Leeann Froese
After two years of practically no gatherings, everyone has pent up demand and the event calendar for all industries is PACKED. Marathons are happening, festivals, sporting events, and concerts are back, and fundraising galas are in the calendar again.
Now that things are open, I am getting increasingly asked for wine sponsorship from our clients, but our clients are not really in the mood to say yes and give product away. Can you blame them?
BC wineries, breweries, cideries and distilleries have been hit particularly hard over the last few years. With floods, fires, a global pandemic, and supply chain shortages all leading to increased costs, beverage alcohol companies are ready for a break! When they are already doing all they can to keep their businesses sustained, the idea of giving away their goods is not appealing.
But sometimes it makes sense to say yes. While exposure does not pay the bills, with the right event you get business exposure and a chance to connect with new customers. You need to decide what is right for you and your business, so here are some things to consider, and some of the reasons why sponsoring an event is a good move.
Doing Good Is Worth It – When The Fit Is Right
Being a good member of the community and a leader in giving sets a good example for being socially responsible. The public looks fondly at companies that care for their community and spread positive messages. People have an incentive to support your company if you’re invested in the local community. Find out what matters to your customers and choose the causes that align with their values.
To collaborate and donate their wine, winery teams look for long-term and meaningful connections with charities, or they must have some sort of personal connection to the charity that they are supporting.
At Blue Grouse Estate Winery in the Cowichan Valley, the team is known for getting involved in the community. “There are so many who ask, and the need is great,” say owner Paul Brunner. “We obviously can’t give to everyone, so we try to keep it focused to a few who fit our criteria, so the impact is meaningful. As a family we favour children and women’s issues, plus things in support of animals, but we get input from the winery staff as well. We also look to support things that can impact the well being of our staff or the industry we work in.”
Blue Grouse is known for its support of The Forum, the BC Hospitality Foundation, and Duncan-area community initiatives, but perhaps is most known for its support of Nourish Cowichan, who prepare hampers and gives food to families that are going through financial insecurity.
“I think that when you feel that your contribution has a meaningful impact (something measurable) it helps,” Brunner continues. “With our donations to Nourish Cowichan, for example, we know about how many children can be fed with our donations (last year about 10,000 meals).”
Christine Coletta, owner of Okanagan Crush Pad in Summerland, agrees with this stance. “While many charities are more than worthy of support, it is smart planning (for a charity) to find a potential winery partner and create long term strategic alliances and programs,” she says. “At OCP we have formed our relationships with charities that are near and dear to our hearts, and we focus our annual giving to them.”
Okanagan Crush Pad is known for its work with the BC Hospitality Foundation, Pacific Assistance Dogs Society, Ovarian Cancer Canada, Cystic Fibrosis Canada, and varying environmental initiatives such as the Okanagan Similkameen Stewardship Society. “At some point, those relationships cycle out,” says Coletta, “and only at that point do we look for a new charity partner.”
Visibility for Your Brand Is a Reason to Support
Find the right charity partner that will make sure that, as a sponsor, you get your brand in front of a large audience. The days of having a logo in a program and on signs only as an offer for exposure are in the past now. How can the event partner make sure you are included in all their promotional materials, press releases and swag, and are given spotlight in their newsletter and on their social media channels, as well as verbal shout outs at the event? Is there a media package and ads for the event? Any packages and tactics that promote the event should bring you along for the ride.
On the flipside, you can also share the news and what you are doing with a charity in all your marketing too, and on social media, which should be appealing to the charity as well, as this gives the charity a chance to advertise its event and message to your audience, which offers a potential new audience for the charity.
Timelines and Lead Time Matter
To make the most of a partnership’s opportunities for visibility, ample lead times are required so that the charity partner can learn your company’s messaging and share it with their teams, incorporate your company into the event marketing plan, and have enough time to make sure that your business is included in ads, press releases and in other advance outreach.
Coletta has some advice for charities. “It’s easy to pick up the phone and ask for a few cases of wine, but there is little thought to the benefit to wine producers. All too often, wineries or sale agents are targeted for last minute requests. Those cold calling three weeks in advance of an event are usually not successful.”
Sometimes You Can Get A Tax Receipt
“If we donate to a Canadian registered charity then the cost of the donation can be deducted from income and reduces tax, so there is an incentive to donate,” says Brunner. “I suppose, if it can be substantiated, all costs related to the charitable donation would be deductible. However, in our case with Nourish Cowichan, we sell the wine and donate only a portion of the sale ($1/bottle), so the cost of shipping and the tasting room staff, etc. would be incurred in any case. We would not expect to make a tax claim for this. It’s part of our cost of doing business.”
Can You Handle The Hard Costs?
“Depending on the venue where the event is taking place, some venues will not accept donated wine,” Coletta notes. “In this case the venue must buy it from the winery and the winery makes a cash contribution to match the wine tab to the charity. If it is a festival event style, we need to add in staff travel, labour, product, and one-on-one. It is not cheap and often our return doesn’t measure up.”
So, if you can make a true partnership with a charity that represents a cause you really care about, and know that there are hard costs involved, then getting involved and sponsoring an event can be right for you.