Business of Drinks 20: Building $10M in Non-Alc Wine Sales with Kyle Skene of Giesen - Business of Drinks
When Erica and Felicity walked past the Giesen stand at a 2023 wine fair, they knew they had to stop and find out why the guy pouring wine seemed so happy, when everyone else around him was gloomy about wine’s downturn. It turned out that Kyle Skene, the Group General Manager of New Zealand’s Giesen Group, has a lot to be optimistic about. When they found out why, they immediately invited him on the podcast.
Giesen is a major player in New Zealand wine, and the company has a culture of creativity and experimentation, which led to the creation of Giesen’s 0% wines, including Sauvignon Blanc, Rosé, a red blend, and others. With more than $10 million in sales annually of its non-alc wines, Giesen’s 0% has become the second-biggest non-alc wine brand in the U.S. behind Fré. What they learned was that by leaping into a new category, there were other market opportunities waiting to be tapped.
In this episode, Kyle reveals what it takes to launch products into highly competitive markets, while retaining the market-leading position of existing products.
TOP TAKEAWAYS
1. Research is key
It’s not enough to read consumer survey data. Giesen relies on research, starting with their own sampling programs, and staying abreast of research from other consumer categories.
2. Be your own consumer
Giesen developed its 0% non-alc product after employees took a company-wide fitness challenge and swore off alcohol for a month. It was a tough call for a wine company — so they decided to develop something to keep themselves on track.
3. Get everyone on board
Many winemakers went into the profession because they love wine as a product, so suggesting they develop a non-alc product was a big ask. But getting people on board is critical.
4. Staying true to company values can spur innovation
The technology that produces non-alc products has a sustainability problem, which meant using it undermined Giesen’s environmental values. In solving the problem, they saw the potential for new products.
5. Don’t forget the ‘winemaker family’ test
Before launching any new products on the market, Giesen’s winemakers trial it on family and friends. If it doesn’t pass the test, it doesn’t go to market.
Shoutout to our sponsor! A big round of thanks to AccelPay — a leading ecommerce solution for bev-alc brands. From a one-tap, compliant checkout to comprehensive sales data, AccelPay has you covered and can make your existing website a storefront. For an exclusive 10% off your account, visit: https://www.accelpay.io/bod
Meet the hosts
Erica Duecy is co-founder of Business of Drinks, a podcast and content consultancy, and one of the drinks industry’s most accomplished digital and content strategists. She has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies.
https://www.instagram.com/ericaduecy/
https://www.linkedin.com/in/erica-duecy-4a35844/
https://twitter.com/ericaduecy
Felicity Carter is co-founder of Business of Drinks, a podcast and content consultancy. Also the Editorial Director of Areni Global, the London-based fine wine think tank, she was previously Editor-in-Chief of Meininger’s Wine Business International, a trade magazine she built into a global must-read, with subscribers in 38 countries.
https://twitter.com/felicitycarter
https://www.linkedin.com/in/felicity-carter-a5754380/
https://www.instagram.com/carter.felicity/
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