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Thanks for the comments and for clarifying some important things about your situation. What’s confusing to me from the outside is that Orbital’s ownership and Stormhoek’s seem to overlap to a large degree (or I may just be confused in general), and the brand ownership issues don’t help either, as you pointed out.

As to your point comparing wine to dog food – I totally agree that shipping wine all the way from South Africa would be silly, especially at your price point. There are fulfillment houses in the US that pick, pack and ship though, so it isn’t impossible. Also when I talk about direct, I’m also talking about tasting room sales, wine club sales, email blasts and every other transaction that takes place at high margins without having to go through a wholesaler (who are evil).

1. I can empathize. Honestly, I have no advice to offer on selling 200K cases because I feel it’s almost a non-viable business model for most wine producers at this point. You need to be either really, really big, or really small. How do you get to be really really big? Lots and lots of money. Which most of us don’t have.

But I think there are ways to work in at least some direct sales without alienating your retail customers. 10% might be a realistic goal, especially if those sales are occurring in the US when your major retail clients are in the UK.

2. Good points, and well taken. My comments on price point weren’t specifically aimed at Stormhoek though. It’s the whole range of wines in that category I feel may not be best suited to social media marketing.

3. Terroir is more than pretty hills, but I agree that it is an invention in some respects. Still, that doesn’t make it any less powerful as a marketing tool. Many consumers believe in terroir, even if it’s defined simply as “this guy is located near this other guy who makes wines that get high scores, so it might be good.” And in the end it’s the perception, not the reality that matters because re-educating consumers is costly.

It may not be fair, but Stormhoek is the poster child for web 2.0 marketing. It’s what allowed you to rise above the din and get noticed. The end of Orbital is notable because it calls into question the efficacy of just such a marketing strategy. It’s about Stormhoek, and its about something bigger than Stormhoek. It about the future of wine marketing.

Thanks again Shane, and all my best to you and everyone at Stormhoek.