This day was inevitable. As large discount and grocery stores are expanding their selections and, producers are in search of more distribution channels, it is but a matter of time before they negotiate deals. But restaurants have seven ways through this situation without being left out:
1. Compete with retailers on pricing: the restaurant guest still gets the benefit of a social event topped with good wines in a great setting
2. Carry undiscovered estates: Illinois, for instance, produces nice wines that do not figure on big box retailers because they are small estates. Regional wines producers are also small enough to be able to customize flavor profiles for you.
3. Develop own private branding: select wines you like most or develop your own blends and sell them under your own brand.
4. Import international regional brands: Tunisia and New Zealand produce great wines. Romania and Bulgaria produce great dessert wines. Greece and Turkey have been producing for a long time. They have been overshadowed by French, Italian and German wines when the US wine market was small.
5. Diversify into non-grape wines: Personally, I love Korean plum and raspberry wines. But consider strawberry, prunes, apple, peach and blueberry wines. The US market is embryonic but with great potential. Non-grape wines are more expensive (higher margins) and relatively undefined. This means that bottle sizes, flavor profiles and pricing are still undetermined for most people.
6. Develop a new distribution method: most who buy wine are required to go to the store to select. But with proper liquor licensing, one can deliver wines just the same as delivering food. Imagine a couple being able to order a great meal from their favorite restaurant and a matching wine. So that even if the retail store carries the same wines as you do, they won't be delivering the same service.
7. Restaurants and Wine shops could create cooperatives that would buy an exclusive selection (instead of products): for instance the particular year of a particular producer, a particular variety of a particular brand etc. By purchasing contractual "exclusivities", upscale restaurants could still maintain their cachet.
This said, wine sold by the glass at restaurants still presents a comfortable margin and the guest does have to buy the whole bottle.
Photo source: t31mo from flikr.com
1. Compete with retailers on pricing: the restaurant guest still gets the benefit of a social event topped with good wines in a great setting
2. Carry undiscovered estates: Illinois, for instance, produces nice wines that do not figure on big box retailers because they are small estates. Regional wines producers are also small enough to be able to customize flavor profiles for you.
3. Develop own private branding: select wines you like most or develop your own blends and sell them under your own brand.
4. Import international regional brands: Tunisia and New Zealand produce great wines. Romania and Bulgaria produce great dessert wines. Greece and Turkey have been producing for a long time. They have been overshadowed by French, Italian and German wines when the US wine market was small.
5. Diversify into non-grape wines: Personally, I love Korean plum and raspberry wines. But consider strawberry, prunes, apple, peach and blueberry wines. The US market is embryonic but with great potential. Non-grape wines are more expensive (higher margins) and relatively undefined. This means that bottle sizes, flavor profiles and pricing are still undetermined for most people.
6. Develop a new distribution method: most who buy wine are required to go to the store to select. But with proper liquor licensing, one can deliver wines just the same as delivering food. Imagine a couple being able to order a great meal from their favorite restaurant and a matching wine. So that even if the retail store carries the same wines as you do, they won't be delivering the same service.
7. Restaurants and Wine shops could create cooperatives that would buy an exclusive selection (instead of products): for instance the particular year of a particular producer, a particular variety of a particular brand etc. By purchasing contractual "exclusivities", upscale restaurants could still maintain their cachet.
This said, wine sold by the glass at restaurants still presents a comfortable margin and the guest does have to buy the whole bottle.
Photo source: t31mo from flikr.com
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