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The tipping point for wine blog advertising is NOT EVEN CLOSE

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A blogger wrote the other day:

Even traditional curmudgeons such as Steve Heimoff benefit from the growing wine blog trend, even as he disparages it. Several well known wine writers have at least explored, if not fully embraced, moving their wine writing to blogs. It’s our belief that, once the ad dollars show up in sufficient numbers (i.e. the tipping point), wine writing will move online with such speed that people will no longer bemoan the passing of print wine columns.

Sorry, but this guy is living in lalaland, and I don’t mean Los Angeles. He should have come to yesterday’s panels here at the Wine Writers Symposium, Alder Yarrow’s on monetizing new media writing (which I was on) and mine on wine writers, ethics and income streams. It was made abundantly clear on both that anyone who believes the ad revenue “tipping point” is moving with “speed” is completely out of touch with reality. When you surround yourself with ideology instead of perceiving with clear vision, you have lost the ability to say anything useful.

The people who participated in the 2 panels were a diverse lot. They consisted of famous bloggers, authors, editors, publishers, web wizards, technology experts, social media entrepreneurs, winemakers, chefs, academics and others interested in social media and who are ardent believers in its future (including me). But I don’t think a single person who was there — no matter what they thought or hoped when they walked into that room — walked out with any thoughts but these:

Ad dollars are not migrating online.
Ad dollars are not going to migrate online anytime soon.
There is no tipping point.
Just ain’t gonna happen anytime.

This was the take-home message, the bottom line, the irrefutable truth. It’s true not because I say it, not because I’m a curmedgeon, not because I hate social media, but for the same reason pigs don’t fly.

The reason ad revenue isn’t going to pour into wine blogs is because ad revenue isn’t going to pour into anyone’sblog in any field, much less a niche one like wine blogs. All the wine blogs put together have a readership that’s maybe equivalent to that of a top wine magazine. Ninety nine percent of individual wine blogs don’t have the hits or visits to generate $50 a month from ads if they’re lucky. No one can change the fact that wine blogs do not have the traffic to sustain ad dollars and are not likely to in the foreseeable future. Yes, the very top 3 or 4 make a little money from ads. But I believe they’re nearing their maximum, and nobody else is going to achieve their numbers for years.

I have reached these conclusions the old-fashioned way: through journalistic digging, mainly interviews. I know most of the top wine bloggers. I’ve picked their brains. They’re the ones who are pessimistic about making a living through ads. I also know a lot of top executives at the biggest wine companies. They tell me they’re not prepared to invest ad revenues online. If a big wine company won’t pay to advertise on a wine blog, do you think a little family winery will? And if wineries won’t advertise on a wine blog, who will? Microsoft? Nike? The NFL? Disney?

I mean, get real!

Hopes and dreams are good. They keep us going, waiting for a better day. But hope needs to be tempered by reality; otherwise, it descends into madness. Anyone who holds his breath waiting for the ad revenue tipping point to tip is going to suffocate.


Day 2 at the Wine Writers Symposium

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Random notes

Eric Asimov and Karen MacNeil had a panel on “Sensory Analysis vs. Wine Reviews” in which Eric reprised an earlier topic about “the tyranny of the tasting note.” He calls tasting notes “pernicious” because it makes wine seem “unambiguous,” which it isn’t, and “rips the heart of out its mystery.” Well, yes…and no. Yes, because it’s awfully hard to summarize the experience of a wine in words. No, because if you’re reviewing a wine, you have to say something, so all you can do is your best. That is, after all, what writing is all about: doing your best.

Eric is right on about the laundry lists of descriptors many critics use. It’s too often pretentious, precious and downright silly, all those olalaberries and grilled asphalt and so on. I myself have vastly simplified my metaphors over the years, and moved more toward writing about balance, structure and elegance (or the lack thereof). My problem with some young bloggers is that they’re going back to the use of obscure fruits, flowers etc. Maybe they have to; maybe that’s something the novice wine writer has to do.

Earlier, my old colleague Jeff Morgan had a panel called “What wine writers need to know about wine” that was particularly welcome, I’m sure, by all us writers. There’s been much discussion, including here on my blog, about how much technical knowledge a wine writer should have. A little? A lot? Obviously, some knowledge is desirable, but I’ve always thought a lot is unnecessary and can even be a hindrance. A move critic doesn’t need to know all about digital film technology or lighting manufacturers or Dolby sound. If technical knowledge made for a better wine critic, the best of them would be viticulture and enology professors — which is patently not the case.

Jeff raised the question of watering back wines or musts to combat high alcohol — which he said 80% of Napa vintners routinely do. He said although this actually improves the wines, the winemakers are loathe to admit to writers that they do it. “It’s because some powerful columnists lambast anything they perceive as interventionist, and the public buys into that,” I said. Jeff, or course, agreed. I personally am not bothered by so-called “interventions” to make better wine. Everything about winemaking is interventionist. It’s a bogus controversy ginned up by some writers who don’t actually have to make wine themselves. If a winemaker waters down, or acidulates, or sulfurs, or uses R.O. — whatever — who cares, as long as the wine is good? So next time you read a critic ranting about “intervention,” understand he’s just looking to pick a fight.

Later that day, we did a blind tasting of 5 Napa reds with Ms. MacNeil and I completely wiped out. We all did. I don’t necessarily feel bad abut guessing Barbera when the wine was an old field blend, and so on. The important thing in these useful exercises is for your logic, your deductive process to be correct. I understand that in the M.W. tests they don’t care if you guess the wine correctly, they want to know that your reasoning was accurate.

In the evening Bill Harlan hosted a few of us for drinks, and then it was on to the Restaurant at Meadowood. The food was obviously great but for me the highlight was sitting (and drinking) with Eric Asimov and Alder Yarrow, both of whom I got to know much better than ever. Such smart guys, so savvy and brilliant in their own unique ways. Easy to see why they’re both where they are in their blog careers. We had what easily was the greatest conversation about blogging, social media and where it’s all going that I’ve ever had. (And I was so pleased to discover that Eric and I share a martial arts education.) Now, this morning, it’s on to the two big panels, Alder’s on Monetizing your new media writing (which I’m on) and mine on Wine writers, ethics and income streams. This is going to be hot stuff. I’ll report tomorrow.


Live from Napa Valley, it’s the Wine Writers Symposium!

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After dinner last night we had a “post-prandial” tasting of older Napa Valley Cabernet Sauvignons. As this was not a formal tasting, I made only token notes, and confined myself pretty much to a single consideration: How’s it drinking? Is it too old, still young, or just right? My findings didn’t surprise me: in general, Napa Cab is best drunk young — say, below 8 years.

Here are the wines, with quick comments:

Oakville Ranch 1998: too old
Juslyn 1999: hard, dur; may not be ready.
Truchard 1999: overripe, pruny
Corison 2000: lovely. We had this wine last month in NYC and it was really good.
Keenan 1994 Hillside Estate: on the down side
Peju 1999 Reserve: too old, leathery
Dalla Valle 1995: extraordinary. Near perfect. Still plenty of time.
Jones 1997: old-fashioned, dry. A puzzle. Could develop.
Farella-Park 1995: raisiny, tannic
Trefethen 1981: dried out
Duckhorn 1991: dried out, raisiny
Spring Mountain 1987: old, dry, tannic

Also there was the 1WineDude himself, Joe Roberts. We were talking about how so many people think that, just because a Cabernet comes from Napa Valley and is old, it’s got to be good. Not!

A few notes, after the first day of the WWS: Ran into Alder Yarrow at check-in and sat with him at dinner. It was nice to see Eric Asimov looking hale and hearty. The seminar’s director, Jim Gordon, is my editor from the old days, and it’s always a pleasure to see him. Saw a few other familiar faces, but most of the people were newcomers to me.

“What’s the word? That’s the mystery.” Thus spake Frances Mayes (“Under the Tuscan Sun”), the keynote speaker, describing how to describe a 30-year old Barolo. Finding the right word is the wine writer’s challenge, obligation and joy. Ms. Mayes correctly reminded us how hard that can be, and that the writer must not rest until he knows his copy cannot be improved.

Several panel members pointed to the analogy between the “sense of place” the writer tries to create, and the “sense of place” of a wine, i.e. terroir. I’ve never been as convinced as some that a single vineyard is necessary for a great wine. I think a great wine can be blended from different places. That’s just me. I know lots of others disagree.

Today we are off to the Culinary Institute of America for a bunch of workshops, including one led by my old buddy and former Wine Enthusiast colleague, Jeff Morgan, and one by Karen MacNeil, who was kind enough to write a dust jacket recco for my first book, A Wine Journey along the Russian River. Also speaking will be Michael Bauer, the S.F. Chronicle’s Food and Wine Editor and restaurant reviewer; he will, I trust, be out of disguise. My own panels are on Thursday; I’ll report on them on Friday morning.


Will 2009′s record crop further harm Napa Valley Cabernet Sauvignon?

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First, I apologize to readers. This site was down most of yesterday, due to issues at my web hosting company.

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It’s already been widely reported that California’s 2009 grape harvest was the second largest ever — 4.9 million tons, more than any other harvest except 2005, which “crushed” all previous records. (To put this number into context, that is 44% more grapes than were crushed in 1988.) Conventional analysis suggests that high-end wineries will take a hit, since “[I]n the coastal areas, there really is too much [product] at this point,” according to the well-known grape broker, Bill Turrentine, who added, “high end wineries in Sonoma and Napa counties suffer [from] a glut of fine wines almost no one thinks they can afford to buy.”

This is not particularly good news for “cult” wines or those just below cult status that aspire to super-ultrapremium prices. For the last 1-1/2 years (which is to say, since the economy collapsed), I’ve been astounded by the quantity of $50 and above wines that continue to pour in to me for review. “Who are all these people, and how are they staying in business?” I asked myself. Now, there’s additional pressure on them: the grape and wine glut from 2009.

What wine and region comes to mind when someone is predicting difficulties for “high end wineries?” Napa Valley Cabernet Sauvignon is the correct answer (those of you who guessed right win a free lifetime subscription to this blog). So let’s drill down and see just how much trouble N.V.C.S. is in.

Statewide, the ‘09 Cabernet crush (441,563 tons) was up 35% over 2008, which was not a small crop by historical measures. Of that, 55,000 tons, or about 12.5%, was grown in District 4, which is Napa County — more than any California region except for District 11 (the northern San Joaquin Valley, but we don’t care about Central Valley Cab, do we?). That means Napa Valley is going to be churning out an ocean of 2009 Cabernet Sauvignon, starting in about a year and continuing (for late releasers) through 2013.

In the just-issued, official “Grape Crush Report” (preliminary) for the 2009 California crop is a section that’s always worth reading: “Base Price Paid to Growers.” It essentially summarizes individual dollar deals from growers to producers who buy grapes. While there were some pretty cheap transactions ($350 a ton for District 4 Cabernet? I wonder where those grapes came from?), most of the grapes went for between $6,000-$11,000 a ton. The official “weighted average” for Napa Cabernet was only $4,743 per ton, but that average is skewed low by the cheap grapes, which will end up in inexpensive bottlings that have little impact on high-end Cab. By contrast, the weighted average for District 3 Pinot Noir (which includes Russian River Valley and Sonoma Coast) was just $3,039 — and we know how expensive those bottles are.

Now, my good friend, Pierce Carson, wrote in last week’s St. Helena Star that, due to “grape prices holding their own,” even this large harvest won’t significantly lower bottle prices. Pierce interviewed Vic Motto, a grape and wine finance guy whom reporters like me have turned to for many years as a source of information. Vic’s prediction was nonchalant. “(A recession) is never permanent. The wine we’re making today will be sold tomorrow — we’ll see what tomorrow brings.” He was, if anything, optimistic about Cabernet’s future.

I’m not so sure. I have a feeling deep down in my gut, as Turrentine seems also to, that these high prices cannot hold. And if cult Napa Cabernet begins to tumble (which, in fact, it already has), how long will it take before the downward pressure hits Sonoma County, Paso Robles, even Santa Barbara County?  “[T]he economics of the wine business are still much better than most industries,” Pierce quotes Motto as saying. That may be true, in the sense that owners (many of them wealthy to begin with) are able to tread water, so they’re not in the dire straits of, say, the auto industry. But what about consumers? They are in dire straits. Even a multi-millionaire owner can’t afford to absorb big losses year after year.

My feeling is that, by this summer, we’ll have a greater understanding of how much damage was, or wasn’t, caused to Napa Cabernet by the Recession and, now, 2009’s big crop. I wouldn’t be at all surprised to learn of more bankruptcies, more sales, more dumping at Costco or wherever. Also, consider the fickleness of the consumer, who’s always looking for the latest critical darling. As I look over my highest-scoring Napa Valley Cabs since last Fall, I see brands such as Hestan, Redmon, Napa Angel, Knights Bridge, Piña and Sabina. These are not exactly household names. In other words, there’s a whole new crop of new (or relatively new) producers chasing, or should we say threatening, the more traditional boutique brands. Is there room for everybody? Not in my opinion, and not in reality. As MSNBC online reported just yesterday, “Napa Valley is facing the worst wine downturn since the early 1980s. Premium wines priced between $50 and $125 were ‘a dead zone’ in 2009, according to Silicon Valley Bank’s annual wine market report…”. I can’t see that changing in 2010. Something’s gotta give.

And this just in:

Where will Hardy land? That’s been the question over the ultimate job destination of Mr. Wallace, who won Murphy-Goode’s Really Goode Job. We now know: “I am passing along a press release to your email that announces Michel-Schlumberger’s unique partnership with the winner of the Really Goode Job, Hardy Wallace. He is moving into our winery where he will be writing about his experience living at a winery in addition to his other pursuits…”. That’s the word from Jim Morris, who works for Schlumberger. Same job, different location. Is the pay still ten grand a month? Enquiring minds want to know!

And this too

I’ll be doing a really nice, different kind of wine tasting at Old Crow Tattoo, in my neighborhood, on Sat. Feb. 20, starting at 8 p.m. The address is 362 Grand Ave. Stop by. I’d love to see you!


Monday special! Two for the price of one! (We take major credit cards)

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Another celebration of stupid

So there’s this D.C.-based guy, Charlie Adler, a wine and food educator, who has a new book out called I Drink on the Job, that seems to be the latest expression of the “you can be stupid and still like wine” movement that is so reminiscent of the teabaggers. [Confession: I haven’t read the book and know its contents only from published material on the web, including the author’s website.] The book, according to this review, “is a series of vignettes illustrating why wine should be enjoyed organically, rather than studied and dissected.” On his book’s website, Adler writes: “’I Drink on the Job’ takes an anecdotal and often humorous look at wine from a slightly different perspective than your average wine book and draws an immediate conclusion – it’s better to ‘drink first and ask questions later’.”

This “wine is humorous” thing (you know who you are, bloggers) is really starting to get annoying. It’s like saying, “Hey, if you don’t feel like taking the time to understand something, just make fun of it, and tease people who do try to understand it.” It’s demeaning and insulting to suggest that wine drinkers aren’t intelligent enough to enjoy wine and study it at the same time. That’s like saying a person can’t like going to the movies unless he also is a film buff. I don’t know any wine writers who ever made that claim. If anything, America’s best wine writers have stressed exactly the opposite. It’s not Adler’s message, it’s the way he says it, by inferentially putting down knowledge in favor of some kind of blue-collar ignorance. “[H]e just wants Americans to consume wine with their meals – everyday!” Adler writes, third-person, on his website. Well, so do we all. But this anti-elitist stance (which is really a dumbed-down form of elitism) doesn’t help advance that goal.

Speaking of new books

We come now to The Wine Trials 2010, which was co-authored by Robin Goldstein, who many of you will remember was the prankster behind that hilarious phony Italian restaurant that won a Wine Spectator award. The new book “recommends 150 wines under $15 that outscored $50-$150 wines in brown-bag blind tastings.”

This time, the book is for real, and fine, as far as it goes; I myself frequently come across relatively inexpensive wines that out-score expensive ones, and I love pointing that out to Wine Enthusiast readers. What I find interesting is the discussion going on behind the scenes of Robin’s book. For example, in this review, Joe Briand, a wine buyer for a major restaurant group, digs into the concept of blind tasting and declares “I believe blind tastings tend to leave the subtle wines that I prefer at a distinct disadvantage to bigger bolder wines which ‘stick out’ more when consumed blind.” That remark, plus others, prompted Wine Spectator’s executive editor, Tom Matthews, always first out of the gate to defend blind tasting, to clarify [in the Comments section] his earlier assurances that Wine Spectator reviewers always taste blind. “I agree with you that we can learn more from a wine the more we know about it,” Tom wrote, and then immediately added, “But in order to evaluate a wine without biases (conscious or not), it’s important to taste blind.”

Do you see the inherent contradiction here? How can both statements be true? If you can learn more about a wine by knowing more about it, then why is it more important to taste it blind, instead of in some sort of context? Well, the answer, of course, is that context is vital for a proper tasting, as Tom knows. There are not simply two ways to taste, blind and open. There are gradations. But the blogosphere has created this impression than it’s an either/or proposition, and Tom, I think, is replying out of intimidation from the Woodward/Bernstein gotcha! crowd.

(By the way, Tom’s job now seems to be damage control: to peruse the wine blogosphere and reply immediately to anything that could possibly be negative.)

Goldstein himself points out the complexities of tasting in this Feb. 13 blog posting, in which he laments that certain luxury producers (he names LVMH [Yquem, Dom Perignon] in particular) “are overpriced,” and he indicts “the mainstream wine media” for not taking “brands to task for this.”

Well, as a representative of that mainstream wine media, here’s my reply. Anybody who reads my reviews knows that I’m not a slave to prices. I give crummy scores to expensive wines all the time. I don’t have to overtly accuse a wine company of taking advantage of image; my scores are the ultimate accusation. But in general, I agree with Goldstein. He’s on the mark when he writes, “My sense is that, especially when it comes to hazy markets like wine, real human beings—within certain constraints — generally anchor themselves to market prices that are imposed upon them, and generally pay for things what they’re told those things are worth.” That’s true; always has been in the luxury department, and always will be. But it’s also good to let people know that, if they’re serious about not wanting to get ripped off, they need to take the time to educate themselves. A stupid consumer will be taken advantage of every time; an informed one is far more impervious to manipulation.


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