Hermès and the who-me school of marketing

In this hectic buy-buy sell-sell season one producer rises above the noise and there may be some borrowable insights from taking a look. I propose Hermès, a ‘producer’ who’s definitively mastered the art of the luxury ‘game.’

Back in 2009 I enjoyed Michael Tonnello’s book Bringing Home the Birkin: My Life in Hot Pursuit of the World’s Most Coveted Handbag.  It was his story of globe-trotting in search of buying Birkin purses and his adventures along the way. Fast forward to a recent 60 Minutes profile of Pierre-Alexis Dumas, Hermes’ artistic director. The segment was a great behind the scenes look inside the atelier as well as inside how the brand presents itself. There were two comments with some relevance to wine marketing. These come up at 3:04 here https://www.youtube.com/watch?v=ah2eAynWzEg

One was when the interviewer, Sharyn Alfonsi, asked: “Do you ever make a decision based on cost? Budget? Like, “This will be less expensive if we do it this way.” M. Dumas answered: “I can’t work like that. I’ve always heard that Hermès is very costly. It’s not expensive. It’s costly.”

Alfonsi asked; “What’s the difference?” Dumas answered: “The cost is the actual price of making an object properly with the required level of attention so that you have an object of quality. Expensive is a product, which is not delivering what it’s supposed to deliver, but you’ve paid quite a large amount of money for it, and then it betrays you. That’s expensive.”

Comment #2: “The company has never had a marketing department. Its allure comes from a century of superb craftsmanship and serendipity. Take this trapezoid shaped purse. In 1935, Dumas’ grandfather designed the bag; it wasn’t a hit. But as legend has it, 20 years later, an expecting Grace Kelly used the bag to hide her belly from peering paparazzi. Soon women flooded Hermès, asking for what was eventually renamed the Kelly bag. Hermès scarves have been favored by American royalty and actual royalty for decades. The kind of product placement money can’t buy. Even the brand’s famous citrus-colored boxes, a color the company trademarked in the U.S., was a happy accident of the 1940s.”

Costly vs. expensive. In the eyes (or should we say palate) of the customer? When you consider the landscape of wine bottles and the pricing that often doesn’t seem to make sense, this explanation of ‘costly’ vs. ‘expensive,’ and the idea that you’ve been betrayed by buying something very costly….hits home.

If you’re reading this, you’re probably a bit like me, sussing out the ‘marketing’ in the most mundane situations. When a product—dare we say ‘empire’—like Hermès, proclaims that they essentially don’t market, I’m even more intrigued.

Fourteen million people follow their Instagram https://www.instagram.com/hermes/.

Someone had fun making a video of a dog on the loose after hours in an Hermès shop (“Who let the dog out?): https://www.instagram.com/p/DDzmC6xssJR/ . A gifted animator created a clever cartoonish rendering of an apple transforming into a purse: https://www.instagram.com/p/DDt1UclszQF/ .

I admire the company’s huge footprints in the world of horses and equestrian competition, of course tracing right back to their origin as a saddlemaker. You can experience an ASMR-ish sound-bath horse grooming session on their IG https://www.instagram.com/p/DCRm0urMZma/ or appreciate the pure art behind this horse’s fall foliage attire https://www.instagram.com/p/DAsm-0pMUpC/

Or yet another huge endeavor, a YouTube channel documenting all of their equestrian involvement, https://www.youtube.com/playlist?list=PLD1G-Fq3N1R8YhTDTfJYoSOcGURV6n3BV.

You’ll visit with the riders Hermès supports, who talk about going faster, ‘daring to be generous,’ riding bareback, learning from defeat and so on; there are also segments with saddle makers and other craftspeople.

So after a glimpse into the Hermès mindset, what do we bring back to our desks? Take a look at your craftsmanship; is it top shelf? Do you employ practices and specialized equipment that you should be talking about more? What about your grapes and your vineyards—they must be unique—are you detailing that with accuracy as a point of difference to attract customers?

Are you branching out to support some type of field or endeavor with a thematic link to your name or identity?

And how do you walk the walk of being exclusive but not too exclusive? How easy or hard is it for a new customer to buy your wine? Mike DeSimone and Jeff Jenssen’s recent Robb Report piece about the allocation system is a great read on this aspect: https://robbreport.com/food-drink/wine/against-winery-allocation-system-1236110110/

Food for thought in the New Year.

Happy holidays!

Navigating the World of Wine PR Amid Changing Health Warnings on Alcohol Consumption

_dsf4615-2We are turning over the blog today to a guest. Amber Burke is a WSET-certified PR consultant, wine writer and influencer with a passion for sharing her knowledge and expertise in the world of wine. Having lived in Europe and California, today she’s based on the East Coast. With over 12 years of industry experience, Amber combines her skills to foster a deep appreciation for the art of wine. 

The wine industry has always held a unique space in the world of public relations. Wine is not just a product—it is a lifestyle symbol, a cultural touchstone, and for many, a luxury associated with celebration and social interaction. However, as global health organizations increasingly tighten their recommendations and warnings around alcohol consumption, including wine, the PR landscape for wineries, vineyards, and distributors has become more complex. Navigating this evolving environment requires a balance of strategic messaging, education, and sensitivity to public concerns.

The Shift in Health Messaging

Health warnings on alcohol consumption have intensified over the past decade. Public health bodies, like the World Health Organization (WHO), have underscored the link between alcohol consumption and various health risks, from liver disease to cancer. These warnings are not new, but they are becoming more prominent in public discourse, especially as governments and health advocates push for clearer labeling and stricter advertising regulations.

Something to note in these “studies” being released by the WHO is that they are being supplied and lobbied by Prohibitionist organizations with their own political and moral agendas.

Wine, often marketed for its supposed health benefits—such as the antioxidants in red wine—has come under particular scrutiny. The previous narrative of “a glass of wine a day” promoting heart health has been increasingly challenged by new studies suggesting that even moderate alcohol consumption carries risks. For wine producers and marketers, this creates a dilemma: How do you promote a product that, while culturally ingrained, is being targeted by evolving health science?

The Role of Wine PR

The primary role of public relations in the wine industry is to shape public perception while managing potential crises. With the growing prevalence of health warnings, PR strategies must evolve to address consumer concerns and promote responsible messaging without alienating the core audience of wine enthusiasts.

Here are some key approaches that wine PR professionals can adopt:

  1. Emphasizing Transparency and Responsibility

One of the most effective ways to navigate the health warnings is by leaning into transparency. Acknowledging the health risks associated with alcohol consumption and promoting responsible drinking can go a long way in building consumer trust. Wine brands that communicate openly about the potential risks, while providing guidance on moderation, will likely foster stronger connections with health-conscious consumers.

Incorporating responsible drinking messages into marketing materials and collaborating with health organizations can help brands align themselves with public health priorities, showcasing that they are aware of the issues and care about their consumers’ well-being.

  1. Highlighting the Craft, Culture, and Sustainability

Health warnings should not be the sole focus of wine PR. Wineries can shift their messaging to emphasize the artistry, heritage, and sustainability aspects of wine production. Storytelling that centers around the craftsmanship behind each bottle, the family-owned vineyards, or eco-friendly farming practices allows brands to create a narrative that transcends the product itself.

Sustainability, in particular, resonates with modern consumers who prioritize environmental responsibility. By championing organic farming, reduced carbon footprints, and eco-conscious packaging, wineries can tap into broader trends that appeal to ethically driven audiences.

  1. Education as Engagement

Rather than avoiding discussions about health, wine PR professionals can position themselves as educators. Offering content that educates consumers about wine pairings, the intricacies of wine production, and the importance of savoring wine as part of a balanced lifestyle can change the conversation. Consumers are more likely to trust a brand that provides valuable, knowledgeable insights rather than one that seems dismissive of the changing health landscape.

Hosting webinars, wine-tasting events, or blog posts that include discussions on responsible consumption can strike the right balance, combining education with engagement. Additionally, partnering with nutritionists or health experts to provide a balanced perspective can lend credibility to these efforts.

  1. Navigating New Regulations

As health warnings become more prominent, regulatory changes are likely to follow. From enhanced labeling requirements to advertising restrictions, the wine industry will need to stay ahead of these changes. Effective PR strategies must anticipate regulatory shifts and adjust marketing campaigns accordingly to avoid potential pitfalls.

Monitoring global regulatory trends and aligning with them early on can help brands maintain compliance while protecting their reputation. Proactive communication about adherence to new guidelines can further solidify a brand’s image as responsible and forward-thinking.

  1. Repositioning the Wine Experience

As the public becomes more health-conscious, PR strategies should consider repositioning wine from an everyday drink to a more occasional indulgence. Messaging that highlights wine as part of a curated experience—such as enjoying a fine bottle during special moments or as part of a gastronomic journey—can distance the product from its association with regular consumption.

Promoting limited-edition releases, curated tasting experiences, or collaborations with high-end chefs can shift the focus to wine as a cultural and culinary highlight, rather than an everyday indulgence.

The Path Forward

Navigating the world of wine PR amid changing health warnings on alcohol consumption requires a thoughtful, multi-faceted approach. By prioritizing transparency, embracing the cultural and artisanal elements of wine, and providing consumers with valuable education, wineries and wine marketers can maintain strong, trusting relationships with their audience. Health warnings are unlikely to diminish the appeal of wine entirely, but they will reshape the way the industry communicates. PR professionals who adapt to these shifts, promote responsible enjoyment, and align with broader consumer values will find opportunities for growth and resilience in the evolving landscape.

Ultimately, the wine industry’s ability to maintain its allure, while addressing health concerns head-on, will determine its long-term success in a more health-conscious world.

Cultural headwinds and the wine business

Two streams just came together and I thought I’d share.

person holding white dandelion flower

If you’re in the wine business you probably read the most recent Direct To Consumer Wine Shipping Report, which is an annual collaboration between Sovos ShipCompliant and Wine Business Analytics. It contains the most up-to-date and accurate representation of the American direct-to-consumer wine shipping channel as well as data on growth trends, regional demand, varietal trends and more. “Beware of continuing cultural headwinds,” the Report said. “We view with concern for the DtC shipping channel several headwinds that could diminish wine consumption overall and with it DtC shipments in 2024. They include continued reduction of alcohol consumption, particularly among younger adults, the rise of alternative alcoholic beverages, anti-alcohol campaigns coordinated by powerful international bodies, and increased competition from cannabis as more states legalize recreational sales,” they said.

Cultural headwinds. How do you capture those winds? How can you bend them your way if you’re publicizing a specific Cabernet Sauvignon? That’s a powerful and provocative admonition.

So while absorbing that and using that lens to review all the wines I represent, I also reflected on what I do face every day. People often ask me what the most interesting things I do or see as a publicist in the wine business are.

I do see a lot. A lot which is often frustrating…sometimes clever.  Sometimes it’s the simplest things that are the most effective. Often I see big-time missed opportunities.

I’d been mulling over writing a post about this when life forced my hand, so to speak. That would be Josh Cellars’ amazing “15 minutes of fame” from being prominently featured in Saturday Night Live’s cold open this past weekend. You can see it here at 2:57. Maya Rudolph as Kamala Harris and Andy Samberg as Doug Emhoff are watching the recent VP debate on their couch at home. Rudolph/Harris is getting upset as she watches; she says she wishes she’d chosen Josh, not as in the Pennsylvania governor, Josh Shapiro, but the wine. She pours herself a glass and the bottle and label are front & center. Unfortunately, this should have been front & center on all of Josh Cellars’ platforms immediately…as of yet, not yet. Hopefully it will be soon. So here’s a case of what looks like amazing serendipity—a wine-oriented SNL writer who thought of the connection between the wine and the governor. This is a rare thing, not to mention SNL’s huge reach.

Then there are things that are frustrating….

Here’s another recent experience: for six months I assisted a writer working on a thematic story for a very major magazine. The writer interviewed the winemaker-owner (it’s a small brand with a unique personality), she tasted all of the wines, she followed up with questions. Then came her apologetic email with a copy of the finished article: all that remained to do with my client was a review of one wine; he was not included in the accompanying article. Space apparently was the culprit; the writer was very chagrined. Darn, right?

I represent wineries outside of Napa and Sonoma—Lake County, Mendocino, Arizona. Maybe you wouldn’t be surprised to find out that many major wine publications aren’t reviewing wines from these regions. Why? Budgets? Prejudice? Hard to say, but very frustrating.

Recently the long-time wine columnist at a major paper retired; ironically that column really did ‘move the meter’ when it came to wine sales of wines that were recommended. To be replaced by….not the same format, to be determined, say the editors. Another darn.

One other ‘slice of my life’ to share: my constant refrain to wineries to shoot their own iPhone videos and pop them up on Instagram or Facebook. I literally see with my own eyes what greater impact those types of efforts have….versus art-directed still lifes or carefully composed landscape shots.

 

What’s the motto or bottom line? Keep your eyes peeled on your environment so you can course-correct quickly. Be creative. Act; don’t just watch and go with the flow!

Guest appearance: Stu Smith on the future of the Napa Valley wine industry

Today we turn the blog over to a guest:

Stuart Smith was born and raised in Santa Monica. He founded Smith-Madrone in the high-altitude steep-slope Spring Mountain District AVA in the Napa Valley in 1971. This letter from Stu ran in the May 28, 2024 issue of The Napa Valley Register

Photo of Stu and Charlie receiving award

Congressman Mike Thompson came to the winery to present Stu and his brother Charles with a plaque honoring the winery’s 50th anniversary in May, 2021.

I’m very concerned for the future of the Napa Valley wine industry. The wine industry is the very agriculture that the General Plan was written to protect. It states “the highest and best use of land is agriculture:” in other words, wineries and vineyards. Yet three Napa supervisors outright ignore our General Plan.

For the first time ever, our supervisors overturned a staff approved Erosion Control Plan for the Le Colline project by upholding an appeal from the Center For Biological Diversity. Why is this important? The applicants spent over nine years dotting every “I” and crossing every “T” that Napa County asked of them. The applicants reportedly paid close to $2 million to Napa County for them to create an Environmental Impact Report on their project.

At that appeal hearing for the CBD, Planning Director Brian Bordona said he approved the Le Colline Erosion Control Plan, and there would be “no impact” on the environment. Yet Supervisors Ramos, Gallagher and Cottrell rejected their own report and supported the CBD appeal, even though the CBD has a checkered history with the truth.

The supervisors’ votes against Le Colline are unassailably anti-agriculture, as was denigrating their own EIR for justification in supporting the CBD appeal and stopping the Le Colline project. That the supervisors used their own EIR against the applicants that had to pay for that EIR seems to me horribly wrong.

Our supervisors have turned a deaf ear to the needs of the small family winery. No one can deny our wine industry is the economic engine of Napa County and the small family winery is its heartbeat. It is the wine industry that enticed fine dining restaurants, hotels and resorts to open here and thus attract the visitors who provide Napa County with its tax revenues.

I’ve heard from many small winery owners who are deeply afraid of becoming the next target of the county a la Lindsay Hoopes. Both Summit Lake Vineyards and Smith-Madrone Winery tried to support Lindsay Hoopes because we recognized the inherent unfairness of the County’s litigation against her and the chilling effect it’s having on family wineries. That this litigation is over visitation and tasting wine at a decades old “Licensed Winery” and has cost millions is unconscionable. This is a colossal failure of leadership by Napa County. While I believe that the passage of the WDO allowed wineries with a “Use Permit Exemption” to host tours & tastings it’s clear that the 44-year old “Small Winery Use Permit Exemption” is stale, out-of-date and should have been retired and replaced decades ago. Having a “Use Permit Exemption” that prohibits tours and tastings is like owning a sports car with no engine – it’s useless. Additionally, a California O2 license, that all wineries have, grants a winery the right to have customers consume wine on the winery’s premise and prohibits Napa from eliminating that right.

Why is Napa County attacking Lindsay Hoopes when there are dozens of other “Use Permit Exemption” wineries holding daily tours & tastings and Napa County is turning a blind eye to them? Some of the most prestigious wineries in the county are in this group. Selective prosecution of some wineries, but not others, is wrong.

The county should have and I believe still can craft a settlement with Hoopes that would give her and all other “Use Permit exemption” wineries a minimum of say ten visitors per day and then we can all move on from this embarrassment. This should have been done several years ago.

Looking at Napa County’s Winery database, Napa County has allocated 23,000 visitors per day. It’s clear from that list that Napa County favors the largest wineries. 157 wineries, or thirty percent of all Napa wineries, can host zero visitors. The next tranche are 78 wineries that can host an average of seven visitors per day. Yet the largest 55 wineries can host an average of 300 visitors per day for a total of 16,500 which equates to 72% of all visitors to our Valley. One winery gets 2,625 visitors per day.

This allocation of visitors is arbitrary and capricious and is neither fair nor equitable. It does not have to do with infrastructure. We don’t tell folks where to buy their groceries or shop for clothes so why does the County decide where visitors should go and not go? Shouldn’t the visitor be able to go where they want? Is the County intentionally limiting visitors to the small family wineries and thus directing visitors to the larger wineries? Here is another nail by Napa County into the coffin of the small family winery.

Stu Smith

St. Helena

https://napavalleyregister.com/opinion/letters/letter-concerned-for-the-future-of-the-wine-industry/article_3ba88546-17ac-11ef-9db8-e776b4a6d169.html

 

The disappearing family farm—everywhere?

An article in The New York Times on May 30 sparked me to write a letter to the editor of the Napa Valley Register contrasting the situation in Napa Valley.

It’s here: https://www.nytimes.com/2024/05/30/business/economy/small-farms-usda-biden.html

And here’s the letter:

How Napa County is treating small wineries

Julie Ann Kodmur

June 10, 2024

If your life and livelihood have anything to do with growing grapes in the Napa Valley, I recommend an article in the New York Times which details Agriculture Secretary Tom Vilsack’s concern for the ongoing loss of small farms throughout the U.S. Since 1981, our country has lost 544,000 small family farms, according to the National Agricultural Statistics Service. Vilsack asks if we’re OK with that.

There is a very important and very unsettling contrast in what our agriculture secretary is saying and doing, trying to save small family farms and how Napa County is treating small family wineries.

Vilsack has a plan: he’s working on multiplying and improving revenue streams to help farm balance sheets. Rather than just selling crops and livestock, farms of the future could also sell carbon credits, waste products and renewable energy.

Why does the federal government recognize the value of small family farms and Napa County does not? Vilsack is very respectful of what small operations bring to the big picture. Why don’t we get that same kind of respect from our leaders? Why isn’t there creativity and out-of-the-box thinking and problem-solving?

Small wineries have been the heartbeat of the Napa Valley for the last 50 years — economically, culturally, environmentally — yet Napa County seems to be stomping the life out of these operations. They are not supporting the 2008 General Plan. They’re not gathering wineries around a big table to brainstorm solutions. When winery after winery is denied the right to exist, or regulated out of existence, no protestation about how the county is “really” pro-Ag seems believable. Look at the actions and deeds, not their words.

Vilsack is working on increasing farmers’ income and access to the marketplace. Napa County, on the other hand, is slamming the door through a huge array of regulations, whether it’s limiting visitation, requiring a CEQA review for one more employee, out-of-date use permitting and more. Why isn’t there a concern on the part of the county about how this mountain of regulations will make Napa wineries less competitive? Why hasn’t the county reviewed its regulations in relation to other wine growing counties in California?

Maybe we could invite Vilsack to visit?

Julie Ann Kodmur

St. Helena

 

https://napavalleyregister.com/opinion/letters/letter-how-napa-county-is-treating-small-wineries/article_d1877710-237e-11ef-86ce-c3325cfaf1cc.html

 

The statistics referenced in The New York Times article can be found on the U.S. Department of Agriculture, National Agricultural Statistics service website:

https://quickstats.nass.usda.gov/results/8FD0D821-C3B7-3888-9623-5E9C0E770291#8627AAD7-5A76-3E15-A247-6FB3D5AC6B10