Comments on: 2 new reports paint painful picture for Calif. wine http://www.steveheimoff.com/index.php/2009/05/28/2877/ A blog about the world of wine Tue, 07 Feb 2012 03:05:49 +0000 hourly 1 http://wordpress.org/?v=3.0.3 By: Morton Leslie http://www.steveheimoff.com/index.php/2009/05/28/2877/comment-page-1/#comment-7831 Morton Leslie Wed, 03 Jun 2009 20:55:13 +0000 http://www.steveheimoff.com/?p=2877#comment-7831 For many producers cutting prices isn't a solution. When you are paying $100 a case for grapes, $50 a case for a "name" consultant, $100 a case in debt service, $40 a case to Taransaud, $30 for that package with the 3 pound bottle and the 3 inch cork, $25 in labor, $10 for R.O., and $100 a case for living the appropriate high life of a winegrower. You need at least $75 a bottle retail price or you can't make the payments on the RangeRover. For many producers cutting prices isn’t a solution. When you are paying $100 a case for grapes, $50 a case for a “name” consultant, $100 a case in debt service, $40 a case to Taransaud, $30 for that package with the 3 pound bottle and the 3 inch cork, $25 in labor, $10 for R.O., and $100 a case for living the appropriate high life of a winegrower. You need at least $75 a bottle retail price or you can’t make the payments on the RangeRover.

]]> By: Dylan http://www.steveheimoff.com/index.php/2009/05/28/2877/comment-page-1/#comment-7569 Dylan Fri, 29 May 2009 19:04:00 +0000 http://www.steveheimoff.com/?p=2877#comment-7569 If life hasn't taught anyone this lesson by now, let me institute it here. Positivity lets you find the answers in problems, negativity helps you find the problems among problems. Do the times leave the wine industry finding it hard to remain optimistic? Certainly. However, difficulty in optimism doesn't make it an impossibility especially when it's a necessity. The wineries the are flexible and look for the bright side will begin to live on that bright side. Wineries that react by not reacting and sit on pricing structures like too-comfortable-to-rise-from-sofas will not be happy and only then will it have gotten even harder to remain optimistic. If life hasn’t taught anyone this lesson by now, let me institute it here. Positivity lets you find the answers in problems, negativity helps you find the problems among problems. Do the times leave the wine industry finding it hard to remain optimistic? Certainly. However, difficulty in optimism doesn’t make it an impossibility especially when it’s a necessity. The wineries the are flexible and look for the bright side will begin to live on that bright side. Wineries that react by not reacting and sit on pricing structures like too-comfortable-to-rise-from-sofas will not be happy and only then will it have gotten even harder to remain optimistic.

]]> By: Carson Smith http://www.steveheimoff.com/index.php/2009/05/28/2877/comment-page-1/#comment-7551 Carson Smith Fri, 29 May 2009 15:50:49 +0000 http://www.steveheimoff.com/?p=2877#comment-7551 It is interesting that only a few years ago the same report by Silicon Valley Bank pretty much wrote off the San Joaquin Valley as a viable part of California's wine business. We in the Central Valley were refered to as "the Detroit of the wine industry" in that State of the Industry report which painted a very rosey picture for the future of the upper end wineries and brands. It is interesting that only a few years ago the same report by Silicon Valley Bank pretty much wrote off the San Joaquin Valley as a viable part of California’s wine business. We in the Central Valley were refered to as “the Detroit of the wine industry” in that State of the Industry report which painted a very rosey picture for the future of the upper end wineries and brands.

]]> By: Ray http://www.steveheimoff.com/index.php/2009/05/28/2877/comment-page-1/#comment-7547 Ray Fri, 29 May 2009 14:03:32 +0000 http://www.steveheimoff.com/?p=2877#comment-7547 Steve, I see that you are still painting with your infamous broad brush? "That’s because all anyone can afford anymore are jug and box wines — fortunately, for the economies of San Joaquin and Madera counties." May I also observe that the last sentence of the second bullet point on page 6 of the SVB report may well be applied to veteran wine critics? Hope your time out has provided you a more positive paradigm. Steve, I see that you are still painting with your infamous broad brush?

“That’s because all anyone can afford anymore are jug and box wines — fortunately, for the economies of San Joaquin and Madera counties.”

May I also observe that the last sentence of the second bullet point on page 6 of the SVB report may well be applied to veteran wine critics?

Hope your time out has provided you a more positive paradigm.

]]> By: Erica Lauesen http://www.steveheimoff.com/index.php/2009/05/28/2877/comment-page-1/#comment-7517 Erica Lauesen Thu, 28 May 2009 20:58:18 +0000 http://www.steveheimoff.com/?p=2877#comment-7517 This is nothing new for me, being that I'm in the industry. What isn't mentioned here is that not only are the under $40 wines that are selling, but those wines that have been overpriced for a decade are able to cut their prices and give people the perception of a great value. The reality is that they have been getting ripped off up until now. Those wineries that have kept their prices reasonable, are not able to do the deep discounts, so they don't seem to be as great of a value. It's a catch 22! All we can do, is educate educate educate! The power is in the consumers hands. This is nothing new for me, being that I’m in the industry. What isn’t mentioned here is that not only are the under $40 wines that are selling, but those wines that have been overpriced for a decade are able to cut their prices and give people the perception of a great value. The reality is that they have been getting ripped off up until now. Those wineries that have kept their prices reasonable, are not able to do the deep discounts, so they don’t seem to be as great of a value. It’s a catch 22! All we can do, is educate educate educate! The power is in the consumers hands.

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