Brave Commerce: Treasury Wine Estates’ Justin Nolan on Navigating Headwinds and Elevating the Wine Experience
Episode Overview: In this compelling episode of Brave Commerce, hosts Rachel Tippograph and Sarah Hofstadter engage in a live conversation with Justin Nolan, Vice President of Digital Experience at Treasury Wine Estates. Recorded live at the Shop Talk conference with Melissa Burdick filling in for Sarah, the discussion delves deep into the challenges and innovations shaping the eCommerce landscape for one of the world's leading wine producers.
1. Introduction to Treasury Wine Estates
Timestamp: [06:54]
Justin Nolan opens the conversation by outlining Treasury Wine Estates' dual portfolio strategy:
“We have our luxury portfolio of iconic and historic vineyards and wineries like Barringer and Frank Family and Dow that are just incredible icons of the wine industry. We also have a portfolio that we, you know, it's a premium brands. We call it our bold brands… [such as] 19 Crimes and Matua and Drop of Sunshine… [that are] in virtually every grocery store they go into. It’s just a privilege to be able to work with them.”
— Justin Nolan [06:54]
This dual approach allows Treasury to cater to both traditional luxury wine consumers and those seeking more accessible, everyday options.
2. Navigating Industry Headwinds
Timestamp: [08:49]
Rachel probes Justin about the myriad challenges Treasury faces, including global warming, changing consumer tastes, and stringent regulations.
“We have a ton of headwinds, but we also have a ton of really, really talented people that I get to work with. One of the pillars of our DNA is that we deliver together so that it's not any one of us or individual that has to deal with these problems themselves.”
— Justin Nolan [08:49]
He emphasizes the company's resilience, highlighting initiatives in sustainability and digital innovation as key strategies to counteract these challenges.
3. Brand Portfolio and Luxury Brands
Timestamp: [12:09]
Rachel shares insights from Mic Mac's data, noting the resilience of luxury brands even amidst economic fluctuations.
“Like, no matter what's happening with people's paychecks, they're like, I'm still going to go buy that LVMH bag.”
— Rachel Tippograph [12:09]
Justin agrees, citing Dow as a prime example of a luxury brand that thrives by deeply connecting with consumers through authentic experiences.
“Dow is… it’s connecting that consumer experience, that human experience to the broader brand… meeting you at that occasion.”
— Justin Nolan [12:23]
4. Building a Profitable Wine Label
Timestamp: [13:45]
Melissa raises a critical question about the profitability of launching a new wine label.
“Can you actually make money in building a wine label? Your company obviously does well, but if a certain person wants to go build a wine label, can they actually do that and be profitable?”
— Melissa Burdick [13:45]
Justin responds candidly, acknowledging the high initial investment but stressing the importance of customer-centric approaches and storytelling in achieving profitability.
“Knowing… what your customers care about, where their taste profiles are going, the kinds of stories that you can tell… is what helps really build that business case and allow you to be profitable in the industry.”
— Justin Nolan [14:15]
5. Growth Trends in the Wine Industry
Timestamp: [15:43]
Rachel inquires about other growth drivers beyond the luxury segment, referencing the rise of low-alcohol products.
“Low alcohol is popping right now. So outside of premium, where are the other growth factors in the wine industry?”
— Rachel Tippograph [15:43]
Justin highlights several emerging trends:
- Ready-to-Drink Categories: Tailored for specific occasions and consumer needs.
- Non-Alcoholic and Low-Alcohol Wines: Catering to health-conscious and sobriety-focused consumers.
“Non alcoholic wine starts as wine and actually goes through a process that takes the alcohol out of it… it's another way that people are enjoying our products.”
— Justin Nolan [16:00]
He underscores the importance of innovation in both product offerings and marketing strategies to capture these growing segments.
6. Leveraging Retail Media
Timestamp: [17:49]
Melissa explores the complexities of utilizing retail media in the highly regulated alcohol industry.
“How do you play with retail media? How does that work? Where do you see the opportunities are to activate retail media?”
— Melissa Burdick [17:49]
Justin explains Treasury's strategic approach to retail media, emphasizing the integration of digital channels where consumers discover new wines.
“It's about being where people are… ensuring that we are inclusive in that longer version of how consumers are finding out about brands… connecting the media, the advertising dollars to a direct action for commerce.”
— Justin Nolan [18:01]
He notes ongoing collaborations with platforms like TikTok to create compliant and engaging content tailored to the right audiences.
7. Technology and Innovation in Winery Operations
Timestamp: [22:54]
Melissa shifts the focus to technological advancements, drawing parallels to Sweetgreen's Infinite Kitchen.
“Do you have something similar that's happening with your industry?”
— Melissa Burdick [22:54]
Justin outlines Treasury's commitment to leveraging AI, machine learning, and automation to enhance operational efficiency and safety.
“How can we use automation, how can we use machine learning, how can we use robotics to make the winery safer… bringing that back into the teams that we're working with.”
— Justin Nolan [22:54]
He advocates for using technology to relieve teams of mundane tasks, allowing them to focus on high-impact projects that drive growth.
8. Personal Insights: Justin's Brave Act
Timestamp: [24:03]
In the heartfelt conclusion, Justin shares a personal story about his career transition from a nonprofit medical leadership role to the wine industry.
“I literally ran my entire career to moving towards being in a nonprofit medical leadership role that I left… because I was doing work that just was draining me every single day… what drove me to wine, is because… celebration, great dinners with your friends, great conversations.”
— Justin Nolan [24:11]
This revelation underscores his commitment to fostering positive experiences and connections through wine, aligning personal passion with professional mission.
Conclusion
The episode offers a profound glimpse into how Treasury Wine Estates navigates the intricate landscape of the modern wine industry. Justin Nolan's insights reveal a blend of resilience, innovation, and heartfelt passion that propel the company forward amidst various challenges. From leveraging digital media to embracing technological advancements, Treasury exemplifies how legacy brands can evolve to meet contemporary consumer demands while maintaining their storied heritage.
Listeners gain valuable perspectives on:
- Balancing luxury and accessibility in brand portfolios.
- Overcoming environmental and regulatory challenges through teamwork and sustainability.
- Capitalizing on emerging trends like low-alcohol and non-alcoholic wines.
- The critical role of authentic storytelling and influencer collaborations in brand building.
- Integrating advanced technologies to enhance operational efficiency and safety.
For those interested in the intersection of eCommerce and the wine industry, Justin Nolan's experiences provide actionable strategies and inspiring narratives that highlight the essence of Brave Commerce.
For more insightful discussions on eCommerce and branding, subscribe to Brave Commerce on your preferred podcast platform and stay tuned for upcoming episodes featuring industry leaders.