KDM Global Partners Newsletter January 2009
In This Issue
Economic Downturn Forcing Restaurateurs to Focus More on Wine
Unique New Wine Brand to Launch in New England
The Grape Less Traveled
A Canine Endorsement for President Obama
Ripley and Romie

With all the excitement in Washington, D.C. about transitioning from 43 to 44, many of us are overlooking a critical early decision to be made by President Barack Obama.  

That is, will the chosen "First Dog" be a Portuguese Water Dog or a Labradoodle?

The Obama family will undoubtedly love either one. But we wholeheartedly recommend that Malia and Sasha get a Portie!

Any owners or fans in the KDM community?
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About KDM Global Partners 
KDM Global Partners, LLC is a wine producer and importer whose 'niche' is creating and building new wine brands for its clientele of retail chains, restaurants, hotel/resorts, corporations, meetings/events - and even individuals.  

With offices in Philadelphia, PA and with wine-making capabilities throughout the world's great viticulture regions, KDM's turnkey brand-building capabilities are unparalleled: packaging design, regulatory approvals, warehousing and distribution (to all 50 states and overseas)...all varietals, price points, low case minimums. 

The world of wine production, distribution and sale is evolving quickly, creating compelling opportunities for businesses of all types. We'll take you there. 

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Economic Downturn Forcing Restaurateurs to Focus More on Wine
The Results are Resoundingly Upbeat

Cash is king. And everyone's stash of cash is suffering right now - regardless of where we reside, our earnings history, profession, demographic or other station in this volatile economy.

With net worths depressed, business forecasts diminishing for the near term and nationwide unemployment predicted to reach to 10% during 2009, Americans are ratcheting back their discretionary spending - even as a precautionary measure.

Restaurants - and all other "on premise" wine servers are being hit hard. This category includes hotels, resorts, caterers and corporate meetings/events.

The smart businesses are now taking measures to not only survive this downturn but to prosper. Yes ... you heard correctly: to prosper.

Those restaurants that are paying closer attention to their wine category now understand and recognize certain "inalienable facts" that will make the difference between surviving and prospering in this marketplace - or dying: (1) Diners - even expense account customers - insist upon value; (2) Cultivating customer loyalty and repeat business is imperative; and (3) Differentiation from the competition is critically important.

Restaurant and hotel owners are now using their wine offerings to accomplish all three (3) critical objectives. No longer taking this product category for granted, they are using it for these important "survival techniques" - as well as vehicles for enhancing profits and growth.

Here's a few ways how:

  1. "Sticker Shock" - It isn't uncommon for restaurants to earn 300% margins on bottle sales. And now, when a customer recognizes a product he/she already knows on the wine list, it's plain to see they are "overspending," compared to what they could buy the bottle for down the street at the local wine Shoppe. In this economy, customers are not happy with this reality. Better not to create dissonance with your restaurant patron - you do want him to come back, right? Restaurants are now serving their own custom label wine brands - the wine is ONLY available at this place of business. The profit margin earned by the restaurant owner is, thus, non-transparent. While the margins earned on these bottles are typically HIGHER, the customer isn't aware of it - and always enjoys the wine.
  2. Higher Margins on Wines Sold. The well-known "national" wine brands (you know their names...no need to point fingers, right?!) enable wine retailers and restaurants to earn very predictable levels of profits. It's a competitive business, and especially among those brands that are ubiquitously sold. Enter custom label (private label) wine brands. Not only are these wines better wines, dollar-for-dollar, for the consumer - but restaurants and retailers earn much higher margins on these wines than what they are used to earning. In dour economic times like these, these profits are a welcomed substitute for diminished business and have been enabling restaurants to stay afloat - and even gain market share!
  3. Better Branding of the house always results in customer loyalty and increased repeat business - as well as effectively cultivating new business. There is no better way to differentiate your restaurant from the competition (i.e., "branding") than serving a wine everyone enjoys that cannot be purchased elsewhere. Not only do you become the "only game in town" for this wine but the packaging (wine label) also displays your restaurant's logo or moniker and has the ability to "travel" if customers take the product home.
Unique New Wine Brand to Launch in New England
Black Elk
America is defeating the French ... again.

Wine is now the #1 Adult beverage in the United States. Wine purchases throughout the 50 states are now greater than that of beer. Interest in wine is accelerating everywhere.

More American adults than ever are drinking wine, according to surveys by the Wine Market Council. Between 2000 and 2008, the wine drinking population in the U.S. increased by 31% among adults in households incomes greater than $35,000.  France's own VinExpo - the world's largest annual wine gathering - acknowledges that the American market will eclipse the French by 2010 in per capita wine enjoyment.

Without delving too deeply into the reasons 'why,' let's focus instead on what interesting effects this consumer tsunami for wine will bring to the market.

To begin with ... interesting new brands that address this widespread consumer desire to delve hungrily into new wine experiences.

On February 1, 2009, the Black Elk 'Wines of the World' brand will be launched in New England by the Hannaford Bros. chain. Black Elk will be the "feature" wine brand for the month of February. If there's a Hannaford store near you, don't miss it.

Black Elk is a multi-country wine brand, comprised of 100% premium varietal wines, each from one of the world's great viticulture regions...an "All-Star Lineup" of the world's great wines, all packaged under the Black Elk brand moniker. For oenophiles, Black Elk will be well received as wonderful wines, careful and accurate varietal representations - and terrific values. And, for the wine newbie, Black Elk is a wonderful way to be escorted through -and taught about - the world's great wines and regions.

To learn more about Black Elk, visit:
The Grape Less Traveled

Maybe not 25 years ago, but certainly now, American wine drinkers know a good thing when they taste it. And they're showing their love for Argentina more and more.

For good reason.

Argentina exported close to 4 million cases of wine to the United States during 2008, a 35% increase from the 2006 case number. And quality is on the rise with sales. Most wine industry folks - as well as wine consumers - agree that these Andean wines no longer belong in the "up-and-coming" category. It's here, it's very good and there's incredible value there - now.

The Malbec grape is without question Argentina's "home varietal" and is surely the horse the gauchos have successfully ridden into the American wine marketplace. Malbec still accounts for a substantial portion of Argentina's overall bottled production. This dominant amount of Malbec may be Argentina's "star" in the pantheon of the world's great wines but the nation's wine industry is hardly a one-grape performance.

Argentina also has a signature white wine, Torrontes, which is quickly finding a welcome home on the U.S. shelves. A good Torrontes will have an intense nose of flowers and tropical fruit - but it's not sweet; to the contrary, it is typically a dry wine of light-to-medium weight and good acidity. If you haven't tasted a Torrontes, try one or two. They'll sneak up on you.