KDM Global Partners, LLCNewsletter XV
In This Issue
Direct-to-Consumer Web Sales Drives Sales
Black Elk Poised for New Markets
Imports to Drive Growth
Our View 
from the Yard

Ripley and Romeo are unabashedly content with their lives as suburban Porties, each with his own comfortable leather chair, an ongoing reserved spot in a king-sized bed at night, tennis balls lying in wait around the house and cookies in the pantry closet....not even including cable TV and other amenities.


Yup...their work as wine industry bloggers is extremely rewarding.


"We're lucky dogs. And we know it," offered Romie before leaving to meet a friend at the park.


Sadly, most dogs are not so lucky. It's important we do what we can to better the lot of the less-fortunate canines among us - those without homes or even those who are sick and without adequate medical care. 



People/Animals = Companions Together ("PACT") is a Pennsylvania 501 (c) (3) non-profit organization that develops, implents and administers programs that directly benefit companion animals and their owners. PACT believes that knowledge, concentrating resources, coordinating efforts and inspiring the community is the best way to effectively improve the lives of companion animals and their human owners. PACT needs your support to continue its programs! Please visit their site and consider a donation. 

Here is the link:  https://pactforanimals.org 



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 About KDM

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KDM Global Partners, LLC is a wine producer and importer whose core business is creating and building new wine brands for its clientele of retail chains, restaurants, hotel/resorts, corporations, meetings/events - and individual brand owners. 


With corporate offices in Philadelphia, PA and wine-making capabilities throughout the world's premier 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.


Learn more here:


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"Always carry a corkscrew and the wine shall provide itself."

 - Basil Bunting, English      Humorist


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    Launching a Wine Brand?  
    Fulfill over the Web to your Customers

    Less Reliance on Bricks n' Mortar Retail Stores, 

    Wholesalers and Three-Tier Distribution


     is Advantageous to Gaining 
    Quick Sales Traction 


    The Direct-to-Consumer sales channel in the United States is set to drive the growth of wine consumption over the next 10 years.


    In 2011, D-to-C sales were approximately 7 million cases. By 2021, sales are expected to grow to approximately 22 million cases, according to a Wine Intelligence report. Yet this evolving distribution method still only presently accounts for one bottle of every 50 bottles sold in the US.


    Online sales of wine grew by 20% in 2011, outperforming overall market growth of 16%, according to a Capgemini study.


    What is driving this trend? 


    First, there is the cumbersome regulatory environment that exists throughout the US, driven by the 21st Amendment (Prohibition) that left regulation of distribution and taxation of wine and spirits to each individual state. The result is, essentially, a network of 50 separate "countries," each leaving its own cumbersome imprint on the marketplace. Overall, most states exist in a Three-Tier environment, where wineries/producers must first sell goods to a licensed wholesaler/distributor. The wholesale tier then sells to the retailer (or restaurant), which in turn then sells to consumers. Not only does this system add costly (and often unnecessary) additional layers of profit margin to the cost of the wine but it often acts as a barrier-to-entry for many new wine products because the large national brands and powerful distributors often have powerful sway over product selection within their borders and on their shelves.


    Second, a body of law has emerged in recent years, enabling wine producers to "skip over" the wholesale tier altogether and ship directly to retailers (Direct-to-Trade) and to the public (Direct-to-Consumer).


    The onset of Web e-commerce, further, has spawned an entire generation of consumers who routinely purchase products on their computers - without visiting bricks n' mortar stores at all. According to the Wine Intelligence study, approximately 30 million American wine drinkers have purchased wine directly - from winery tasting rooms, from online wine retailers or through a mail order club - since the fall of 2011.


    The main growth in this segment, at least for the next 10 years, is expected to come from a growing habit of purchasing wine online and from younger, more "involved" wine drinkers - "Millennials" - for whom e-commerce is already second nature.


    Wine Basket


    Another even more-compelling trend happening here is the onset of "boutique" wine brands, introduced not by traditional wine producers, 'rock star' winemakers or other existing industry groups - but simply by individual brand owners everywhere who want to exploit this new even playing field for their own financial advantage! These brand owners might be rock bands, TV personalities or shows, celebrity chefs, political parties, small restaurants, event planners, charities, universities, country clubs, sports teams - or just people with innovative  brand ideas, generally, where the sponsor is seeking a Web-based business.


    So, just when you thought that wine distribution was being consolidated even further and the access to market was being choked by powerful wholesalers who protect the dominant, national brands at the expense of the public.....the world of wine has become more democratic! The playing field is being evened again.


    KDM Global Partners, a Philadelphia-based wine importer which produces wines in many of the world's major viticulture regions (including domestically in California and Oregon) is at the forefront of the Direct-to-Consumer opportunity for its private label wine clients. 


    To learn more about building a wine brand in this new environment, please contact: http://www.kdmglobalpartners.com/contact-kdm.




    Multi-Country Brand 

     Black Elk 

    Poised For Expansion 

    into New States


     Black Elk is a multi-country import wine brand that is featured at many airport food and beverage spots, including at JFK and LaGuardia (New York), Reagan National (DC), Philadelphia International Airport and Orlando International Airport, where Jet Rock and Cibo Bistro pour Black Elk every day.


    Black Elk varietals currently available are: (i) Shiraz; (ii) Chardonnay; (iii) Tempranillo; and (iv) Moscato.


    Black Elk program is a line of premium varietal wines, from different world growing regions - all packaged under the same Black Elk brand moniker...an "All-Star Lineup". More information is also available at the Black Elk Web site: www.BlackElkWine.com.



    Black Elk is now being sold in other retail locations, too. New distributors were added last month in Florida and the District of Columbia - with others to follow shortly.


    For information about availability of the new  Black Elk  Moscato or the Black Elk wine lineup, contact [email protected].




    Watch for Import Wines 

    to Gain US Market Share


    Two recent diminutive California grape harvests and a domestic bulk wine shortage - combined with a weakening Euro - may leave the US market vulnerable.


    In his annual State of the Wine Industry report, Rob McMillan of Silicon Valley Bank, suggested that the US market will cede market share to imports. Many domestic producers will not be able to meet demand because of low supply of bulk wine and a shortage situation for many grape varieties, especially Cabernet Sauvignon and Zinfandel.


    While some relief may come this year with a possible bumper grape crop, easing pricing, many expect that grape prices and land costs would continue to increase in the coming years.


    McMillan said he still expects the domestic wine industry to post 7%-11% sales growth - even though most wineries plan price increases due to higher production costs.




    Social Media, which McMillan describes as the "Fifth Column" of the wine industry, has become a critical partner for wine producers and brand owners seeking additional tools to build their brands and gain sales.


    E-commerce sales, wine clubs, mobile applications and private label brands selling exclusively through Web e-commerce platforms (Direct-to-Consumer) are new realities in the wine business.


    In his presentation, McMillan cautioned wineries and brand owners to stay involved with the social media medium - even if they might not understand it or see its value:  "It's almost as if you decided you didn't believe in the telephone at this stage."