Prowein 2019’s Hall 10 Spain thoughts: How to optimize negotiations with importers and distributors in the export of wine
In this month of march, most of the wineries of the world have been present at the most important fair of the year for exports: Prowein 2019. This fair is the point of meeting of producers and resellers of wine. There they closed their agreements of sale, distribution and import if they didn’t did it before. They met together to discuss their agreements. In the meetings you may find different profiles of businesses, big and small, with large experience or just startups. They negotiated sales conditions, volumes of wine, containers or number of bottles, discounts or special prices for each of their wines, trademarks, labels, and for each market they would like to conquer.
Negotiations between winemakers and importers, between export managers and distributors not always are as transparent as they wish might be. Never the less, there are wineries that have a great control over their sales. Not always they have a clear insight in their importers business. To know margins, sales in the importer’s country, are not easy to research, less, if the only way is the meeting with the representant of the importer’s company. The importer only will give some basic facts about end consumer prices, number of bottles sold. In few cases he will explain the margins, internal price structure, discounts in every sales channel or for different clients, a listing of amount of sales or the discounts given at different moments of the sales year, the full feedback of their clients or new tendencies in consumer sentiment.
This lack of information handles the producer’s wine easily into the importer’s hands. The importers negotiate without difficulty prices and the producer seems blind in front of the potential of this importer’s market. The negotiations take place usually every year and at fairs like e.g. Prowein, Vinitaly, Vinexpo or Fenavin. The producer and the importer fix price and sales conditions for a whole year, a risk and an opportunity which are closed in few minutes taking into account the pressure of the lack of time at fairs and the lack of information of the producer.
South Corean importers negotiating to achieve Michelle Obama’s and Ken Follet’s favourite wine from Spain “Valduero 6 Años” at Prowein 2019
A responsible negotiation has to hold a preparation, with Access to information, sales data, data of where, how, when, at what price, with what offer, with which discount, in what sales channel, with which consumer sales of the imported wine have happened. Too, with what wine is under demand of consumers, what price they would pay for, in which format, what packaging, what publicity, what consumer’s buying or product experience, what type of visit, at which place, in which sales channel, competing with which competitors, consumers would be ready to buy. With these data of the past and of the future, having the information of where sales take place, in which way, the producer will be able to measure and decide if the importer stands right to the expectations of the producer, if the opportunities are well managed, if he manages well his sales team, if he optimizes well sales in his markets, in every niche of it and in every sales channel. The producer who owns information has the empowerment of negotiating well with the importer, he has too the possibility to control the commercial policies, the price strategies, if he develops the trademarks or if he is not using the full potential of his wine.
The Spanish laureate oenologue Basilio Izquierdo, offering his newest wine at Prowein 2019. Basilio’s last wine made at CVNE, Imperial Gran Reserva 2004, got the mention of best wine of the year 2013 by Wine Spectator. He is the only Spanish oenologue of the 50 best oenologues selected in the publication of the Association des oenologues de Bordeaux “50 ans d’association, 50 parcours d’oenologues”.
And of these thoughts arises an obvious question: How does the winery acquire all this information? All this info is held by different hands: one part is held by the importer, the other by the own winery and the largest information will be delivered by the consumers as data, the big data of the wine consumers.
Heat map of data got from wine consumers in a city
Wine consumer big data is the speciality of Enolytics. Enolytics Spain is the branch in Spain of Enolytics, company founded by Cathy y Chris Huyghe in the US and at the momento one of the few consulting firms that use the new technologies of big data analytics to optimize the commercialization of wine. The magazine Meininger’s Wine Business International in October 2018 has published an article about Enolytics and the well-known wine expert Robert Joseph writes about Cathy Huyghe and her achieved work. Enolytics has already finished projects for wineries as well known as Freixenet, Frescobaldi or Bollinger.
Very rare example of a numeration of bottles on the cork (wine “B” of Bodegas Basilio Izquierdo, a masterpiece of wine from La Rioja).
Prowein 2019 has been again a meeting place for producers and importers, but this year too between Enolytics and the producers who wanted to have a closer insight into what the new technologies of big data analytics, the artificial intelligence, the machine learning, the text mining and other may help wineries to get a deep insight into wine consumers at any world market.
Cathy Huyghe, Co-Founder and CEO of Enolytics with Andrés Bonet-Merten, Consejero delegado of Enolytics Spain at Prowein 2019
This technology is available too for the producers of beer and spirits. Big data analytics is the tool that is making a revolution in sales.
Ad on a Düsseldorf’s restaurant of Füchschen beer and the Killepitsch herbs liquor of Peter Busch’s shop since 1858.
Big data predictive analytics, artificial intelligence, machine learning, text mining and other new technologies are causing great expectations among the world’s producers, importers and distributors.
Andrés Bonet-Merten, CEO Enolytics Spain