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.