For any restaurant or retailer who sells wines by the glass, squeezing out profit on each wine bottle is critical to success. This presentation is great for food and beverage managers who are responsible for profit and loss. This slide presentation on increasing wine profit provides tips and how tos to achieve maximum value out of each bottle.

1. Increasing the Profitability of
Your Wines By The Glass
Program
Nick Moezidis, Vice President, Sales & Marketing
Jayne Portnoy, Vice President Marketing & Brand Strategy

2. Presentation Overview
 Napa Technology
 Evolution of Wines By The Glass
 Buy the Glass – market Value
 Consumer expectations & Operational
Pitfalls
 Actionable Operations and Marketing
Tactics.

3. Who is Napa Technology
Developed in Silicon Valley, Napa Technology is the
designer and manufacturer of the WineStation ®, an
innovative Intelligent Dispensing and Preservation
solution for the hospitality and entertainment
industries.
First introduced in 2005, the WineStation ® now pours
nearly 3 million ounces of wine per month from its
systems serving restaurants, hotels, cruise ships,
arenas, airports, wines bars, grocery stores and
retailers worldwide.
This far reaching presence, coupled with a
commitment to on going research, Napa
Technology can identify and provide insights on
industry trends and changes in consumer behavior
and consumption patterns.

4. Napa Technology National
Partnerships

5.  $27.8 billion 2011 total wine sales
 43.8% account for on-premise sales
 3% increase over 2010
 Beverage Information Services the wine
industry is predicted to reach 317.3 million
cases by the end of 2012.
 U.S. wine consumption forecasted to
surpasses France in 5yrs.
 Wine By the Glass Menus avg 25 offerings
 High end varietals account for 10% of WBTG
offerings
 86% of industry experts claim guests will
choose a high priced glass over bottle when
available.
 WBTG pricing has risen by 15% in the last 3
yrs.

6. Value to your Venue
this year’s Napa Technology Wines By The Glass Survey
unearthed a few facts and figures that you may find rather
telling, for an industry that reported over 13 billion in
on-premise sales, for which direction this trend is headed:
75% of respondents cited in increase in WBTG sales
over last year
 43% of respondents report increases between 11-
25%.
10% have experienced increases over 25%.
 On average, wine sales account for nearly 70% of
total beverage sales in fine dining venues.
 The per glass price averages between $11-15
 25% respondents reporting $26-30+ pricing.
15% of respondents added the half glass option to
their menu within the last year

7. Consumer Expectations &
Consumption Patterns
 Our research revealed that 86% of respondents believe
that their customers are far savvier about wine
 up 11% from last year.
52% of respondents Report that their customers are able
to identify a corked/spoiled wine.
 sampling is no longer a standard for just bottle
purchases
 85% of respondents cite sampling occurring with
wine by the glass selections.

8. Waste not –profits lost by the ounce
The daunting truth is that with this fragile
commodity on the rise – Spoilage, theft and loss
continue to gouge operators of Wine’s full profit
potential.
According to Beverage Information Services, the
largest loss in volume behind the bar is in the “call”
spirit brands. However the largest margin is lost in
the glass of wine.
Blended averages showcase an average loss of
nearly10% in total beverage sales.
• Beverage Information Services has found
wine sales tilt the scales in the 11-15% range.

9. Waste not – profits lost by the ounce
Looking at both ends of the spectrum; a national casual
chain restaurant like The Cheesecake Factory (PPA of $25),
sells staggering volumes nearing 1000 glasses of wine a
month, nearing levels similar to their fine dining peers, as
Roy’s Hawaiian Fusion Cuisine (PPA $75) reports selling
between 1,500-2000 glasses a month.
Independent operators report sales volumes ranging from
700-1,200 glasses a month.
So let’s take a look at what these losses look like to the
bottom line:
An establishment that serves 780* glasses a month at
an average of $11 per glass = $8580 in sales
Average Losses to Spoilage/Theft at a modest 10% =
$858
Average Annual Loss =
$10,300 *30 glasses a day x 26 days

10. Operational changes that
increase profits
1. Be in the know
Although you, or your beverage director or sommelier is
making the selections for your wines by the glass list –it’s
your service team that has to sell it.
Free wine apps, websites and supplier/distributor
training is readily available. Assure your team is a
powerful tool in driving sales.
2. Does that varietal look good on you?
Consumers today not only don’t like to guess when they
are making purchases – they don’t have to.
Sampling in both retail and restaurants has become the
norm to support and encourage increased sales.
3. Make half a whole
Consumers are splurging on small doses and the advent
of the half glass provides the freedom and encourages
them to splurge on higher priced wines.
Use half glass offerings as a means to compliment small
plates/tapas, create wine flights

11. Operational changes that
increase profits
4. Pristine = Profits; Put a cork in your sales losses
Today’s wine consumer more savvy on what to look for in a
good glass of wine hence visible corks in bottles often
raise questions of how long a bottle has been open
Spoilage and waste are significant detriments to
profitability.
Optimize your profits by utilizing effective preservation
techniques that enhance a bottle’s shelf life allow for
eradication of waste on your most volatile, costly products
behind the bar
4. Too Hot, Too Cold – Too Bad
Wine served at the wrong temp not only tastes bad, it’s bad
for sales.
Over chilled white wines will over power any chef’s
creation and ruin a meal.
A too warm room cooks the red wine and ruins the
experience and actually will fill your guest more quickly.
4. Operate on Auto(mated)
Technology has provided so many advances in operations
and it does translate to profits behind the bar.
Today’s technology is replacing glass markers with

12. Ten immediate changes To
Improve Profits
1. Show Off
 24% of wine consumers cite examining a wine list
online before visiting a restaurant.
 With mobile and smart phones readily available
assure today’s consumer can find your current and
accurate wine list on your website.
2. Use your Most Valuable Real Estate – Your Menu
 Cleverly weaving wine offerings into the food menu
is proven to increase overall wine sales by 10%.
 Descriptive wine notes and pairings are
instrumental in communicating both your selections
as well as helping the guest best navigate their
experience.
3. I’ll Take Half Please
 A growing and effective trend is to offer 2-3oz
offerings to the WBTG menu. When doing so,
operators saw a 47% increase in total sales
Wine List USA

13. Ten immediate changes to
Improve Profits
4. When Less is more
 Although wine lists have become broader and more
expansive, assure that your wine list still provides
well-known respected brands.
 25% of respondents cited being intimidated by vast
menu offerings when left to their own devices to
make a selection.
5. Go big – Offer the Reserves
 Finer wine selections ($15+) have seen a dramatic
rise in the last 5 years. Appeal to the guests that
are willing to splurge in small doses by allowing
for 5% of your menu to be in a premium price range.
6. Don’t Forget the Bottle
 As wine lists become more intriguing, don’t cut off
your bottle to spite your glass, and provide a
compelling number of selections under $50 a
bottle.

14. Ten immediate changes to
improve profits
7. Honey, didn’t we buy that at the Wine Shop?
 In a cyclical trend that encourages consumers to
experience new wines at restaurants and seek them
in retail, can also leave a bad taste in ones mouth.
Be cautious of excessive up-charges on largely
popular brands.
8. $ Signs = Less Sales
 According to Cornell’s Center for Hospitality
Research, dollar signs and un-rounded price points
(ie $12.50 v 13) are off-putting to guests and leads
to a decline in overall sales.
9. When More is Good
 Today, the average number of wines by the glass
selections is 23-29. And this isn’t just for fine
dining. Consumers are looking for offerings with
depth and diversity.

15. Ten immediate changes to
improve profits
10. Tell me, Sell Me
 The number one most influential element in driving
positive wines by the glass sales lies in the hands
of your service staff.
 28% of respondents cite choosing higher priced
wines when a server made a selection.
 Be cautious of overkill – like any salesman – the
guest will only be receptive to 5 or fewer
recommendations and/or Special Features.

16. Improve profits through staff
education
Knowledge is power
 Utilize online, free wine apps and supplier/distributor
supplied materials to further educate your staff.
 Let your staff sample wine pairings & featured
selections prior to their shift so they are familiar with
the varietals.
Keep Good Notes
 Suggesting wines is virtually impossible if your service
staff doesn’t know what the wines taste like.
 Prepare daily tasting notes for your staff.
 Utilize technology such as LCD screens found on
Preservation systems like the WineStation.
Vino University
 Assure your staff knows what an oxidized/corked
glass of wine tastes/smells like to avoid serving.
 Proper temps are key to the overall dining experience
– make sure your wines are held and served at proper
temps.

18. Thank You
Please Join Us
For our Next Webinar:
Effectively Creating A
Try Before You Buy Program at Your
Retail or Grocery Store
Visit NapaTechnology.com for details