Liz Thach is a Professor of Management and Wine Business at Sonoma State University in Rohnert Park, California. Her areas of expertise include Wine Business Strategy, Human Resource Management, and Leadership Development. In addition to teaching, she currently conducts research and does consulting with multiple wineries and other local businesses.
As regards her educational background, Thach holds a PHD in Human Resource Development from Texas A&M University, an M.A. in Organizational Communication and Management from Texas Tech University, and a B.A. in English from College of Notre Dame in Belmont, CA.
Thach has published more than 95 articles and 4 wine textbooks, such as the publication entitled “Wine Marketing and Sales: Success Strategies for a Saturated Market”, written along with Paul Wagner and Janeen Olsen.
- Which is your perception about the global wine market? Will it continue growing?
The global wine market will continue to grow, but more slowly for the next couple of years as we move out of the recession. The positive aspect about wine is that people continue to drink, even in a down economy – they just reduce the amount spent per bottle.
- Is it possible to differentiate some mega-trends in the wine industry?
We list 8 mega-trends for global wine in my book “Wine: A Global Business.” They are:
1) Rising interest in new varietals from around the world – Malbec from Argentina is a good example of this
2) Increased environmental concerns with how wine is produced
3) Focus on health and responsible drinking
4) Thirst for innovative products – consumers desire new types of wine, new packaging, etc.
5) Desire for both value and Premium wines
6) Trust in “word of mouth” – consumers will listen to recommendations of other consumers, especially via wine 2.0 in social networking online
7) Increased online purchasing
8 ) Desire for experiences rather than possessions – consumers want “wine experiences,” so wine tourism will grow
- What is the perception of Argentina and its wines in the US market?
The US perceptions of Argentina are extremely positive. Americans are in love with Malbec from Argentina, and many are starting to discover Torrontés. It was very smart of Argentina to enter the US market with a signature grape, such as Malbec. The question now is: can Argentina continue to delight consumers with other varietals, as well as more expensive Malbec from specific terroirs?
- What marketing strategies would you suggest?
Get very clear on the value-added proposition of Argentina. What image do you want to project to the global market about your wines? For example, New Zealand focuses on being “green” and using Sauvignon Blanc as a signature varietal.
- Finally, what advice would you give to Argentinian wine producers to increase their competitiveness?
Continue to produce and market approachable Malbec at value price points, e.g. USD10. Argentina has a good reputation for excellent quality at a good price point on Malbec. Don not lose this. Develop solid brands in this category. Do not reduce prices too low, e.g <USD5 on Malbec or will lose credibility.
Now is the time to begin to produce and market more expensive Malbec from specific terroirs in Argentina — just need to be marketed correctly to different consumer groups. Work with restaurants to pair higher end Malbec with food. Obtain high scores from top wine critics on high-end Malbec. This will take time, but should begin now as economy will improve in the next 2 to 3 years and people will be willing to spend more.
Communicate that Malbec can be sold at both ends of the market -value and luxury- and explain how this works. Besides, start a promotion on Torrontés, introduce it to the US market in a unique and compelling manner.
Once Argentina wine brands have established a large enough following (which a few already have), begin to introduce more traditional varietals, e.g. Cab, Syrah, Chardonnay, etc. Keep in mind that what makes you exciting now is that you are introducing people to new varietals, such as Malbec and Torrontés. This differentiates you and provides a competitive advantage. You need to build and capitalize on this.
Tags: foro internacional vitivinícola, Liz Thach, Strategies for Saturated Markets
