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Capitaltruism: Merging idealism with making money

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There’s a movement afoot in corporate America that doesn’t get enough attention but is gaining traction and could be a game changer. This movement is about inculcating social, environmental and health concerns into the sale of goods and services: call it Capitaltruism, where traditional capitalism meets idealistic altruism. And nowhere is it being embraced more heartily than by Millennials, who may feel that—since neither the government nor corporate America by itself is tackling important issues—it’s up to them.

Two recent developments illustrate this movement. The first is reflected by the rise of the “B Corporation.” The “B” stands for “beneficial.” A B Corporation is “a for-profit company committed to social or environmental goals in addition to its financial obligations.” That’s according to this article in the San Francisco Chronicle that describes how such corporations try “to benefit not [just their] shareholders, but also society.”

Millennials in particular are “drawn to firms that do good.” B Corps are certified by a third party, B Corporation, that claims to have registered 1,247 companies in 38 countries, across 121 industries, including wine. A Brookings Institution study found that the “desire on the part of Millennials for their daily work to reflect and be a part of their social concerns” is a chief factor in their choice of careers—and in their purchasing decisions.

The second development, reported courtesy of the Wall Street Journal, is of two California restaurateurs, Daniel Patterson (of Michelon-starred Coi in San Francisco but also of Plum Bar in Oakland) and Roy Choi, who got his start with L.A. food trucks. The pair have started up a company, Loco’l, whose aim is to replace the dismal diet of unhealthy fast food that now dominates less affluent neighborhoods with what Patterson calls a “natural, cooked-with-integrity alternative.” The first two Loco’ls will open in San Francisco’s Tenderloin and in Los Angeles’ Watts district. The foods will cost between 99 cents and $6 and will include things like a “Burg”: a beef-grain-garum [fish sauce] patty with Awesome Sauce, Jack cheese, grilled scallion and lime relish, on a Tartine Bakery bun. Sounds good, doesn’t it?

What do these two initiatives have in common? For one thing, both the Loco’l people and the B Corp people want to make money. But they want to do so in a way that addresses serious social concerns that, frankly, are not yet being addressed adequately. Both ventures are fueled by idealism and creativity, and both fill an important niche in a consumer market that’s been waiting for somebody to give them something worth spending their money on. What a fabulous idea!

Have a great weekend!


Wine needs a message for the iGeneration

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The wine industry is always worried about something, especially here in California. (Maybe it’s because we live in earthquake country!)

The theme is almost always some version of “The sky is falling.” Back in the 1990s it was phylloxera: it was going to wipe out everything. Didn’t happen; the wine industry not only survived the bug, it emerged better than ever. Growers tore out sick vines and replanted, using better rootstocks and clones, often reconfiguring their vineyard orientations, and more precisely matching variety with terroir. It was another happy instance of “Every cloud has a silver lining.”

The latest gloom and doom? The Wine Market Council’s fear that craft beer and spirits will turn younger consumers away from wine. But it, too, has a potential silver lining.

One can’t dispute the facts the WMC cites–facts underscored by anecdotes. My younger friends, those in the so-called iGeneration (born after 1995, and 61 million strong), really love their craft beers and whatever cocktail they’re into. But when it comes to wine, meh. It’s all pretty much the same to them. Try as they might, they can’t really understand why one wine costs ten times the price of another, when they seem to taste pretty much the same. Their social lives are centered around noisy bars, house parties and clubs, not the sedate dinner table. One of wine’s central messages—often promoted by its loyalists—is lost on them: that wine is the intellectual alcoholic beverage. Intellect, schmintellect: it’s not that they’re not thoughtful, but they want to laugh and dance—carpe diem!–and beer and spirits are way better at promoting a party than wine.

Among my younger friends also is a surprisingly high number of people who don’t drink. Whether it’s because they’ve had drinking problems in the past, or for health or religious reasons, I don’t know and don’t ask, because it’s none of my business. But even the WMC survey found that more than one-third–36 percent–of the population abstains from alcohol.

These are all formidable findings, but I remain optimistic about wine’s future in the U.S. For one thing, people’s drinking habits change over time. Wine has never been the preferred booze among young people: it’s always been beer and spirits. When the iGeneration gets older, there’s no reason not to believe they’ll discover wine, the same as their forebears did. Even some proportion of non-drinkers will realize that a glass or two of something won’t hurt and might even make them feel better.

The WMC survey also points the way towards opportunities for the wine industry to better market itself. There’s nothing wrong with the meme that wine is family, life and celebration, but these terms have to evolve, in order to appeal to younger consumers. Consider the contemporary meaning of “family”: The Norman Rockwell scenario of mom, dad and two kids sitting around the nightly dinner table no longer holds true for tens of millions of adult Americans. Families now are just as likely to be single parents, or same-sex parents, or interracial parents, or childless couples, or people living alone with a cat or dog. They’re just as likely to be Vietnamese, Mexican or Somali as they are to be of European descent (at least, here in multi-ethnic Oakland, which is the face of what America is going to look like).

So wine has to figure out a better way to present itself as the alcoholic beverage for everyone. Beer’s managed to do that for decades. So have brandy and cognac, and even sparkling wine to some extent, which is why its sales are surging. The spirits industry, led in my opinion by vodka, has done an amazing job over the last twenty years promoting itself as exciting and cool, especially with this current surge of celebrity mixologists.

But wine? It persists with the same tired message that you have to be old, white and rich to drink it. It’s time for wine to glam up. The good news is that a younger generation of wine marketers has arisen. Born with an easy comfort around computers and social media, literate in the changing demographics of America, and armed with an urban sensibility, they understand the challenge of appealing to the new consumer.


“Social media” is an oxymoron that’s here to stay

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Three articles in yesterday’s S.F. Chronicle caught my attention for the suggestions they make about how social media is, and is not, changing our lives.

(I was finally able to read after days of not being able to, due to the intense flu I had. It was an effort just to focus my eyeballs.)

The first article was on the continuing war between digital cab companies, like Uber and Lyft, and conventional taxi companies. This is a topic San Franciscans have been hearing a lot about. The bottom line is that the conventional taxis were slow to the point of paralysis in understanding the implications of portable digital devices. This was summed up by a CEO who said, “The taxi industry needs to rapidly retool and face the realities of the smartphone.”

Nobody is going to dial up a taxicab number and face all the possible uncertainties and hassles. (Just finding an open taxicab in San Francisco is a feat.) So much easier to establish an Uber or Lyft account, even if it means paying a little more. Uber and Lyft made the news yesterday because they apparently are planning on price-gouging on New Year’s Eve, but that’s beside the point. The point is that they foresaw the conveniences of smartphones and the taxi companies didn’t.

The second article was an examination of one of the East Bay’s new congressman, Eric Swalwell, the youngest member (at 32) of the large California delegation. Swalwell’s a social media guy; he made a point of stressing that in his interview. He tweets so much that there’s a new Twitter hashtag, #swalwelling, which seems to consist of photographing one’s feet as they enter an airplane. (We have “selfies.” Could this be “footsies”?)

These two articles represent green lights for social media. They underscore that we have become a society on the go, go, go, with our feet carrying us while our hands clutch our smartphones and we share our experiences with others. We interact with the world through these devices, and that includes all our interactions: shopping, politics, entertainment, simple personal communications. For wineries, the meaning is clear: Go big, or go home. The winery that does not learn how to take advantage – no, that’s not the right phrase, because it implies a certain cynical, transparently venal misappropriation of social media. Let me start again. The winery that does not learn how to communicate through mobile devices puts itself at disadvantage in this hyper-competitive world. Just as taxi companies learned, to their chagrin, at the hands of Uber and Lyft, the future belongs to the digitally savvy. (Although I will admit that Uber and Lyft have not been particularly adroit in handling the politics of their situations. But that’s another story…).

The third article stands in stark contrast to the others. There’s a new establishment here in Oakland, Plank, down at Jack London Square. It’s in a gigantic space that’s been vacant for years. The new owners decided to open, not just a restaurant, not just a bar, but a bowling alley, pool hall, bocce ball court and video game arcade. They call it an “activity bar.” The concept is, as another activity bar owner put it, “It’s fun, and you don’t have the pressure of sitting across the table talking for three hours.”

Well, I don’t know about the “pressure” of talking with friends and family over a restaurant meal. I mean, if it were really that onerous, people wouldn’t be doing it so much. Still, I get the idea. As the Chronicle reporter who wrote the story mused, “One wonders …whether these bars satisfy a longing for childhood pleasures…in the age of texting, with face-to-face communication.”

That’s more to the point. Yes, we inhabit a digital reality; we’re all nexuses on the World Wide Web. We do more and more things with our smartphones. But my discomfort from the very beginnings of this digital revolution has been connected with the fact that it somehow seems injurious to the social and civil underpinnings that made us human in the first place, and societal beings moreover. To that extent, the phrase “social media” is an oxymoron. “Social” is face-to-face; distant communication, however facile or amusing it may be, is not particularly social.

However, here we are, on a cusp as it were between two opposing forces. As usual with cusps (such as the transition between millennia), predictions, fears and hopes are exaggerated; things continue more or less as usual. Life goes on; we grow accustomed to whatever is new, and somehow manage to keep hold of our humanness.

The lesson, again, for wineries, which I alluded to above, is clear: adapt to the digital, portable realm or be doomed. But do it in a way that’s Zen-like in detachment: with a pure mind, as Buddhists put it. Do not allow yourself to be perceived as having an ulterior motive; in fact, do not have an ulterior motive, except that of humanness. If you’re puzzled by how to achieve this, here’s a clue: If you are yourself, not someone else, you will not be perceived as having an ulterior motive. If you are not yourself, you invariably will be. It’s a strange paradox: by being real, you will succeed. If you don’t know what being yourself and being real mean, then you have your work cut out for you.

Anyhow, have a fine, fun and safe New Year’s Eve! No drunk driving, please.


Renewed U.S.-Cuba ties good news for CA wine

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The first thing I thought, when I heard that the U.S. is about to normalize diplomatic relations with Cuba, was, “Oh, man, that’s really good news for California wine.”

Before the brouhahas of the early 1960s, Cuba was a favorite tropical destination for American vacationers, especially those along the East Coast. Today, people go to Costa Rica, Belize, the Virgin Islands and Puerto Rico; back then, it was Havana, just 90 miles across open water from Florida. Fashionable resorts, like the Hotel Nacional, lined the Malecón, attracting tourists with cash to spend. And spend it they did, in restaurants and bars, until the break with the U.S. and subsequent embargo sent the Cuban economy into a tailspin.

But with this resumption in relations, there’s every reason to believe that U.S. tourism will once again explode; certainly, expectations are high. Forbes last week, in an article called “Five Industries Set to Benefit from the U.S.-Cuba Thaw,” listed “Tourism” in the top slot, writing that Cuba will be an attractive stop for architecture buffs, food lovers, music lovers, and those interested in literature and the arts.” And where food lovers go, there is wine.

And what wine is more natural to pour in Cuba than California wine? Yes, there’ll be plenty of Bordeaux and Burgundy, and probably lots of German Riesling in that warm climate, but really, California wine is likely to dominate restaurant wine lists, as it dominates wine lists here in the States. At least, that’s what Napans believe. An article last week in the Napa Valley Register described how Napa Valley winemakers are weighing the Caribbean nation’s potential to become its newest market,” although the article also warned that direct sales to Cubans themselves, rather than to wealthy tourists, are likely to be minimal for quite some time, because Cuba remains a poor country. Last summer, of course, a group of Cuban sommeliers famously visited Napa and Sonoma. At that time, they said they “aren’t sure how long it will be before California wines will be in their Cuban restaurants.” So the timing is iffy, but not the interest: the somms want our wine, and they’re going to get it. Pacific Northwest vintners, too, are eying the possibilities.

Because news of the improved U.S.-Cuba ties came so unexpectedly and rapidly, it’s not likely that very many California wineries were prepared for it. I would imagine that late last week, and continuing on into this Christmas week and the New Year, winery sales and marketing teams will be meeting on a contingency basis to figure out how to take advantage of the new developments. They should. Every market counts—and the Cuban tourist market (which will be international in scope, not just comprised of Americans) is likely to eventually be very profitable.

U.S. tourism in Cuba isn’t a done deal—it will take some action by Congress to fully open it up. But, as Bloomberg Business Week reports, even the prospect of travel has provided an exciting jolt of new possibilities. Namely, hordes of U.S. tourists shelling out to visit the formerly forbidden country.” When it happens, those tourists are going to be shelling out a lot of money for California wine.


Twelve Tips for Better Content Creation

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I recently came across this statistic in an infographic on content marketing: “64% of B2B content marketers say their biggest challenge is producing enough content.” (B2B means business-to-business.)

I would suspect that “producing enough content” also is the biggest challenge for B2C (business-to-consumer) content marketers. Cranking out content, especially in the constantly-changing world of social media, is really hard. I mean, good content. It’s easy to generate what my Grandma would have called dreck. Coming up with high-level stuff is hard.

I should know: In addition to this blog, which I write five times a week, I do blog posts for Kendall-Jackson, La Crema, Cambria and, soon, Byron for Jackson Family Wines. So, even without Twitter, Facebook and all the rest of the writing I do, blogs alone keep me on the hunt for content.

The problem is that I have high standards. I refuse to publish something, even a tweet, until it’s as good as I can make it. For me, a post has to rock. I don’t mean that everything I’ve ever written will be in the Blog Post Hall of Fame. Far from it. But everything I’ve ever written has been conceived and crafted with the utmost care, something that the end-readers may never be aware of, nor should they be. But to the extent anyone actually reads and enjoys what I write—and I think they do—it’s because I have overcome the “biggest challenge”: producing enough content.

Readers can tell when content has been produced by people who are just out to sell stuff, the same way they can tell the difference between a cheap suit and a good one. Bad content is a witch’s brew of spin and hype, the very things consumers hate. They can tell the difference between something meant to help, educate and amuse them—which is an article–and something meant to part them from their money—which is an ad or commercial. If a content creator doesn’t thoroughly understand the difference, he or she will not be a success.

I would suggest to anyone working in the world of content marketing that they decide to get really good at it, or else it’s not worth doing. This is why, if a company is serious about producing quality content on a frequent basis, it should hire talented people, pay them well and let them do their thing. Creating quality content—by which I mean interesting content–is an expertise that stands alone: top quality content producers have insights into the psychology of personality and the consumer behavior of the masses, which themselves require an entire spectrum of understanding, ranging from art and literature to history, politics and popular culture. They also understand their particular niche in the market, which requires a kind of bird’s-eye view of things. High-caliber content creators, especially those working in the social sphere, are always going to be a little weird because their talents are more of an art form than a skill or craft.

My advice for content creators is probably not needed, for they are an iconoclastic bunch, who come up with their own ideas. However, for what it’s worth, here it is:

  1. Be familiar with the product or service you’re writing about, and love it. As the late, great ad man, David Ogilvy, observed, he would never write an advertisement about a product he himself did not use.
  2. Know the people associated with that product. Be friends with them. They are part of the content.
  3. Study writing and literature, and read a great deal—stuff that inspires you. Have dictionaries and Thesaursi by your side, as well as books of quotations and sayings.
  4. Interesting content is informative, yes, but it’s also conversational. Would you rather have a conversation with an interesting person, or with a boring one?
  5. If you can work visuals (videos, photos, graphics) into your content, so much the better.
  6. Be curious, inventive, bold in your writing. Take risks. Great content production isn’t for the lazy or faint-hearted.
  7. Make yourself laugh with your content creation. If you think it’s funny, so will others. Putting your readers in a good mood will make them more loyal.
  8. Never underestimate the intelligence of your audience.
  9. Remember, your reputation and credibility are riding on everything you publish. The only thing separating you from complete irrelevance is the trust of your readers.
  10. But trust yourself first and foremost.
  11. Always tell the truth.
  12. If you experience writer’s block, re-read this list. It will always give you ideas.

P.S. If you use Wikipedia—I do—please consider making a small donation to keep them in business.


Preserving trust in an era of distrust

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Wine critics are insulated from the buying public. They live in a sort of bubble in which popular tastes are shut out, and only their own impressions impinge upon their consciousness. Yes, there’s something solipsistic about being a critic—maybe even narcissistic. But that’s the way it should be, because the critic must remain immune to all influences except that of his own taste and discernment.

Sales people, on the other hand, must constantly be in touch with the public. It’s always been something of a chicken-and-egg conundrum whether the success of a particular wine, or type of wine, is due to the top-down approach of marketing and P.R., or whether it’s from a bottom-up movement from the street. Probably it’s a little of both, and individual cases will vary. However, this we do know: customer satisfaction is more important now than ever.

By that I mean that the customer has more ways of being satisfied (or dissatisfied) than ever—more ways of expressing it, more capacity to share with others, more ways of having leverage at the winery. This is due, obviously, to the Internet and social media, and ease with which we can get online and publish our thinking with mobile devices. But you already know that.

So it wasn’t particularly surprising when I saw this study yesterday on “Three things consumers want [from a company]: responsiveness, involvement and conviction.” What was surprising was the huge gap between what people say they want more of, and how they think companies are actually performing. Measured by this metric, most companies suck.

For example, in the area of greater responsiveness (to complaints, questions, concerns, and so on), 78% of people want an almost “on demand” responsiveness from the company. And yet, only 17% of the respondents felt that companies actually respond in a timely manner. That’s a gap of 61%. If I was doing business with a company that answered my queries only 17% of the time, I’d find another company to do business with.

Corporate America certainly understands this and is responding. In my own life, I use Comcast, PG&E and various web service companies a great deal, and, like you, I sometimes have the need to contact them. In each case, their response time has gotten much faster, and the process of contacting them has gotten easier (not that it’s pleasant…). So kudos to them for that.

Wineries don’t have as good a track record. It seems to me they could be doing a much better job reaching out and staying in touch with customers or potential customers. You might think that bigger wine companies have an easier time of it, because they have bigger budgets and can afford to hire communications experts, including digital ones. But bigger wineries also have more demands from their customers, so it all kind of evens out in the end.

The “conviction” issue is interesting. It means that consumers want their brands to have “a clear mission and purpose,” even to the extent of “driving change in the world.” We’re told that Millennials in particular feel a sense of obligation to the world’s problems and, in that sense, they’re more likely to support a company that, for instance, helps the environment. But this is a tricky business: oil companies (Chevron, for instance) tout their environmental concerns, but lots of consumers don’t believe it; they think Chevron is “greenmailing”—telling lies to further their actual cause, which is making profits.

How can a winery tout its “convictions” in such a way as to seem authentic, not phony? It’s vital for companies to figure this out, because a phony conviction can have a backlash. I think there are two ways of doing it: one is to avoid getting stuck with a negative image in the first place (the way the oil companies did), because then you don’t have to tear down those walls of suspicion. The second way is to get your message out, clearly and directly. This, too, is problematic: if you tout your do-goodness too much, people will say you’re just trying to win their friendship (and their money). If you don’t say anything at all, nobody will know about your good deeds. The challenge is to talk about yourself in such a way as to inform people but not lose their trust.


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