Archive for the 'business of wine' Category

Sierra missed – the saga of Sierra Carche 2005

What happens when a reviewer tastes a good bottle, but some consumers buy what appears to be a completely different product? Think it couldn’t happen? Guess again and behold the saga of Sierra Carche 2005.

sierra-carche-label-l
Last fall, Wine Library, the Springfield, New Jersey wine retailer, sent out an email offering for a wine that seemed to be the wine lover’s dream: a fantastic quality-to-price ratio. The wine on offer was the Sierra Carche 2005, a blend of Monastrell with Petit Verdot and Malbec from the off-the beaten path Spanish region of Jumilla. Jay Miller, a critic at the Wine Advocate, described it as “Inky purple, the wine offers an array of scents which jump from the glass… structured wine with gobs of flavor, terrific intensity… It will provide pleasure through 2025.” He awarded it 96 points. The suggested retail price was $40; Wine Library was offering it for $29.99. Robert Kenney, a New Jersey wine consumer, was so enthusiastic upon seeing the email that he ordered several six packs.

But Kenney’s euphoria turned sour as soon as he pulled a cork. He later wrote on the forums at erobertparker.com that “I have consumed 6 bottles already, praying that with each popped cork, a different genie will emerge…so far, no such luck…slapping 80 points on those bottles is generous.”

Kenney describes himself as an “unabashed fan of DrBigJ,” as Miller is known. But Kenney was so disappointed with the wine that he corresponded with Miller and FedExed Miller one of his bottles last fall for him to taste and “see if indeed it was indicative of the wine that he had tasted and scored highly.” Kenney wrote last week that “During a ten month period I had exchanged seven emails with DrBigJ, reminding/imploring him to taste the sent bottle…to no avail.”

Then a consumer in Pittsburgh, Bob Hudak, posted that he had found the wine for $38 at the PLCB, the state-run store in Pennsylvania. On July 5, Hudak wrote of his experience, “Considering that it was a Dr Big Jay 96 pointer in the WA, I figured I buy 6 bottles. I opened my first one this weekend. Big mistake. The wine had virtually no aroma at all. You couldn’t smell a darn thing. With time and air, some stinky aromas that were off-putting became noticeable.”

Kenney chimed in on the thread as did several other consumers with their negative experiences with the wine. (The wine’s scores on cellartracker.com were not all bad although several reviewers took the time to note flawed bottles and one gave it a 74 but the modal score was around 90.)

On July 14, Miller posted to the forum that he finally opened the bottle Kenney had sent him and declared it “undrinkable.” Miller contacted the importer of the wine, Mark Clinard of Well Oiled Wine Co., who replied, “We have had similar problems with this wine and had a meeting in March with the winery to find out what the problem is. There was clearly some substandard product shipped by the winery and we have had to take back a large chunk of this wine from the market because it was rejected by the trade. I apologize on behalf of the winery for this apparent bait and switch. Going forward we are searching for a different winery for this brand.” He posted his cell phone number and asked that those consumers with problems contact him.

Brandon Warnke, Vice President of Operations at Wine Library, posted that anyone who bought the wine through the store could return it to them for a full refund.

Jay Miller then wrote: “this is about the worst thing that can happen to a critic, to be tasted on a fraudulent wine, publish a note, and then have readers spend their good money on a fairly pricey wine only to find out that it’s plonk or worse. Its reminiscent of the furor over Las Rocas a few years ago that nearly killed that brand. It’s a bad situation all around.” Read more…

Small wineries tweet harder

underpantsgnome

What do a winery (and vacation cottage!) outside of San Diego and a Muscadine wine producer in North Carolina have in common?

They are both the quantitatively best winery adapters of social media: Eagle’s Nest Winery has over 6,000 followers on Twitter while Duplin Winery, “the world’s premier Muscadine winery located in Rose Hill, North Carolina” has nearly 4,000 fans on Facebook.

Whodathunkit! Do the small, new or off-the-beaten-path wineries tweet harder? Rounding out the top five twittering wineries are: a winery founded in 2001 in the Barossa Valley; a proto-winery in Sonoma that has yet to sell a bottle; an Iowa winery; and Mouton Noir wines based in Harlem. Read more…

Can social media save the day for wineries?

125298482_d311563fcc_mToday’s Wall Street Journal has a piece on the luxury wine market that’s either sobering or heartwarming. If you’re in a producer, it’s probably sobering to read more about the sluggish sales, depressed prices for wines, the prospect of lost pricing power in the future, and possibility of increased merger and acquisition activity. But if you’re a consumer who is into high-end wines, it’s heartwarming to have the possibility to scoop up bargains, as one wine consumer does in the story.

The article suggests that “some of the newer operations [wineries] are using new marketing techniques to cope.” A case study:

Alpha Omega, a boutique winery in Rutherford, Calif., has begun using online services Facebook and Twitter to reach out to its customers. The winery three years ago began targeting consumers directly, and the strategy is now paying off; revenue is up 40% so far this year, compared with a year ago, in part because it doesn’t have to share many revenues with a distributor, says co-owner Robin Baggett.

Call me a skeptic, but I fail to see how the winery’s 296 friends on Facebook, 407 followers on Twitter and no blog can really help them move their wines (even if one of their tweets had a Palin-esque all caps consisting simply of “I love WINE.”) Their range of wines, crafted by winemakers Jean Hoefliger and Michel Rolland, starts with a $28 rosé and moves up to a $480 three-pack of reds in a wooden case. The WSJ article states that wines north of $25 are experiencing “a sharp falloff” so there must be some other secret sauce at Alpha Omega.

If it’s selling directly to consumers and bypassing distributors, then great. But I would imagine in this case that the 20% discount to club members speaks more loudly than their tweets.

Can social media really save the day for wineries? A story making the rounds these days is that the internet devalues everything it touches. But if both luxury and non-luxury wineries can somehow make social media work to increase their profitability while lowering prices to consumers, then that would be a heartwarming tale for all.

Pine nuts, the whale, the anchor, Vinexpo – sipped and spit

SPIT: pine nuts!
Losing your senses appears to be all the rage. First, it was Zicam, with it’s new FDA warning against possible anosmia (loss of smell). Now: pine nuts! According to Britain’s Daily Mail, increasing numbers of people have been left with a “foul, metallic taste” in their mouth after eating the nuts and that taste may linger for two weeks. Their columnist describes his experience with “pine mouth:” “Though I regained my taste after eight days, the only thing I could drink during that time was water, and the only food that was bearable was salad leaves smothered in strong balsamic vinegar. Drinking wine was like swallowing liquid metal.” Talk about an impossible food-wine pairing!

2792754683_624a54e21a_mSIPPED: a whale tale
In a fascinating post that provides a look into the business of selling wine, Lyle Fass, formerly in high-end wine retail, posts to his blog about the death of “the whale,” namely, the big customer who orders $10,000 worth of wine with a single phone call. He describes his performance-based pay conundrum: “At my last retail job I was hired with the idea that I would get a cut of the profits from the whales I would bring to the store. I thought this was great. I made a lot of money and was happy selling wine to these whales. Never did I think in my wildest dreams that I would lose my job as the economy went in the tank. But I had a high salary and a high bonus structure and as a result, I was not bringing added value to the store anymore. I was a money vacuum. So I was rendered jobless.” He concludes by predicting that “the whale is not coming back for a long time, if ever.” [Rockss and Fruit]

SIPPED: Follow the leader
Web 2.0, user generated wine review, on sites such as cellartracker, theoretically shift the power of reviewing away from one critic and over to the masses. But using an illustration of one of his Tablas Creek wines, Jason Haas writes about the power of the first review as an “anchor,” which then can set a tone for subsequent reviews that’s hard to break.

SIPPED: hope
Vinexpo, the big wine trade show kicks off today in Bordeaux. AFP reports on a study from Vinexpo that forecasts worldwide wine sales rising to 390 billion euros in 2012 from the current 330 billion euros, citing increased demand from China and Russia. Global wine consumption softened last year.

Ernest Gallo, behavioral economist

Just rediscovered this oldie but goodie in a decade-old article from The Economist:

ERNEST GALLO, the 91-year-old patriarch of the eponymous American wine company, tells a story about his early days of selling wine, just after Prohibition had been lifted. On visiting a buyer in New York, he offered him two samples of the same red wine. The man tasted the first glass, asked its price, and was told it was five cents a bottle. He tried the second sample, asked the price, and was told it was ten cents a bottle. “I’ll take the ten-cent one,” said the buyer.

Related: “Why so few tasty American wines under $12? Wine importer Bobby Kacher

Hitler, translation, corks, France, ID – sipped and spit

hitler-wine150SIPPED: Stalinist architecture in St. Emilion!
A bottle of wine allegedly in Hitler’s cellar at the Berghof sold for $900 at Alexander Autographs recently. The label might have raised some questions since has only St. Emilion, Frankreich (German for France) emblazoned on the front with no producer name, a vintage of 1934, and what a blog at the NY Times describes as a “Stalinist-style structure towering over the church.” Donald and Petie Kladstrup, co-authors of Wine and War: The French, the Nazis, and the Battle for France’s Greatest Treasure, told the NYT blog that Hitler “occasionally drank wine, though he preferred beer.” What ever happened to his being a teetotaler?

SPIT: translation
A lot of wine descriptors could be interpreted as bedroom talk. But Jim Boyce writes about a case worthy of Engrish.com, a Chinese back label that cuts to the chase: “Yellow flowers and a beautiful apricot color with a strong musk. Rich texture with sweet f*ck in sweet orange peel and apricot flavor at the end of a clean. Drink now.”

SPIT: Champagne corks
Champagne, perhaps the last regional holdout (ex-Portugal) from the assault of screwcaps, now has The Maestro. Although we mentioned it previously, details are now out: The new closure, which hides a crown cap (think: beer) under a plastic cover and lever, will soon adorn select bottles of Duval-Leroy champagne. TIME says that it is “far easier to use than a conventional stopper— no struggling to hold the heavy bottle as you twist, no worrying that you’ll take someone’s eye out with the cork.” But, really, a lever doesn’t add to the bottle’s aesthetics–get a grip! [see video of the Maestro in action]

SPIT: wine
In France, consumption continues to fall. So do exports. “French households drank almost 10 percent less wine last year than in 2007, and exports by French vintners sank 15 percent by volume and almost 30 percent by value in the first quarter of 2009, the agriculture ministry reported.” [AP]

SIPPED: ID
Equifax, a credit rating agency, is developing a service to strengthen online identities, which could be particularly useful to verifying the age of someone who wants to buy wine on the web. [Bits blog]

Photo: Alexander Autographs

Why so few tasty American wines under $12? Wine importer Bobby Kacher

bobby-kacherFollowing our discussion of why there are so few tasty low priced wines from America, particularly compared to imports, I put the question to wine importer Bobby Kacher. Robert Kacher Selections is strong in bargains from Southwestern France; I highlighted the Tariquet Sauvignon (find this wine) in my book with wine recommendations, A Year of Wine, as one of 10 great wines under $10 (REDS from Patrick Campbell was also included).

Question: why there are so few good American wines under $10 while there are many more imports at that price point?

Bobby Kacher: A related question is why do so many American wineries make such expensive wines? So many American wineries have developed new, highly-allocated wines from very young vineyards that sell for $150 or more a bottle. They are trying to sell you the spin of romance and lifestyle. I visited a winery in California once and calculated just how much it cost to make Read more…

Tasty American wine under $12: why so little of it? Industry replies, part I

Drawing on the New Yorker profile of Fred Franzia, champion of wine under $10, last week we pondered the puzzle of why so few low-cost wines–say under $10 (or, perhaps, $15)–made in America are just not tasty. By contrast, several imported wines in the price range have appeal despite having to be transported and pass through the importer’s company as well.

Over 30 of you had your say in the post from last week. So I decided to put the question to several people in the trade. Today, we hear from Patrick Campbell and Veronique Drouhin Boss. Patrick Campbell of Laurel Glen Winery in Sonoma makes a tasty $10 California wine, REDS, billed as “a wine for the people.” Veronique Drouhin Boss is the winemaker at Domaine Drouhin in Oregon and is co-winemaker at her family’s negociant house in Burgundy, Maison Joseph Drouhin, which a Beaujolais Villages that is particularly lip-smacking in 2007 and is widely available for $9.95. Tomorrow, we will hear from an American wine importer with his views.

Question: why are there so few good American wines under $10 (or slightly higher) while there are many more imports at that price point? Read more…

Gallo’s humor (or lack thereof)

rooster_galloE & J Gallo, the enormous, privately held wine company, is well-known (notorious?) for protecting their brand. Ernest and Julio sued their own brother Joseph in 1986 to prevent him from marketing his cheese as “Joseph Gallo.” They also sued unrelated East Bay company, Gallo Salume Inc., to limit the number of their meat products that could carry the name.

A couple of weeks ago, E & J Gallo cranked the lawsuit-o-meter up a notch: They sued a Seattle gourmet food store for selling a Spanish pasta called Gallo. On the forums of the Seattle Times, Steve Winston, the owner of The Spanish Table in Pike Place Market, comments that Pastas Gallo dates from 1874 while E & J Gallo dates from 1933.

In Ernest Gallo’s obituary, the Times of London further summarized Gallo’s legal actions:

In 1990 the company successfully sued the Gallo Nero wine consortium of Chianti who had used the word “gallo” (cockerel) on their bottles. Ten years later the brothers took the Chianti wine-makers to court again over their domaine name.

In the meantime they put pressure on a small domaine called Santa Marcellina in Chianti because they had a “Marcellina” trade-mark among the many they had patented. In 1994 they attacked a Mexican company called Pasatiempos Gallo. In 2002 it was the turn of a lady potter in Texas, who used the word “gallo” because she made ceramic representations of roosters. Gallo himself made no excuses for his behaviour, saying: “We don’t want most of the business. We want it all.”

While it’s no doubt important for mark holders to protect their marks, there’s no point in being a cockerel about it. The situation smacks of Monster Cable’s overreaching and suing a mini-golf company and engendering consumer ill will. Perhaps we should take a page from Gizmodo’s book and come up with a list of items that Gallo legal eagles might want to put in their sight:

Pico de gallo salsa
The Year of the Rooster
France
Rossignol skis
Coq au vin
Le coq sportif
Cockfights

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