DtC Expert: Cater Outreach to Winery Customer

(Wines&Vines) - The wine industry is abuzz with talk of direct-to-consumer (DtC) sales – shipments increased 10% in value for the 12 months ending in October -- but a DtC expert says many wineries have their priorities misplaced.

Boutique winery owners and managers realize that most small- and medium-sized wineries, especially new brands, have trouble getting effective wholesale distribution in the wake of distributor and winery consolidation.

They also recognize that profits for wine sold directly to consumers far exceed that sold through the three-tier system (or even two-tier, where direct-to-trade sales are allowed). Knowing that, many older wineries have focused on tasting room and wine club sales, but others are heeding the siren call of e-commerce.

At recent conference sponsored by the Seminar Group, Tammy Boatright, president of VingDirect, which helps boutique wineries implement and improve DtC operations, brought some reality to the market.

“It’s a fallacy that e-commerce will give big returns,” she stated. “And if you focus on the Internet, you may overlook the biggest sources of revenue and profits like tasting rooms, wine clubs and outbound sales.”

Prior to founding VingDirect in 2009, Boatright served as head of Foster’s Wine Estates’ U.S. direct-to-consumer division including serving as acting president of Windsor Vineyards from 2005 to 2007 and president of International Wine Accessories from 2004 to 2007. Windsor Vineyards remains the largest U.S. shipper of wine direct to consumers and utilizes outbound telemarketing as the primary sales channel. She has more than 20 years of direct marketing and general management experience. She is an instructor at WISE Academy and a frequent speaker at industry conferences.