EVENTS AND NEWS
Rias Baixas Albarino Producers Heed Expert’s Advice On Marketing Wines In US Market
March 17, 2008
Owners, winemakers and marketers of leading Albariño brands recently assembled at the Rías Baixas Consejo Regulador (local governing wine board) to learn from Barbara Insel, President and CEO of Stonebridge Research, how best to market their wines in the US.
Ramon Huidobro, Consejo Director, was the first within the Spanish wine community to understand the value of learning first-hand from a top industry expert by inviting Insel to this wine region. The seminar covered a range of timely topics such as the US economic situation, current challenges and opportunities for marketing wines in a rapidly changing landscape, and how Spanish wines—and Rías Baixas Albariño in particular—can take advantage of this environment.
Insel opened with a positive picture on total wine sales in the American wine market which were up 7.1% in 2007 with a significant growth in the higher end of the market. While wines within the $10-20 remain the heart of the market, she explained, the fastest growing sector is in the $15 and up category.
Spain Continues to Gain Ground
In 2007, sales were strong for Spain, with a 20% increase in both dollar value and volume. According to research done by Neilson primarily within the grocery store sector, Texas, Miami, Southern California, Oregon, Seattle and the Northeast are the strongest markets for Spanish wines. The Midwest represents a strong potential for major sales growth. While this research only represents 30% of total sales, it is a strong indicator of current trends in the US.
How to Protect Market Share
As pointed out by Insel, many countries now market by varietal, a technique perfected by California wineries. “Marketing purely by varietal creates a market for competition,” Insel explained. She emphasized the importance of stressing regional and style distinctions in order to protect market share. She identified Riesling (from all regions), Italian Pinot Grigio and New Zealand Sauvignon Blanc as competitors to Rías Baixas Albariño.
The Future for Rías Baixas Albariño in America
The seminar ended on a positive note regarding Rías Baixas’ position in the US wine market. According to Insel, consumers are aware that these wines come from Spain, which continues to enjoy an image of being fun, new and exciting. Spain is viewed as producing products which offer good value and high quality and which will continue to gain market share. According to Insel, consumers are looking for a safe adventure. Wine, especially undiscovered regions or lesser known varietals, “appeals very much to the current American zeitgeist.” Another strong advantage for Rías Baixas wines—as Insel discovered during her visit to several producers—is that their aromatic nose, refreshing taste and bone-dry character complement most current food trends.
About Barbara Insel
Insel was previously Managing Director and lead consultant for MKF Research LLC, a widely respected advisor on all phases of the wine industry. Her MBA from Stanford’s School of Business and 20 years experience in international finance and related research at such firms as Salomon Brothers, Morgan Stanley and Kleinwort Benson underscores her credibility as a leading consultant. www.stonebridgeresearch.com.
About Rías Baixas Albariño
Formed in 1988, the Rías Baixas DO is the leading Denomination of Origin in the Galician region of northwestern Spain. The DO owes much of its acclaim to the white Albariño grape, elevated by many in Spain to cult status, a trend that has now spread to US shores. More information: www.riasbaixaswines.com.
Contact
Rías BaixasVisit their Website:
www.riasbaixaswines.com
