Crafting Wines for Consumers w/ Nicholas Hammeken, Hammeken Cellars

Having studied what was important to wine consumers working at Oddbins, a British wine retailer, Nicholas Hammeken, Founder and Director of Innovation at Hammeken Cellars, founded a company focused on crafting Spanish wines that match consumer preferences. He develops concepts with unique selling propositions, plays to modern tastes, and tries to be an ambassador of affordable luxury. Nicholas tells us all about how he thinks through creating the concept, developing the product, and bringing the wines to market globally.  If you love the show, please consider supporting us on Patreon.Detailed Show Notes: Nicholas’ backgroundDanish-born, cellar master, worked at Taste of Wine in DenmarkWorked in the Mosel (Germany), Burgundy, Bordeaux, and Penedes (Cava, Spain)Worked at Oddbins in the UK - where he learned about consumer preferencesFell in love w/ Spain and moved there when his wife got a job thereHammeken Cellar OverviewSpanish wine in the 1990’s - a little rustic, but could taste the tremendous potentialMotto - “modern Spanish wines…developed through an understanding of consumers needs” -> want to respect the history of the region, but take data to match to consumer preferencesBased in ValenciaWinemakers live in different parts of SpainExports 1.5M cases to 30 countriesHistorically strong in ScandinaviaGermany and Holland are big markets, US and Canada are important, while  Asia has been consistent with Japan being strong for many yearsChina rising as wine consumption growing (vs. gifting of wine)In 2021 - 50% of production are organic wines, sustainability is an important trend for HammekenConsumer preferences by marketEurope - like a more lean styleUS - prefers riper, more bold styleOften the style preferences match with the profile of local cuisineWines have a base element and then have components to fine-tune the wines for specific marketsOrganic trendN Europe was the driving force, particularly the monopoly markets, which gave distribution preference for organic winesUS/Europe now more aligned with regulations on organic winesWhole Foods was a pioneer in the USBrand development processE.g., “I’m Your Organic” brandHad nice juice to make an approachable wine made the tannins softer to create a very juicy style of wineCould make it cost $10-12Need to communicate a message to consumers to create a competitive edge -> every bottle (or bag in a box) sold, they will plant a treeLeverages Global Datato mine macro and micro consumer trends (e.g., organic product trend)Used to support decision makingDoes other consumer research - “lots of reading” - real all magazines, including grocery store magazinesImportance of the story -> need to have a purpose of the product, more USPs (unique selling propositions) -> e.g., where does the product come from (i.e., sense of place, which gives traceability), winemaker, etc. -> something apart from a pretty labelWants to be an ambassador of affordable luxury, $9.99 or $11.99 wines that taste and feel like $14.99 winesPackaging - requires a lot of trial and error to testThe more exclusive products tend to look more straightforward and more elegantScale buying power allows for lower costs for high-end closures, packagingE.g. - Mirada Rose from La ManchaDefined specific fruit flavors - berry citrusWant a “Provence” like colorUses extended time on leesIt has a unique bottleUses repeat buying to measure success - Mirada is seeing steady increases year over year in salesWines mostly have a DO/DOC designation - they need to taste like the region, but in a modern wayFinding new names - “a major headache” - legal names for the US, Europe, and Asia has become a lot more complex than ten years agoCreating the wineThe company is asset-light, leverage other people’s facilitiesGo for a more modern, fresh style of wineOnce they have a clear idea of what they want to do, they search for vineyardsTry to source from a diverse set of vineyards to reduce nature risk (e.g., hail)Old vines are key -> gives a more unique expression, more balanced fruitHave their own winemakers, but rent facilitiesVineyard sourcing a mix of long-term rentals, short term agreements, and spot market purchases at harvestHave a contract agronomist to direct grape growingGo-to-market (“GTM”) StrategyLink up with partners, people who want to be first movers on the productOften have a dialogue in place before developing new conceptsTarget marketsFor new concepts - test in smaller marketsFor clear ideas - go for 3-5 markets to have volume from the beginningKeys for product placementsMonopoly markets - can lobby for 2-3 years to provoke a tender that you’ve helped define (therefore more likely to wine)3rd party endorsement is important (e.g., critic ratings)Critic ratings big in US / Canada initially, but rest of the world has followed -> important because some buyers are risk-averseAsia - likes to see success in other markets firstMarketing & PromotionSocial media is importantNeed to invest for products on the shelvesMore important channels - product placement (the right place at the right price point), then a mix of endorsement with points and price proposition (e.g., discounts) can drive more significant salesE.g., LCBO (largest buyer in the world) - showed them a gap in their portfolio (mix of packaging, style, and price point) and was willing to invest in promotions to be successfulWine critic influenceAmerican media (e.g., Wine Enthusiast, Robert Parker, Wine Spectator, James Suckling) strong in US / Canada, but also have a global influenceDecanter - more important outside the USJancis Robinson - w/ 20 point score, need $25+ bottles for consumers to understand what this meansBrand lifecycleMost brands are regional stars, a few work worldwideLifecycle is usually 3-5 yearsProduct segments get overcrowded and make the brand lose market shareSignal of downtrend - when the effectiveness of promotion fallsCorporate Social ResponsibilityTry to allow consumers to make an active choice, e.g., I’m Your Organic and planting a treeUses Goodwings to offset the carbon footprint of corporate travelWants to do a detailed mapping of CO2 footprint of product production and use this as a tool to educate wine buyers Get access to library episodes Hosted on Acast. 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