I’ve been watching developments for the last few months concerning these new .wine and .vin Internet domain names. Not closely, just sort of casually. I knew there was some controversy about them, but I wanted to keep an open mind, and besides, who has the time nowadays to research every complicated issue of social, economic or technological policy?
So it was that yesterday’s big article (by my old friend Chris Rauber) in the San Francisco Business Times really grabbed my attention.
“Noted wine regions, including Napa and Sonoma, protest new .wine Internet domain names,” the headline screamed. In addition to the Napa Valley Vintners and Sonoma County Vintners, those opposed to the proposed domain names include the Paso Robles Wine Country Alliance, the Santa Barbara County Vintners’ Association and—in other states—the Willamette Valley Wineries Association, the Walla Walla Wine Alliance, and even the Long Island Wine Council.
Pretty impressive lineup. These are power players. I know the California regional associations quite well from my many years of rubbing elbows with them; with the power of their member wineries behind them, they possess clout. And they’ve been joined in their opposition by some powerful Congressional representatives: Mike Thompson (one of the senior Democrats in the House) and Anna Eshoo.
I can’t remember a time when so many regional associations joined forces publicly in opposition (or in support of, for that matter) a pending issue. So I figured I ought to look a little more deeply into what’s going on.
At first blush it makes sense to carve out .wine and/or .vin domain names. We all know the Internet is running out of domains and has been for years.
This is why ICANN, the corporation in charge of domain names, added additional ones to the more familiar .com, .org, .gov, .edu and .net—because “the internet—or .com at least—is running out of space. So many names on .com are taken that people and businesses have to struggle to find a suitable one.”
Enter .wine and .vin.
Two years ago, ICANN, in response to the problem, announced it would accept applications for additional domain names. It got nearly 2,000, many of them contested. ICANN decided to auction off the non-trademarked domain names to the highest bidders; the first auction was a year ago, and brought in over $9 million, through the sale of such domains as .club, .college and .luxury.
So what’s the problem with .wine and/or .vin? After all, even the U.S. government approves of the auction plan, which, after all, is an expression of classic free market principles. Last March, an agency of the Commerce Department declared that “ICANN is uniquely positioned…to develop the transition plan” toward a new set of domain names. Although the department urged ICANN “to convene global stakeholders to develop a proposal” for the transition—an encouragement to compromise and conciliation—the wine associations aren’t buying it.
Rauber writes: They “contend that ICANN’s plan includes ‘non-existent to grossly insufficient safeguards from illegitimate companies’ hijacking their names, histories and legacies. They claim ‘unscrupulous’ bidders could grab web names such as napavalley.wine or wallawalla.wine and in effect hold them hostage.” A spokesman for the Napa Valley Vintners told Rauber, “[H]is organization fears the proposal would ‘provide a new playground for nefarious actors to poach the place names of famous wine regions around the world.’”
These are serious and legitimate concerns. Nobody wants to see a situation wherein some for-profit wine company buys the rights to, say, “napacabernet.wine”, thus misrepresenting itself and its association with venerable Napa Valley. Napa “has had our name ripped off” before, the Napa Vintners spokesman said (most of us remember when and by whom that was!) and isn’t about to let it happen again.
You’d think that ICANN and other legal entities could address the concerns of those opposed by building in rights and protections for stakeholders, and that’s exactly what ICANN has proposed to do. They’ve created a “Legal Rights Objections (LRO)” mechanism by which disputes can be resolved when someone objects to “a third party’s application for a new TLD [top-level domain].” Negotiation is more or less normal operating procedure in our era of contention and litigiousness, but the wine region associations remain unconvinced, and certainly they have a point when they fear they’ll be forced to spend a whole lot of money, either on lawyers or on buying back the rights to names they want.
This is a sticky one, and I have to admit I’m not sure which side I come down on. What do you think? Should .wine and .vin be up for sale to the highest bidder?
We’ve seen it plenty of times before: “the next big wine variety” is just around the corner. But it usually turned out there wasn’t anything around the corner, except another corner.
Remember Sangiovese? In the late 1980s-early 1990s everybody swore it was the next big red wine. Cabernet Sauvignon, they said, was all well and good, but… And then there was poor Merlot, which had gone through its own “next big thing” earlier, but the pundits eventually decreed that it wasn’t good after all to achieve “next big status.” Thus, Sangiovese.
Why do we need “a next big thing” anyhow? We don’t, in reality, but “reality” needs to take account of the people in the wine industry who profit from a “next big thing” mentality. Those would be the so-called tastemakers: sommeliers and MWs, of course, who play an increasingly big role in the culture; wine writers (some of them), who have the journalist’s addiction to breaking “news”; and merchants, to some extent, who hope to capitalize on a “next big thing” by stocking their shelves with it before their competitors can.
Every few months, somebody discovers a “next big thing” and now, it’s the turn of the drinks business, a very good online journal that makes for must-reading every day. Their writers now tell us that “A native Armenian red and a white variety from the Peloponnese could be ‘the next big things in wine…’.”
Why would the authors have chosen two obscure varieties for stardom? Well, the white grape—Rabigato—because it’s “a high-quality and high-acid, age-worthy grape,” and the red– Alfrocheiro Preto—“for its ability to retain acidity, even in hotter climates.”
Understand, I haven’t had either of those wines. They do sound good and savory and, given the authors’ use of the word “lighter” to describe them, it sounds like they’re fairly moderate in alcohol. But “global potential,” as one of the writers asserts?
Several problems, at least in the U.S. (keep in mind that the drinks business is a British publication). For one, there is no Rabigato or Alfrocheiro Preto planted here (if there is, there can’t be more than a few acres). That means if either wine hits the jackpot, it’s going to have to be through an import. And imports have a hard time cracking the glass ceiling in this country. A few have made it (I’m thinking of Terlato’s Santa Margharita Pinot Grigio), but those usually benefited from big companies with large distribution networks. As far as I know, no large wine company is going to gamble on Rabigato or Alfrocheiro Preto. Why not? Because wine companies exist to make money, not lose it. They prefer to leave the risk-taking to smaller companies, and then, if things look good, they rush in and join the party.
So will small wineries do Rabigato or Alfrocheiro Preto? I doubt it. They have enough on their hands without having the headache of convincing people to buy and drink something they’ve never heard of and can’t even pronounce.
The truth is, America is a conservative country when it comes to wine preferences. People stick with what they know; their capacity to change is limited. Gatekeepers are more adventurous by nature, but there’s a limit to how much influence they actually possess among the public. Wine gatekeepers are like inside-the-beltway Washington pols: they live in a bubble that most people don’t really care about.
They call it “the gig economy,” a “growing tribe of independent contractors and freelancers who are hoping to transform hardship into opportunity on the sidelines of the nation’s traditional 9-to-5 economy,” in the words of a recent New York Times story.
The article reported on people in their 20s and 30s who, unable to land “real” jobs in this post-Recession economy, opt for the freelance life. Not only writers, but lawyers, website developers and many others, they exist from gig to gig, working out of their homes, or from wi-fi enabled coffeeshops, enjoying the freedom their unemployed lives give them–but worried also about paying the bills, much less saving anything for their retirement.
From the perspective of journalism, including wine writing, the gig economy should worry consumers who want solid, honest reporting. You can argue that a reporter who doesn’t actually work for anyone is all the more independent, because she doesn’t have to be concerned with how her publisher, editors, company CEO or advertisers feel. Instead, she can fearlessly investigate and report the news, and offer opinions (e.g. wine reviews) that are fiercely objective.
True. But there’s a risk in going the independent path. Several risks, actually. They include:
1. Not having the solid bench of staff a reporter needs to do the job properly. An old-fashioned newspaper had copy editors, fact checkers, librarians, ombudsmen and others who, working alongside the reporter, can ensure the greatest depth and credibility to her stories.
2. Working a consistent beat. Print reporters generally specialized: you had the police guy, the City Council guy, the science writer, the sports guy, the style writer, and so on. Specializing meant that the writer could get really knowledgeable about his field, getting to know the major personalities and thus offering a value-added perspective. In the new gig economy, it’s hard to get a job that’s consistent, and so the writer is forced to write about whatever he can get paid for at that moment (or whatever wine is coming in, willy nilly). It’s a scattershot way of reporting.
I don’t mean to suggest that wine writers in the gig economy can’t be good. They can. But it’s going to be increasingly hard for them to make a living, because wages in the gig economy just aren’t very high. That’s the whole point of a gig economy: it provides cheap labor to employers, who not only don’t have to pay well, but also don’t have to shell out benefits. And as low as the pay is, it can be even lower when the number of job applicants exceeds the number of job opportunities–as it the case with wine writing today.
What is all means for the future of wine writing is obscure. But it is very hard to escape the suspicion, or dread, that wine writing’s glory days are coming to an end. Not tomorrow. Not in five years. But in twenty? Unless there’s some kind of major shift in the paradigm–and I don’t know anyone who thinks well-paid wine writers are coming back.
We often speak of a “wine culture” or “the wine consumer” but of course these phrases are wildly inaccurate. They imply that all American wine drinkers are part of one big, happy, thirsty family, when in fact just the opposite is true. There are at least two wine communities–and they couldn’t be more different from each other.
On the one hand, we have the Occupy movement’s version of the one percent: Extremely wealthy people who keep the Colgins, Harlans and Screaming Eagles in business. This community largely lives among, and associates with, its own kind. The own their own homes, usually large, well-appointed ones, golf at country clubs, spend their vacations on tropical isles and live lives of opulence. Price means little or nothing to them: if they want something badly enough, they go out and get it.
On the other hand, we have the 99% of consumers who have to think of their budget every time they buy something. To them, there’s a big difference between a $15 bottle of wine and a $12 one. That differential would be meaningless to the 1%, assuming, of course, that the 1% would even deign to buy a $15 bottle of wine. But to the 99% consumer, saving $3 on a bottle of wine mounts up; if she buys 100 bottles of wine a year–not an unreasonable quantity–that’s $300 she saves, or doesn’t. These are the sort of financial calculations that drive the 99%, and they’ve become more profound since the onset of the Great Recession, in 2008.
As a wine writer/critic/journalist, I have to take cognizance of these two communities. I need to understand both of them, which involves different sorts of analysis and empathy. In this, I feel that I, and Wine Enthusiast, have taken an independent approach, one that not all wine publications have chosen.
For example, some critics cater to the 1%; I’d put, say, Antonio Galloni and James Suckling in that category. Nothing wrong with that. It’s perfectly honorable. But it’s important for readers to understand that their approach is necessarily geared toward the desires and motives of the 1%. By that I mean that they are dealing almost exclusively with luxury products, and they bring a certain attitudinal exclusivity to their reviews that by and large discounts any appreciation of everyday wines. By way of an extended metaphor, it’s analogous to those art critics whose esthetic is concerned only with “museum-quality” art. To them, street art–graffiti–isn’t true art, it’s vandalism. This is not a viewpoint that is shared, however, by street artists themselves, who take their pursuit very seriously, and for whom its freely distributed, populist nature is precisely the point: for them, it is art of and for “the people,” not the uber-wealthy.
The appreciation exclusively of expensive wine has never been my thing. I’ve never drawn any severe distinctions between cult wines and very good ones that are “merely” affordable. For example, a $625 Yao Ming is clearly a very great Cabernet Sauvignon–but so is a $50 Sequum, and for that matter a $45 Terra Valentine might beat them both in a blind tasting on any given day. By the same token, it pleases me to no end to be able to review, say, a Benziger 2010 Cab, or a Katherine Goldschmidt 2011, both of which retail for $20, and give them high scores. What could be better than that?
Producers have to figure out which end of the great divide they wish to appeal to. Some larger wine companies, like Kendall-Jackson and to some extent Gallo, can span the gamut, with something for everyone. But for the most part, wineries can’t do that. The ones who cater exclusively to the 1% or the 99% seem to be doing well; they’ve defined their markets. But some other wineries fall into the squishy center. They’re not expensive enough for the 1%, and they’re too expensive for the 99%. This is where sales tactics and strategies enter the picture, but that’s another story.
By the way, before you start telling me that social media is the key to these tactics I’m referring to, read this blog post from Tablas Creek, which appeared yesterday. In it, Jason Haas discusses the new Facebook policy “would be reducing the organic reach of pages and requiring those pages that wanted to reach a significant percentage of their fans to advertise to do so.” By way of illustration, he writes, “an average [winery] post to a page with 5000 fans will be seen in the news feeds of just 600-700 of those fans,” unless the winery pays for a more extensive reach.
I did not know that, but this trend doesn’t bode well for the continued [free] use of social media. It seem to me that the ability of wineries to use social media will increasingly by threatened, or neutered, as these social media companies increasingly force everybody to pay up; and the less you pay, the less of a reach you’ll have. In other words, the social media companies–having gotten us hooked on the use of their products–will now jack up the price, which, in accordance with the free market theory of capitalism, will send users away, in search of cheaper competitors. Am I reading this wrong? I’m sure my social media-savvy friends will be happy to explain to me my utter misinterpretation of reality.
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.