Ep. 504 Stevie Kim Interviews Steve Raye | Steve Raye How to Get U.S. Market Ready

Thanks for tuning in. I'm Steve Ray, author of How To Get US Market Ready. And in this podcast, I'm going to share with you some of the lessons I've learned from Oh, shit. So what's gonna happen? What's going on Margarita? Is it is it okay? Is the sound okay? I don't know. They bought bunch of shit to my office, and I'm just you know, I don't have control over my life. I just do whatever they tell me today. After noticing that Stevie was a little cranky, Pruducier Margarita, and Pruducier Joy, that she did to give Stevie a big espresso coffee. So that she would not be too rude with a special against Steve Ray. You can notice Vichaina invoice. Hey, Steve. How are you? Can we can we at least talk about before we start talking what we're going to talk about? So we have some kind of structure? No. There's no plan. But there there can be a plan. No. But let's just go with the flow. Go with the flow, baby. No. I wrote this down last night that that was exactly what was going to happen. Listen, Steve. Listen. Seriously. How long have I known you? I think you're, like, one of the first person I've met. Maybe it was a long time. It was, like, two thousand ten, something like that. Yeah. About ten years ago. That's right. How do we meet? Do you remember? Yeah. Bill Earl from Nabi and said, Hey, you should really Oh my god. Bill Earl, is he still around? Is he still in TTV? He's in DC. He retired about four years ago, but actually we did a project two years ago for the German agricultural marketing board, somebody that we both know, so we saw each other. Oh, my god. You have to say hello, the nicest guy, smartest guy, and I met him through Belczyk, mister Bilczyk. Do you remember him? No. But he sounds like a basketball player. No. He was a consultant for Verona Fierge, and and he was based out of DC. That's how I met Bill and miss I think his name is Bilchik, to Bill Bilchik, Does that No. Both you. Maybe. I don't know. No. Maybe I'm completely off. Yeah. No. May maybe I'm wrong. It's the it's the precocious Alzheimer. That's what I get for hanging around old people like you. Listen. No. You know? So I met you through Bill Earl. That's right. And then I met you at, I think, the very first Vinitly that I did in America in New York. If that was twenty eleven, yeah, because I spoke at that. Yep. That could have been. No. Maybe not. Maybe it was the second. The first one I did two thousand nine and two thousand eleven. We did the first one when Italy just opened. Well, that I think that was, like, two thousand six No. No, honey. No. No. No. No. No. No. No. No. No. No. No. That could not have been because I wasn't even born by then. I think it it must have been two thousand ten. It has to be. That's when it first opened, and we did that event for American Cancer Society, and we we did, Vin Italy in Italy Day. That's what we did. It was fantastic event actually. Way. We had we had the we had all the people lining up. It was a wrap around fifth Avenue, extending from, like, fifth to sixth Avenue. It was it was fucking great. Listen. So then, yeah, that's how I that's when we met. It's You are the, I think, the longest wine friend, one of the oldest wine friend I have. Wow. No. That's interesting. Just getting a little sentimental here. I've been drinking. Yeah. Okay. Always this afternoon for you. Okay. And I'm very, very honored. Well, I I know that was a a softball, but I am honored as well. Yeah. Conversation killer. Which is, why I'm I'm doing this and all the other things that you ask me to do for one very simple reason because you asked me to do it. But listen, Steve, but I do have now I do however, you know, I love you to death, but, however, I'm really I've never told you this. So now it's confession time. I love you, dear. I know. No. No. No. No. No. No. No. No. No. No. No. I'm so upset with you still today. You know why? No. You did not introduce me to Clive Owen. And Margarita's like who the fuck is Clive Owen, you know, these I know who Clivo in his, and and how would I even know him? He was in, some of Stephen Soderbergh's movies, but No. He was, like, one of your, Stevens, when you had him as a client, he was, like, one of the testimonials or some shit like that. So I don't remember that. I never knew. Oh my god. You really have Alzheimer. Do you remember when you did something with Jessica, Parker? I'm still working on that, actually. Okay. So tell me about the project with Jessica. Alright. I was working for wine searcher. Sarah Jessica Parker. They just wrote me a message. Sarah Jessica. Yes. He knows. Well, he knows. He he and I get it. We have Alzheimer, but we get it. I have an Alzheimer's joke, but I'll wait until after we're done recording to tell it to you. So, anyway, I was working for wine searcher, and they were in contact with Ram Norton. And he's like a Steven Colbert in the UK. The concept was to collaborate with Graham. What's his name? Graham Norton. Oh, yes. Yes. Yes. It's Graham Norton. Joy's a big fan. Yeah. Yeah. He's he's Irish, but he has a UK show and he's very voluble and around. And the concept was that they would bring the tank samples fly to London and then sit with him and create a blend in conjunction with him and videotape. And then he on his show occasionally, but also another social media and other things would help promote that. Started with a sauvignon blanc from New Zealand, which is their most popular variety, and has now expanded into, a Rosay prosecco that they just introduced, which is Italian, some Italian prosecco. They're not throwing it themselves. Do you know who's who the Italian lies? No. I don't. But I could find out. Actually, I'm talking to him later today. And they were very successful with that. So they decided they wanted to try the same thing out in the US, but with the US personality, they hired a celebrity wrangler. Didn't know there were such things. And they eventually were put in touch with Sarah. What is, what does that mean even? It's Hollywood speak for someone who manages a project. So if you had dogs on set, you'd have a dog wrangler, or you needed somebody to coordinate a party. It's just term. It's Hollywood term. It just makes me sound cool. No. I'm just kidding. So anyway, they, agent that represents puts together two people who are looking for similar type projects. She was open and they finally signed a deal. It was in, like, November of a year. It doesn't matter. Like, two thousand seventeen. And they were gonna match what they were doing with Graham Norton, same concept. So I flew down to Zealand, and we met there for about a week and laid out a plan for the US market. Everything from pricing, distribution, and cortation, all the things that we needed to have as a plan, knowing that we would change them as as time went on, but at least we had thought through everything. So that was great. She signed on. This was now December when she said yes, and they called me in January and said, okay, we're ready to go. And after that planning, which took place in February, it became clear that they had identified, they were gonna import it themselves, and they needed help finding distribution. So Right. And that's where you came in. What what happened was it, WSWA was in March that year, so I told him, let's go to WSWA. I will bolt each of you to my hips. There were two of them. And we stood in between the two hotels that hosted WSWA, which is the major US trade show and introduce them. Did that happen this year? No. Right. Nothing none of that. The W SWA. Wine and spirits, wholesalers of America. Unlike then Italy where you have a trade show where the sellers meet with buyers, retailers, say, or on premise accounts in the US, we have the three tier system. So the WSWA is with importers and suppliers meeting with distributors. So retailers not involved. On premise is not involved. Just the, suppliers and or importers meeting with distributor. It's usually the senior people, only the senior people that come. It's half old boys' network and half, new business network. And it's a great way to get a chance to talk to everybody and anybody who's important in the industry over a period of four days. And these are people that, you know, they probably wouldn't even take a phone call from me, but know me, and I know them, and we can stop and chat, which is what we did. And their plan was was not to use an agency model where they would hire an importer, pay them forty percent margin. Employer would sell it through their distribution network, they would take thirty five percent, sell it through to retail, and they would take, another thirty five to fifty percent markup. They wanted to eliminate that. Girls are falling asleep right now. Just FYI. I'm let me start over from here. Yeah. Oh, seriously. That's why it helps to have fought through this. You know, you started out at work. Well, off I go down that rabbit hole. Okay. Yes. I was introduced to these two guys, who are So you're really going to start off. Hey, I'm a professional. I do this all the time. No. No. You're hot. Right? Oh, god. Oh, god. Okay. Okay. Joy. Erase what just went before. We're gonna sleep in the morning. You know we're going to have this. As it? It's a surprise. Funny for you, but not every day. Hey, would Joy, would you take that wine away from her? Okay. Go ahead, Steve. Okay. I was introduced to these two guys. That means, to you, mister Steve Wright. I was introduced to two gentlemen who had a very successful business, producing and selling New Zealand wine at that time, Sabignol blanc only. They had successfully set up a partnership with Graham Norton, who's, celebrity in the UK, much like Stephen Colbert is in the United States. This is the webbed where I ask him, who who is Graham Norton? Graham Norton is a talk show host, very well known in UK. And so they developed a brand in conjunction with him, which they creatively named, like, the the samuel blanc was Savig, g n g n was a big part of the name out of the words, samuel blanc. They've also done a gin, g I n, Graham Norton. So you can see where the creativity comes there. Well, they were very successful. It's one of the most successful Sabional blanc selling in the UK and Ireland, I believe. And they wanted to expand the concept to the US. So they found another celebrity, Sarah Jessica Parker, and put in place roughly the same plan or strategy that they did with Graham. They hired me because they didn't have any expertise in the US market, and so I helped them plan their entry into the US market. And what is the name of the label? The wine is called in vivo. Oh, in vivo. In vivo X. S. JP. And the reason for that is in vivo guys did not want it to be solely a Sarah Jessica Park of Grand product, they wanted to own it. Oh, I see. Smart smart people. She signs off all of her emails and communications, x comma s j p. So they put the two of them together, and, that was a great way of maintaining ownership of the of the I p, which is the sound wrong. Very smart. Yep. Yeah. These guys are brilliant. Tim Lightborne is the marketing guy, very unassuming, but my god, they've just got a sense of marketing. And when was this launched? This was planned in two thousand seventeen, launched Well, sold into the trade, February, March, April, May, and they actually launched in September slash October of two thousand eighteen. Basically, they violated every rule that I would have laid down for them. But they did it in a good way. These are things that normally don't work, but in their case they did, because they had a track record of success. And so they didn't have to deal with the skepticism of the US trade. Plus, everyone recognized the Sarah Jess to Parker. They associate her with drinking, sex in the city, and she had a five million fan follower base on, Instagram and Facebook. And so everyone recognizes as soon as this thing goes live, she can just push a lever and all of a sudden, five million people. So how how well did it? Did you have you got any numbers for us? Yeah. I'm gonna tell you. That's good. Thank you. We were at w s w a, which is a big trade show in the US. We found an importer, took on the brand and agreed to bring in the entire production for the US that was thirty five thousand cases while the grapes were still on the vine. That's incredibly significant. How how much was, like, entire production? No. I got this whole timing thing, and you're messing me up. I'm sorry. But, like, you know, people are falling asleep, I want to accelerate. Okay. No. This is pretty neat. Okay. So they made me lose my thought. Volume. Oh, yes. So the importer said they bought the entire production was going to be about thirty five thousand cases, but the grapes were still on the vine at that point in time. And so we hadn't made the wine. They've made wines very similar to this, but that particular style obviously hadn't been made. What was so particular about sovignon Blanc's style. It's so Well, it's Samuel unblanc, basically, is on fire and probably the fastest growing significant or major varietal in the United States. Even still, even now. Oh, yeah. Yeah. It's still on fire. Absolutely like Prosecco is, but, actually, Samuel unblanc continues to grow while per second was kind of tailing off. In any case, they made this avignon blanc, and there were some production things that they put in it to make it unique. But what was so unique? I mean, it's it didn't smell like Cat's pee. I mean, like, what was so unique about it? I can't tell you. It's a trade secret. Seriously. No. But in terms of taste, what's the secret? It had more structure from wood. Be careful because I've started my w set diploma program. Okay. I'll I'll tell you. It had It had No. I'm just kidding. It had a little more structure by the way they treated it in aging. Okay. Can't tell you any more than that. So, like, more skin contact, barrel aging, that kinda stuff. In any case, yeah, it was certainly within the the range of sauvignon blanc. And while it may have been different, it wasn't significantly so. But two years later, it was named to the top hundred wines of wine spectator. This year, that vintage So the two thousand eighteen Vintage, which was that first vintage, in two thousand twenty one, was named one of the top one hundred wines by one Spectator, which is really significant, especially first on Young Blanc. Anyway, so they sold it through the importer. The importer put it through their existing distributor network. They were immediately on sale in September, October because that employer could do that. Again, those are all things I said, don't try and do that. You shouldn't introduce a brand in September, October because everybody's focusing on. All retailers are focusing on October, November December, OND. But in this case, the Sarah Jessica Parker name trumped everything, pardon the use of that work. Wow. And they were very successful. And so they got all this distribution, and then they got reorders. And off the thing went. So now they've since Yeah. But you still didn't tell me the number, the volume production I did. Thirty five thousand cases. Oh, thirty five thousand cases. Anyway, the point was we had a plan. Yes. Good morning. Wake up, Steve. Yes. We had a here's the thing that your listeners are interested in. We had a plan to not go through a traditional agency brand importer, meaning an importer who takes phone margin sells it to a distributor who takes phone margin, who then sells it to retailer. Yeah. I think your I think your audience, your listeners, you know, the series how to get US market ready audience. I think they have finally grasped the three tier system after thirty episodes. Do do you know you've recorded thirty episodes? Yeah. Yeah. No. I did. I keep count. Okay. Alright. Continue. Hey. I also would tell you that I just notched the two hundredth paid sale that went through me of the book. Oh my god. Congratulations. I still have inventory. Anyway, so the point being they wanted to call it cut out the middle man, which you can't do in the United States. And what they found was the solution that they didn't want turned out to be the best solution, and it was, I can't tell you the story about how that happens. Well, then then you can't just you can do that. I'm sorry. You cannot do that. You get, like, oh, yes. It's like I have the secret sauce, but I can't tell you. Well, I I realized that when I'm, That's that's so unfair. I hate people when they do that, but it's okay. I I forgive you. We created an opportunity at w s w a that could only be taken advantage of right there because of my relationships with people in the industry, and it ended up being ended up being a homeowner. Listen, why don't you tell, listeners a little bit about what you've done in the past? Boy, did that get way out of whack. Right? Yeah. Yes. Tell me how far back you wanna go. Should I start with I am born? No. No. From Diageo. Okay. I started in the business working with what is now called Diageo. Was then called a company called Hueline and working on some spirits Smurdoff and then Finlandia. I went on to set up my own marketing agency with a friend from those hub line days, and we were very successful in doing trade marketing in the United States, and also working with a couple of major producer and over card was one of them. I sold that agency about five years ago and then started anew by starting both an import company on my own and then a marketing company. Basically, individually helping brands who wanted to come to the US who needed I recognized needed an education in understanding the US market before they can actually enter the US market. And that turned into a position for me and my company, Bevology Inc. And ultimately to you asking me to write a book. Because I I would keep telling you all these stories and you say, I don't wanna listen to them, but if you wrote it in a book, I might read it. And the hope was that people would read the book, and here's the big kicker, not make the same mistakes that everybody else made before them again for the first time. By laying out all of the details in order of March, if you will, about how a US launch has to take place, they're more likely to not make stupid mistakes, if you will, and leave themselves open to opportunities. And Invivo was a perfect example of had a clear vision of what they wanted to do. It didn't work out, but when the solution presented itself and something that they had never even thought of, they ultimately recognized the value of that. And that's really what the the book is all about and why we've been reading it on, the Italian one. Right. So, you know, so the book, of course, Steve, has author. It's called how to get US market ready. And, it draws upon his thirty plus is of wine business experience. So that is why he was the best person to write this. And I'm so grateful for, having, work with him on a, albeit editorial podcast project with him. But now it has come to an end. And I just want to say, okay. Stay good knowing you. So then we started this podcast, which is No. No. Okay. Wait. So so, however, I had proposed to Steve that we should continue our collaboration, and we should talk about wine people stateside, always stateside because that's his expertise. And wine people trade people, any wine professionals promoting Italian wine in America. So I wanted to have Steve introduce you the present to you the next series. Okay. But before I do, the segue to that last bit that we had, Joy, you'd wanna snap this in there. And by the way, the book is available for sale at amazon dot I t. Okay. No. Just listen. We were trying to sell through something here. Okay. Okay. Okay. Okay. And let's I am listening. I am listening. And the book is available at amazon dot it and amazon dot com. You can also order it through w w w dot u s market ready dot com. What the hell was that? What is www? W w w. Oh, that's dub dub dub. That's that's the way cool kids say it. You mean old people? Old people and and internet don't go along. I I've heard about this interweb thing. I heard it's gonna be something new. Who who says that? Margaret, have you ever heard that, w w w. What about you, Joy? Have you ever heard w w w. I'm going to do a focus group at the office and see if anyone else has heard of w w w. Okay. Joy, I'm trying to make this so that it's cuttable for you. Or you can order it at the dedicated website w w w get us market ready dot com. And if you sign up and leave your email address, You can get a bunch of free tools there that are in the book, but really are better used as files. So for example, there's an Excel file showing how to do price structures. There's a glossary so that you can understand US market terms. There's a market selection tool. And in fact, you can order a free first chapter in the book. If you're not sure you wanna buy. You see, but this is this is this is where you sound like a used car sales, we see. This is not good. We should have just said in the end, the book is available. I think we say that anyways. Right? Do we say that? I'll do one. Well, the book is available for sale at amazon dot I you guys gotta start we're recording here. Come on. Let's be professional. Oh my goodness. Yes. More wine, please. You can do it afterwards, but let me get at least get one clean take on it. Okay? Okay. Alright. Alright. Yes. The book is available. Take three. One, two, three. Chalk. Go. The book is available at Amazon dot it or Amazon dot com, also at how to get US market ready. Actually, let me redo that one more. Also about quiet quiet. Just gonna do the the the the cut in. Oh my god. You know, I have another interview soon. Okay. We have to wrap it up soon. Stop laughing. Well, they stop making me laugh. I'm trying to to record something here. Let's collaborate here. Get us market ready dot com. There you go, Joy. Okay. So, what we're trying to do with the new show really is kind of in development while it will be an interview series. Well, by the time this adds, it will no longer be in development, but rather on add. Okay. So take that sentence out. You're you're making joy's going to kill you. She she's gonna kill you because you've got your thing overriding unless you can take that track out completely, joy, and this is mine. Seriously, you gotta, Steve, you gotta shut up. Oh, I've Okay. Goodbye. Nice spelling, you, Steve. Well, we're recording here. Okay. Let me do that one. It's an interview series with people engaged in the Italian wine business. But what I'm looking for is people who have unique jobs who have unique responsibilities and most importantly have a unique point of view. Perhaps an edge, which would be a good thing, but we think the conversations are going to be enjoyable and also informing. And if I can make one request Can I talk now? Yeah. Since since you're the boss? I'm not talking. Okay. So what one request that I would love to make from you is that we know tons of people from, you know, the very, I guess, popular cities like, you know, New York and Los Angeles, San Francisco, Miami, but I would love it if you can try to seek out Yeah. Let me speak to that. Yeah. Professionals. I don't know. Tennessee comes to mind. Yeah. Kentucky, you know, Illinois. I mean, well, not Chicago, but Let me do it. Okay. You know, you see, like, if you did that in, like, real life shushing women, that would be so offensive. But I'm like, and I've got a lot of testosterone, so I'll still accept that. Okay. And in addition, we're gonna be focusing on the untraveled parts of the US. Most everyone, listening to this is probably familiar with the East Coast markets of New York and Miami, Chicago. I'm in the middle and San Francisco and LA and Texas and the South, but we're gonna be looking for people in the nontraditional markets to get an insight to what that part of the world is. And where we think there is a lot of opportunity for Italian wines in America. Can you give us some examples? Yeah. So that might be somebody from Oklahoma, somebody from Louisiana, somebody from Mississippi, which is a control state that you probably haven't given thought to, as well as some of the, important states that don't fit on anybody's radar screen, and that could be Idaho, Ohio, and Michigan. I've been to only Ohio and Michigan out of those states. So I think this could be very, very extremely useful and interesting for our audience. Let me tell you why. Just let me jump in here with a a sentence. I I wanted to say goodbye. Well, one more sentence. Okay. One more sentence. Go ahead, Steve. And the reason why is Everybody wants to go to New York or San Francisco because those are the biggest markets. But when you're first starting in the US, you don't really wanna be in the biggest market. You wanna be in the market that gives you the best opportunity to establish case history of success, and smaller markets don't get near the competition that the bigger markets do and are welcoming of new opportunities. So we think that by focusing on these smaller markets, it's a place where Italian producers can find it easier to enter the US market. Okay. That's good. I think we can wrap this up. Steve, all joking all jokes aside. This is a it's great work that you've done. It's a labor of love, obviously. And you've been incredibly generous, and I hope our audience understand hands, what you have done for them for to help out the producers and the wine professionals. Is this how outdated would you say this book is? I mean, seriously. Yeah. It's two years old. The guts of it, won't never changed until the three tier system changes. Some of the data that's presented in it, is updateable, but in fact, the website, get US market ready dot com, we usually incorporate that information. Maybe the I'm looking at the index right now. E commerce and selling direct to consumer. Maybe that can also be updated. Yeah. We're gonna dedicate a couple of broadcasts of the of session too, if you will. Yeah. That would yeah. That would be really great. Okay, Steve. I really have to run. As always, it's it's fun to, chat with you and hope to see you in two thousand and twenty one. That's the plan. Okay. Take care. Okay. Alright. Bye. The girl says goodbye. Thank you all. Yeah. They're, like, they're nodding their head. K. Bye bye. Okay.