Canandaigua Catches Summer Sales Wave

Concord, Calif. -- Summer is one of the key selling seasons for wine, so Canandaigua Wine Co. hit the pavement hard this summer with aggressive merchandising programs for four of its table wine brands -- Talus, Vendange, Almaden and Alice White. Jeff Muller, national promotions manager, recently discussed the company's efforts with P-O-P Times. P-O-P Times: Why is summer an important promotional time for the Canandaigua Wine brands?Muller: We primarily run national -- versus regional -- promotions during three defined periods: spring, summer and holiday. It's common knowledge that wine sales during holiday and summer experience the largest seasonal sales spikes, and each of our brands more or less follows this trend. Overall, it's critical to maximize the opportunity from the rise in consumption during these peak periods to both maintain share and meet and exceed annual shipment goals. Summer is particularly important for our portfolio as many of our key brands are mid-range to value-priced and are very appropriate for casual, outdoor entertaining. P-O-P Times: How much competition is there for P-O-P display space in wine shops, supermarkets and other retail outlets during the summer months?Muller: Competition for in-store real estate is fierce year-round and summer is no exception. Each key promotion period presents unique challenges for floor space, not only from other wine brands, but also from brands in other categories trying to maximize peak seasonality. Examples of non-wine brands that experience summer sales surges would be charcoal, barbecue sauce, condiments, soda, etc. The hurdles for space seem endless and the bar is always being raised.P-O-P Times: What are retailers looking for in wine displays? Muller: Obviously, with all the competition, it's increasingly difficult but incredibly important to make yourself stand out from the crowd. P-O-P material that is tied to a compelling promotion is often the key. Retailers want displays that complement their environment and stimulate consumers to make impulse and/or multiple purchases. The bottom line is that floor space is increasingly valuable and its utilization should result in added rings for the retailer. That doesn't necessarily mean just wine. Because wine is complementary to so many different foods and consumption occasions, teaming our brands under a thematic "umbrella" with complementary summertime products such as salad dressing, paper plates and so on will often result in more than just an incremental wine purchase.P-O-P Times: How does Canandaigua ensure that its materials meet or exceed retailer expectations? Muller: It doesn't matter who you are or what you're selling, a promotion will never be optimized unless the retailer is on board. Beyond delivering on margin, retailers must be convinced that a program is timely for the period, appropriate for their stores, the best program to choose from in the category, and likely to stimulate sales in other categories. If I can accomplish all that, then I've done my job and I may very well have a retailer who is a promotional "partner." P-O-P Times: When did Canandaigua bring its display design function in-house? What unique benefits does this structure afford Canandaigua in its P-O-P program development and execution? Muller: We pulled our design group, Vine Design of Rochester, N.Y., in-house about a year-and-a-half ago. The sheer volume of our display work necessitated a reduction in the number of people we interfaced with daily. Obviously, there were economies of scale to be considered as well. Another big part of our rationale for going in-house was the desire to control brand identity and ensure consistent messaging for regional promotions. It stands to reason that if our regional promotion managers are tapping the same creative source as national promotions, there's a much smaller chance that positioning, look and so on will be off-track. The challenge with a one-stop shop is making sure the creative is distinct and different for each brand. Fortunately, the infrastructure of Vine Design was patterned to mitigate that issue. We are very happy with the results.

Canandaigua Catches Summer Sales Wave

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