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.