HOPE Wine: Reaching Out
Profile
By Kate Burrows   
Friday, 28 March 2008
smc Eight friends came together in 2007 to create HOPE Wine with the goal to donate 50 percent of all profits to charity.
Eight friends came together in 2007 to create HOPE Wine with the goal to donate 50 percent of all profits to charity.
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When young entrepreneur Jake Kloberdanz founded HOPE Wine in 2006, he had a vision to build more than a traditionally successful company. He had the goal to create an influential wine company devoted to raising money and awareness for some of the world’s most far-reaching conditions and diseases.

With the help of seven friends, all with managerial and sales experience in the wine industry, Kloberdanz officially launched the HOPE Wine brand in 2007, offering Chardonnay, Cabernet Sauvignon and Merlot, each paired with a charitable cause. Wine labels feature distinctive ribbons to show support for breast cancer, autism and AIDS.     

According to Vice President of Sales Tiffany Goodman, the majority of the company’s growth to date has taken place through grassroots marketing and word-of-mouth.

“This is what makes our company so different,” she says. “We all get out there and talk about our brand, and that’s how word has spread.

“We’ve found many people that really get excited about the concept, and people tend to be more loyal to socially responsible companies.”

HOPE Wine offers affordable bottles – each varietal is under $20 – and donates 50 percent of its profits to charities. And, although the company is not yet profitable, it has made $40,000 in donations since its inception. “We want to show people that we’re dedicated to these causes,” Goodman says. “We work a lot of charity events, and develop relationships with customers to raise awareness about the company and our mission.”

The organization relies completely on word-of-mouth, Goodman says. Rather than investing in advertising and marketing campaigns, the company relies on its concept alone to fuel its growth. “Wine is a high-margin industry anyways,” she says. “We didn’t want to raise the prices – we keep our prices at the market level – but we’re still able to make the donations and spread awareness at the same time.”

Although its biggest market is the Southern California region, HOPE Wine has partnered with a distributor to expand its reach. Goodman says the brand is ideal for grocery stores and specialty markets, but the team anticipates growth in the hospitality segment, as well.“We’re always trying to get restaurants and hotels behind the idea of HOPE Wine, enough to where they start to feature us in some way,” Goodman says. “It’s hard when you’re so new, but we have some great selling points. We’re just trying to prove that our product belongs on a wine list right along side well-known brands.”

Today, HOPE Wine is featured at liquor stores, grocery stores and specialty wine shops. Additionally, product can be purchased through its Web site and shipped nationwide.

HOPE Wine has partnered with winemaker David Elliott of Sonoma Wine Co. to develop its varietals. “They do a great job with the wine there,” Goodman says. “We’ve been able to build a great relationships with them, and it’s a good fit, because they have the ability to grow with us.”

Goodman says HOPE Wine has earned a number of awards and recognitions, and has been well received by sommeliers and wine novices alike.

Perfect Pairing
HOPE Wine’s management team carefully paired each wine with its own cause. Chardonnay was chosen to represent breast cancer because studies have shown women consume this varietal two to one compared to other types. “That, to us, was the perfect match,” Goodman says.

Similarly, its Cabernet Sauvignon – a varietal popular with men – is paired with autism. “Studies have shown that four out of every five children diagnosed with autism are males,” Goodman explains. “So, because this is a cause that effects a disproportionate amount of young male’s lives, it would be a good match.”   

In addition, the team chose to pair its Merlot with AIDS charities throughout the country. It made sense to pair one of the world’s most-popular varietals with this international epidemic, Goodman notes.

Sales of its Chardonnay benefit the Susan G. Komen for the Cure foundation and profits from Cabernet Sauvignon benefit the autism treatment organization ACT Today! In addition, AIDS/Lifecycle receives donations from Hope Wine’s Merlot sales. Although the donations from each wine benefit these primary charities, HOPE Wine offers a charity affiliate program that raises funds for hundreds of charities across the country.

A Good Cause
Cause marketing might be growing in popularity today, but few companies are as dedicated as HOPE Wine, according to Goodman. However, the team at HOPE Wine welcomes increased competition. “We always say that if another charitable wine label forms, it will be great news,” she says. “It just means that more good things are happening in the industry and the world.”

By the end of 2008, HOPE Wine intends to have donated more than $300,000. Five years from now, Goodman adds, the company expects to have donated millions of dollars to charities dedicated to its causes.
 
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