subscribe: Posts | Comments      Facebook      Email Steve

What will it take for the Chinese to embrace Napa Valley Cabernet Sauvignon?

19 comments

 

The Holy Grail for California wine has been China. With its hundreds of millions of emerging upper-middle class consumers, Cali producers see a vast new source of demand. The problem is how to persuade all those Chinese that they want California wine.

We already know they want French wine. Parker has been investing his time and energy heavily in China for many years (I remember raised eyebrows when he started visiting with regularity, but he was ahead of his time, wasn’t he?), and now, of course, a Singapore outfit owns Wine Advocate.

RMP himself is now back tasting California wine. (Ironic, isn’t it? First he said he didn’t want to anymore. Then “the troubles” went down with Galloni, and The Man Himself was compelled to return to a beat he’d previously said he was tired of.) So, while the Wine Advocate is competition for the magazine I write for, Wine Enthusiast, I do think that Parker is in a position to publicize to wealthy Chinese consumers the Napa cult wineries he likes. If I were a cult Napa producer, I’d be all over Parker, inviting him to the winery, getting my wines into his hands, then keeping my fingers crossed for a 99 or even a perfect 100.

But I also think Wine Enthusiast has growing clout in China, a clout that will only increase over time. Last year we began a Mandarin edition of the magazine, and my understanding is that it’s doing quite well. It was, I believe, the first important English-language wine periodical to be published in the Chinese language. And, as that edition also reports on my scores and reviews of Napa cult wines, I think it’s likely that those scores will drive sales, too.

Of course, some Napa wineries don’t have to worry about scores. Yao Ming’s wines ($625 for the 2009 Family Reserve) were an instant hit in China, for obvious reasons. I suspect that Screaming Eagle and Harlan also are doing well. The kind of people in China who can afford them have extensive connections with the west. They tend to speak English and are aware of the consumer goods, including wine, that are popular and prestigious in America. They take their cues from rich Americans and are ever alert to symbols of status and preference. Since critics like Parker tend to rate these wines highly, that should make them in high demand in China.

What about the other hundred or so Napa cult Cabs?

It’s terribly difficult for individual wineries to market themselves in China. But the Napa Valley Vintners has been plying those waters for a long time. This article, from the Huffington Post, does a good job describing the general contours of breaking into the Chinese market, but to me, the bullet quote is from Harlan’s GM, Don Weaver“Trying to solve the China puzzle is the most exciting part of my job right now.” The adjective “exciting” is an interesting choice; Don might have used “challenging,” but when you rise to meet a challenge, and then perhaps exceed it, it is exciting.  (I felt that way when I was awarded my first Black Belt in karate.)

Napa wineries (and others in California) also recently got a boost from Gov. Jerry Brown, a longtime friend of the wine industry, when his April trade mission to Shanghai (which included Wine Institute’s CEO, Bobby Koch), promoted the state’s wines; the promotion also included a “Taste Napa Valley” event sponsored by Wine Institute.

These activities all are promising, and the people organizing and managing them are very good at what they do. But there’s a limit to how effective they can be at the individual winery level. If you’re selling a 93 point Cabernet for $100 or more, and you don’t have an ultra-famous name and have only been around for a few years, you’re going to have a tough time, whether it’s here in the States or in the People’s Republic. It’s those Napa Cabs I wonder about. Who’s buying them? Who will be buying them? Maybe their proprietors are so rich they can afford to break even, or even lose a little money, for a decade or two. I have a feeling they’re about to find out.


Can a wine be serious and unsnooty at the same time?

4 comments

 

What does it mean when people say Millennials want wines that are “more approachable” and less “snooty”?

You hear it everywhere, especially in the Blogosphere, but also in conversations about social media and in the columns of newspaper writers: for example, “Snooty is no longer where it’s at in the wine world,” and young people are seeking “more approachable and drinkable wines that are suitable for a range of dining and social occasions,” in the words of this article.

The suggestion is that some sort of cosmic alteration has occurred in the way younger consumers view wine, that this paradigm shift is revolutionizing the way wine is marketed (with, for example, Franzia WineTaps appealing to “growing demand [for] intriguing products”), and that “Specialty wines such as sangrias and chocolate wines” are aiming for the “sweeter taste profiles” the under-30s like.

In line with this blog’s continuing struggle to get at the truth, and hewing to its “the more things change, the more they stay the same” philosophy, I now dispel these modern myths with the wave of a hand. Begone!

Let’s break it down.

Of course consumers want wines that are less snooty and more approachable. Nothing new about that. “You certainly don’t have to be a wine expert to drink wine…For wine-drinking is fun. And wine isn’t difficult. Why consider it harder to serve than coffee, soda pop or beer? There isn’t any hocus-pocus, except for the so-called experts who as specialists have fun trying to make things complex and involved.”

That might have been written yesterday by any number of wine bloggers. But no, it was written by Mary Frost Mabon, then the food and wine editor at Harper’s Bazaar, in her 1942 book, ABC of American Wine. I cite it merely to illustrate the fact that more than seventy years ago writers were reassuring “ordinary” Americans that wine wasn’t “snooty” and that “preciosity in a wine connoisseur” (Mabon again) is laughable.

When I read this stuff about “more approachable and drinkable wines” my first reaction is that it’s sheer nonsense. Milliennials aren’t looking for “more approachable and drinkable” wines because these words have no meaning. They sound like they’re describing something real, because they hew to standard English syntax; but just because I can make up a proper sentence doesn’t mean it corresponds to something in reality. (“My unicorn just leapt over the radioactive rainbow.”) How is any wine “more approachable and drinkable” than any other wine that has ever existed? It all depends on what you like, right? Now, if “more approachable and drinkable” really means sweeter, then why don’t we just come out and say that Millennials prefer sweet wines to dry? Because it’s not true, that’s why. There’s no proof of that. The explosion of things like Moscato (and, yes, sangrias and chocolate wines) is indicative only of rising consumption of wine across all demographic groups, some of whom want their wines sweet while others like them dry.

What writers really mean when they say Millennials want “more approachable and drinkable wines” is that they want cheaper wines. This, too, hardly qualifies as a Eureka! moment, nor would it have come as a surprise 70 years ago to a producer (or 300 years ago to a London merchant). People, especially younger ones, always want value in their drinks, which is why The Wine Group, Bronco, Barefoot and so many other companies are doing so well.

So, you ask, is Heimoff saying that nothing ever changes? In a way, that’s exactly what I’m saying. Trends come and go–Moscato will fade back into semi-obscurity someday–boxed wines were inevitable once the technology developed–one day tequila is on top, the next day rum–sweet, fruity wine-based concoctions have been around from the days of Bali Hai through the coolers of the 1970s to today–young people always will like inexpensive wine but usually are willing to spend more as they age and earn more money–the Sun continues to rise in the east and set in the west–lazy or ill-informed wine writers continue to search for “news-like” information they can pass on with seeming authority–well, you get the picture.

I will stipulate the following concerning younger consumers: they want more interesting wines these days, wines that tell them stories and about which they can talk with their friends (and perhaps to the proprietor via social media). And this, they certainly have, in spades, in unprecedentedly open and interactive ways. But this is a double-edged sword for wineries. It makes the younger consumer easily the most fickle consumer in the history of the world. As soon as the story becomes boring–as soon as a more interesting story pops up (and I use the phrase “pop up” deliberately, in its latter-day urban sense)–the consumer moves onto the next thing.

I leave with this word of caution to wineries tempted to stroll down the “less snooty-more approachable” path: you may be headed up the garden path, leading to a cul-de-sac from which there is no escape. It’s one thing to make a wine-in-a-box and be content to sell gazillions of gallons of it (and this is in no way a criticism of such wines; among critics I’ve probably praised them the most, on grounds of quality-price ratio). But what if your ambitions as a winemaker are set higher than a boxed wine? What if you’re a garagiste or terroirist or someone seized with the notion of creating something awesome from your patch of ground? Some writers and customers always will “squint, swirl, sniff, sip, swish and spit” (in Mary Frost Mabon’s alliterative words), meaning in turn that these wines by definition become “more snooty” and “less approachable,” which is simply a way of saying that they become of greater intellectual and conversational interest, at least to those of us who care about such things. Do we really want this appeal to “less snooty and more approachable” to result in the end of pleasant discussions about wine, terroir, technique, varieties, aromas, finishes and all the other arcane topics we geeks love to talk about? I would hope not. Any winery that walks the serious quality walk but talks the “unsnooty and approachable” talk is trying to have it both ways, an unsustainable proposition that ultimately will please no one.


Marketing: the medium is the message

6 comments

 

With all the talk about marketing wine to a new generation, we seem to have missed a vital crossroads that wine apparently has come to:

Where wine used to be “a chic drink that you sip at,” it now has become “a drink that you serve in large quantities where there is an aim at the party to get drunk.” !!!!

That, at any rate, is the view of somebody called David Halle, referred to in the above article as a “professor of sociology” but not otherwise identified. Which sent me, of course, to the Google machine, where I discovered him to be resident at U.C.L.A., a fine institution with which I have had connections over the years through family members. The prof’s interests are said to be “political sociology, urban…culture and social change,” so I suppose he knows what he’s talking about.

The same article quoted someone I do know, although not well, John Gillespie, president of the Wine Market Council, whose thoroughly-researched data always are examined with great interest by the industry. John adds that “more wineries [are] going after the younger generation” to whom “wine is the new black,” a fanciful allusion to a metaphor, now slightly shopworn, in which an idea or fashion comes suddenly into general popularity, replacing another that by inference is less stylish although not exactly passé. (The phrase “the new black” itself dates back at least to the early 1980s, when the fashion designer, Gianfranco Ferré, is supposed to have first used it, after which it exploded into the popular culture, so that we had Lady Gaga [2011] singing “Jesus is the new black,” a comedian [2009] calling “Black…the new white” and, preserving the structure but losing entirely the original noun references, a blogger asserting that “caffeine is the new alcohol.”)

But I digress. Can it really be true that people under 30 think of wine primarily as a beverage “to get drunk” with? Before we delve into that, let me point out that there’s nothing new about a younger generation using wine for inebriation. I did, although back then yellow tail and Two Buck Chuck weren’t even gleams in anyone’s eyes. But their predecessors–Ripple and Bali Hai and Boone’s Farm–were (like yellow tail) cheap and affordable and contained alcohol, which is all that a stupid young kid like me cared about. Since I’m a firm believer that human nature changes rarely if at all (thanks to our reptilian brains), I can find no reason to think that stupid young kids today don’t want the same thing: a quick cheap buzz. So there’s really no great bulletin when the Prof points out that kids today are drinking wine at parties to get drunk. They/we always did.

What I do find surprising is the assertion, made by another person quoted in the article, Chris Hammond [described as co-founder of Rock ‘n Roll Wine LLC], that “The events [his company sponsors] lack pretension. They don’t make you feel intimidated by a lot of adjectives or what you should like, or what a magazine says you should like.”

Back to the old Google! Here’s the website for Rock ‘n Roll Wine LLC, whose events seem to combine a pop-up club urban zeitgeist with mass tastings (including food) of the sort that magazines routinely sponsor in America’s major cities. The difference seems to be that a Rock ‘n Roll LLC event will feature, not a Dixieland Jazz band or string quartet, but performances from The Gin Blossom or Crash Kings (and if they don’t get you in a mosh pit mood I don’t know what will). But the wines served are familiar enough: Luna Vineyards, Rodney Strong, Banfi, Diageo, proving that these companies wisely understand [pace McLuhan] that the medium is the message.

Still, I cannot accept that wine has permanently crossed some kind of threshold from being “a chic drink you sip” to the latest vehicle that gets you down the “candy is dandy but liquor is quicker” road to Slosh City. Kids grow up, even those who hurl themselves into mosh pits, and when they grow up they look for something, well, more urbane.

Marketing is never a straightforward practice. As in statecraft, one delivers different messages to difference constituencies, depending on the need, the left hand seldom talking to the right; and if these messages conflict, well, that’s all right. It’s the maneuver of diplomacy. If I were a winery I’d be telling 23-year old clubbers, “Don’t worry about anything, just drink our wine, dance your ass off, have fun tonight, and repeat it all tomorrow.” To a 53-year old lawyer or Silicon Valley exec it would be “Sip our chic wine, and to appreciate the fine terroir of our grapes, check out our website, where our winemaker walks you through the vineyard to explain the mysteries of cane pruning grapevines.” The medium is the message. But if you want to know the real message, it’s: Plus ça change, plus c’est la même chose.


What happens when a great Cab house produces second or third tiers?

5 comments

Benjamin Lewis writes, in his superb new book, Claret & Cabs, that the Left Bank of Bordeaux, and to some extent the Right Bank, is undergoing an identity crisis, as more and more Classified Growth chateaux bottle second wines.

It used to be that the handful of chateaux that made a second wine used grapes that were considered not good enough to go into the main wine. But that started to change in the 1990s and 2000s. “[S]econd wines have become profit centers in their own right, and are no longer simply a way to mop up lots that are not successful enough to include in the grand vin,” Lewin writes. “Often enough they have become a separate brand in all but name.”

The result are wines that “have improved significantly” and, with the great 2009 and 2010 vintages, “seemed to reflect their origins more clearly” than the grand wines. In fact, Lewin quotes Bruno Eynard, director of Chateau Lagrange, that “The second wine of a great year today is better than the grand vin of a minor year previously.” !!!

Lewin is not suggesting that proprietors are reducing the quality of the main wine, only that there is now competitive selection to make it into the second wine–with the corresponding result that many chateaux now have a third brand, as well, often bearing a simple communal AOC.

This ties into a phenomenon we’re also seeing here in California, in which top Cabernet wineries, usually in Napa Valley, produce a hierarchy of wines. As readers of my reviews probably know, it is far from certain that the most expensive wine (which may be a vineyard designate or barrel selection) is “better” than the second wine. I’d say that in about one-third of the cases, it is not. (Whether that makes the second wine a value, or the main wine a rip-off, is debatable.) But when the winery has a third tier that bears a simple Napa Valley appellation, the chances of it being pretty ordinary rise significantly. Not naming names– my reviews speak for themselves–but some Napa wineries are releasing these third-tier Cabernets that frankly aren’t worth the price, but merely trade on the winery’s name.

There was a time when vintners had some pride in what they turned out. If they had a lesser quality wine, they’d bulk it out on the market, or else bottle it under a different brand name and do everything in their power to hide the link to the parent winery. Inherent in this strategy, obviously, was the possibility of a reverse one: Some marketing whiz, at some point, would have said, “Wait a minute. Why are we hiding the connection? If we actively promote it, we could charge more money for the lesser wine.” (Mouton-Cadet, anyone?)

Someone in the room, I would think, would have objected that a low score on the lesser wine would taint the image of the main wine. But with the Recession and the current struggle for survival, even of some pretty famous wineries, the marketing message increasingly is triumphing over the moral message.

Last year, Joe Gallo asked me a question: Was Opus One good or bad for the Robert Mondavi brand? I’d never thought about it, so I asked him to give me a few seconds to think about it, and then I said, “Good, because it associated Mondavi with prestigious Bordeaux.”

“Wrong,” Joe Gallo admonished me. “It was bad, because Opus One took all the best fruit, and the Mondavi reserve suffered.”

He may or may not have been correct: certain critics in the 1990s faulted Mondavi Cabernets for lacking power, but that wasn’t necessarily because “Opus took all the best fruit.” Tim Mondavi repeatedly insisted he was not interested in making powerhouse wines, preferring a French style; the criticism that the wines were light (which I never bought into) was therefore a misunderstanding of the winemaker’s intention.

However, Joe Gallo’s argument does underscore the danger when a winery, with only limited access to superior fruit (and what winery has unlimited access to the best fruit?), tinkers around with second and third tiers. Usually, something gets hurt: either the top wine is lowered because quality grapes are diverted from it, or the second or third tier suffers because it has only inferior grapes. This is not to say that a winery cannot successfully produce separate tiers that are each quite good on their own: Freemark Abbey reliably does (with Sycamore, Bosché and the Napa Valley), and so does Stag’s Leap (Cask 23, Fay and Artemis). But I’m afraid they’re more the exceptions that the rule.


Are vineyard designates better than blended wines? Not necessarily. So why do they cost more?

22 comments

I was reading Peg Melnik’s article on Chateau St. Jean’s 2010 Belle Terre Vineyard Chardonnay, in yesterday’s Santa Rosa Press-Democrat, which reminded me that Chateau St. Jean pretty much single-handedly created the vineyard-designated Chardonnay market in the 1970s, with a brilliant series of wines crafted by their then-winemaker, Richard Arrowood. Belle Terre, Les Pierres and Robert Young were perhaps the best known, but one year, Arrowood produced 9 individual Chardonnays. (He also made vineyard-designated Fume Blancs and Rieslings.)

It got me thinking of how obsessed we are today with single-vineyard wines in California, not just Chardonnay, obviously, but everything, especially Cabernet Sauvignon and Pinot Noir.

The first vineyard-designated Cabernet I ever heard of was Joe Heitz’s Martha’s Vineyard. It was, back in the day, the most famous Cab in Napa Valley, and if it’s lost a little of its luster in the glare of so many newer brands, it’s still well-regarded. I don’t recall the first single-vineyard Pinot Noir I ever had. The first one I ever reviewed in my wine diary was a 1982 from Louis K. Mihaly, with a Napa Valley appellation. The label said “Produced and bottled by the estate of Louis K. Mihaly,” so I suppose that, technically, it was a single-vineyard wine; but I’m talking about vineyard designations on the label. Ditto for the Dehlinger 1985 Lot #2 Pinot I tasted (in 1990, by which time it had gone downhill).

Today, of course, many producers make single vineyard wines. They fetch a higher price, on average, than blended wines. (Even the word “blended” sounds pejorative. We need to come up with a better one.) When you think about it, though, there’s no reason per se why a single vineyard wine should be better than a blended one. The reason the Bordelais grew so many different grape varieties was because they knew that blending could fill in the divots that a single variety wine might otherwise have (unripe, too acidic, too tannic, not enough color, etc.).

It was in the 1990s that vintners opted to go bigtime with vineyard-designated bottles. They said they were spurred by the extra complexity that certain sites exhibited, but that’s only half the story. The other half was that, by then, it was apparent the public would pay more for single vineyard wines. (We can thank Heitz and Chateau St. Jean for that!) I myself have never quite bought into the theory that the wine from a particular place is necessarily better than a blend. Some critics make much of “wines of place” and, of course, to question the concept of terroir is to hold oneself up for ridicule. However, I don’t see how you get around the “divot” theory: in a perfect vintage, a particular site might yield a complete wine. But not all vintages are perfect, and it’s only logical to expect that, in other vintages, the grapes from a particular site will be lacking something and could benefit from being blended with the grapes from another place.

Today we have brands that specialize in single vineyard wines: Siduri, Loring, Testarossa and Williams Selyem (among many others) in Pinot Noir, and practically everyone making high-end Chardonnay. (Williams Selyem, Lynmar, Rochioli, Paul Hobbs, Marimar Torres, Martinelli, Talley and Thomas Fogarty in particular come to mind.) There also are an increasing number of wineries that bottle vineyard-designated Cabs. Sometimes they buy grapes from other growers, and sometimes they simply make block bottlings from their own vineyard or from separate vineyards in their own portfolio. (Sometimes it’s hard to say what the difference is between blocks from the same estate, and separate vineyards. Witness Diamond Creek.)

As I said, I’m not sure that the best, most wholesome and complete, not to mention satisfying, wines come from individual vineyards. But wine isn’t just about hedonism, it’s about intellectual fun. For me, as a wine lover and critic, I love these single vineyard or block designation wines because they’re so interesting in themselves, even if they’re sometimes a little lacking something essential. Just like some people.


Think Big, Act Small

3 comments

It’s interesting, in the light of this new report on the status of direct-to-consumer wine shipments in the U.S., to project the trend into the future and imagine what the American distribution system might look like in 15 or 20 years.

The report’s most startling discovery is that DTC’s dollar value last year “was greater than the total value of U.S. wine exports.” Almost as noteworthy is the fact that “The direct shipping channel continues to grow at a faster rate than the overall wine market.” DTC is said to be more important to “small and medium sized wineries” than it is to large wine companies that dominate supermarket and big box sales, presumably because the Big Boys have a lock on a distribution system that’s been consolidating in their favor for decades.

Which brings me to the crystal ball part of this tale.

Let’s imagine that it’s 2030 and, all other things being equal (the U.S. still exists, there’s no internal civil unrest to discombobulate markets), consumers are still healthy and buying wine. At the present rate of expansion of DTC, one can easily see the day coming when small and mid-sized wineries sell pretty much everything they produce direct, either through tasting rooms or through some sort of postage.

The result would be a schizoid market: Giant companies (Constellation, The Wine Group, Diageo, etc.), with their scores of individual brands, still dominate the supermarket aisles where most Americans continue to shop. At the same time, more and more consumers are getting their wine direct from the winery.

The situation is roughly analogous to what happened to traditional bookstores with respect to Amazon.com and other online sources of books. The trad bookstores found themselves confronted with a huge challenge: how to stay relevant. It was much easier for busy shoppers to buy something online and wait a few days to get their hands on it, than it was for them to actually get into their cars and drive to a mall or downtown, find parking, wait in line at the register, etc.

As similar-sounding as the situations are, though, there are important differences. Consumers don’t have to go to bookstores, but they do still have to go to the supermarket to buy their groceries, so as long as they’re there, it’s no hassle at all to swing by the wine aisle. This is good news for the big wine companies, who should continue to enjoy robust sales for decades to come.

Still, there are lessons for everyone. The big wine companies are going to have to “act small.” This means creating new brands that seem eco-friendly and appeal to individual niches in the market: young people, urbans, ethnic and racial groupings, housewives, singles, older retirees, liberals, conservatives, hipsters, etc. Although these brands may be mass-produced in the tens, if not hundreds, of thousands of cases, the consumers don’t know that. All they can see is a bottle they can relate to, and that seems to relate to them. To a great extent, the big wine companies are already doing this. They’re going to have to keep doing it, and do it better, if they want long-term dominance.

The small and medium-sized wineries have this lesson: They have to “think big.” They have to put on their businessman’s hat and come up with real marketing plans. After all, direct-to-consumer doesn’t happen all by itself, like Athena springing fully-born from Zeus’s brow. DTC has to be planned, created, executed and followed through; and once you have a loyal customer base, you have to keep it and make sure the competition doesn’t poach it away.

This is where communicating with the customer comes in. If a small winery has a tasting room on, say, Highway 49, in Gold Country, and is selling 90% of their wines “through the screen door,” they’re very lucky. But most wineries aren’t in that position. They may sell 30% in the tasting room, but the rest has to be cultivated, through clubs and the like. This is where social media comes in. Consumers like to feel connected to the producers of goods and services they buy, especially when the product is something as mental as wine. (“Mental”? Yes. There’s nothing emotional about buying a screwdriver. But there is something emotional about buying clothes, a car, wine. Think about it.) I’ve long said that wineries can’t put all their eggs in the social media basket, but they should put at least one or two and, depending how it goes, maybe even three or four.


« Previous Entries Next Entries »

Recent Comments

Recent Posts

Categories

Archives