When is it time for a winery to “offload” underperforming brands?
It happens. You’ve had a line, or SKU, in the market for years, but for some reason, it’s never gained traction. So the hard decision must be faced: Is it time to pull the plug on Grandma?
This is the situation Treasury Wine Estates is facing. The Australian company, which lost more than $100 million in 2013-2014, has brands “that [are] not a priority and may be retired [or] offloaded,” according the industry publication, The Drinks Business.
This can never be an easy decision for a big company like TWE. Companies love all their brands, the same way parents love all their children. You can’t throw an underperforming child under the bus, of course, but companies aren’t families, they’re business; and sometimes, “retiring non-priority brands”, or repurposing them in some way, is the only way to stay healthy.
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Does this shock you? It shocks me. “One in four bottles of Californian Pinot Noir and Chardonnay have been through the industrial alcohol removal process supplied by ConeTech in the past year.” That’s another report by The Drinks Business, which adds that the spinning-cone process of lowering the alcohol content of wine is more popular than ever because “winemakers would rather take out alcohol from a ripe wine than risk creating lighter, possibly greener wines from harvesting earlier for naturally lower abvs.”
Well, as Dana Carvey’s character, The Church Lady, used to say on Saturday Night Live, Isn’t that special?
I’ve written before that I don’t mind some technological intervention to produce sound, clean, drinkable wines. These are what Americans want. Critics denounce them as Franken-wines, but to me, that just seems derogatory and mean. Besides, the truth is, since this de-alcoholization is done secretly, no one can ever know just which wines have passed through the spinning cone, so before you give such a wine 96 points and then have to appear foolish when someone outs you, restrain thy criticism.
However, I will venture to say that winemakers are resorting to this somewhat risky procedure because the public drumbeat against higher-alcohol wines has reached such a fever pitch that they feel they have no choice. Many of them, themselves, probably hate themselves for doing it—for giving in. Some of them may be under orders to do it, by the people who sign their paychecks. It’s hard for me to believe that any winemaker willingly and happily sends her wine to the spinning cone.
Speaking of those “greener wines” that are the potential result of picking early—which is the natural way to produce lower-alcohol wines—I’ve tasted some of them at big Pinot Noir tastings, and they’re dreadful. Well, I suppose if you like dried oregano, mint and green tomatoes, they’re all right, but if you prefer cherries and raspberries (which I do), you’ll be disappointed.
Thus we find ourselves staring directly at the schizophrenia running through our modern California wine business. The bullet quote in The Drinks Business article is this: “The consumer preference is for riper style wines, with juicy fruit, but consumers want this with more moderate alcohol levels.” Someone should politely tell consumers you can’t get ripe fruit without high brix, which in turn translates into healthy alcohol.
But that’s not a message that consumers want to hear, and so producers—caught between the proverbial rock and a hard place—increasingly are turning to the spinning cone. And if California goes back to a series of warm vintages, like we used to have, we’ll see even more wines spun out.
It’s always sad when an old, little family winery shuts its doors, as Milat Vineyards & Winery is set to do by the end of this month.
I never formally reviewed any of their wines, because they never sent me tasting samples. They didn’t have a high profile in Napa Valley, and perhaps didn’t want one; as the Napa Valley Register, which reported the story, observes, “Unlike wealthy people who start wineries to enjoy the lifestyle, the Milats started the winery to make a living.” Playing the publicity game, with all the related frou-frou and social obligations, doesn’t seem to have been the Milats’ style.
Should it have been? There can be little argument that being skilled at marketing and promotion can increase a winery’s prospects. I’ve long been fascinated at how and why some small wineries make it big, while others get lost in the shuffle of history. Sometimes, fate, or destiny, plays a role that can’t be foreseen or managed.
Take a winery like Failla or Saxum. Neither Ehren Jordan nor Justin Smith had much money, connections or P.R. savvy when he started out. What “made” their reputations was a combination of interesting wines made from interesting vineyards, and a personal style that knew how to connect with the wine press. (In both cases, I was “present at the creation,” so to speak, and reviewed them early, so I know what I’m talking about.) They had, to use the current parlance, “stories” to tell, and both told them well.
Writers like me visit hundreds of vineyards and meet thousands of winemakers over our lengthy careers, so it is indeed saying something when we can recall individual visits, that occurred years ago, with crystal clarity. That’s the case with my first visits to both Failla and Saxum. Well do I remember roaming Ehren Jordan’s vineyard in the remote hinterlands high above the Fort Ross beaches. Equally vivid are my memories of Justin Smith guiding me along the terraced tracks of his James Berry Vineyard, where on a blazing summer afternoon he picked out the bleached fossils of whale bones from the white earth. This is not to say that either Failla or Saxum made the greatest wines of their generation. Both make very good, very specific “wines of a place,” although I would fault Saxum to the degree that the alcohol levels were immodest (but, oh, the wines! Amazing. Some of these West Side Paso Robles red blends are stunning.). But what both Jordan and Smith managed to do was impress themselves upon the thoughts of a writer (me, as well as, obviously, others), who then was in a position to afford them some publicity. And they did it without a P.R. department.
One could mention others in California’s long winemaking history who similarly succeeded based on the power of their personalities and the quality of their wines: Agoston Harazsthy, Robert Mondavi, Gary Pisoni, Jim Clendenen. They realized that the renown of a winery is tied to the acclaim its proprietor arouses in the media. This is not to say that such acclaim is the only thing factoring into the renown of a winery: Caymus achieved theirs without any ornate personalities at the helm; so did Ridge; so has Foxen (with the notoriously un-spinny, un-quoteworthy Bill Wathan), and so have many others who went about their work unostentatiously.
So there are different paths to success, but I have to wonder if Milat would have “made it” in the long run had they played the game with a little more perspicacity. But then, that would not have been them; it would have been inauthentic. This question of “authenticity” is, of course, currently much in vogue in wine country. Every winery and every winemaker wants to be seen as staunchly independent and free of the hyperbolic control of spin doctors and P.R. agents. It’s reached the point where hired P.R. personnel advise their clients on how to present the appearance of authenticity! Can a winemaker or winery be “authentic” while paying for professional public relations advice on how to be authentic? It’s a good question and I don’t claim to have the answer.
“Authenticity” is hard to define anyway. A strong, colorful personality can seem authentic simply because it is irreverent and impinges itself strongly upon an audience; but until we master the science of mind-reading, we cannot know to what degree a strong personality is “natural” to its holder, or to what degree it is a conscious construct, if not a fabrication, designed to attract attention (or if it is in fact a combination of both). What we can know—“we” being writers, reporters and journalists—is that some winemakers are more interesting and fun to write about than others; they get the press while the quieter ones often don’t. You have to wonder how much this gets factored into a winery’s success.
Anyhow, I wish the Milat family well. As the Chinese increasingly buy ownership of Napa Valley, which years ago began losing its identity as a tight, indigenous culture, we must mourn the loss of each of these little family wineries, which are the bedrock foundation of any wine region. Any winery’s death diminishes me (to misquote John Donne) and the industry as well. And I always have a special place in my heart for winemaking families who just work hard, year after year, against the odds but armed with great integrity, and who do so without resorting to flashy pretention.
Carlo Mondavi, whom I got to know and like last year in Kapalua, emailed to bring me up to date on his new project, RAEN, a Sonoma Coast Pinot Noir he’s making in collaboration with his brother, Dante.
His email prompted me to ask him some followup questions, which led to an exchange I thought is interesting enough to reproduce. The subject is Pinot Noir, and the role of stems in the fermentation.
Carlo had sent me this video of him and Dante making the wine. Along the way, Carlo says, concerning the whole-cluster fermentation he enjoys, “I can smell the greenness of these stems, they’re super-green.” My ears perked up at this, because I had thought that you don’t want green stems in the fermentation, you want brown, ripe ones, in order to avoid passing on that green, vegetal aroma and harsh tannins to the wine. So I asked Carlo, “If you whole cluster with green stems doesn’t that make the wine taste and smell green?”
He replied, “I…believe that the stems being green and thus under ripe or ideal is a complete misconception.” His response is worth quoting in full:
“In fact DRC and most of the best whole cluster examples are harvesting when the stems are electric green. This also means most likely and certainly for us that the sugars are lower and the extraction of bitter flavors will be lower. We also take into account sap flow…
“I believe that sap flow is greater in certain clones and in certain sites varying vintage to vintage… There is no perfect map so we go on taste and observation… To determine the amount of whole cluster vs destemmed fruit we ferment we run a quick tasting. We take the stem sans fruit, cut it up, put it inside a pastil bag and squeeze the sap out. We then observe the sap (how much, how sappy) then taste the sap to see how astringent it is. From there we make decide if we will use some, none or all of the whole cluster.… This past vintage we certainly used a great amount of whole cluster as it was a new moon and the sap seemed to much less than what we might have seen on a full moon.
“Thirdly I also like the balance of bitter and sweet… Stems add potassium and tannin to a wine and can balance the overly strawberry, cranberry, rhubarb fruit flavors… to me it gives the wine a middle palate of velvet and structure and in some examples and slight elevation of minerality.
“Waiting for full brown clusters is a major mistake in my opinion… If you wait that long you are looking at harvesting well north of 25 brix of sugar and in December in some sites. This would yield a wine of incredible bitterness and a PH that would be certainly unfermentable and unstable naturally. With that said where we make our cuts is where the rachis meets the shoot this area is brown and lignified. We make our harvesting cuts right in the middle of this browning area to minimize sap flowing out into the juice.”
Still puzzled, I asked Carlo, “In a vintage like 2011, I found some coastal Pinots to have a green, minty edge. So, where does that come from?”
Carlo: “Huh… That’s a Good question. I would think some stems, the local terroir and for late harvesters, botrytis… I see a bit of botrytis each year… Pinot noir clusters are so tight it just seems to happen when the heat comes after the rain or In some vintages with the humidity… With that said green can be no stems with green seeds or Rosie’s, tough under ripe skins or jacks… I have tasted de stemmed and 10 percent whole cluster wines and found them be more green than 100 percent whole cluster wines depending on the site and vintage… I also enjoy wine that can have a slight green note… I don’t see green to be bad so long as it is not over the top… Just like anything.”
I’ve never felt that whole-cluster fermentation is better than destemming, or vice versa. California Pinot Noir can be delightful either way. I do feel, as does Carlo, that stems can give Pinot Noir a fuller body and more tannins, not to mention spiciness. Still, I’m not quite convinced that green stems do not bring a green note to cool-climate Pinot Noir, and I’d love to hear the opinion of others.
This is one of the wine taster’s biggest conundrums: it’s easy to detect something in a wine but a lot harder to identify exactly what causes it. When I was a reviewer, I tried to avoid attributing specific results to specific causes, if I couldn’t be absolutely sure about the connection. Asking winemakers to explain can sometimes clear things up, but sometimes it can make you even more confused. Which is why I was always happy to leave the winemaking to the winemakers, if they’d leave the wine reviewing to me!
I haven’t written much about my new job because it’s been important for me to keep steveheimoff.com a place independent of whatever job I have, whether it was the guy who wrote wine reviews for Wine Enthusiast or my new position at Jackson Family Wines.
The reason it’s important for me to preserve and protect this space as a sort of safe house is because I have (or think I have) a compact with my readers. That compact is terribly important to me. It’s almost a marriage—I mean, that’s how seriously I take it.
The thing to understand is how hard I’ve had to fight to maintain this blog’s independence. My former employer strongly encouraged me to end it—why, I never could understand. Obviously, I refused. After that experience, I am tremendously grateful to Jackson Family Wines for being supportive of the blog’s continuation.
My official title is director of wine communications and education. As such—and things are still evolving—my work is mainly confined to three areas: writing (they call it “content” creation), giving advice on various matters of my expertise to colleagues within the company, and working with outside gatekeepers in the ongoing work of tasting Jackson Family Wines.
This latter task is driven largely by the fact that there is a body of opinion among some people that Kendall-Jackson is a single wine company and that all of the company’s other brands must somehow be associated with K-J. That perception—real or imagined—is, of course, nonsense. Mentioning only some of the California wineries, it is clear, or should be to anyone who pays attention to these things, that Champ de Réves, Edmeades, Stonestreet, Verité, Hartford Court, Cambria, Atalon, Cardinale, Freemark Abbey, Mt. Brave, Lokoya, Byron and Matanzas Creek, etc. (I could go on) are wineries of the highest caliber; in my years as California editor of Wine Enthusiast I gave many high scores to their wines, including several 100 point scores (and I had the reputation of being stingy with perfect scores). I personally long ago formed the opinion, which was based on fact, that Jackson Family Wines was a large company, with brands at virtually every price point, and moreover, those brands met or exceeded in quality their competitors—and often at a lower price. This gave me great respect for the company.
So when I began to hear, from various others in this company, of an outside attitude that K-J somehow impugns the other brands in the portfolio, it was rather shocking. I wonder how anyone working in this business could fail to make the distinction between price tiers. After all, one doesn’t hear of a gatekeeper’s revolt against Mouton Rothschild because its parent company also produces Mouton Cadet, which is said to sell around 1 million cases annually, making it very much a commodity wine. What’s good for the goose is good for the gander. Besides, I have never heard anyone offer any reasonable argument to dispute the concept that a large wine company can walk and chew gum at the same time: that is, produce fairly-priced wine in large quantities for the everyday wine drinker, and simultaneously make ultrapremium wine, based on estate-grown grapes from the finest coastal appellations, and vinified by some of the top winemakers in California.
If I have any gripe at all with the upper tier of the industry—not the wines themselves, but the critics and somms who concern themselves with those wines—it’s that they so often give the impression that the everyday consumer doesn’t matter—that everyday-priced wines, the kind you find in a supermarket, are somehow illegitimate when compared to the little garagiste labels. This, too, is nonsense, and patently unfair. At Wine Enthusiast, I developed an affection for the everyday segment of the market (and the magazine reflected that affection). It always made me happy to give a Best Buy to an under-$15 wine, because I appreciated, having come from that part of the population that can’t afford expensive wine, that some wine companies take seriously the notion of making inexpensive quality wine, and I also knew how technically difficult that can be on a consistent basis, across vintages. That is one reason why Kendall-Jackson so often got my nod.
So what is it about some gatekeepers that makes them unable to appreciate the qualities of an ultrapremium wine made by the same company that produces an everyday wine? I have to confess that this is an aspect of my job I take most seriously, as I have great respect for “the truth,” and truth, after all, ought to live at the heart of every conversation about wine. Does the wine taste good? Is it clean and well-made? Does it drink well with food? Does it have the interest and complexity to satisfy over the course of a meal? These are the criteria by which sommeliers and gatekeepers should judge wines—not some hocus-pocus about scarcity or romance or garages.
I mean not to impugn any gatekeepers. I was one myself, so I know how hard these people work, and how honest they feel in their own hearts regarding the wines they recommend. I simply look forward to sitting down with them, as best I can, and asking them to put aside whatever stereotypes they may harbor, and perceive reality as it actually is: the wine inside the glass.
One of the most interesting and controversial topics of the modern wine industry is the phenomenon of the “flying winemaker.” This is the term, which I first heard in the 1990s, that refers to a class of men and women who hire themselves out to wineries as consultants; they are “flying” because their preferred mode of transportation is of course the jet plane.
But they are much more than mere consultants. Their name, attached to a wine on a press release, automatically confers prestige, the way, say, Steven Spielberg’s name as producer of a movie is a sort of guarantee of the film’s pedigree.
The name most often conjured up by “flying winemaker” is that of Michel Rolland. I knew he consults for a lot of wineries around the world, but I never knew that the number was up to two hundred, according to this article in Harpers. Among his Napa Valley clients, current and/or previous, I’m aware of are Harlan, Screaming Eagle, Alpha Omega, Dancing Hares, Staglin, Dalla Valle and Sloan—in other words, absolutely the peak of Napa Valley (if not the New World) in terms of price and quality (at least, as judged by the top critics). These are the famous “cult wines” that define a region’s reputation and in fact establish its upper or outer limits of quality and perception by the wine world’s cognoscenti.
This would be all well and good, except that over the last fifteen years or so—let’s say, roughly from the start of the new century—a certain drumbeat of criticism has arisen among some critics, to the effect that an increase in the activities of these flying winemakers has resulted in a standardization or sameness in all the wines with which the consultant is associated. In fact, this critique goes even further: it says that all flying winemakers bring a similar approach to all their client wines, making these wines all taste similarly to each other, regardless of who made them or whether they are from Napa Valley or Pomerol or Chile. This sameness has been referred to as the “globalization of wine” or “the international style,” terms meant to suggest that all wines of the same varietal type—most usually, Cabernet Sauvignon and its allied varieties—smell and taste alike. In the eyes of the critics of such globalization, this is tantamount to a crime, since it obliterates the notion of terroir.
This is a serious debate and a good one to have. I’ve never been one to take an extremist position one way or the other, as some American critics and newspaper columnists do in utterly condemning these “international” wines. Their criticisms usually also have to do with what they perceive as excessive ripeness, over-oakiness and an alcohol level (often approaching if not exceeding 15%) which, they claim, elevates technique over terroir.
My reluctance to join these reporters has been based on the simple fact that many of the Cabernets associated with Michel Rolland and other flying winemakers are, in fact, gorgeous. They are among the richest, most sumptuous wines ever produced in the history of the world, and it is churlish, if not somewhat childish, to object to them based on some philosophical or ideological notion. This deliciousness seems to be what Rolland himself referred to when he told Harpers that all he strives to do is to produce wines that are “intense, full bodied, balanced, harmonious, with delicate tannins and a long finish.” This description certainly fits the Napa Valley wines I’m familiar with that Rolland consults for, but the problem, which you see is obvious by now, is that the same description fits all of them, which seems to hoist Rolland on his own petard. He has provided us with the template for an international style of Cabernet Sauvignon. And here, I must say that, in California at least, there is an ersatz style that mimics the international style on the surface, but that on closer examination results in lazy, flamboyant but eventually tiring wines. One has to be very careful in approaching the international style, lest he throw the baby out with the bathwater!
Harpers headlines their article “Michel Rolland defends his ability to manage wines on up to 200 wineries around the world,” and while the word “defends” is perhaps hyperbolic on Harper’s part, Rolland no doubt feels a little beleaguered. He must be aware of the criticism (although one suspects he cries all the way to the bank). Supporting the critics is the commonsense notion that one can only be in one place at a time, and even in this age of the jet plane, to have to be in so many places all over the world, having to apply one’s conscientious attention to so many properties, especially at the harvest, must be challenging to say the least. Heidi Barrett, herself one of California’s most famous flying winemakers (although she more properly might be called a “driving winemaker,” for she only accepts clients that are “within a half hour” drive of her Calistoga home), notes that she limits her number of clients for the most pragmatic of reasons. “Realistically, when things are fermenting I must taste every tank, every day, and so I’m going to four locations, and that maxes me out. Some days I barely get everywhere.” (These quotes are from my 2008 book, “New Classic Winemakers of California: Conversations with Steve Heimoff.”)
Historically, we are at a point now where there is more or less an equilibrium between the international or global style, which admittedly is a ripe, expressive one, and a more restrained (one could almost say timid) approach, encouraged if not caused by the critics of the international style, who tend to have big platforms and the egos to fill them. I said we’re at “a point,” not “a tipping point.” I don’t think the balance will alter anytime soon, one way or the other. The wine market is simply too big and fractured for any large-scale revolutions to happen, despite alleged claims from some quarters that one is underway now. In the midst of such a complex market, winemakers hedge their bets; better to stick with a style that’s worked for you up to now, than to throw the dice and risk unnecessary changes that might alienate your customers. Finally, we come to the cases of new entrants to the production game, a younger generation that’s decided to live the wine life. They have, it seems to me, two choices, in the widest sense: to appeal to the international style, or to make wines more severe and that will, they hope, win the praises of the newspaper columnists who like that streamlined approach. They might as well flip a coin, given the standoff, and follow their hearts—always the best thing to do.
The standard meme for marketing wine is: Ours is better than theirs. In just about every wine advertisement you read, this quality argument is there, whether implicit or explicit. Producers claim that their wine is rounder, smoother, more mellow, more delicious, better balanced, cleaner, more fulfilling, more [fill in the adjective] than the competition. The hope is that consumers will be swayed, for, after all, when you’re spending money on a product, you want the highest quality, right?
As it turns out, the quality factor may not be the best way of promoting wine anymore. From ProWein, the big international wine trade event held last month in Germany, came mixed messages concerning the value of using quality claims to sell wine.
The reporter asked attendees from different countries (Russia, Brazil, South Africa, Italy, China, etc.) what they thought of the pushing-quality approach to selling wine. The answers were remarkably similar: “the excuse that your wine is top quality does not work anymore.” “Quality is not a competitive advantage anymore.” “Far too many wineries appear to rely on wine quality alone.”
Ouch. So if quality isn’t the message to be sending consumers, what is?
Well, let’s begin to answer this by assuming that the 50 people queried were all on the young side; they are described as “students from the Masters programme at the School of Wine & Spirits in Burgundy,” so they’re probably Millennials. The question therefore becomes, What are Millennials looking for in wine marketing?
For starters, they’re not “looking for” anything, if by the action verb “looking for” you mean a pro-active search. Marketing and its hand-maiden, advertising, are by their nature insidious: they come at you from the sidelines, entering your consciousness by osmosis at a time when your guard is down. That’s why marketing works [when it does]: it captures your imagination.
How it does so is complicated. Here are some of the things the students said wineries should be doing to market their products, instead of stressing quality:
“start telling a different story.” We know all about “the importance of the story line.” It’s easy, however, for an outsider to say this to a winery, but much harder for the winery to actually do it. What “story” should the winery tell?
“producers need to ensure that their brand’s representative is up to scratch.” This comment, by a South African student, referred to the actual employees who represented the various brands at ProWein. It was echoed by an Italian student who asked for representatives “with an easier and friendlier outlook,” by a Russian who found many representatives “simply boring,” and by a Brit who complained of “too many [representatives] sitting on stools behind their stands using wine bottles as a barrier.” An Italian was positively scathing in his critique of reps, particularly from his own country. “Everyone was thinking just for themselves—creating a sense of fragmentation and confusion.”
Clearly, what these young students were looking for was engagement. They wanted to feel like they were interacting with representatives who were fully human and alive, not a bunch of bored-stiff zombies giving off the vibe that “If it’s March, it must be ProWein.”
We all can relate to this. I was chatting with a friend the other day about how, when I take a cab ride, I like to have a little conversation with my driver. (This is why my friend recommended Lyft and Uber.) But I’ve been on the representative side of the table at wine events and know that it can be hard to always be chipper and put on a good face. You get tired, bored, cranky, especially at multi-day events when you’re expected to be “onstage” all day long and into the night.
This sort of bravura performance requires a certain type of personality—outgoing, extroverted, friendly. This may not have much mattered in decades past. But clearly, the rules have changed. Younger consumers understand that 99% of all the world’s wines are now faultless and drinkable. They also suspect that too much has been made of the famous “cult” wines their fathers and grandfathers worshipped; they feel no need to genuflect at that altar. But they are, after all, consumers; and nowadays consumers want to feel some sort of personal connection to a company whose brands they buy.
I sometimes think that wineries don’t pay enough attention to these rules of the road: When you send someone out to represent you, that person needs to have certain skills of charm and engagement. A winery’s representative, after all, is part of its “story.” If this hasn’t been immediately obvious until now to marketing managers and sales directors, it long has been to those of us on the receiving end of pitches. Just yesterday, Forbes’ food & drink columnist, Cathy Huyghe, in a piece called What Makes a Wine Sell, and What Doesn’t, wrote that “a producer’s story trumps any detail about a wine’s technical profile or even their numerical rating,” arguing that “tablestakes”—the technical details of the wine—“aren’t a point of differentiation” because “Everyone has them.” Huyghe described her interviewing approach to winemakers: after “the preliminaries—the…logistical data—are over with,” she looks for “the lightbulb of recognition…that illuminates what it is that makes that particular wine and that particular producer unique and different…”.
That “lightbulb of recognition” is something wine marketers hope to ignite in the minds of consumers. Wine itself, unidentified and without a human connection, cannot do that; the winery’s frontline representative is the spark that lights the bulb.