Stanford GSB

Stanford GSB

Monday, January 18, 2016

Analyzing the Brand: "99"

No, that's not referring to problems. That's referring to "The Great One." For any non-hockey fans out there in wine blog land (and/or non-Canadians) this is the nickname bestowed upon #99, Wayne Gretzky. Like many professional athletes before him, he ventured into wine industry as the primary investor in Wayne Gretzky Estates in 2008. However he started the company with a social responsibility twist, where a percentage of profits benefits the Wayne Gretzky Foundation (which in turn supports young athletes).

Based in the two Canadian provinces of British Columbia and Ontario - this brand of wine offers 6 wines, under the umbrella brand of the No. 99 Collection. The wine is produced by Andrew Peller Limited from purchased BC and California grapes  - and is offered through a tasting room in Okanagan, BC. It is considered a ultra-premium VQA (Vintners Quality Alliance) brand.

Brand: Wayne Gretzky and the number 99 go hand-in-hand for anyone who is familiar with the world of hockey. The NHL retired his number when he retired in 1999 after 20 years of playing, and to this day he holds a number of records. Why does this matter for wine? Because his name and number hold a lot of appeal for millions of could-be wine purchasers.

Initially I would have guessed his brand does not have mass market appeal (as well, hockey is generally more of a beer game). However No.99 is among the top-ten best sellers of wine in Canada, and they have recently announced plans to launch a new Wayne Gretzky Estate Winery and Craft Distillery to be completed by 2017 in Ontario. Most of his wines are in the ultra premium category of $14-20/bottle.

In addition to his current tasting room in BC, he promotes his wine through his restaurant in Toronto, Ontario. The restaurant, called Wayne Gretzky's is located downtown and is largely full of tourists visiting the city. However given it's central and longstanding location in a city with high restaurant turnover, they likely have a reliable revenue stream which flows into their wine business.

Social Media Brand Presence: They seem to realize that most people 'follow' or 'like' their social media properties is due to hockey, and not wine. Of their handful of posts per year, 60%+ have to do with hockey or other athletic events.

Growth: In 2015 Andrew Peller Limited (responsible for the distribution of No. 99) launched the brand into Western Canada, and was noted in the 2015FY report as being a top performing higher margin VQA product.

Sources: Andrew Peller Limited, 2015 Annual Report, Jan 2016; Wayne Gretzky Estates, Jan 2016;

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