Issue link: http://winesandvines.uberflip.com/i/70673
EDIT OR' S LET TER Rolling Out the Flash Report A new department examines web-based discount sales sites G iven that it's Wines & Vines' seventh annual Barrel Issue, we're rolling out the barrels this month. But we also roll out The Flash Report, an exciting new research and reporting project. The Flash Report examines the relatively new phenomenon of flash wine sales websites to help wineries understand how they work. A flash site is a web-based business whose main service is on- line direct-to-consumer wine sales or marketing with a prominent dis- count component, a time-urgency component and a limited-quantity component. Our team's initial cov- erage of them begins on page 14 with an article by senior correspon- dent Paul Franson, who describes what these one-shot wine sales sites do, who is behind them and why wineries find them so valuable. Next, on page 16, is The Flash Report itself, a new Wines & Vines department that reports data and trends about the leading flash sites based on the extensive data that our research and analysis team collects and interprets. Our experts track the flash sites daily, recording the num- ber of wines offered, their brands, appellations, vintages, bottle sizes and winery retail prices versus the offered flash prices. their minds. Many vintners who use flash sites, however, reason that the low prices are offered so briefly that little harm comes to their brand equity. Wines & Vines' job is to provide accurate, timely information to wineries and vineyards so that they can do their work better. Within the past year our research and editorial teams have beefed up our market research and content for wineries. First, in March 2010 we began monthly reports using Symphony IRI's off-premise sales data. Then in June our research experts unveiled our DtC Shipment Model in conjunction with Ship- Compliant. Next, in the November 2010 issue we created the new Wine Industry Data Center, a section in the front of the magazine that in- corporates data from the above two sources and others relevant to the wine industry economy. One-day-only sales As Franson's article explains, winer- ies have put the flash sites to good use. When many wineries' sales slowed because of the recession, their inventories backed up. Flash sites had already begun to develop, selling occasional overstocks to their online subscribers on a get-it-while- you-can basis with deep discounts, often with one-day-only sales of each wine. Their timing was perfect for wineries as the recession deepened, and many vintners had big supplies of unsold wine on their hands for the first time in their careers. They found that the flash sites could move dozens or hundreds of cases in a day, generating quick cash so that vintners could pay at least some of their bills. One obvious downside is that wineries sell via flash sites at prices much less than their suggested retail, the amount our Flash Report calls winery retail. Some may sell at the approximate wholesale price, so they still make money on the deals, while others may sell at cost, but at least they gain revenue and make space in case-goods storage. The less tangible downside is that once consumers see a low, low price on a brand, they may begin to devalue that brand in 8 Wines & Vines FeBRUARY 201 1 This new, proprietary data service continues our team's emphasis on the direct-to-consumer sales channel, which we know is vital to most wineries. We doubled down Now, The Flash Report becomes an integral part of the Wine Industry Data Center. It continues our crew's emphasis on the direct-to-consumer sales channel, which we know is a vital part of most wineries' business plans. It also extends our services for readers further into the area of original data collection and analysis that has been integral to our busi- ness for decades. WinesVinesDATA is the new name for this part of our business, which incorporates the ever-growing Di- rectory/Buyer's Guide online, the Online Marketing System and all of the other new services from Wines & Vines. Our proprietary data helps us inform the industry on three levels. We report news by posting our web Headlines every business day. We inform subscribers through the print magazine as well as exclusive access to certain information online. We further inform industry clients who use our customized data services for their sales and marketing efforts. During the recession our readers and clients have faced signifi- cant financial challenges. During the same time our research and editorial teams have doubled-down their commitment to serving readers and clients. The Flash Report is the latest example of that commitment. As always, I'd be happy to hear your comments about The Flash Report or any other aspect of Wines & Vines. Please e-mail me through edit@winesandvines.com.