Changes in wine consumption behavior

0
2753

The company will head a project to support small wine producers in Brazil

Evino’s next sips to win market in Brazil

Co-CEO of Evino, the second largest wine e-commerce in Latin America, Ari Gorenstein studies the changes in consumption behavior of Italians, Americans and Chinese; focuses on the premium wine segment and promotes solidarity with small Brazilian producers during the crisis

Second largest wine e-commerce in Latin America, Evino records growing sales in these quarantine times. “E-commerce and delivery increased their sales. The question is how many of the new customers, who did not buy digitally, will persist when the crisis passes, ”asks executive Ari Gorenstein, who shares the direction of Evino with Marcos Leal.

The answer to this question is crucial to the company’s planning. After all, it is a robust and complex operation, especially now, in times of coronavirus. Last year alone, Evino imported 7.15 million bottles, most of them from France and Italy, two of the countries most affected by the pandemic.

While seeking to understand what consumer behavior will be like in the post-pandemic, the company will head a project to support small wine producers in Brazil, many of whom have never sold digitally.

By mid-May, e-commerce should start selling labels from these small Brazilian producers, those who depended on tourists at the cellar door to spawn their bottles.

This action is accompanied by work to rethink the e-commerce strategy. Before the crisis came, Evino was preparing to enter the premium wine segment (the company is currently best known for the virtual sale of cheaper wines) and to represent producers with exclusivity, as traditional importers do. This plan continues, guarantees Gorenstein.

In this interview with NeoFeed, Gorenstein, talks about the performance of online sales, consumer change, examples of what has happened in the markets of Italy, the United States and China, details the support plan for small producers and reveals how he intends sell more premium wines. Follow:

How are online sales in the wine market?
Online sales have grown worldwide. The pandemic restricts circulation, consumption drops outside the home and the domestic grows. It is natural to have a substitution, but it is too early to know if consumption at home will replace the out-of-home. The consumer now sees digital and e-commerce with a different look, no longer as a complementary tool, and has come to know its advantages and disadvantages. For now, sales are increasing for those who supply consumption at home, such as supermarkets and e-commerce.

What does the international experience show?
Worldwide, the pandemic has gone through, such as Italy, USA, beverage e-commerce and delivery services have had their sales increased. The question is how many of the new customers, who did not buy digitally, will persist. If we look at the Chinese case, they are growing. But online wine sales have already had good penetration in China. I follow Tannico a lot, an Italian e-commerce. There, the increase was two to three times the volume of revenue. The owner believes that part of this increase will not be sustained, that when he returns to normal life, many Italians will prefer the neighborhood’s wine cellar. But there will be a part that will remain in e-commerce. E-commerce has overcome a barrier, it is possible that it will change habits, but it is too early to have answers.

What is the Chinese data?
There is a survey by Wine Intelligence, carried out before the pandemic, which showed that, in wines, China had the highest online penetration, with 41%. In second place was England, with 30%, and in third, Brazil, with 26%. The survey was done by asking regular wine consumers if they bought online through the past 6 months. It does not mean that you are a consumer who only buys online, but who also buys online. I imagine that this percentage has grown in recent months.

“I follow Tannico a lot, an Italian e-commerce. There, the increase was two to three times the volume of revenue ”

What do customers buy in the online store?
Consumption between four walls is more cost-effective. It is not the wine to give away, in which status matters, a label to impress on the restaurant table. At home, it is worth drinking what you like and worth the cost-benefit. We noticed a slight drop in the average bottle ticket this month, it is a drop that does not reach 2% of the value. I can’t say it’s a sign of recession. It is a sign that perhaps people are consuming cheaper products.

In times of pandemic, large companies have been working to support other links in the chain. How has Evino positioned itself?
We understand that our channel will not be negatively affected by the pandemic. But our platform, which guarantees a supply of wine, also has the mission of solidarity. We identified sectors that were most committed.

Which sectors?
Small Brazilian winemakers, those who sell their wines at the canteen door, who depend on wine tourism, who have no other sales channels. They saw the recipe zero. In 15 days, maximum 20 days, we will sell these wines. We will run a campaign telling the story of these people and guaranteeing access to the market for those who have seen their channels interrupted. We are currently tasting the samples. Now, more than promotion, it is providing access for those who did not have a sales channel. Let’s start with three or four wineries and between 15 and 20 labels. The action can grow, depending on the duration of the quarantine.

Is this the first time that Evino works with national wine?
In the beginning, we worked harder, but Brazil’s tax asymmetry gets in the way. Due to tax differences and our national scope, we sometimes made an offer, which was good for São Paulo, but could be weak for Paraná or Rio Grande do Sul. Currently, we work with an exclusive line from Miolo, we already work with Perini, with Lidio Carraro, with Maximo Boschi. But they were always punctual actions.

“The small Brazilian winegrowers, those who sell their wines at the door of the canteen, who depend on wine tourism, who have no other sales channels. They saw the recipe zero ”

The pandemic came when Evino was betting on a strategy of entering more premium products, more sensitive to the exchange rate. How’s that?
We continue to see the online premium segment as a great business opportunity. By premium, we mean wines above R $ 50, but that reach higher values. At Evino, we have R $ 300, R $ 400 wines. It was a strategy that was born before the pandemic and continues.

Don’t you think people are going to hold back on spending?
I don’t see the consumer stopping drinking wine. We have already experienced many crises in Brazil, the consumer can change the frequency, the style of the wine. He will no longer travel, will not change his car, but he will allow himself a little indulgence. We understand that the migration to digital would already occur in this audience, but, perhaps, accelerate the speed. Customers are learning to buy online.

How is this plan?
When Evino was born, seven years ago, we were very focused on cost benefit, on lower value-added wines, with a focus on the Old World, and on flash sale (something like quick sale, right after the ad on the website). We started with Italy and France, then came the labels from Spain and Portugal. It was then an unexplored opportunity to democratize access to European wine. Currently, between 75% and 80% of our sales are from European labels.

And the rest?
Over time, we expanded to other regions, such as Australia, New Zealand, Lebanon and also Argentina and Chile, always with good cost benefit. But our business model did not allow the customer to buy a wine he liked again. He had to wait for this wine to be offered again. We decided to reconcile part of the conventional portfolio, to have more perennial labels. We continue with our curatorship, offering news, but we want to establish greater customer engagement and with the brands he likes.

“Currently, between 75% and 80% of our sales are from European labels”

In practice, is it competing with more sophisticated retail?
Yes, before Evino had been competing more with the supermarket, but now we also compete with wine bars, with specialized stores. E-commerce can also serve this audience, which consumes premium labels, with higher added value. Our idea is to guarantee consistency and supply. And to work differently our expertise on digital channels.

How to reach this audience?
Before quarantine, we started to focus on face-to-face tastings, harmonized dinners, bringing producers to talk to customers. With the pandemic, this was partially compromised. We have a new producer, Jean-Pascal Lacaze (who designs award-winning labels in Chile, such as Stella Aurea), which we will present for a live this next week. We are thinking of actions to access this audience. We want to be a more obvious destination for these customers.

Is it an e-commerce using face-to-face retail tools?
We are learning to reconcile these two universes. We already had tastings, wine dinner. Now we are forced to think outside the box. We are betting on lives, following videos with the producers. We need to think about how to speed up customer contact. We know that to buy a particular ticket, the customer needs to experiment. Experience is what brings the customer back. If at an event I present 20 bottles to him, and he likes the majority and understands our price, this is the chance to capture the customer. In digital, this work is slower.

Does this strategy continue even with the highs of the dollar and the euro that make wine prices soar?
The high euro, as it stands, makes us rethink. We are all aware of the situation, we know the tightness, the decision to change the product mix, to prioritize some labels. There is a lot of uncertainty about what will happen. But, on the other hand, with the high exchange rate, many people do not travel, do not go to restaurants, but they may decide to buy wines with higher added value. It’s also time to keep the radar on. This crisis is going to provoke a lot of chair dancing, of producers changing importers. This crisis will affect each channel differently. You need to be aware.

Source: https://neofeed.com.br/blog/home/os-proximos-goles-da-evino-para-ganhar-mercado-no-brasil/

Photo: Ari Gorenstein, Co-CEO of Evino

The company will head a project to support small wine producers in Brazil

Evino’s next sips to win market in Brazil

Co-CEO of Evino, the second largest wine e-commerce in Latin America, Ari Gorenstein studies the changes in consumption behavior of Italians, Americans and Chinese; focuses on the premium wine segment and promotes solidarity with small Brazilian producers during the crisis

Second largest wine e-commerce in Latin America, Evino records growing sales in these quarantine times. “E-commerce and delivery increased their sales. The question is how many of the new customers, who did not buy digitally, will persist when the crisis passes, ”asks executive Ari Gorenstein, who shares the direction of Evino with Marcos Leal.

The answer to this question is crucial to the company’s planning. After all, it is a robust and complex operation, especially now, in times of coronavirus. Last year alone, Evino imported 7.15 million bottles, most of them from France and Italy, two of the countries most affected by the pandemic.

While seeking to understand what consumer behavior will be like in the post-pandemic, the company will head a project to support small wine producers in Brazil, many of whom have never sold digitally.

By mid-May, e-commerce should start selling labels from these small Brazilian producers, those who depended on tourists at the cellar door to spawn their bottles.

This action is accompanied by work to rethink the e-commerce strategy. Before the crisis came, Evino was preparing to enter the premium wine segment (the company is currently best known for the virtual sale of cheaper wines) and to represent producers with exclusivity, as traditional importers do. This plan continues, guarantees Gorenstein.

In this interview with NeoFeed, Gorenstein, talks about the performance of online sales, consumer change, examples of what has happened in the markets of Italy, the United States and China, details the support plan for small producers and reveals how he intends sell more premium wines. Follow:

How are online sales in the wine market?
Online sales have grown worldwide. The pandemic restricts circulation, consumption drops outside the home and the domestic grows. It is natural to have a substitution, but it is too early to know if consumption at home will replace the out-of-home. The consumer now sees digital and e-commerce with a different look, no longer as a complementary tool, and has come to know its advantages and disadvantages. For now, sales are increasing for those who supply consumption at home, such as supermarkets and e-commerce.

What does the international experience show?
Worldwide, the pandemic has gone through, such as Italy, USA, beverage e-commerce and delivery services have had their sales increased. The question is how many of the new customers, who did not buy digitally, will persist. If we look at the Chinese case, they are growing. But online wine sales have already had good penetration in China. I follow Tannico a lot, an Italian e-commerce. There, the increase was two to three times the volume of revenue. The owner believes that part of this increase will not be sustained, that when he returns to normal life, many Italians will prefer the neighborhood’s wine cellar. But there will be a part that will remain in e-commerce. E-commerce has overcome a barrier, it is possible that it will change habits, but it is too early to have answers.

What is the Chinese data?
There is a survey by Wine Intelligence, carried out before the pandemic, which showed that, in wines, China had the highest online penetration, with 41%. In second place was England, with 30%, and in third, Brazil, with 26%. The survey was done by asking regular wine consumers if they bought online through the past 6 months. It does not mean that you are a consumer who only buys online, but who also buys online. I imagine that this percentage has grown in recent months.

“I follow Tannico a lot, an Italian e-commerce. There, the increase was two to three times the volume of revenue ”

What do customers buy in the online store?
Consumption between four walls is more cost-effective. It is not the wine to give away, in which status matters, a label to impress on the restaurant table. At home, it is worth drinking what you like and worth the cost-benefit. We noticed a slight drop in the average bottle ticket this month, it is a drop that does not reach 2% of the value. I can’t say it’s a sign of recession. It is a sign that perhaps people are consuming cheaper products.

In times of pandemic, large companies have been working to support other links in the chain. How has Evino positioned itself?
We understand that our channel will not be negatively affected by the pandemic. But our platform, which guarantees a supply of wine, also has the mission of solidarity. We identified sectors that were most committed.

Which sectors?
Small Brazilian winemakers, those who sell their wines at the canteen door, who depend on wine tourism, who have no other sales channels. They saw the recipe zero. In 15 days, maximum 20 days, we will sell these wines. We will run a campaign telling the story of these people and guaranteeing access to the market for those who have seen their channels interrupted. We are currently tasting the samples. Now, more than promotion, it is providing access for those who did not have a sales channel. Let’s start with three or four wineries and between 15 and 20 labels. The action can grow, depending on the duration of the quarantine.

Is this the first time that Evino works with national wine?
In the beginning, we worked harder, but Brazil’s tax asymmetry gets in the way. Due to tax differences and our national scope, we sometimes made an offer, which was good for São Paulo, but could be weak for Paraná or Rio Grande do Sul. Currently, we work with an exclusive line from Miolo, we already work with Perini, with Lidio Carraro, with Maximo Boschi. But they were always punctual actions.

“The small Brazilian winegrowers, those who sell their wines at the door of the canteen, who depend on wine tourism, who have no other sales channels. They saw the recipe zero ”

The pandemic came when Evino was betting on a strategy of entering more premium products, more sensitive to the exchange rate. How’s that?
We continue to see the online premium segment as a great business opportunity. By premium, we mean wines above R $ 50, but that reach higher values. At Evino, we have R $ 300, R $ 400 wines. It was a strategy that was born before the pandemic and continues.

Don’t you think people are going to hold back on spending?
I don’t see the consumer stopping drinking wine. We have already experienced many crises in Brazil, the consumer can change the frequency, the style of the wine. He will no longer travel, will not change his car, but he will allow himself a little indulgence. We understand that the migration to digital would already occur in this audience, but, perhaps, accelerate the speed. Customers are learning to buy online.

How is this plan?
When Evino was born, seven years ago, we were very focused on cost benefit, on lower value-added wines, with a focus on the Old World, and on flash sale (something like quick sale, right after the ad on the website). We started with Italy and France, then came the labels from Spain and Portugal. It was then an unexplored opportunity to democratize access to European wine. Currently, between 75% and 80% of our sales are from European labels.

And the rest?
Over time, we expanded to other regions, such as Australia, New Zealand, Lebanon and also Argentina and Chile, always with good cost benefit. But our business model did not allow the customer to buy a wine he liked again. He had to wait for this wine to be offered again. We decided to reconcile part of the conventional portfolio, to have more perennial labels. We continue with our curatorship, offering news, but we want to establish greater customer engagement and with the brands he likes.

“Currently, between 75% and 80% of our sales are from European labels”

In practice, is it competing with more sophisticated retail?
Yes, before Evino had been competing more with the supermarket, but now we also compete with wine bars, with specialized stores. E-commerce can also serve this audience, which consumes premium labels, with higher added value. Our idea is to guarantee consistency and supply. And to work differently our expertise on digital channels.

How to reach this audience?
Before quarantine, we started to focus on face-to-face tastings, harmonized dinners, bringing producers to talk to customers. With the pandemic, this was partially compromised. We have a new producer, Jean-Pascal Lacaze (who designs award-winning labels in Chile, such as Stella Aurea), which we will present for a live this next week. We are thinking of actions to access this audience. We want to be a more obvious destination for these customers.

Is it an e-commerce using face-to-face retail tools?
We are learning to reconcile these two universes. We already had tastings, wine dinner. Now we are forced to think outside the box. We are betting on lives, following videos with the producers. We need to think about how to speed up customer contact. We know that to buy a particular ticket, the customer needs to experiment. Experience is what brings the customer back. If at an event I present 20 bottles to him, and he likes the majority and understands our price, this is the chance to capture the customer. In digital, this work is slower.

Does this strategy continue even with the highs of the dollar and the euro that make wine prices soar?
The high euro, as it stands, makes us rethink. We are all aware of the situation, we know the tightness, the decision to change the product mix, to prioritize some labels. There is a lot of uncertainty about what will happen. But, on the other hand, with the high exchange rate, many people do not travel, do not go to restaurants, but they may decide to buy wines with higher added value. It’s also time to keep the radar on. This crisis is going to provoke a lot of chair dancing, of producers changing importers. This crisis will affect each channel differently. You need to be aware.

Source: https://neofeed.com.br/blog/home/os-proximos-goles-da-evino-para-ganhar-mercado-no-brasil/

Photo: Ari Gorenstein, Co-CEO of Evino

You are curious? You will like this blog. Click here and check it out!

Leave a reply