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D A T A CENTER How Wineries View Flash Sales Common experiences range from enthusiasm to skepticism onsumers love flash wine sales sites for an obvious reason: the drastic discount prices. But what do the win- eries that use flash sites think of them? Recently Wines & Vines solicited opin- C ions about the sites from wine executives, and responses ranged from "a necessary evil" to enthusiasm—though most harbor mixed feelings about seeing their wines discounted and getting meager rewards. Jean-Charles Boisset, who owns De- Loach in Santa Rosa, Calif., and Ray- mond Vineyards in St. Helena, Calif., as well as his family's Boisset brands in France, sees the positive: "Rather than viewing flash sites as a means to clear inventory or raise cash, our experience has been that they can be a valuable ad- ditional marketing tool to communicate winery messages, to reach a new and savvy consumer base, to expose consum- ers to wines they may not readily find at retail or through traditional distribution channels, and to be at the forefront of an innovative new sales channel." Like Boisset, Lisa Goff has used flash sites as a way to expose wines to new cus- tomers, people her wine company doesn't usually encounter. She's the vice president of marketing for the Crimson Wine Group, which owns Pine Ridge in Napa Valley, Archery Summit in Oregon and Chamisal Vineyards in the Edna Valley along Cali- fornia's Central Coast. "We sold some wines," Goff says, "but it's hard to track whether the customers bought more wine from us." She said that the sites generally have not shared custom- er information with her. As for whether the flash sales were financially worthwhile, she would only say, "The wholesale environ- ment is competitive, too." Benefit to the brand? At St. Supéry in Rutherford, Calif., vice president of marketing Lesley Russell has used a number of sites including Rue La La and invino, but the verdict isn't yet in. "We track sales carefully and haven't seen a lot of proof that there's been any benefit to the brand." Russell does believe that luxury sites like Rue La La and Gilt should provide good brand exposure. "We like to see our brand associated with Dolce & Gabbana and 16 Wines & Vines MAY 201 1 Movado among people who want luxury but also seek deals," she senses. She also has used invino, formerly called the Winery Insider. "They take their own photos, generate content and write their own notes. It's relatively small volume, but invino is a licensed retailer and buys the wine." Wine Spies is similar. Russell recognizes the danger of being discounted, so she prefers private sites that CellarTracker can't track. She admits that use of the sites was "inventory related" but complains, "If it doesn't help to build our list, it's not that valuable. And that gener- ally isn't happening." She acknowledges that a retailer like invi- no that buys the wine can hardly be expected to share customers. In dealing with some flash sites, however, St. Supéry ships the wine to the customer. "We have their physical ad- dress but no other information. And Rue La La prohibits wineries from soliciting the cus- tomers via fine print in a lengthy contract." Even if St. Supéry did mail offers to the customers, Russell believes they probably wouldn't be very supportive. "These are people who use the Internet and social media, not the post office." She adds, "I haven't seen an email address for a cus- tomer from these sites in a long time." Regarding markups, Russell noted that the winery gets between FOB and whole- sale prices. "We're better off to sell to the consumer, of course, but if you're trying to sell wines that retail between $50 and $80, that's a tough sell these days. People will buy them at a discount, however, and feel they're getting a great deal." Subscribers may read an exclusive report about new flash sites at winesandvines.com/flash