Wines & Vines

September 2011 Winery & Vineyard Economics Issue

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D A T A CENTER The Flash Report LEADING FLASH SITES COMPARED FOR JULY Flash Reseller Cinderella Wine Lot18 Wine Spies Wine Woot 40 114 29 18 Wines Til Sold Out 143 WineShopper 42 $34.39 $43.91 $33.31 $37.81 $49.70 $29.35 Source: WinesVinesDATA, winesandvines.com/flash 160 140 120 100 80 60 40 20 0 Offers by Top Six Flash Sites, 2011 Wines Til Sold Out Lot 18 The Wine Spies Cinderella Wine WineShopper Wine Woot Feb March April Source: WinesVinesDATA, winesandvines.com/flash Region/ Vineyard Varietal May June July No. of July Average Winery Average Flash Average Offers Retail (750ml) Price (750ml) Discount $20.27 39% $27.95 35% $24.52 25% $22.67 39% $23.66 51% $17.89 38% Complete flash data available to subscribers: winesandvines.com/flash Sizing Up the Leaders in Wine Flash Sales The graphs in this month's Flash Report give a good, quick overview of offerings by wine flash site leaders from the past six months. Wines Til Sold Out was clearly the leader in terms of number of offers and size of discounts, which are arguably good for consumers but not for the wineries' pricing structures. Lot18 has built its offerings quickly but is in the middle of the pack in terms of discounting. In late June, Lot18 added a line of gourmet foods to its flash wine offerings, including coffee, cheese, dried meats and other choices. —J.G. Average Discounts by Top Six Flash Sites, 2011 60% 50% 40% 30% 20% Wines Til Sold Out Cinderella Wine Lot 18 Wine Woot The Wine Spies Feb March FLASH DISCOUNTS FOR A SAMPLE OF RUSSIAN RIVER WINES OFFERED IN JULY Discount Winery/Brand Vintage Winery Retail 60% Oriel Wines 54% Mueller Winery/ 51% Mueller Winery/ 50% MacMurray Ranch (E. & J. Gallo) 50% Rancho San Miguel Winery Russian River Valley Zinfandel 50% DeLoach Vineyards Russian River Valley Zinfandel 38% De La Montanya Estate Vineyards & Winery 33% Olivet Lane Estate Source: WinesVinesDATA LEADING FLASH SITES Co. Name & URL Pageviews* Principals cinderellawine.com Lot18 Cinderella Wine lot18.com The Wine Spies thewinespies.com wine.woot.com Wine Woot Wines Til Sold Out winestilsoldout.com WineShopper wineshopper.com 1,342,324 Philip James Kevin Fortuna 17,280 Jason Seeber Brandon Stauber 795,319 David Studdert George Studdert 213,330 Joe Arking Amazon Affiliation Headquarters Contact 24,716 Gary Vaynerchuk Wine Library Springfield, N.J. New York, N.Y. Santa Rosa, Calif. Carrollton, Texas Roger Wilco Pennsauken, (liquor store) N.J. 238,019 Rich Bergsund Wine.com Mike Osborn 12 Wines & Vines sePTeMBeR 2011 Brandon Warnke Dini Rao dini@lot18.com Jason Seeber davids@winecountry connect.com thewinespies.com David Studdert agentred@ San Francisco, Kristin Balabanian Calif. Source: WinesVinesDATA, winesandvines.com/flash. *Source: Compete.com, June 2011 License New Jersey type 44 packaged goods store license. Relies on winery licenses. California type 17 beer and wine wholesaler/type 20 off-sale beer and wine. Relies on winery licenses. info@tillsoldout.com New Jersey type 32 plenary retail kbalabanian@wine.com and type 14 warehouse. Operation Releases one wine at noon and one at 9 p.m. M-F. Buys only from distributors. Advertising platform for wineries to sell directly to consumers. Sells one wine each day, 365 days per year. One deal daily M-F. Emphasizes interactivity. Winery controls price. consumption with package privilege. from midnight EST until sold out. California type 20 retail Sells one wine at a time One new event per day, with one to five products. 33% Conn Creek/Villa Mt. Eden Russian River Valley Pinot Noir 31% Russian River Vineyards Russian River Valley Pinot Noir Robert Mueller Cellars Robert Mueller Cellars Russian River Valley Zinfandel 2005 $25.00 April Source: WinesVinesDATA, winesandvines.com/flash Flash Winery Size Flash Site Price In Cases $9.99 Russian River Valley Chardonnay 2008 $34.99 $15.99 Russian River Valley Syrah 2007 $35.00 $16.99 Russian River Valley Pinot Noir 100 Wines Til Sold Out 4,000 Wines Til Sold Out 4,000 Wines Til Sold Out 2008 $60.00 $29.99 70 million WineShopper 2008 $40.00 $19.99 450 Invino 2008 $39.99 $20.00 Russian River Valley Blend - Red 2010 $24.00 $14.99 Russian River Valley Chardonnay 2008 $24.00 $15.99 2007 $24.00 $15.99 2007 $36.00 $24.99 150,000 Last Call Wines 5,000 Lot18 35,000 Lot18 30,000 WineShopper 5,000 Lot18 May June July WineShopper No. of Offers Discount Percentage

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