1. Premiumizing Your Grapes
How can we more effectively market our Lodi grapes?
Jeff Bitter (Moderator) – Allied Grape Growers
Rodney Schatz – Peltier Winery
Marshall Miller - Thornhill Companies
Tegan Passalacqua - Turley Wine Cellars
Stephanie Bolton -Lodi Winegrape Commission
June 28, 2018

2. Let’s define the issue….

3. Premiumization vs. Commoditization
Premiumization: The action or process of attempting to make a brand or product appeal to consumers or buyers by emphasizing its superior quality and exclusivity.
Commoditization: The process by which goods that have economic value and are distinguishable in terms of attributes (uniqueness or brand) end up becoming simple commodities in the eyes of the market or consumers.
Lodi has to actively fight being commoditized. This is not necessarily a grower vs. winery issue. It should be a grower “with” winery issue.

4. …..so what do premiumization and commoditization look like graphically?

5. If premiumization is happening it will show up right here

6. Still have a cluster of pricing, but the pricing range is much broader
Bad Buyer!
Still have a cluster of pricing, but the pricing range is much broader
….and you have a “tail” of pricing all the way out to $2,000/ton

7. This is what premiumization looks like graphically

8. …..so which variety is the poster child for premiumization in Lodi?

10. Factors Driving Premiumization
It’s Essentially Demand Driven
Consumers “pull” premiumization;
producers don’t “push” it.
For Lodi, this behavior has opened opportunities born in “neighboring” markets.

11. Premiumization vs. Commoditization
A look at neighboring markets
Central Valley
$390
Lodi $558
“Value” Coastal $1,300+
Chardonnay price/ton at a glance

12. Premiumization vs. Commoditization
A look at neighboring markets
Central Valley
$383
Lodi $699
“Value” Coastal $1,333+
Cabernet Sauvignon price/ton at a glance

13. Premiumizing Your Grapes
There’s no such thing as the premiumization fairy godmother…...you have to make a decision to premiumize, and it takes work.

14. What decisions might we have to make?
Premiumizing
Your Grapes
What decisions might we have to make?
To spend more money farming
To invest in bulk wine production
To be inconvenienced (small lots)
To invest time in marketing
To be patient in achieving results
To take a chance & accept failure
Etc., etc., etc.