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Q2 FY 25

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QUARTERLY REPORTQ2 REPORTJULY, AUGUST, SEPTEMBER 2024Celebrate the Wines of British Columbia

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CELEBRATE THEWINES OF BRITISH COLUMBIACelebrate the Wines of British Columbia provides a quarterly review of Wine Growers British Columbia (WGBC) activities, including marketing, communications, advocacy and more. This issue covers the second quarter (Q2) of Fiscal Year 2025 (FY’25): July, August, and September of 2024, in support of the objectives laid out in the WGBC Operational Plan and Wine BC 2030 Long-Term Strategic Plan.CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2

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The second quarter of this fiscal year marked the culmination of our highly successful Sip, Smile & Stay Awhile summer BC wine tourism campaign. Alongside this, the Wines of BC brand pursued key strategic partnerships to elevate the promotion of BC wine. In August, we collaborated with Save-On-Foods to celebrate BC Rosé Wine Month, both digitally and in-store and as Q2 came to a close, Wines of BC and Destination BC partnered up to lay the groundwork for a strong fall tourism season with complimentary campaigns Fall for BC Wine and Fall Has it All. In September, we hosted our Swirl Around BC Wine Expo, introducing a new and expanded format for our annual trade and media event featuring two walkaround tastings, four VIP seminars, and a spotlight varietal table. These efforts align with our FY’25 objective to create more meaningful touchpoints between BC wineries and media/trade. To extend the event's reach, we partnered with eight influencers to create and amplify positive content promoting BC wine across multiple digital platforms.On a personal note, Q2 was a milestone for me as I announced my retirement from Wine Growers British Columbia after fourteen rewarding years. As I transition out of my role, I am committed to ensuring a smooth leadership handover to position our organization and the industry for continued growth and success. It has been an honour to work with and represent our members, and I am grateful to the Wine Growers BC team for everything we have accomplished together.CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2A MESSAGE FROM MILES PRODANCEO & President

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Q2 saw significant progress in member engagement and advocacy. We hosted three member meetings, beginning with an Extraordinary General Meeting in July, where proposed by-law changes were put to a vote. Following an amendment to the proposal, the meeting was adjourned and reconvened virtually where the amended resolution passed. Additionally, the Watson Advisors governance review culminated in a town hall to present findings and recommendations, followed by the WGBC Annual General Meeting in September, during which votes were held for the new Board of Directors as well as the adoption of the Special Resolution of by-law amendments from the Watson report. The resolution was passed unanimously and we are excited to announce the 2024/25 Board.Our advocacy efforts led to a major win early in Q2, with a new agreement between Alberta and BC restoring DTC wine shipments, thus re-establishing this vital sales/tourism channel for BC wineries. Additionally, WGBC secured government support allowing BC wineries to use grapes and juice from outside the province for the 2024 vintage. This temporary measure offers critical relief, safeguarding jobs and supporting the tourism and hospitality sectors that operate in close connection with our industry. WGBC created a Resource Guide with useful links and info, as well as established a Vintage 2024 Relief and Support Replacement Wine Task Group to develop recommendations for the positioning and marketing of the wines. Combined with the March 2024 replant funding announcement, these efforts ensure that BC wineries can plan for the future despite ongoing challenges.CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2A MESSAGE FROM PAUL SAWLERBoard Chair

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OBJECTIVE 1BUILD A WORLD-CLASS BRANDFOR “WINES OF BRITISH COLUMBIA”Wine Growers BC will work towards this through strategically (a) building consumer, trade and media awareness of BC wines through education and training, (b) increasing market share of certified 100% BC wines in the $20-39.99 price band, and (c) developing and implementing marketing assets and messaging to increase winery and trade adoption of Wines of BC campaigns.CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2

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CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2METRICS● Wines of BC had a media-heavy FY’24 making increased coverage for FY’25 a stretch goal. While Q1 was o to a gradual start, Q2 saw a significant increase in coverage and measured at 78% positive/neutral, an improvement over this quarter last year (40%) read the full report.● We are pleased to have surpassed the halfway point in reaching our FY’25 goal for Level One certifications. Over Q2, 93 certifications were issued.● Q2 featured the summer wine tourism campaign Sip, Smile & Stay Awhile which blended seamlessly into the start of our second annual Fall for BC Wine campaign in September. We achieved our goal of keeping our cost per impression (CPM) under $5.00. This metric is an important indicator that our return on ad spend is high and our marketing is having an impact on our audience.MEDIA COVERAGE AMBASSADOR LEVEL 1 CERTIFICATIONSCPM FOR Q2Achieved: $2,900,528 Goal: $16,320,000Achieved: 457 Goal: 750$0 $5 $10Goal to keep under $5.00 - industry Average = $7.12OBJECTIVE 1

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Q2 TACTICS SUMMARYCELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2OBJECTIVE 1● Through our Vancouver Magazine Awards sponsorship, Wine Growers BC hosted 2024 Sommelier of the Year Kristi Linneboe and three trade guests on a Fraser Valley tour to boost regional awareness and increase BC wine listings on local restaurant menus.The group visited four member wineries.● Partnered with the BCLDB to launch the Wines of BC Ambassador Program Level One within their employee training framework.● Positive media coverage this quarter included the celebration of a new BC-Alberta agreement allowing DTC shipments to resume with CEO Miles Prodan highlighting its stabilizing impact on BC's wine industry, as well as the Fall for BC Wine campaign promoting local wines and tourism.● Our Sip, Smile & Stay Awhile campaign highlighted each of BC’s nine wine regions. The campaign included inspiring visuals and partnerships with influencers, local wine associations and tourism DMOs; notably, Tourism Kelowna even provided funding. Campaign ads alone reached over 11 million people.● We leveraged BC Rosé Wine Month (August) successfully promoting BC Rosé sales through the Save-On-Foods and winery-direct channels and saw high industry engagement in sharing the messaging.● In Q2 we also launched our Fall for BC Wine Campaign. WGBC provided key messaging decks to wineries and trade, and also distributed a media release in collaboration with Destination BC.

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OBJECTIVE 2POSITION BC AS A PREMIERWINE REGION WITH THE TRADEWine Growers BC will work towards this objective through strategically (a) creating meaningful touchpoints between member wineries and key trade, media, and influencers, (b) making the Wines of BC Ambassador Program the industry standard for BC wine education, and (c) aligning export opportunities with available funding and resources.CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2

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CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2METRICS● Level Two promotions run in Q1/3, so no additional certifications were measured this quarter.● Wines of BC Ambassador Level Three development is currently on hold.● At the end of Q2 we achieved an additional 8.8k views on the Pour More BC page, bringing us to 80% of our total FY’25 goal.● Over one deployment of The Pulp trade e-newsletter in Q2, we maintained our goal open rate of 45%. Top engaging content included invitation to attend the Swirl Around BC Wine Expo in Vancouver, and the launch of the Q3 Wines of BC Ambassador Level Two class schedule.AMBASSADOR LEVEL 2 CERTIFICATIONSAMBASSADOR LEVEL 3 DEVELOPMENTINCREASED PAGE VIEWS ON POUR MORE BCAchieved: 277 Goal: 500 Ideation > Development > TestingAchieved: 28,355 views Goal: 34,530 (+5% over FY’24)THE PULP TRADE NEWSLETTER OPEN RATEAchieved: 45% Goal: Maintain 45%OBJECTIVE 2

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Q2 TACTICS SUMMARYCELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2OBJECTIVE 2● Wine Growers BC collaborated with our Pour More BC restaurant partners to gather footage for marketing that promotes BC restaurants serving BC wine. This included showcasing winemaker dinner events, with special attention on the L’Abattoir Winemakers Dinner series, which featured several of our member wineries.● Not only did we grow page views to the Pour More BC homepage on WineBC.com, we also grew membership in the program, welcoming eight new restaurants.● Collaborating with Destination BC, WGBC showcased four wineries from dierent regions at UBC Botanical Gardens for the Fall Has it All media event, which introduced BC wines to over 50 food, travel, and lifestyle media professionals across the province. ● Q2 features one of our most tangible initiatives under this objective: our annual fall trade and media tasting which was revamped from one walkaround event to a full day of programming for greater engagement and exposure. Click here to read the full event report, with a snapshot of key highlights from the Swirl Around BC Wine Expo below:○ 55 member wineries representing six of BC’s nine wine regions, ○ 405 media/trade attendees,○ Two walk-around tastings, with a feature varietal table showcasing BC Chardonnay,○ Overall attendee satisfaction scored 8.6/10 with wineries rating the experience at 7.7/10,○ Four seminars moderated by BC wine experts, ○ Eight wine and lifestyle influencer partnerships

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CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2OBJECTIVE 2

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OBJECTIVE 3MAKE BC WINE COUNTRY ABENCHMARK FOR WINE TOURISMWine Growers BC will work towards this objective through strategically (a) developing authentic place and experience narratives for all nine of BC’s wine regions, (b) collaborating with regional wine associations and tourism organizations on shared initiatives and existing festivals and events, and (c) focusing digital marketing on key customer segments to increase year-round tourism.CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2

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CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2METRICS● Campaigns active in Q2 drove trac to WineBC.com resulting in 133k views, pushing us 42% towards our goal of increased pageviews for this fiscal year.● The Vine currently has 31,099 subscribers, representing a slight decline of 132 contacts over Q2. We continue to maintain strong engagement, with an above industry standard open rate of 44.6% and a click rate of 3.9%.● Our Q2 engagement rate fell below our goal but remains consistent with last year’s Q2. While impressions rose significantly, this impacted the engagement rate and signalled a need for our eorts to focus on converting more impressions into engagements moving forward.INCREASED PAGE VIEWS ON WINEBC.COMINCREASE VINE SUBSCRIBERSINCREASE ENGAGEMENT RATE ACROSS ALL CONSUMER DIGITAL CHANNELSAchieved: 277,000 views Goal: 663,300 (+10% over FY’24)Achieved: -132 Goal: 2,000Achieved: 4.98 Goal: 10OBJECTIVE 3

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Q2 TACTICS SUMMARYCELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2OBJECTIVE 3● Wines of BC partnered with Lisa Kadane to produce the What’s Happening in BC Wine Country blog. This content helped counter misinformation about BC wine inventory challenges while promoting tourism to BC’s wine regions.The blog directly mentions over 30 member wineries as well as festival events -in line with our objective strategy to leverage these existing attractions in our region .● Our tourism-focused campaigns drove trac to our BC wine events page. In order to oer a diverse calendar of events we encouraged member wineries to submit their winery oerings throughout the summer. We incentivized their submissions with direct promotion on our social media channels. Over Q2 we delivered on that benefit by featuring winery events 70+ times through direct posts and tags or re-shares.● We continued to collaborate closely with wine and tourism associations, securing a spot in the Destination BC e-newsletter promoting our BC wine content and setting us up for our Fall for BC Wine campaign partnership. We also attended an Oliver Osoyoos Wine Association Partnership for Prosperity session to identify ways to cross promote.● We focused digital marketing eorts on key consumer segments to drive tourism through our campaigns. For example influencer Jasmine Lorimer appealed to Social Samplers with Sip, Smile & Stay Awhile messaging while our BC Rosé Wine Month content targeted Engaged Explorers with a wine and food focus (shop for both at Save-On-Foods), as well as Social Samplers by emphasizing the convenience of ordering direct from wineries.

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OBJECTIVE 4STRENGTHEN WINE INDUSTRY LEADERSHIPWine Growers BC will work towards this objective through strategically (a) collaborating with industry associations on shared initiatives, and (b) developing and implementing member education tactics to increase awareness of WGBC programs and membership value perception.CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2

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METRICS● Achieved a 99% retention rate in membership. We ended Q2 with 207 member wineries: 188 full members and 20 associate members.● Q1 represented the launch of our member account manager initiative which included the invitation for members to rate the value of their membership in Q2. The value rating collected from these members averaged at 5.9/10. Gauging a wider member value perception is planned for Q4. ● Communications resonated highly with our industry audience, exceeding our goal of a 52% average open rate by 8.5%.MEMBER RETENTION RATEMEMBER VALUE PERCEPTIONMEMBER COMMUNICATIONS OPEN RATEAchieved: 99% Goal: 90%Achieved: 59% Goal: 70%Achieved: 60.5% Goal: 52%OBJECTIVE 4CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2

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Q2 TACTICS SUMMARYCELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2OBJECTIVE 4● Q2 saw a high frequency of communications to members (almost double the average CEO Updates) due to two extraordinary member meetings and one Annual General Meeting taking place, in addition to Watson Advisors Governance Review updates. The highest engagement was on topics of the member meetings and 2024 vintage relief and support.● New resources were added to the member portal on WineBC.com/Industry including: member meeting packages; a Vintage 2024 Resource Guide; the Swirl Around BC Wine Expo registration; and Fall for BC Wine Campaign Overview.● Collaborated with the BCWGC and CFIA to oer a webinar entitled ‘An overview of paperwork needed to import grapes into BC from Washington state’ and a Q&A session with CFIA sta which hosted 50 participants.● After launching our member account manager initiative, we invited accounts to rate membership value in Q2, aiming to see improvements with dedicated account managers. The response rate was 10%, with an average rating of 5.9/10, providing useful insight ahead of the full member survey planned for Q4.● In Q2, WGBC advanced its Board Governance Review with Watson Advisors presenting their results and recommendations at a member town hall. Additionally, an Extraordinary General Meeting on July 12 led to unanimous passage of a member-filed Special Resolution at a reconvened session on August 14. The September 27 AGM saw the election of new and returning Board of Directors, unanimous adoption of a Special Resolution to extend term limits and facilitate implementation of recommendations from the Watson Advisors Governance Review Report.

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OBJECTIVE 5LEVERAGE GOVERNMENTADVOCACY EFFORTSWine Growers BC will work towards this objective through strategically (a) supporting the BC wine industry to remain viable and minimize financial and employment impacts, and (b) coordinating activities with both provincial and federal industry stakeholder groups and organizations.CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2

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CELEBRATE THE WINES OF BRITISH COLUMBIA | FY’25 - Q2METRICS● Q2 saw progress on the metrics associated with Objective 5, reflected by the ‘green light’ in both the establishment of supportive policy and maintaining key existing policy.OBJECTIVE 5Establishment of government policy and programming to support BC grapegrowers and wineries to ensure the sustainability and profitability of the BC wine Maintain key existing industry public policy

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Q2 TACTICS SUMMARYCELEBRATE THE WINES OF BRITISH COLUMBIA | FY25 - Q2OBJECTIVE 5● In July, Alberta Premier Danielle Smith and BC Premier David Eby announced a memorandum of understanding (MOU) ending the ban on shipping BC wine directly to consumers in Alberta eective immediately.● Following the government's announcement allowing temporary relief for BC wineries to produce wine using grapes and grape juice from outside the province for the 2024 vintage year, Wine Growers BC formed the Vintage 2024 Relief and Support Replacement Wine Task Group. The task group was established to develop marketing, merchandising, and communication recommendations for retail and hospitality partners. It included representatives from winery marketing and sales, as well as industry professionals. The recommendation document was completed in Q2 and is scheduled for review by the WGBC Board of Directors in Q3 for approval and implementation.● Secured provincial measures of support for BC wineries including; temporary exemption from the LDB 25% agricultural inputs requirement; ALR 50% primary farm product requirement and, LCRB temporary waiver to the 4,500-litre minimum annual production requirement.● The FY25 WGBC Marketing and Communications Committee met in Q2 to discuss in-store signage and communication strategies for CIC/ICB/IDB wines newly introduced at Save-On-Foods Wine in Grocery. The committee developed a series of shelf talkers, free-standing posters, and oval stickers to clearly indicate that the products in this section are not 100% BC wine, but rather a blend of BC, Canadian, and/or international grapes. These materials were designed to be straightforward and professional, ensuring they do not distract from the 100% BC wine section of the stores.