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O.K. , you have your social media data. Now, what good is it?

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I asked it six years ago, five years ago, four, three and two years ago, and I’m asking it now. And it’s not just me: That bastion of U.S. capitalism itself, the Wall Street Journal, is asking the same question. Under a five-column headline in last Monday’s Marketplace section, they wondered “What is all that data worth?” (The online version of the article has a slightly different headline.)

The “data” they’re referring to comes from “companies [that] traffic in information and use big-data analytic tools to find ways to generate revenue.” If that sounds familiar, it’s because it’s been the underlying theme of every conversation about the revenue-generating possibilities of using social media.

We know beyond a doubt that the metrics of social media use are huge. Everybody is Facebooking, tweeting, Instagramming, pinning and so on. They’re liking and following and retweeting each other like crazy. For this reason, wine companies feel, with “the fierce urgency of now,” that they have to get onboard, before the train leaves the station. And indeed, as I’ve argued for many years, wineries should board that train. As I’ve suggested to anyone who’s ever asked (and quite a few who haven’t), winery personnel should engage in social media to the extent they feel capable of doing it.

But what I’ve wondered since Day One is what all these metrics, which are easy enough to obtain, mean. Reach, followers, friends, engagement, acquisitions, referrals, hits, unique visitors, bounce rates, click-through rates, conversions and all other ways to track activity—companies, including wineries, are pursuing them with a vengeance. Yet “The problem is that no one really knows what all that information is worth,” says the Wall Street Journal article.

Such data is called an “intangible asset” because, unlike real estate, durable equipment and money in the bank, it has no objective value. This is not to suggest that data is valueless. As the article explains, data has value because “it allows [companies] to tailor their products and marketing to consumer preferences.” For wineries, though, what does this mean? It’s not at all clear that counting your Twitter followers, or measuring your online engagement rate, suggests anything at all in terms of strategy. “The squishy world of intangibles,” writes the Wall Street Journal, means that “Data is worthless if you don’t know how to use it to make money.”

That statement is patently true on its face. But there’s a more fundamental question: What if social media data, in and of itself, is incapable of being used to make money? Even if real-time data gives you some true insight into your (potential) customer’s online behavior, “Information on individual users loses value over time as they move or their tastes change,” making data “a perishable commodity.” Data looks real and solid enough: after all, what can seem more representative of reality than numbers on a page or screen?

But as we all know, statistics can be slippery or, to use the Journal’s word, “squishy.” I used to get in trouble with some of social media’s adherents by asking them how they “knew” that engaging in social media made money. The answer always was a form of “We can’t prove it, but we somehow believe it.” Occasionally, someone would cite a winery that was doing social media bigtime and whose sales were rising. But even if the connection between doing social media and selling cases could be established directly (which it couldn’t), I always wondered if the winery’s success had legs—if it could be replicated over time, because, after all, any winery can have a good quarter, but wind up on the butcher’s block.

Lest any of this be interpreted to suggest that I don’t think social media has value, or that every winery shouldn’t be exploring it, let me go on the record: If you’re a wine company, you should be doing social media. Period. End of story. What I am saying—or, really, asking—is the same question I’ve posed since 2008: What is all that data worth? If you don’t like the question don’t blame me, blame the Wall Street Journal’s headline writers for coming up with it in the business paper of record.


Matt Kramer got it right about bullies who put wine down

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This think piece by Matt Kramer is a little opaque.(I hope you can open the Wine Spectator link.)  I had to read it twice to understand it—and I’m not sure I do even now—but it seems to be a rebuttal to the notion, widespread in America and somewhat anti-intellectual, that expertise is a form of pretentious bull. With specific regard to wine, Matt asserts that “what we [tasters] taste is real,” his J’accuse! to the doubters who, reading things about Rudi Kuriawan, or how even “experts” can be fooled, think that wine expertise is just so much hooey.

If that was Matt’s point, he’s got it right: great numbers of Americans don’t take wine seriously, even if they drink it, and some of them think that those of us who do take wine seriously are somehow illegitimate—less than true, red-blooded Americans. How and why this notion go so widespread is not hard to understand. It’s not that people think any form of expertise is bunk. Baseball fans respect the serious fact-collector who can cite ERAs going back fifty years. Nobody disrespects an epidemiologist who can cite instances of out-of-control diseases going back to the plague. We listen to movie reviewers thoroughly familiar with the genre.

But when it comes to expertise in wine, people tend to raise their eyebrows. I’ve encountered such skeptical behavior my whole career. It’s like when I meet someone and I tell then what I do for a living, their reaction is a mixture of disbelief, amusement and pity. “Really?” They seem to say. “You get paid for that?” If I was getting paid to be a CIA analyst tracking the worldwide movement of terrorists (another form of expertise) I’d get some respect. Even a restaurant reviewer would be seen in some sort of positive light. For that matter, if I was a whiskey expert, I think people would be respectful.

But wine? Something about it still weirds people out. This is related to what Matt calls “a bullying anti-intellectualism with a long history in America.” It’s the same kind of anti-intellectualsm that still manifests itself as a suspicion of science in this country. When I was a little boy, people called Adlai Stevenson, who ran for President twice as a Democrat (and lost to Eisenhower) “an egghead,” a disparaging word for someone who was educated and tended to think in complex, analytical ways, rather than with emotional gut reactions.

Why should wine, of all foods and beverages, be consigned to the egghead bin of history? It’s not really clear to me, except that, as an historian of wine, I understand its centrality to Western civilization and culture. Our greatest minds didn’t necessarily drink wine (and with most of them, we don’t know if they did or didn’t, for history didn’t record it. Did Aristotle drink wine? Did Thomas Aquinas? Did Shakespeare, Pascal, Gutenburg?) But there is something about wine that is unlike beer or spirits. I can’t pinpoint it, except to say it is a thinking person’s alcoholic beverage. It’s a drink that smart men and women enjoy. I’m not dissing beer and spirits drinkers;; I happen to like both myself. I’m suggesting that wine somehow appeals to a very high level of consciousness in our brains. It awakens something cerebral and thoughtful, but not everybody enjoys being thoughtful. For some people, thoughtfulness is a distraction, or worse, an indulgence in something they don’t even believe in. These are the sorts of people Matt writes about: “skeptics of sensory value, who fancy themselves penetrating thinkers,” when they’re really not.

The history of Prohibitionism in this country is rife with such figures. Whenever they rise up and have power, our country takes a step backwards in its inevitable progress toward the future. So next time you’re enjoying a nice glass of wine, smile at yourself inwardly, and know that you’re helping our country become a better place, for in a very real sense—in carrying the wine flag high—you are.


Monday Mayhem: Drinking too much, and memories of a P.R. guy

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It’s important for us to have a conversation about drinking too much—about alcoholism—for two reasons. One is because there’s always been, and still is, a neo-prohibitionist mindset in this country that frowns on any use of alcoholic beverages at all; and so, as if in advance of an impending flood, we have to pile the sandbags around the door and be ready for anything. The second is because we Americans are rightfully concerned about our health, and while the debate rages on concerning whether a glass or two or three of wine a day is good for you or not, even people who drink moderately have to wonder, in the back of their minds, if somehow or other they’re actually bringing on diabetes, or cancer, or stroke, or heart disease, or something else we don’t want. The situation isn’t clarified—in fact is exacerbated—by conflicting studies that come out seemingly weekly, contradicting each other and leaving us more bewildered than ever.

No wonder more and more people are taking “Are you an alcoholic?” tests. The key phrase in this latest “self-questionnaire”, from England, is, “If you find that you ‘need’ to share a bottle of wine with your partner most nights of the week, or always go for a few pints after work, just to unwind, you’re likely to be drinking at a level that could affect your long-term health. You could also be becoming dependent on alcohol.” By this metric, I suppose you could say I’m “dependent on alcohol.” But what does “dependent” mean? I’m also “dependent” on breathing and eating. I’m dependent on Gus to bring joy into my life. I’m dependent on warmth in winter and dryness in the rain, on a certain amount of social intercourse, on being creative. I’m certainly dependent on going to the gym. Heck, I’m dependent on PG&E for almost everything! So this notion of “dependency” is a “slippery” one, as even the English questionnaire concedes.

I don’t doubt that some people have a drinking problem. But what gets me is this incessant stream of “self-questionnaires” published in magazines, newspapers and online, in which we’re asked to constantly question ourselves about our habits. The suggestion is that everything we do is potentially some kind of problem. Armchair psychologists make a living at this sort of thing, and they find publishers who are happy to give them exposure.

Another one bites the dust

Many of you knew Harvey Posert, who died last week at the age of 84. I met Harvey many years ago, when he was running Robert Mondavi’s P.R. shop. Then he went over to Fred Franzia’s outfit, Bronco. We had fewer contacts after that, but one was memorable. I’d long wanted an interview with Fred, who was notoriously shy of publicity. I called Harvey for years, but the answer was always “No.” One day, I was in San Francisco, and picked up the free weekly paper. Guess who was on the front page? Freddie, and they had a very long, interesting interview with him. In the free paper? So I called Harvey back and asked, what’s up? How come a throwaway free paper that has nothing to do with wine scores an interview and I don’t? Harvey arranged for a get-together with Fred, at his gigantic bottling facility in Napa. Well, to make a long story short, it didn’t work out. I never got that interview and I never saw Fred again (although I did get to spend a fascinating day with his son, Joey, a few years later), but I did hear from Harvey. He was apologetic, but after all, it wasn’t his fault: Fred Franzia can be a very stubborn individual. Anyhow, Harvey put in his time, the good, the bad and the ugly. He did a fine job the old-fashioned way, pre-Internet, pre-social media, in an era of press kits and controlling the message, and he always sat in on interviews with whoever was his boss (which I always hated). Harvey was one of the last of his breed. To paraphrase an old saying, winery P.R. people never die, they just go to some heavenly lounge and hang out. There are worse ways to spend eternity. R.I.P. Harvey!


Some execs are “worried,” but really, there’s nothing to worry about wine’s future

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Nobody asked, but here’s my two cents on “top Golden State vintners [express] concern about the future of the $23.1 billion industry, especially among the discerning millennial market.”

That’s from Tuesday’s Santa Rosa Press Democrat, which reported on “a UC Davis survey of 26 senior executives” in the state, and found that “Everyone was a little bit worried.” Those execs included Joseph Gallo, from you know who, Jay Wright (Constellation) and my own boss, several levels up, Rick Tigner.

Seems the chief worry is “the intrusion into the wine category of spirits and craft beers,” according to the guy who conducted the survey, the well-known emeritus of Davis’s Graduate School of Management, Robert Smiley (who I had the pleasure of interviewing numerous times during my magazine days).

What do the execs base their impressions on? One of them said more “people are starting out with craft beers and then as dinner goes they switch over to wine.” I suppose this does “rob” the industry of that extra glass of sold wine. I like to start the evening out with a cold IPA, especially when the weather is warm, but that doesn’t stop me from consuming my share of wine. Still, I can see that if the theoretical consumer used to drink three glasses of wine at night, and is now drinking just two, with a bottle of beer making up the difference, that represents a 33% decrease in consumption.

Another exec wrote that he and his wife “have been having more cocktails than we’ve ever had in the past…”. That too, the exec speculated, “is maybe taking a little bit of the wine-by-the-glass business away.”

Then there’s the liquor store owner who said,“Ten years ago we were about 70 percent wine. Now we are down in the 60s.” Even with increased wine sales in the U.S., the execs are troubled by this nibbling away at the margins.

I have several reactions. One is that, after following this industry for more than 30 years, I’ve seen multiple times when winery execs were afraid that the sky was falling. It never did. Here in California, we’re coming off several boom production years (despite the drought) and quality has never been higher. Profits seem to be up everywhere at well-run companies, the mood is optimistic among employees, and with all the bashing California wine gets from certain quarters, it remains the best seller in America. Prices continue to rise, and where wineries are holding the line, they’re feeling pressure to increase—if only slightly—the cost of cases. That wouldn’t be happening if wineries felt truly threatened.

It is true that beer and spirits consumption is on the rise, but my feeling is that we’re becoming more of an alcohol-drinking country, so a rising tide lifts all boats. It’s also true, as I’ve insisted for years, that wine is fundamentally different from beer and spirits. Wine signifies aspiration. Beer never did; it signified only getting drunk. Neither did spirits signify anything, except a quick buzz at the end of the work day. Now, that is changing, because the craft beer and spirits producers have stolen from wine the concepts of lifestyle and aspiration that have always fueled wine. It is now possible to drink (as I do) great craft beer and spirits and appreciate them, not only for alcoholic punch, but for complexity, deliciousness and even (dare I say it?) intellectual interest. But I still believe aspiration goes along more with wine than any other drink. And America is an aspirational country.

What then for the wine industry? It can’t become complacent. It has to continue to appeal to its existing consumers, and not alienate them, as it learns how to reach out to younger Millennials. The messages and the products therefore must be extremely well-thought out and crafted with precision. But successful wine companies know how to do that. Believe me, they’re working overtime figuring this stuff out. If I were a betting man, which I’m not, I’d put my chips on the wine industry. Spirits seem to come and go in America; their fundamental problem is that they’re simply too strong for millions of people to drink on a regular basis, throughout the meal, for the rest of their lives. Beer always stays popular, but it’s craft beer that’s got all the excitement now, and craft breweries are small; they do not, I think, represent a threat to the wine industry in the long run, although some stores are giving them increased shelf space.

Wine, by contrast, has staying power. There’s a reason it’s been top beverage in the western world all these centuries, and is now becoming top beverage in the developing world, too. Human nature doesn’t change; wine is more consonant with human nature’s aspirational elements than either beer or spirits. It’s the Goldilocks of alcoholic beverages: not too strong, not too weak, just right. Am I an admitted booster? You bet. But that doesn’t make me wrong.


Lessons Mayacamas and Inglenook (may) teach us

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I must admit that I find the ongoing industry-wide conversation about ripeness levels to be the most confounding I’ve been involved in, lo these many years.

Where did it start, anyway? I suppose it’s been going on for decades, in one form or another. Even before the launch of In Pursuit of Balance, which seems concerned mainly with Pinot Noir, there were hints of this brouhaha all the way back in the Seventies, with Cabernet and Chardonnay. It’s actually a question of style, not just alcohol level: and questions of style are never fully arbitrated.

A recent interesting example is in David Darlington’s (well written) story of the reinventions of both Inglenook and Mayacamas, in the June issue of Wine & Spirits. (“Napa’s New Old School”) The story teaser suggests that David “digs deep into the question,” hinting at some resolution for those of us who are scratching our heads at what’s going on. But there is no resolution to be had, only more wonderment, which is not David’s fault at all. The problem is the setting up of artificial sets of parameters, with an expectation that one set is correct and the other wrong, and the corresponding assumption that simple changes and fixes will solve the “problem” of overripeness.

Were it only that simple.

It is naive to the point of foolishness to think it’s all a matter of picking the grapes “less ripe or more ripe.” In interviews, both Francis Coppola and Charles Banks confess as much, although not in so many words. As any writer would, David tries his hardest to get them to come out and say something definitive, like Charles saying, “Bob Travers picked the grapes when they were still green. We’re going to let them get riper.” Or Francis saying, “Scott McLeod picked the grapes too ripe, so we’re going to pick them leaner.” No such luck.

That’s because neither Charles Banks nor Francis Coppola knows what to tell their new winemakers to do—and their new winemakers (Andy Erickson and Phllippe Bascaules, respectively) also don’t really know what to do. How could they? It takes an estate decades if not centuries to find its way. Although Mayacamas dates to the 1940s (or the 1960s depending on which ownership you choose to start the count at), the assumption in the critical industry is that Mayacamas lost its way under Bob Travers, a good man who just didn’t have enough money to turn things around, and so lost traction. The other assumption, concerning Inglenook, which dates to the 1800s, is conceded by Francis Coppola: that although he was making 90 point-plus wines, Rubicon never achieved the status of First Growth of Napa, according to the critics. So while Francis says he disdains point scores, his shakeup at Rubicon/Inglenook suggests that he really doesn’t.

Myself? I had more respect than love for Mayacamas; in this business, you have to take your hat off to a winery that’s been around for so long—and has done things so consistently honestly. I did like Rubicon, quite a bit—enough to buy a case of the 2002, which I rated 98 points. But other critics didn’t seem to care for it as much as I did, so Francis turned to Philippe, whom he got from Margaux, in hopes of a shakeup. (At least, by his own recounting, he didn’t hire Michel Rolland.)

Philippe confesses he had “no data” when he arrived at Inglenook (he now has three vintages under his belt), and is trying to steer a middle course between overripeness (he says he finds too many Napa Cabs “taste like Port”—an IPOB-style criticism). His goal is “to reduce alcohol levels,” but he is frank enough to state he doesn’t really know how to go about it; and it sounds like he certainly doesn’t want to do it with technology. You can’t just pick at 23 degrees Brix, the way Inglenook did in the old days, because everything—rootstocks, density, trellising, perhaps even the climate—is different. “I don’t want to do exactly what Inglenook did in the 40s and 50s,” Philippe says. Precisely: he couldn’t, even if he wanted. This is why Coppola, his employer, peers far into the future and concludes, “I don’t necessarily expect to give full blossom to Inglenook in my lifetime.” The critics will just have to wait.

As for Mayacamas, Charles Banks echoes Coppola. “We’re not doing this for short-term gain.” What is this “this” to which he refers? Will the team pick the grapes riper than Bob Travers did? If lean, underripe wines used to be the problem, the solution should be obvious. But Banks hedges his answer. “I am [as] opposed to pruney, stemmy wines as others are to herbaceousness. At the same time, I don’t want green, harsh, underripe tannins.” Well, who would? The Mayacamas team may be crossing their fingers in hopes that other modernizations—replanting with closer spacing, newer clones, tinkering with trellising regimes, extensive winery investment—will help them avoid having their hands forced regarding picking decisions. But the answer, as at Inglenook, will not be known for a long time.

The good thing about these conversations about ripeness levels is that we’re having them. The bad news is that we’re having them—at least, with such passionate irresolution. The game is largely driven by critics, whom proprietors and winemakers privately say they loathe; yet nobody dares to ignore them. The result is a kind of navel-gazing, similar to the wine blogging world, where content-poor wine bloggers blog about—wine blogging.

Everybody (well, almost everybody) complains about California wine tasting “like port,” but nobody wants to make a Cabernet that tastes like a boiled bell pepper. Nor do people necessarily want to hold onto their wine for twenty years. Everybody talks about finding the sweet spot, but nobody seems to know exactly where it is, or even how to recognize it if they were knee-deep into it. (And variable vintages don’t help them find it.) The discussion has turned into an echo chamber, where everybody has taken a side, and listens only to people who speak their language—like cable T.V. news shows, there’s a lot of cacophony and very little harmony.

There’s no way to turn the conversation off. Now that it’s started, we’ll have to let it run its course, like a storm, and hope it doesn’t do too much damage.


Wednesday wraparound: Fred Franzia, more post-WBC14 opinionating, and “the tipping point”

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Not sayin’ that Fred Franzia is on the same enlightened level as the Dalai Lama, but it seems to me that HuffPo’s Chris Knox came down on him a little strong—even for a medium (the blog) that’s known for snark.

“Trash-mouthed, unapologetic [and] downright crude”? Well, I don’t think Fred ever graduated from charm school, but he’s not as bad as all that. I’ve known him—not well, but some—over the years, and I’ve managed to find affection for him, even though he’s done one or two crummy things to me. But I’ve done crummy things to people, too, so as usual, the Golden Rule applies. Fred, like it or not, is a product of his time and place—besides, someone once said that people who swear a lot are more honest, and there’s a lot of truth to that.

More important is Chris Knox’s j’accuse! against Two Buck Chuck. Now, I can’t say I have any idea if the wines contain (as Chris alleges), “animal blood and parts” (I should think the FDA, or whoever the relevant government agency is, would be up on that). But I can say that I respect Fred, and Bronco, his company, for making wine that anybody can afford to drink—and varietal wines, at that. I think we all agree that the most important thing for the wine industry is to get more people drinking. Two Buck Chuck does that; Petrus doesn’t. So kudos to Fred, from my point of view.

* * *

Kudos, too, to Joe Roberts AKA 1WineDude, for telling it like it is yesterday on his blog. I was kind of at Ground Zero of all the post-WBC14 grousing and blather, and I really wasn’t in the mood to put my [strong] thoughts into words, so I refrained, except in a few private exchanges. But Joe, bless his heart, who perhaps has garnered some credibility in the world of Millennial bloggers, let ‘er rip. The comments on his blog—104 and counting, as I write this—make for fascinating reading on their own. My fave: did the panelists (those accomplished online/print writers that happened to be middle-aged white dudes) miss an opportunity, or, did we bloggers miss the opportunity?” Joe deserves credit for his courageous, truthful expression of the facts.

* * *

Some of us were talking the other day about how a new winery/brand reaches “the tipping point,” in terms of popularity and success. One suggestion was that, to a certain extent, this can be stage-managed, through smart, creative marketing, promotional and sales efforts—although admittedly, that can be expensive. Another point of view is that tipping points occur serendipitously. You can’t make them happen, no matter how much money you spend (as any number of billionaires who have run for California governor over the years, and embarrassingly lost, well know). All that the expenditure of money (on media events, etc.) can do is increase the winery’s chances of being noticed by “the right people.” That is indeed important—but beyond that, there’s still the element of magic. Moreover, a winery can “hit it” for a brief period of time—Warhol’s 15 minutes of fame—but staying relevant is a lot harder. If there was a formula, or template, for reaching “the tipping point,” everyone would know it. But there isn’t.

* * *

Finally, a link to another blog, today’s edition of “Juicy Tales by Jo Diaz,” in which she expresses points of view I pretty much agree with. And with that, I’ll wish you all a good day!


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