only tells a tiny part of the story. Winners want to know how many accounts buy every month (# of engaged accounts). Winners want to know how many cases each account buys when they buy (velocity). Winners want to know exactly which 20% of the accounts are capable of purchasing 80% of all volume in the market.

What we’re talking about here is the QUALITY of distribution. Here’s something to tattoo on your brain: activity does not equal achievement. Whenever I hear a salesperson talk about how busy they are, I immediately get concerned. What they’re saying is, “I don’t really have a disciplined, strategic approach to my territory.” Show me a salesperson who is harried, and I’ll show you someone without a plan. Whose fault is this? NOT the salesperson’s. It’s the leadership’s fault for not providing direction and accountability for results.

Here’s another thing wine companies do wrong – measure the number of sales calls made or days-on-the-street required. More sales calls rarely equal more sales. You want more sales (and who doesn’t)? Put a hard, cold stop to low value activities and re-allocate the hours, headcount, investment to higher value activities. A less-is-more approach, while hard to wrap your head around, truly is the ticket to accelerating sales performance. Working smarter not harder is not only possible, but mandatory. But, my oh my how few people in our industry know how to execute this.

So, what is the best way to measure and re-calibrate the value of sales activities? Disciplined use of a CRM system embedded with the highest quality RAD data you can buy. Very expensive. Steep and time-consuming learning curve. Lots of push-back from your sales team. But, let’s cut to the chase, here. If your sales are not what you want them to be, can you really afford to maintain the status quo? Fire the bottom 10% of your sales team that consistently under-performs and use the money to buy RAD + CRM. The wine business has become a very serious business. Which means its time to take the gloves off and get serious. As always, I’m happy to show you how.

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 Environment for Selling Wine Has Changed. Have You? Introducing the “Modern” Playbook

The “game” of selling wine in the US has changed a great deal in the last 5-10 years but you’d never know it because most wine companies are still operating out of the “old playbook.”

What’s changed? Two things, primarily, and then a whole bunch of smaller things. The two big shifts are a) consolidation at the distributor level and b) an explosion of new wines available in the market from all over the world.

The smaller shifts are positive things, actually, but many are overlooked or under-utilized by most wineries and these include: Direct-to-trade advertising (Facebook + Landing Pages + Email Marketing); Alternatives to “traditional” distributors (Merchant 23 and LibDib); Better RAD data (SRS data from VIP); Adoption and use of CRM.

If your winery is still running plays out of the old playbook it’s likely you weren’t happy with your sales results for 2018. What are the most popular plays in the old playbook? Educating the distributors; working with the distributors, meeting with the distributors; creating incentives for the distributors, etc. In case you haven’t figured it out yet, these plays used to be wildly affective but no longer pack the same punch – not by a long shot.

Well, it’s a brand-new year and, with the reset button pressed, you’ve got an opportunity to do things differently in 2019 (and the years ahead). Why not try running a few plays out the NEW and more modern playbook? If you’re not sure what those plays are, here are some of the real game-changers.

1) Rely less and less on your “traditional” distributors to build distribution for you. Adopt the mantra: if it’s important to us, we’ll have to do it ourselves. For more details, click here.

2) Leverage the 80/20 Rule in everything you do. For example, you should identify the highest value “targets” in each market you are in and narrow the focus of time, energy, and investment to ONLY these targets.

3) Measure the right things. Accounts sold is a hollow metric. It assumes all accounts are of equal value which they most certainly are not. Instead, measure things like points of distribution within your target accounts, sales per POD (velocity), and customer engagement (how many accounts buy your products month after month after month).

4) Hold your sales people accountable for RESULTS. Activity does not necessarily equal achievement. Nothing matters but results. No excuses. No blaming the distributor. No blaming the market conditions. You do this by acquiring your own RAD data and tracking all activity using a CRM system (preferably one that is specific to our industry). Relentlessly prohibit “low value” activities.

5) If you are a small family winery, don’t use “traditional” distributors. Instead, approach major accounts (both on and off) DIRECTLY. Use “clearing distributors” to get the goods delivered. This is called the “winery-direct” approach and was popularized by Total Wine & More. In response to the competitive threat of Total Wine & More, major retail chains like HEB, Spec’s, ABC Liquors, and many others (all over the country) are very keen to establish their own relationships directly with wineries. This strategy is all about providing MUCH greater margins to the retailer. Funds that used to go the traditional distributors are used to accomplish this. The other element that makes this work so well is providing wines that are not in broad distribution, so the consumer has no way to compare prices.

6) Take advantage of opportunities provided by Merchant 23 and LibDib to sell to the trade without using a traditional distributor. It is vital small family wineries become intimately familiar with these options.

7) Establish a very robust “direct to trade” marketing strategy using a combination of Facebook advertising, Landing Pages, and Email Marketing. It is essential that small wineries create, grow and nurture their OWN relationships with on and off premise wine buyers. You must learn how to reach them, get them to “opt in” to your email list and how to market to them.

8) Engage tens of thousands of consumers directly using social media advertising and email marketing

In the nearly five years I’ve been consulting for wineries and craft distilleries on their sales & marketing strategies, I continue to be shocked at the scores of companies who aren’t even aware a new and modern playbook exists. But the winds of change are in the air and I, for one, am going to beat the drum and sound the trumpet much more loudly in 2019. As if my life and business depended on it. Yours certainly does.

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

Resolve to Have a Lean, High-Performance Sales Team in the New Year

As a consultant to wineries and craft distilleries, people sometimes pay for my advice and then don’t take it. But, I’m about to offer some free guidance you’d be wise not to ignore. The 80/20 Rule is most definitely real, and it applies to your sales team as well. You can dramatically accelerate your sales in 2019 by dismissing the (consistently) worst performing 20% of your sales people and re-allocate the money you’ll save to invest in the data and technology you’ll need to get even more production from the rest of your sales team.

The truth is almost all sales teams have “fat” or waste or at the very least terrible inefficiencies. This waste (which I like to call heat loss) occurs when leaders allow their salespeople to operate without strict adherence to a disciplined strategy and without reasonable accountability. Left unchecked, the money, effort and time spent on sales activities results in an unacceptably low return on investment. The activities are there, all right (along with a shoebox full of receipts). Just not the results.

All salespeople who do not achieve their distribution and volume goals have one thing in common: a well-rehearsed arsenal of excuses. And these excuses often flow upstream to the C-suite. The New Year is a good time to put a stop this nonsense and begin holding people accountable for RESULTS.

The formula I preach on how to consistently and profitably achieve your distribution and volume goals is no secret: 1) depend less and less on your distributors, 2) leverage the 80/20 Rule, 3) measure the right things, and 4) hold people accountable for results. Sales leaders and owners: if your sales team is falling short and you are NOT doing these four things, it’s up to you to do something about it.

The calendar is about to turn to 2019. The data, technology and best practices exist to eliminate all excuses for nonperformance. The days of your distributors being able to do most of the heavy lifting are long gone. The sooner you accept this reality, the sooner you can begin to make the necessary adjustments. The New Year is a good time to throw out the old playbook and start running plays out of the NEW and more modern playbook.

For example, stop coddling your sales people by allowing them to draw a fat paycheck but not log every sales call in your CRM system. Stop revering wine knowledge and certifications above solid business acumen. In case you haven’t noticed, its ten times more competitive today than it was ten years ago. Wine knowledge is great, but it is nowhere near enough.

Perhaps one of the best New Year’s resolutions you can make for 2019 is stop treating all accounts as if they are of equal value. The outdated measurement, “accounts sold,” assumes all accounts are capable of the same volume which they most certainly are not. The #1 factor in accelerating sales performance is to severely restrict all activity and investment (time and $$) to only the most attractive and responsive accounts. Aside from the obvious fact you must first identify these accounts, you must also have a CRM system in place to track and monitor progress against them.

In just a few weeks, the clock will stop ticking on 2018 and you’ll know for certain what kind of year you had in terms of business results. If you are among the thousands of wineries and craft distilleries who will fall short of their goals, its time to make some serious adjustments for the New Year. And, as always, I am standing by to help.

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

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