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DTC, snobs and market segmentation: A personal view

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“Wines delivered to your door” has been the business theme of direct-to-consumer entrepreneurs since as long as I can remember.

I used to be a member of one of these subscription services, back in the early 1980s. I can’t remember the name (I’m sure someone out there will remind me), but they sold German wines that “arrived at your door” on a monthly basis. I didn’t continue, because I eventually reached the point where I preferred shopping for wine myself, in a store, especially if I could taste it or see a recommendation—and that is the point of this post.

There’s now another “delivered to your door” service, Club W, and while I wish them well, I don’t see how they overcome the challenges that led to failure of almost every one of these ventures.

They all promise the ease and convenience of having pre-selected wines that arrive at your door once a month. They all say the wines are “curated” by experts or, in this case, actually produced for Club W “by noteworthy winemakers who develop their ‘juice’ for Club W exclusively.” And they all make claims that they offer lower prices [even with shipping?] than traditional outlets.

That may well be true in Club W’s case. The claim that their “exclusive” winemakers “have great talent but may lack access to capital enough to get their wines made and into the market” certainly rings true. That is a common challenge for winemakers, especially younger ones, who may have access to interesting grapes, and are making interesting wines, but have no realistic way of getting them to far-flung customers.

What are those wines? I went to Club W’s website and tried it out. They ask you to answer a couple of (kind of silly) questions, and then, after you give them an email, Facebook or Twitter account, they “recommend” appropriate wines. For me, they suggested three brands I’ve never heard of: a Wonderful Wine Co. red blend from Paso Robles, a Black Market Cabernet-Petit Verdot blend from Livermore, and Casa de Lila Airén, a white wine from Spain. Beyond these three wines, there are others on the website I could buy. They all have attractive labels, and I wish I could go to a tasting and try them out, because at $13 a bottle, that’s pretty affordable. There’s also a “Curator’s Choice” menu for wines costing $14 and up.

Now, any and all of these might be wonderful wines. Or they might not. The problem is, even thought they’re just $13 a bottle, I don’t want to buy a pig in a poke: A wine I’m not familiar with. Under their “Tastemakers” dropdown menu they have the names and pictures of folks I guess are some of their winemakers: a fine-looking bunch of men and women, young and appealing. There’s also a cool recipes link. That’s all good.

So I have mixed feelings. A lot of thought obviously has gone into Club W. The website is really nice. But I just don’t see how they get around the fact that you can’t taste the wines before you buy, or even see what the critics have said, since they’re club exclusives and have never been professionally reviewed. (I do make an exception for winery wine clubs: people join them because they know and trust those wines, so even if they haven’t had the latest vintage, they possess plenty of prior evidence that they’re much more likely to enjoy the wine than not.)

Finally, although this isn’t Club W’s fault, I hate the way the Wall Street Journal portrayed Club W; their headline reads “Club W Raises $9.5 Million To Appeal to Wine Lovers, Not Snobs.” Can we please get over this “snobs vs. everybody else” nonsense? I mean, does Lettie Teague write for the “Snobs” in the WSJ? I have news for you: All wine writers write for the people who read them; all wineries produce wine for the people who buy them. There are indeed snobs in the world of wine, as there are in other arenas, but they are the exception to the rule, and to toss the word “snob” around so much is really misleading to young people, who may end up thinking that wine isn’t for them because they’re not snobs and don’t like being around snobs.

Instead, why can’t we talk about beginners, amateur wine lovers and experts? The experts aren’t “snobs,” they just have a lot of experience, nor are the beginners “idiots” because they have little experience. Some “beginners” will be “experts” someday; will that make them “snobs”? So really, anyone (writer, blogger, winery, ad agency) who throws around the snob word so insouciantly is just indulging in lazy language that moreover insults a significant number of wine lovers.

And then there are new wine companies targeting everybody: I got this blast email from one of them just this morming: I omit the winery’s name: “We here at ___ have created a wine that will capture thegrowing new generation of social media savvy, adventurous, health consciouswine drinkers as well as the seasoned, more experienced ones.” Talk about something for everyone! Beginners, Millennials, twitterers, greenies and granola munchers, Baby Boomers, old folks, and snobs. Sic semper, market segmentation!


A writer and his voice

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It’s been six years since I started steveheimoff.com. I had no idea what I was getting into back in those pre-Recession days. But I knew that blogging was something I wanted to do.

People sometimes ask me why I started blogging. After all, I already had a pretty good job, was rather well-known in the wine community, and I didn’t envision blogging as a career move, as apparently others did.

The truth is, I wanted to develop my writing skills further—to push into new areas of creative expression, in a way that had previously been denied me. As California editor of Wine Enthusiast, my writing style was severely restricted by the formal norms of the genre: 40 words per wine review, “Voice of God” tone, avoid the first person singular, stay away from emotional or political content, etc. etc. True, in my books for University of California Press, there was more leeway. But still, a part of me that felt essential—the first consciousness I’m aware of when I awake in the morning, the “me” that I tune into when I meditate—seemed unable to find a place in my writings. That’s what I wanted to capture in my blog.

It turned out to be not so easy. There are many pitfalls in capturing that essence. What writers call “the writers voice” isn’t immediately discernible, drowned out as it often is by other voices in one’s head. These other voices clamor for attention, can be sulky or petulant or angry, and of they are expressed, they lead no one to enlightenment, for they are false voices. Good writers struggle for years to find their authentic voice, which is why avid readers seek good writers: No one wants to hear a false voice.

It took me a few years to find my proper blogging voice. I tinkered here and there, trying on this persona, then that persona. Of course, they were all “me,” in the sense that all came from my mind. But it wasn’t until the summer of 2008 that I found it: the voice that came from my deepest, most seamless place, and one moreover that connected with readers.

Finding your voice as a writer is very similar to finding your palate as a wine professional. In both cases, you have to do the same thing over and over again (writing or tasting) before the pieces begin to fall into place. You begin to see the forest for the trees. It might be, say, Raj Parr developing an appreciation for lower alcohol wines, or Bob Parker falling in love with the big Napa style. I doubt that either of them knew, in advance, what wines they would come to appreciate, and which in turn would help to formulate their reputations in the industry. This is good, and as it should be. What we want, in our writers and in our critics, is authenticity: to find a voice that’s been around the block a few times, knows what it’s talking about, and knows how to express itself. Now, this isn’t to say that all strong and self-confident voices are equal. There is a regrettable tendency in wine blogging for shouters to drown out reasonable conversation. Like yelling “Fire!” in a crowded theatre, these voices certainly are heard—but it’s the wrong thing to do.

The nice thing about finding your voice as a wine blogger is that even when you have nothing in particular to write about, you can crank out a readable post, like this one. It’s like they say about the First Growths of Bordeaux: Even in an indifferent vintage, they make wine that’s interesting.

See you tomorrow!


Tales from Content City, or How I Learned to be a Storyteller

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I seem to have established the reputation as someone who knows a thing or two about “content marketing.” We’ll get to a definition of that in a moment, but first, two examples of how that view has attached itself to me.

In the last two days, I’ve been invited to participate in events by two organizations: The Unified Wine & Grape Symposium wants me to moderate a panel called “Content is King: How to Craft and Share Stories that Stand Out.” The other one is from The Exchange, a Nomacorc effort that holds forums on various aspects of marketing, to speak at a Yountville event called “The Art of Storytelling: How wine brands can become both top of mind and center of heart.”

Storytelling. As words go, it’s a marketing neologism (it used to be two words), but the history and myth of storytelling is as old as humankind. I think of shamans telling epic tales of olden times to small groupings of people, clustered in a cave around a fire ten thousand years ago. Aesop was a storyteller; so were Virgil and Homer. After the written tradition took hold, storytelling often found its way onto the page and, eventually, onto the big and small screens. For how else are we to describe the films of (for instance) Steven Spielberg or T.V. programs like The Sopranos except as modern versions of the ancient practice of storytelling? But whether written, projected, broadcast or told, they’re all still stories.

Why we humans should like and need to hear stories has been the stuff of scholarly analysis. Children love fairy tales, which are a part of how our species passes on precious knowledge, often of a moral nature, through the generations. Why adults love stories is harder to define. They take us away from our daily woes and cares; they entertain, enchant and occasionally inform; and humans are, after all, curious and social creatures. From our positions in life we like learning about faraway places to which we may never go, in the physical form; but a good story is transportive. Stories appeal to the imagination, without which life would be unbearable.

* * *

Individuals have always sold things, and one imagines that stories always have accompanied that old practice. Perhaps the camel dealer in ancient Carthage had a story about a particular beast of burden known to go further, faster, on less water than others, and with a sweeter nature, too; that was his sales story. In the eighteenth century sprang the seeds of modern advertising, with billboards and hawkers informing us of the virtues of individual taverns and silversmiths. The twentieth century of course witnessed advertising grow into a planetary behemoth; in 2012, global advertising spending amounted to $542 billion U.S. dollars.

Since advertising is simply storytelling, there’s little wonder that wineries want their stories told, too. The assumption is that having a good story is good for sales. Why this should be so—what the precise connection is between a winery telling its story and the consumer buying its wine—is a little obscure. As with many other areas of soft science, there are some assumptions going on, mixed with anecdotal information. For example, companies pay huge amounts of money to advertise—tell their stories—on the Super Bowl, on the assumption that it will result in increased sales. The evidence is mixed: Some studies suggest that this simply isn’t the case. Yet Cheerios, Audi, Budweiser, Coca-Cola and Microsoft are some of the most successful companies of all time, and one thing they have in common is that they advertise on the Super Bowl. So even though the final proof of the success of any particular ad can’t be determined with the rigor of a mathematical equation, enough CEOs believe strongly enough in the ROI of advertising for them to devote considerable sums of money.

I did not set out to be an expert on storytelling (if in fact that’s what I am). I set out to be a wine writer and critic. Telling stories didn’t seem to be a part of my job, but looking back, in retrospect, that’s what I was doing from Day One. It’s just that the concept and terminology of telling stories didn’t invade the wine industry until comparatively recently. Yet when I wrote about the early history of Napa Valley, or how the Russian River was born, or how Bill Harlan came about being a winery owner, or how Boz Scaggs ended up with a winery on Mount Veeder, or how Francis Ford Coppola gambled his Godfather money on Rubicon, or how the Talleys of the Arroyo Grande Valley decided that winegrapes, not row crops, were the path to the future, or how Gary Pisoni let other wineries establish the fame of his vineyard before starting his own brand, or how Ehren Jordan cleared his land in the remote wilds of Fort Ross with his own hands—what are these besides stories, tales, adventures, myths, movies in the mind?

Which brings us to “content marketing.” I don’t know when this rather inelegant term arose. Probably fairly recently, I would think. It sounds modernish and scientifikky, but it really isn’t. It’s just one of those neologisms, like B2B and social media, that describes phenomena whose antecedents have long existed. And of course, like all other forms of marketing, there now exist scores of content-marketing consulting businesses making claims like “marketing is impossible without great content” and “content marketing is educating people so that they know, like, and trust you enough to do business with you.”

Well, this latter formulation is pretty spot-on. Wine companies want people to like and trust them, just as the producers of other commodities do. I like and trust Whole Foods, so I shop there even though they’re expensive. But I’ve come to absorb the Whole Foods story enough so that I’m willing to pay the premium for that positive experience (which is reinforced every time I shop there). Yet storytelling can exist at any price point, for any product.

Why storytelling should have become the huge 800 pound gorilla in the wine business it now has, is explainable by looking at the market in our 21st century. It’s a cliché, but true, that competition never has been fiercer. I hear the tales of road warriors out there on the blood-soaked sales trail, with hard-nosed buyers demanding $3 less per case and some competitor always willing to give it to them. It doesn’t matter if you’re Harlan or Fred Franzia or anybody inbetween, you’re looking for that extra edge. And that’s what stories give you.

Then too, stories never have been easier to tell. With the press of a “send” or “publish” button, a storyteller can send her tale across the entire face of the planet—and beyond, into the endless reaches of interstellar space. Given that ease, it’s a wonder why the wine industry, taken as a whole, was relatively slow to get into social media, blogging and all the rest. I always attributed that to the fact that winery owners tended to be older types who didn’t understand computers and were in fact intimidated by them. But they’re catching on now, with a vengeance (or they’re hiring young people to do it for them).

Where all this is going, I don’t know. Since I like writing and telling stories, it’s good for me. It can’t hurt a wine company to have its stories told. Telling its story, though, can be only one part of the marketing mix—but it’s a vital part, a lung or kidney, if you will, not the whole organism, but without which the being would have a hard time getting on.

And finally, this: if the storyteller doesn’t have credibility, neither does the story. In fact, the storyteller and the story are inextricably linked. This is why star athletes get fired from their pitchman gigs if they’re caught in scandals. Their stories haven’t changed; but their credibility and likeability have eroded to the point that they’re rendered functionally useless. As people turn against them, personally, they turn into the wrong messengers.

By the way, storytelling works when you’re tasting wine with others, too. I’ve long been a steadfast defender of tasting wine blind to get to its root worth—but there’s clearly much more to the winetasting experience than merely what happens in your mouth. Your conscious thinking is involved, too, which is why some winemakers will allow critics to taste only in their presence, at the winery. They want to get their story across. We will never, ever, all agree on the best way for critics to taste—openly, closed, single- or double-blind, at home, at a winery—but that is not to take away from the value of telling a story that’s real, credible and compelling.


The changing approaches to wine writing

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I don’t think wine tasting notes are in “big trouble,” as this op-ed piece by Lewis Perdue suggests, but Lewis is correct to point out their inherent subjectivity and overall fuzziness. He’s hardly the first: People have complained about winespeak for generations. “Hocus-pocus,” “the double brusheroo” [love that] and “trying to make things complex and involved” were just a few of the accusations leveled against wine writers by Mary Frost Mabon, in her 1942 book, ABC of America’s Wines. Forty-six years later, the British writer Andrew Barr, commenting (in his book, Wine Snobbery) on such descriptions of wine as “strawberry ice cream,” “browned rice pudding,” “baked bananas” and “old-fashioned sweet peas…stewed in butter,” said such descriptions “merely serve to increase wine snobbery.”

Lewis, in his piece, reaches to Alice Through the Looking-Glass and Bill Clinton’s infamous “it depends on what the meaning of is, is,” to suggest how puzzling it can be for wine consumers to make sense of winespeak. He very properly points out all the reasons, genetic and environmental, why different people experience things differently on a sensory level (or at least describe them differently). But he doesn’t entirely throw the baby out with the bathwater by calling for the elimination of wine writing. He allows that “wine writing is hard.” He is aware of the “vocabulary crisis” we writers often experience: “the similarity of [so] many wines” poses the risk of every review sounding like every other review. And certainly this is an ongoing problem: when he talks about the “thesaurus writer,” I had to giggle; next to my desk is not one but two thesauruses (thesauri?), as well as dictionary. Many are the times I sought a synonym for some adjective or verb, because I’d been over-using it.

To the extent there’s a problem (and if enough people complain, then there is), what’s the solution? Assuming we want to keep wine writing in some form (we do, don’t we?), there are two alternatives: One, which we might call the “full scale ahead” approach, is suggested by Lewis: Nailing down a specific taste or smell to an analogous real-world object requires good writing, astute perception and the ability to summon the right word.” This approach implies that there are objectively correct ways to describe wine: the successful writer simply (or not so simply) has to muscle through the mist and find the precise formula. This is certainly the rather flamboyant approach taken by many modern wine writers. Oz Clarke hews this way better than most: witness his descriptions of some of Sanford & Benedict Pinot Noirs: “more damsons in 1989, more raspberries and blackberries in ’88, more plum skins and fresh pepper in ’87.” And: “violets in 1989, …a favored kid glove thrown down on a dressing table in the ’88, toastier, deeper, becoming husky-voiced, dark and stately in the ’87…”. [Love that, too, especially while Lauren Bacall is still on my mind.]

On the other hand is the “less is more” school that prefers to hint rather than elaborate. No one is more understated than Harry Waugh. Here he is on a Freemark Abbey 1970 Cabernet Bosche, which he tasted during a visit to California in 1972 (and this is a fairly long review for him): “With this wine there has been blended 10% of Barney Rhodes’ 1970 Merlot. What a color and what a fabulous bouquet. A beautiful dark color with a fabulous Cabernet bouquet. A splendid powerful wine which will certainly make a great bottle.” No blackberries, no black currants or cassis, no fribble-frabble about “kid gloves” or “husky voices,” no window of drinkability, just Harry’s immediate, visceral reaction: Me likee.

The two approaches are as different as can be. Harry’s—the “less is more” style—for all its elegance and brevity is, I think, on the way out, if not already dead. Parker pounded the nails into that coffin. Which leaves us with the “full scale ahead” school. See you tomorrow.


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!


If there’s a “new wine style,” what is it?

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“A shift in the consumer base,” fueled by “a new wave of innovation in global wine styles”: that’s what Rabobank, one of the the nation’s biggest lenders to wineries, is talking about, in their latest report on the wine industry.

And when Rabobank talks, wineries listen. Every winery in the country—certainly every winery I know in California—is obsessed with predicting the future, for if there is indeed “a new wave…in global wine styles,” wineries want to know about it. What is this “new wave”? What is the shift going to consist of? Most importantly, what new “wine styles” are consumers going to be looking for?

To begin to understand the future, it’s necessary to know the past, for nothing happens without lots of things that have already happened making it happen. So let’s take a look at the past, to see if it helps us comprehend the future.

We know what “wine styles” the consumer likes now, for the consumer votes with his wallet. You might loosely call it “Californian.” People like ripe, fruity wines, red and white. They like varietal wines (notwithstanding this current gaga about red blends). And, here in America, they like wines from California.

But it hasn’t always been so. The last time there was a true “shift in wine styles” was more than a generation ago. That’s when Americans started drinking more dry wine than sweet (those silly Sauternes and Rhine wines). It’s also when they decided that varietal wines were more upscale. Since California led the nation in the production of dry varietal wines, it’s no wonder that consumers gravitated toward California wine.

Let’s go further back in history. Before the era I just described (some call it the boutique winery era), America had been mired, for another 30 or 40 years, in that sweet wine era (if they drank wine at all, which not many did). Prohibition was, of course, the dead hand that had interrupted the country’s vinous progression. So what was happening before that? Again, not many people drank wine—but those who did drank good wine, from Europe and from California. It may not have had varietal names, but in many cases it was made from proper vitis vinifera varieties.

So we’re had three distinct eras since the 19th century: one, when a few Americans drank good wine; a second, when more Americans drank bad wine; and a third, the current, when lots of Americans are drinking good wine again, mostly from California, but in reality from all over the world. So if we’re in for a global shift in wine styles, what could it be?

Well, first, the timing is right: America seems to change its preferences every 30 o4 40 years, so, if you date the current era to the boutiques of the 1960s, we’re ripe for a change, maybe even a little overdue. If things do change, then today’s preference—remember, it’s for ripe, fruity wines from California—will have to change to something else. But what could that be?

We’re not going back to a liking for sweet wines, believe me (although a great off-dry Riesling, a sweet late harvest white wine or a red Port are earthly delights!). Therefore, consumer preference is likely to remain with dry wines. What, then, about fruitiness? I can’t see that changing either, for at least three reasons: one, fruitiness is an ingrained taste: not only humans like fruitiness, but birds and animals, too. Two, the world palate has shifted away from lean, angular wines to riper, rounder wines, and no matter how many articles get written about the low alcohol fad, that’s not going to change. Third, if we are indeed in a time of global warming (as indeed the Bordelais themselves believe, and as seems to be an increasingly credible belief in Napa Valley), then it will be awfully hard to produce wines of the type of old-style Bordeaux, when alcohol levels barely exceeded 12 percent, tannins were gigantic, and the wines took decades to come around.

So what options do we have? Precious few. Dry, fruity wines are what seems likely to remain. Of course, we could turn away from wine altogether: America could become a cocktail drinking country, a beer drinking country, or—heaven forbid!—a dry country. But none of those options is likely. Wine has been at the center of western culture for millennia; it’s now becoming so in Asian culture; wine is not going anywhere.

So the Rabobank prediction has to be taken with a certain latitude. There won’t be any major “new wave of innovation on wine style.” That’s bank-study language: the people who write this stuff have to come up with sexy sound bites in order to make headlines. What’s more likely is that the trend of the last three-plus centuries will continue. The world’s love of noble varieties—Pinot Noir, Cabernet Sauvignon, Merlot, Chardonnay, Sauvignon Blanc, Riesling, Syrah—will continue, despite short-term shifts, every few decades, in the particulars. A few oddballs will succeed at the margins—Muscat is the classic example—but they don’t have staying power. The major varieties Americans love won’t change. Zinfandel will go in and out of style, as the press dictates—but the great producers always will be in demand among the cognoscenti. Beyond that, I just can’t see any huge new intrusions of other varieties.

It looks to me like, far from Rabobank’s prediction of “a new wave of innovation in global wine styles,” we’re looking at a continuation of what is. What will determine who makes it, and who doesn’t, isn’t so much a question of style, as of marketing, communications, consistency, value, consumer engagement, distribution, success in direct-to-consumer, sales expertise—in other words, the fundamentals of good business practice. There is, indeed, “a new wave of innovation,” but it’s not a stylistic one, it’s innovation in the way wineries interact with, and respect, the consumer.


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