Issue link: http://winesandvines.uberflip.com/i/1031957
October 2018 WINES&VINES 69 BUSINESS info@simei.it / simei.it INTERNATIONAL ENOLOGICAL AND BOTTLING EQUIPMENT EXHIBITION 19 th -22 nd November 2019 Fiera Milano (Rho) - Italy 28 th EDITION LEADER IN WINE & BEVERAGE TECHNOLOGY ORGANIZED BY SUPPORTED BY — 48 wines on the menu and 12 wine club wines — but the broad spectrum of the kinds of wines we're making," he said. "Every single wine produced is made in a different way." This variety, he said, is in part what's responsible for Cooper's Hawk's constantly increasing popularity. Learning from DtC success McEnery can't pinpoint the exact moment he knew it was time to start considering expan- sion, but it took only two years for him to open a second location. Since 2016, Cooper's Hawk has been expanding at a rate of five new res- taurants each year. McEnery says he's able to do this using a "cluster strategy" to limit market risk. "We open five new restaurants, we only want one of those restaurants in a 'new' market," he said, explaining that the other four ven- ues are chosen based on specific regions where the business has already seen suc- cess. This is why, for now, Cooper's Hawk locations are found predominantly in the Midwest and Florida, with a few scattered along the East Coast. The 32 venues are leased, not owned. McEnery said he'd rather put capital into a successful restaurant than real estate. But a winery or restaurant is only as successful as its consumer base. In the case of Cooper's Hawk, the wine club plays a big part in that success. "The wine club was always part of the original concept," McEnery said. "But it wasn't so brilliant other than we wanted to include one." With 32 locations, one would expect the Cooper's Hawk's wine club to be large, and the company claims 300,000 members and a growth rate of 25% each year. What's more, 99% percent of wine club members pick up their monthly wines in person. DtC expert Hess called the Cooper's Hawk DtC sales model a well-rounded one, as it includes customer touch-points both in person and online throughout the year and extends beyond typical discounts on wine and merchandise and into more personal- ized acknowledgements such as monetary birthday gifts and frequent visit-based re- ward — all of which can be used at any of the 32 locations. According to Hess, the average wine club member typically stays active for about 1.5 to 2.5 years and will spend 10%-25% more than the annual contracted agreement when "high- touch member management activities" are offered, including access to private events and limited release or library wines. "We see these stats play out consistently in our clients' data sets across the nation, irrespective of wine region and price points," Hess said. "We know that when wine brands offer white-glove treatment, members stick around longer and spend more." Indeed, the incentive to join and maintain a Cooper's Hawk club membership is elevated with a loyalty program, in which members receive points for maximizing memberships with visits to the winery, money spent on food and wine, and participating in events. In 2009, the winery launched its travel program for higher-tier members to experience differ- ent wine regions throughout the world. "We've learned overtime how to make (the wine club) special and continue to make it special," McEnery said. "When wine brands offer white-glove treatment, members stick around longer and spend more." —Sandra Hess, DTC Wine Work- shops Consulting Agency