Emotion vs Reality: How to Leverage Emotion to Sell Wine

Greece vs the World

One of the main requirements of my job as a wine agent is trying to convince the LCBO to list more Greek wines at store level. Compared to other wines we represent from France, New Zealand and Italy, it’s a greater challenge listing Greek wines. Wines from the other countries mentioned are all very hot and in great demand at the LCBO retail and at restaurants. Wines from Greece are in demand at some restaurants and at some LCBO retail stores, but not everywhere consistently. Some Greek brands do sell very well and of these, there is never enough inventory to satisfy the demand and for other Greek brands that don’t sell as well there is too much inventory. Some of my latest analysis has focused on why certain Greek wines sell better than others.

This analysis focused on the Vintages category at the LCBO and not the General List category. Vintages buys wines from around the world in limited quantity and when they sell out it could take several months for the wines to be re-ordered (if the wine is re-ordered at all). While General List wines are on the shelf all year long in large quantities.

I segmented all Greek wines ordered by the LCBO by red and white, by varietal, quantity and by price point. I then compared which Greek wines had the best sales and compared the different segments. Here are some of the highlights of my research using data from various sources from 2009 until 2013.

Red vs White Wines

I started by comparing different wine types, I compiled a list of what type of red and white wines the LCBO ordered for the retail shelf regardless of sales. I compiled inventory movement data from the Sales and Marketing Department at the LCBO from 2009 to 2013 for LCBO Vintages. Greek red wines made from the Xinomavro (zee-no-mavro) grape varietal from northern Greece made up 43% of all purchase orders. The second largest purchase orders for red wines were made with the Agiorgitiko (ayior-yi-teeko) grape varietal from southern Greece at 32%. Wine made of Xinomavro from northern Greece is very similar to wines made from Barollo and Nebiollo grapes. For those if you familiar with such wines know how big, bold and dry these are. Wines from Xinomavro can age exceptionally well and are also a great value compared with other big reds from France or Italy. Wines made from Agiorgitiko are medium bodied and fruity, also age well and are comparable to Merlot and Cabernet-Sauvignon wines. Comparing sales from 2009 to 2013, Xinomavro wines sold consistently better than the Agiorgitiko wines. The additional factors in with these two varietals are price point, which was comparable, specific producer, which may also be a factor in determining sales and the flavour profile may have had the most to do with the difference in sales.

Examining white wines with the same data set from the same period showed that white wines made from the Assyrtiko (aseer-teeko) grape varietal made up 55% of all purchase orders. The second largest group of white wines were made from a blend of Assyrtiko and other grape varietals at 19%. The Assyrtiko grape comes predominately from the Island of Santorini in the central Aegean Sea. Wines made from this grape have high acidity and very clean finish and age very well. The flavour and taste of Assyrtiko wines are really unlike any other white wine in the world, the landscape on Santorin is really not suitable for viniculture and very few grape varietals will grow. Comparing sales, Assyrtiko wines consistently sell better than other white wines from Greece and even better than the Assyrtiko blended wines. The additional factors in with this analysis are price point, which has the 100% Assyrtiko wines more expensive than blended wines, specific producer which likely was more relevant in determining sales and the location of these wine has probably the most to do with the success of these wines.

The Xinomavro wines that sell the best are around $17 and the Assyrtiko wines are between $16 and $22. Another interesting aspect of this analysis is the fact that most wine drinkers prefer red over white wines, yet the white wines from Santorini seem to do better in sales than the red even though they are slightly higher priced. I should also mention that the wines that sold the best had done so with virtually no added promotions at the retail level.

Santorini vs the rest of Greece

The island of Santorini is an extinct volcano and suffered a catastrophic eruption approximately 3600 years ago. This violent eruption ripped the island into the semi-crescent shape it has today. Santorini is a barren rock of an island with virtually no vegetation other than tomatoes and several specific grape vines that have adapted to the volcanic ash and rock they grown in. Most people don’t know this about the island, but only know Santorini as a wonderful vacation destination in Aegean Sea. 

The white wines from Santorini are known by wine writers and wine critics from around the world as excellent value and consistently get top scores and awards. Due to the limited arable land on Santorini the cost of wine making is higher than in other places and is very labour intensive with no mechanization. Therefore the prices for Santorini wines at the LCBO are between $14.95 and $22.95.  The wines with the best sales are actually in the upper price range.

What drives these sales? Are people aware of the great value and accolades for wines from Santorini? I think some are, but this is not what is driving sales. From the thousands of people I have sampled and spoken to about Greek wines, the average consumer in Ontario knows very little about wine making in Greece. Much of the sales at the LCBO Vintages section have a lot to do with the experienced and knowledgeable Product Consultants who manage these sections in LCBO stores. It is they who personally sell wines to people who are interested in experiencing great wines at good value. I think that also drives some sales, but on the whole I believe it is the fact that the island of Santorini is one of the most travelled destinations in the world (and in Greece definitely).

Emotion vs Reality

My analysis reinforced what I was already aware of, but when I put the sales of Santorini wines in the context of the red wines I was a little surprised and started wondering if the Island of Santorini was the driving factor in sales rather than the quality of the wine? Even though white wines from Santorini are fantastic, this is not the driving factor, but what is driving sales is the emotional connection people have with the name (or place) Santorini. People buy Santorini wines because they associate it with a fabulous vacation destination and it conjures up memories they have when they went on vacation. People want to relive their vacations when they are home. An LCBO product consultant told me a similar story that people come into his store and look for Santorini wine just to reconnect with their memories. This same Product Consultant even admitted he always keeps some Santorini wines available during the autumn months every year so he can accommodate these requests.

This blog is not about wine but about emotional branding. Greece has a brand that is associated with history, democracy, economic turmoil, but NOT wine. Santorini has a brand that is associated with a beautiful island getaway, romantic, beach vacation, and also NOT wine. I would argue that the success of Santorini wines has to so with the association of all the positive imagery and experience people have with the island which is driving sales. The bonus for the consumer is that the wine is truly exceptional and excellent value. Also I think that when people think of Santorini, they don’t think of Greece and any negative feelings they have about Greece are not extended to their feelings of Santorini.

Its’ already well known that emotion is a driving factor to every aspect of our lives. We like to think we are rational and logical people who make decisions based on facts. But this is further from the truth. One of the main areas of my business is to understand what motivates people to buy alcoholic products. The marketing of alcoholic products is primarily based around lifestyle and emotion plays a big part in that.

Greek wines at the LCBO are very difficult to sell to a consumer that either has no opinion of Greek wines or a negative one from a previous bad experience. I’ve said before that the reaction I get most often when I talk about Greek wine is the amazement that Greece makes wine at all. With that kind of perception of Greek wine alternating between negativity and indifference, is not a good starting point when you want to market a whole wine producing region to the consumer.

I was planning on preparing a clever survey to test my theory on the emotional connection people have with Santorini, and then I found the results of a survey done by Travel and Leisure. I like this survey because it doesn’t refer to wines at all and I wanted the opinion of people not thinking about wine. Travel and Leisure readers in 2013 voted Santorini as the 4^th Best Island Destination in the World. In the rest of the top 10 there is no other location from Greece. On another Travel and Leisure survey, Santorini was ranked #1 in all of Europe for the best Island Destination in Europe and the Island of Crete (in Greece) was ranked 3^rd. In 2011 Travel and Leisure readers voted Santorini the World’s #1 Destination. Wines from Crete are also starting to gain some traction at the LCBO but that’s a topic for another blog. The only other wine producing region on the survey is Sicily in Italy (8^th in the world and 2^nd in Europe). Wines from Italy regularly sell well and I’ve not tried to subdivide how well wines from Sicily do compared with other Italian wines (another possible blog topic).

Capitalizing on this insight

Regardless of why people are buying lots of Santorini wine, the benefit is already extending to other wines from Greece. The lesson to be gained from this insight is the power of emotion and the relation to something unrelated but positive. The relationship between Santorini as a popular tourist destination is the same as athletes and actors endorsing products. The idea that as humans we make decisions based on emotion rather than logic or common sense, is clear and should be always used to encourage consumers to select your products.

Now I don't recommend every wine maker in Greece change the name on their bottle to wine from Santorini (there are specific rules that govern the naming of wines and this would not be allowed). What I would suggest is to try and associate your particular service or product to a message with a positive emotional connection. This may not be as difficult as it seems. In my experience it’s possible make an emotional connection to your product from where it’s made, or the raw material, or the people who make it with some positive emotion. When making that connection to some emotion people will respond more positively and it will also make you product or service more personal and authentic. Promoting an authentic and personal brand always leads to a devoted and satisfied customer.

A Case of Wine: Introducing Something New to Canada

The average Canadian wine consumer does not typically think of Greece as a country that produces wine, even though wine production in Greece has a long and illustrious history. The oldest wine press in Greece has been found on the island of Crete and dated to approximately 3,600 years ago.

Grape vines on Crete, Greece

Until the early 1990’s the Greek wine industry had predominately focused on its domestic market and less on exports. Over the past two decades, however, a renaissance in the Greek wine industry has occurred and wine exports have exploded. At the Kolonaki Group we represent many Greek wines and know firsthand the challenges of promoting them to the Canadian consumer. This article presents a case study of our experience in launching a new wine from Greece into Canada. 

Marketing a Greek Wine in Canada

Many wines we represent already sell in other markets and this has the advantage of anticipating how a wine will sell when introduced to Canada. A wine’s history and existing reputation can be a big advantage in some markets, but what if that reputation is unfavourable; such as wines from Greece which already have a negative perception in Canada. From our experience with Greek wines, some of the factors that must be considered in a wine are name, labels design and even grape varietal. Some of these factors can be changed to suit the particular sensibilities of a new market, but many times a producer will resist any changes to their product. How do you introduce a new wine from Greece if the producer is not willing to make the appropriate changes to give the product the best chance of success? Our solution was to develop a new wine and which addressed all the negative perceptions with Greek wines. First we had to accumulate and analyze all the information we had on the perception and state of Greek wine in Canada and start to address these issues one by one.

One of the many LCBO
tastings we performed

Research and Data Collection with a Modest Budget

We conducted a great deal of qualitative research for this project. The main source of data came from the many public tastings we did at LCBO stores around the province and trade shows we participated in. Over the course of 18 months, we sampled Greek wines already listed at the LCBO, at stores in 20 cities in Southern Ontario from London to Oshawa and from Niagara Falls to Barrie. These tastings occurred at 97 separate events used 294 bottles of red and white wine combined, and approximately 7,000 people stopped at our booth and sampled Greek wine.

Trade shows were a valuable
source of consumer insights

In addition, over the course of four years of attending trade shows in Ontario we sampled and met thousands more consumers. People who attend trade shows and those who attend the LCBO tasting booths are very different types of consumers. Trade show consumers are more adventurous and visit trade shows for the expressed purpose to experience new products and are eager to learn about them. At trade shows we were also able to spend more time with people and had the chance to tell them specific stories about the wines and about Greece and we received more feedback regarding our products and Greek wines in general. The recurring comments and questions we heard at all these events were:

• “Greece makes wine?”
• “What is this wine?” or “What type of wine is this”
• “Where is this wine from?”
• “How do you say that?” (Greek wines often have difficult to pronounce names and grape varietals)
• Good value for price
• Taste was good and food friendly
• The uniqueness of Greek grape varietals was appreciated

Greek wines and spirits on the shelf

Our countless hours with the consumer did not reveal any noticeable demographic breakdown of positive or negative comments from people we sampled. The general consensus was that people who knew Greek wines either had a negative or a positive experience of them. People who did not know Greek wines were delighted with the tasting experience and were very happy with the price point. Young people who were interested in learning about wine became excited about these wines. Older people who were more experienced also appreciated learning about Greek grape varietals they never tasted.

We also did very thorough analysis of the wine sales at the LCBO, taking into consideration grape varietals, white vs. red and price points. We also analyzed the overall pattern of which wines from Greece the LCBO brings in regardless of their sales. One interesting fact regarding wine sales was that the less expensive wines did not have the best sales, and the wines with the more unique flavours regardless of price sold very well.

Finally we took notice of the consensus from the wine industry around the world that consistently hail Greek wines as undervalued for their quality. The many unique indigenous grape varietals form Greece are praised as exciting for the experienced wine consumer who wants something more than the same Pinot Grigio and Cabernet Sauvignon.

So the overall impression of Greek wines when people got taste them was very positive, the problem was how to get people to seek out Greek wines when at the LCBO or when going to a restaurant.

Starting from Scratch to design a Canadian Friendly Greek Wine

The research we did lead us to conclude, that in order to maximize the consumer potential we needed a wine that was Greek but did not have any of the negative perception of a Greek wine. None of our fifteen producers from Greece had an existing wine that could address all the recurring points that we had learned from our research. Therefore we took it upon ourselves to create our own brand. As with any new product, a lot of work needed to get done just to get this project off the ground:

Introducing Thalia Sauvignon Blanc

• First locating, and then collaborating with, a vintner in Greece to produce a quality wine at a competitive price ($9.95 for 750 ml bottle).
• Sourcing a lightweight glass bottle in Greece and recycled packaging.
• Hiring a talented label and brand artist who had already created several wine labels and successful brands for the American market.
• Doing ethnographic research at LCBO outlets to identify key communication points to create a brand identity for a Canadian-friendly Greek wine.
• Selecting a unique name that sounded exotic and foreign, yet approachable.
• Launching this new brand with a coordinated presence on Twitter and Facebook as well as the product’s own website.

Thalia out with the girls

The name selected was Thalia. A Greek name from ancient mythology, Thalia was one of the nine Muses – mythical deities who inspired human creativity. A southern European sounding name, it is easy to pronounce and may be mistaken for Spanish or Italian, which is advantageous considering that both Spain and Italy are associated with the art of fine winemaking. The label design was chosen to reflect an enduring tradition, giving the impression of longevity and agelessness.

During our research we also discovered that the average consumer appreciates wines with these characteristics:

• Newness or novelty, albeit not too new or novel
• The allure of an exotic, foreign import
• Good price-to-value ratio
• Satisfaction with the product itself (e.g. a delicious wine that goes well with food)

Another recurring theme from our many hours of surveying the public was how captivated they were with our stories of the wine makers. We realized that we needed to include some kind of traditional character with Thalia. Therefore we made a point to express the particular foreign charm of this wine while not alienating the consumer. We wanted to make sure there would be no initial resistance to the wine because it was Greek by drawing the consumer’s attention to the authentic nature and traditional features of the wine.

The Importance of Grape Varietals

The grape varietals for the wine were also carefully considered. The wines are all made on Crete and it was decided that the red and white would both be two part blends of a local indigenous grape and a well-known international varietal. This decision was made in order to add a sense of familiarity with the new wine while also adding a uniquely Greek component to the product.

The whole gang red, white & rose

For example the white wine is made with the very popular Sauvignon Blanc grapes and the local Vilana grapes (both farmed on Crete). The combining of these two grapes also takes advantage of their particular flavour profiles and this combination emphasizes the best qualities of both. This decision also arose out of the need to maintain the international quality designation for the wine. By making the wine with local grapes it has the designation “Protected Geographic Indication Crete (PGI Crete)” this denotes to wine enthusiasts a product made to a recognizable international standard. The red wine is made with a combination of Syrah (also known as Shiraz) and the local Kotsifali grapes, which again were chosen for the same reasons mentioned above and for their great flavour combination. Both are also farmed on Crete and have the same international designation “PGI Crete”.

Results from Introducing Thalia in Canada

Launched in the summer of 2011 in red, white and rosé, the Thalia brand is being sold in 750ml and 1.5L sizes to various restaurants and banquet halls in Ontario. From the outset, Thalia was specifically designed to attract the interest of two distinct customers: the average young adult wine consumer and the licensee (restaurants and bars). The average wine consumer appreciates a well-priced value wine; while licensees appreciate a bottle they can sell by the glass or by the bottle to maximize their revenue. This strategy was also identified from our many months of research.

Thalia is being served at Ikea restaurants in Ontario

Thalia white was listed at the LCBO for $9.95 in the spring of 2012, and both red and white wines have been listed at the Nova Scotia and New Brunswick liquor boards and will likely hit the shelf in the spring of 2013. In addition, Thalia red and white single-serve bottles (187ml) are currently being sold at Ikea stores in Ontario at their cafeterias. The current sales and distribution has so far confirmed our expectation that it is possible to sell a Greek wine in Ontario if you can present a product that meets the expectations of the consumer. Some of comments we hear regarding Thalia are:

• People don’t realize it is a Greek wine
• They refer to the wine by it’s international varietal and not the Greek varietal
• People are very impressed with the quality and price point
• The label design has been well received
• The website and Facebook pages are getting steady traffic (Thalia-wines.com)

Lessons Learned from this Case Study

Introducing any new wine into the Canadian marketplace is fraught with difficulties. From our research we have learned there can be an element of apprehension by the consumer against products perceived to be too “foreign” and unfamiliar, regardless of price point or quality. The European wines category at the LCBO adds new products on a regular basis, but very few of them can survive the LCBO’s strict sales quota system. Therefore, the problem of how to introduce a new wine from a part of the world that is not usually thought of when the average Canadian consumer shops for wine was a daunting challenge.

While designing Thalia we could have used 100% internationally known varietals such as Syrah or Shiraz grapes and given the brand a non-Greek name, but then it would have lacked any distinctive character of its own. Our experience with Thalia has shown the benefits of including some aspect of cultural tradition and consumers are encouraged to see this foreignness as an asset rather than a liability. The authentically Greek features emphasized in this case study were the indigenous varietal grapes, Kotsifali and Vilana – with their protected geographic indication (PGI Crete) – and the name, Thalia.