HMGT 2402 Wine & Beverage Management Service sales & storage Prof. Karen Goodlad Spring 2015

Class Objectives Review of Viticulture and Oenology Review of Retail Wine Shop Assignment Service, Sales and Storage

Sales Statistics… Wine consumption in the US has increased steadily since 1994. Partially a result of positive health benefits in the news 1994, 1.77 gal. per capita 2007, 2.47 gal. per capita 2012, 3.08 gal. per capita 60% of wine in the US is purchased by women The Millennial generation, (turned 30 in 2007) at 70 million strong, will push beverage trends 2010, 2.54 gal. per capita FOR MORE INFO... Wine Market Council

All Us Adults in 2012

TABLE WINE VOLUME SHARE BY COLOR 1991 1995 2008 2009 Red 17% 25% 44% 47% White 49% 41% 42% 40% Blush 34% 14% 13% TOTAL 100% In U.S. Supermarkets Source: Based on U.S. supermarket data from The Nielsen Company.

Consumption by color

The Wine We Drank in 2011 Market Share by Sales Chardonnay +1.4% Cabernet Sauvignon +6.4% Merlot – 4.5% Pinot Grigio +7.4% Pinot Noir + 10.6% Sauvignon Blanc +8% The Nielson Company, Wine Business, 11.12.11

The Wine We Drank in 2007 “Big Three” Chardonnay Merlot 20% market share, 23% $ share Merlot 11% market share, 12 $$ share Cabernet Sauvignon 10.5% market share, 14% $$ share Pinot Grigio Pinot Noir Trends in other varietals influenced by “wine geeks” not the mass market “Big Three” Expected that Cab will soon takeover Merlot and sustain 2nd position Most wine drinkers in the US want familiarity Trends in various varietals will not affect the big three, not enough “wine geeks” to influence total case sales Trends: famous movie, tv and fashion icons marketing their branded and unbranded wines: Ed Hardy Wines, Michael Buble partners with Beringer as exclusive wine Source: “Big Three” Varietals the Backbone of Rising Industry, Wine Business Monthly, September 2007

Sales: Federal Laws=State Controls Control States Three Tier States On Premise: Restaurants, Clubs, Hotels Off Premise: Wine Shops, Grocery Stores, Costco Shelf talkers neckers

Sales: Three Tier System Winery/Importer    Distributor    Retailer    Consumer Direct Shipment &On Line Movement… Direct Shipments are an Issue of interstate commerce and antitrust laws FOR MORE INFO... Who Ships Where?

Responsible Alcohol Sales Check ID Recognize the signs of intoxication Decline service to those visibly intoxicated Train all FOH employees Ensure all bartenders and managers are certified in a responsible beverage service program TiPS (Training for Intervention Procedures) NRAEF ServSafe Alcohol

Responsible Alcohol Sales, Employment On Premise 18 years: Handle, dispense & receive payment for alcoholic beverages Off Premise 16 years: Handle, record & receive payment for alcoholic products with direct supervision Off Premise 18 years: Handle, record & receive payment for alcoholic beverages Responsible Alcohol Sales On Premise 18 years: Handle, dispense & receive payment for alcoholic beverages Off Premise 16 years: Handle, record & receive payment for beer products Off Premise 18 years: Handle, record & receive payment for alcoholic beverages FOR MORE INFO... NY State Handbook for Retail

Did not travel to the winery Shipping costs too expensive Local retailer has sample supply

Sales: Sommelier (suh-mal-'yAy), or wine steward, is a trained and knowledgeable wine professional, commonly working in fine restaurants, who specializes in all facets of wine service. The role is more specialized and informed than that of a wine waiter. Court of Master Sommeliers Master of Wine Certified Wine Educator Wine and Spirits Education Trust (SWET) As of 2013, 129 MS in US MS, 4 levels 25-30% pass the advanced 10% pass the MS exam As of 2013 there are 30 in the US and 297 Masters of Wine, living in 23 different countries, 87 are female.

Service: Decanting Why we Decant Aeration Bring to proper temp Remove sediment Season glass Mise en Place Decanter Corkscrew Candle/Matches Coaster Waiters Side Towel Glasses/Wine!!!

Importance of Temperature Sparkling Wine: 41°-45° Dry Whites and Rose’s: 44°-54° Light-bodied Reds: 50°-55° Medium to Full Bodied Reds: 55°-65° Sweet Wines, Not Port: 45°-50°

What does the shape of the bottle tell us about what is in the bottle? A Lot…

Storage Why have caves always been used for wine storage? 55°F, no temperature fluctuations 75% humidity Dark No vibrations Store on side with label face up

Alternative Packaging and Sales Screw Caps Three-Liter Boxes (Bag in a Box) TetraPak Single-Serve Packages (175ml) Lighter Weight Bottles Vending Machines and Bottle Refill Pumps Interactive Wine Service: Clo Wine Bar and iPad Wine lists According to The Nielsen Company data, between July 2004 and May 2007, the 187ml category as a whole has grown by 33 percent by case volume, nearly triple the 12 percent growth rate of the overall market in the same timeframe. Champagne producers are looking to lighten the bottle, not easy as a bottle of champagne contains 3Xs the pressure of a car tire. FOR MORE INFO... Retail Sales Report: Single-Serve Packaging Continue Steady Growth Vending Machines

Core Weekly Purchase by Price

Predictions from 2004… The wine Web will go mainstream Corks will come out Spain will be the star Malbec will make it big Unoaked wine will find a wider audience Value will be valued Diversity will be the word --

Home Work WEEK 4, FIRST QUIZ Review Notes Distillation and Spirits Viticulture & Enology Service, Sales & Storage Review Notes Read for North American Wine Lecture