I have to admit, when I first read about the same day delivery service I was a bit skeptical. How would it work? Why would I really want it? Could anyone really do it at scale on a sustained basis?
Well, early this morning I was reading the news on my iPhone and received a message from Amazon that all Prime members now had access to same day delivery (1-2 hours from order) through its new service called Prime Now. #PRIMENOW It piqued my interest. Is this real? Can they really pull it off? So I downloaded the Amazon Prime Now app and started browsing. I was amazed at the breadth of offerings from grocery to sports to electronics and more. I’ve been in the market for a luggage rack for my truck and found exactly the type I wanted. I knew we were out of eggs and browsing the groceries made me think about breakfast so I added some free range organic eggs and all natural sausages. Click click click and my order was in process.
They gave me a delivery window of 8-10am (my order was placed around 5:45am). I received my order exactly as expected at 9am and was able to make breakfast before the rest of my day unfolded. The driver told me I was among the first 10 orders in Indy. This was a profoundly positive experience.
Amazon Prime Now is currently available in Atlanta, Baltimore, Chicago, Dallas, Indianapolis, Manhattan and Miami. The service will continue rolling out to additional cities in 2015
What does this mean?
It is a game changer. Not immediately, but with a sustained effort, I believe this could drastically change how consumers (and businesses) think about behave with their purchasing. Home delivery is great and has been around for a long time (think the milkman of old, bottle water delivery etc). We get deliveries from Amazon and tons of other companies all the time. Some of these are next day or 2nd day which is super convenient. We get a weekly grocery delivery of organic and locally grown produce from Green Bean Delivery which is FANTASTIC! We have to plan our order by Monday at noon and receive our delivery of groceries on Wednesday of each week.
All that said, the idea that one can simply run out of something or decide one “needs” (wants) something, almost anything, and make it so two hours later is different. This is what 90% of running errands ends up being. Going to the store for this and that and picking up a few things in between larger shopping trips happens to all of us (or our families) every day. What if we could cut most of that out? What if you need something you simply think it (a couple of swipes is not much work) and it arrives in about the same time it would take you to go out and shop, pick your items, load your car, drive home, unload your car. This requires a different kind of thinking around what is possible, but I don’t think its a that big of a leap for most of us.
- Time – For no extra cost (driver tip cancels out gas you would have used perhaps), it frees up time. How much time in a week do we spend running to the store, shopping and returning? 4 hours? 8 hours? More? What more productive things or fun things can one do with that time. It is big.
- Convenience – No need to plan very far ahead, need something, make it appear with no effort. Wow.
For Small Business
- Time – Same as above, many small businesses buy things by shopping. Eliminate that need and do you eliminate a need for headcount manning the store while someone is out buying supplies?
- Service – out of something? – now you can replenish immediately and provide your customers whatever you were missing in a short time.
- Investment savings – reduce safety stock/inventory on certain items and replenish each day as needed. For many small businesses (and large) space to store inventory is a real issue. What if you could simply replenish as needed? Though this service is focused on consumers, for many small businesses, it could be a better alternative to traditional distribution or running to Costco or Sam’s Club for stuff. I’d expect Amazon to build out this aspect over time.
For Retailers & Distributors
- Increased retail competition – just when you thought it could not get worse for retailers, it is getting worse. Things that one swings in to just grab could be diverted to this. Think of convenience, pharmacies (e.g. Walgreens and CVS), grocery (Walmart, Kroger, Safeway, Publix), electronics (Best Buy, Costco, Walmart, Target), sports equipment (e.g. Dick’s, Sports Authority).
- Increased distributor competition – the businesses that source from traditional distributors could shift some of their purchases to this kind of model. It will create the need for distributors to up their service level to stay competitive which can also drive up their costs.
Overall, I think I just experienced the future today. I’d love to hear your thoughts.
Wine Business Monthly Acquires WITS,
The Wine Industry Technology Symposium
11th Annual Wine Industry Technology Symposium Taking Place Today Developed for Wine Business Leaders, Marketers, Innovators in 2005
(NAPA, Calif.) – The Wine Communications Group’s Wine Business Monthly announced the acquisition of WITS, the Wine Industry Technology Symposium® today in Napa, CA. WITS® was founded in 2005 and is conducting its 11th Annual symposium today and Friday.
Eric Jorgensen, President of Wine Communications Group, said, “We have always had a strong interest in how the wine industry uses technology. Smoke and Lesley have done a remarkable job over the past decade of bringing the industry together around this important topic. We welcome both of them and everyone involved with WITS to the Wine Communications Group family”
“The Wine Industry Technology Symposium has been responsible for raising the level of dialogue and thinking around technology in the wine industry. I am proud of our efforts at bringing the industry together around these important topics and of playing our small part in improving wine business practices. Most importantly, I’m grateful to the many people who have played a role in making WITS a success over the years. It would never have been possible without Kathy and Waunice at the Wine Symposium Group, our Winery CIOs and Advisory Board and all the great sponsors going back to the beginning. I have many friends as a result of WITS who have enriched my life in so many ways,” said J. Smoke Wallin, founder and co-chairman of WITS.
“I have long admired Eric’s team and vision for the Wine Communications Group. WITS will be a perfect fit to their strategic vision, which gives WITS a long-term platform upon which to thrive. This was our most important criteria in a partner for WITS,” said Lesley Berglund, co-chairman of WITS and co-founder and chairman of the Wine Industry Sales Education (WISE) Academy.
The transaction is expected to close in July and terms were not disclosed.
About Wine Communications Group:
Wine Communications Group, Inc. is the leading information and services provider for the global wine industry.
Publishers of winebusiness.com, the leading web site for the trade, and two of the industry’s leading print publications, Wine Business Monthly and Wines & Vines, we are dedicated to meeting the wine industry’s needs for information, analysis, resources and tools. Wine Communications Group, Inc has put together a suite of products that bring to the industry practical information, cutting edge research, recruiting tools, daily news services and a comprehensive directory.
The Wine Industry Technology Symposium® (WITS) is the focal point for thought leadership in the strategic and tactical use of technology in the global wine industry. WITS was created in 2005 by a group of wine industry and technology professionals to advance innovation and to address the unique information technology and service needs of the wine industry. The 11th annual WITS is June 25 – 26, 2015 in Napa, California. To learn more, join WITS on Youtube, Twitter, Facebook, and LinkedIn
For more information, go to www.WineIndustryTechnologySymposium.com
I am saddened to learn of the passing of former White House Chef and author Walter Scheib. Here is a story on it, apparently he was hiking in New Mexico and went missing. Thoughts are with his family and friends. I enjoyed my time with him. He had fascinating stories. See here my post from 2011.
White House Chef
Hanging late night 2011
Last week, I chose to graduate a bit early from YPO “Young Presidents Organization” into WPO “World Presidents Organization” its sister organization for the over 49 crowd. While I will remain active in WPO and the Food & Beverage Network and Deal Network in particular, the past twelve years in YPO have enriched my life greatly and its a good moment to reflect on that. Also I’d like to give special thanks to Todd Maurer for his remarks introducing me. These are my remarks giving thanks at the graduation ceremony.
Todd Maurer giving remarks on Smoke Wallin at YPO graduation 2015
YPO GRADUATION – J. Smoke Wallin
Thanks Todd, I really appreciate your kind words! Speaking of giving thanks, today is the anniversary of DDay 1944.
In 2003 when I joined YPO and “Forum Unplugged” my kids were 13, 11, 8 and 3, today they are 26, 24, 21 and 16… wow nothing like kids to express the passing of time.
Since then I’ve been blessed with a lifetimes worth of experiences professionally and personally as a direct result of YPO. This was not an accident. It did not just happen to me. You see, I don’t believe in doing things part way. Either you commit or you do not. When I joined YPO I made a commitment to give and get as much as I possibly could.
Henry David Thoreau said “True friendship can afford true knowledge. It does not depend on darkness and ignorance.” This is YPO.
From Australia to India to the UK to cities throughout the US, YPO members have been welcoming and helpful to my family and me. I know this because I dined at their homes, visited their businesses, attended their events and engaged with them in business. I know the last 12 years of my life have been greatly enhanced by this commitment.
I will express my gratitude by sharing a couple of stories and mention a few people.
First, I met my wife Anitra on a YPO trip and that changed my life forever. Thanks Darling.
YPO George HW Bush Event – Smoke & Anitra 2004
I could stop there, but I won’t.
I joined Forum Unplugged and have had 12 years of deep relationships, friendships and confidences with 22 Forum mates. They include:
- Scott Webber
- Don Palmer
- Brent Eckhart
- Mark Jackson
- Bill McCarthy
- Allen Furrer
- Dan Horner
- Chris Hilger
- Richard Horn
- Mike Bosway
- Matthew Claymon
- Gregg Schorr
- Nelson Reyes
- Jim Rapp
- Brian Acton
- Kent Morris
- Todd Maurer
- Anthony Brown
- John Ryan
- Bryan Brenner
- Dave Foellinger
- Dan Filby
YPO Forum Unplugged
These are some of the finest individuals I’ve ever come to know and I am grateful for all they have done for me in my journey.
Some of our very best friends today are members we met through YPO including Bryan and Lara Sperber in Phoenix and Lesley Berglund in Napa
Through Networks, I’ve expanded my industry network tenfold. Engagement in networks has been the single most important business and professional development aspect of YPO for me. Fortunately, I’m excited to be able to continue through WPO as I Chair the 2016 Food & Beverage Roundtable in Napa, CA.
Looking back, I’ve lived so much life over the past 12 years it’s hard to summarize in a couple of minutes. I’m not alone when I say it has come with great successes and great loss. I’ve lost partners, friends and employees to both accidents and suicide. I’ve had incredible business ups and downs and started numerous new ones along the way. Throughout all of it, I’ve had YPO people to help me be better or simply to be there when I have needed it most.
To all of us, but especially those newer members… I’d like to remind you of some things that did not exist when I joined:
- starting in my industry – there are 1,000s of new breweries, wineries and spirits brands available today that did not exist
- There was no iPod or iPhone or iPad
- There was no Facebook or Twitter
- No AirBnB or Uber
- no Freedom Tower
- no Lucas Oil Stadium
All of these things that are now a part of the world and our every day lives.
“There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle.”
– A. Einstein
Looking forward, what will the next 12 years bring? I spend a lot of time thinking about what’s next in brands, but I won’t try and answer that question here. There is one thing that I do know…. I am confident many YPO people will be involved in changing both the world and my life for the better.
Thanks for everything you have given me.
I recently read and shared an article in Forbes by Patrick Hanlon called, “Why Brands Must Evolve” that is so spot on that it has led to a number of interesting conversations in the past week with some of my clients and partners who own brands in beer, wine and spirits. As one who spends a lot of time thinking about new brands, as well as igniting established brands in new ways, Patrick’s thoughts really resonated with me. I don’t think there is a better industry than beverage to illustrate his points about what is going on with brands. Brand proliferation is happening across the board making “breaking through the clutter” ever more difficult. At the same time, the reason this is happening if fundamentally that there is demand for new brands. As I wrote in “RE: Is Craft Beer In A Bubble”, there is a big and growing market for new brands in beer, but also in wine and spirits. Not everyone will succeed and in fact many new brands will fail. To the big brand manager, the fundamental challenge has also never been so big – how do you keep a loyal following when your following gets gigantic. I think about an Iconic brand like Patron Tequila. I was a distributor for Patron as it passed between different sales companies and was a very difficult sell. Five years from the time it launched, Patron was doing about 55,000 cases. Now that is a nice little brand, but nothing would have screamed, “This brand is on fire!” Then, it did catch on fire and became the very symbol of luxury. Check out Patron case sales for the first 10 years:
Patron is an amazing brand and continues to outsell all of the other super premium tequilas (and frankly all other spirits brands at $40/750ml bottle and higher). They have a huge and loyal following. However, as brand manager for Patron today, the things one has to do to market the brand are quite different than in the early years. How does one keep the “cool” factor going when you are the largest brand in your category. There are dozens of new entrants who are going after their market and have the advantage of being smaller (think Avion, Casamigos, Don Julio) and bringing a new “cool” factor to the market. Clearly there are many that succeed at this but being true to your brand and your audience while changing things up can be quite difficult. Absolut Vodka was THE luxury brand of the late 1980s and early 1990s. It was the “it” brand among the “it” crowd.
Pernod Ricard paid over $8 billion to acquire the brand a few years back. How does Pernod now manage a giant brand that was formerly the top luxury vodka in a market with such massive proliferation of brands that the high-end vodka category has experienced. I’m told there are 800 vodkas in the Beverage Media New York book. Pernod recently announced a new bottle. Absolut is one of those brands that defined itself by its bottle. Changing the bottle is a big move even in subtle ways. Adding the big A is a pretty big move. Large companies don’t usually make big moves, but staying relevant in a crowded market sometimes requires big moves. Pepsico made an even bigger move a few years back with their Gatorade brand. I thought at the time, it was fairly risky, but it appears to have paid off (does anyone know details?).
Patrick’s article certainly cites a number of great examples of big brands that have managed to evolve over time and keep or even build on their past successes. “…the challenge for brands has evolved from creating awareness to creating meaning.” How do you keep creating meaning at scale like Nike, Apple and Disney have successfully done. They each connect to their consumers and continually create meaning.
The wine market has evolved so dramatically, that I have to look up many of the brands on the grocery shelf today and I have been involved in selling $100s of millions of wine over the years. Why? New brand proliferation to attract the millennial consumers.
Take a look at the top 10 domestic “Hot Brands” put out by Marvin Shanken’s Impact Databank:
- Black Box
- Bota Box
- Liberty Creek
- 14 hands
- Barefoot Refresh
- Gnarly Head
Four of these are Gallo Brands, but none say Gallo. All have interesting, contemporary labels. To succeed in this hyper-competitive market, every brand must have a number of things. Great branding is vital, without it your brand is lost and has no chance. Great liquid that fits the taste of your target market is key, without it they won’t buy a second time. Distribution is essential, a brand cannot become relevant if consumers can’t find it. But how does a brand build a real following of consumers who care? That is, how do we create meaning? That is the question every new brand team needs to answer.
To quote Patrick again: “We want the added value of believing in something. The added value of belonging to something: being a part of something that hard-wires us to a larger community of “people like me””
Seth Godin in his fantastic book “Tribes” articulates this concept well.
“Seth Godin argues the Internet has ended mass marketing and revived a human social unit from the distant past: tribes. Founded on shared ideas and values, tribes give ordinary people the power to lead and make big change. He urges us to do so.” Brands have to figure out how to reach their tribes and how to engage with them. Notice, I did not say create their tribes. This is an important distinction. I believe tribes are discovered not created. Brands who overtly try to create one typically struggle. If a following is not organic, today’s savvy consumers sense it. I think brands can make themselves relevant and worthy of a following and then as that following begins to show signs of life can play a role in fostering and accelerating it.
I’d love to hear your stories of brands you think are doing this right.