Tag Archives: Kroger

Winebits 622: Supermarket wine, ingredient labels, Kroger wine

supermarket WineThis week’s wine news: Sommeliers pick supermarket wine, plus another shout out for wine ingredient labels and Kroger expands its on-line wine business

Interesting choices: Vinepair asked sommeliers to pick quality supermarket wine, and what struck me as how un-supermarket so many of the wines were. How many of us go to the grocers to spend $60 for a bottle of Jordan cabernent sauvignon? And you can tell many of the sommeleirs had not bought wine at a grocery store lately, given the number of hard to find European wines they selected. Still, it was good to see Dallas’ Barbara Werley select Chateau Ste. Michelle and Houston’s Jay Pyle pick the Matua sauvignon blanc, a top $10 wine.

Thank you: Mike Veseth, The Wine Economist, says “I believe that wine, beer, and spirits will eventually be required to list their ingredients and nutritional data. I wonder what would happen if wine were to take a voluntary step and be more transparent now as a way to shape the narrative?” Which is good news for those of us who have fought long and hard for ingredient and nutritional labels and to convince to join the 21st century. Veseth’s reasoning is well taken: “We might think wine is special — and it is in many ways — but we shouldn’t assume that it is immune to the forces that are making transparency, accountability, and technology more important every day.”

Good luck: Kroger has expanded its on-line wine store to 19 states and Washington, D.C, offering – get this – some four dozen wines “selected by winemakers and sommeliers for their quality, value and flavor profiles.” I wonder: Is it a coincidence that one of the wines is the Matua sauvignon blanc? You can check out the store at this link – just click on one of the states listed in the menu. Selection is limited, and most of the wines aren’t well known. But it is intriguing that Kroger is trying something that mighty Amazon gave up on long ago.

Why the Kroger wine proposal should terrify anyone who drinks wine

Kroger wine

Spanish chardonnay? Seriously?

Kroger wants to hire the biggest distributor on the planet, which controls about one-third of the wholesale market, to manage the wine departments in its stores. This is such a terrible idea for consumers that even the federal government — which has mostly abandoned its oversight of all but the most basic parts of the wine business, like labels — said it was probably a terrible idea.

There are many reasons why the Kroger plan is terrible (and you can read about them here and read why Kroger finally dumped the plan here). But the main reason is what you see in the photo with this post, which I took at my local Kroger. Anyone who would use it to promote Spain does not care about wine — or Spain, for that matter. They only care about selling wine, which is hugely different. As such, they don’t care about quality, terroir, or value. They care about selling us wine in the easiest way possible, and if that means the wine is crappy or overpriced or not what we want, so be it. Margin, ring totals, and sales per square foot are what matters to Kroger.

Because:

Verdejo, a Spanish white grape, is sort of like sauvignon blanc — if the sauvignon blanc is soft and lemony. However, many aren’t (like this one and this one) and if I buy a verdejo expecting tropical fruit or minerality, I’ll spit it out and never drink verdejo again. But we’re just Americans who buy wine at the grocery store; what do we know?

Albarino is not like pinot grigio at all. In any way. That this sign would compare them attests to how little the wine part of the promotion has to do with reality, unless the reality is selling wine.

• No, I do not want to try some Spanish chardonnay. The Spanish do not want to try some Spanish chardonnay. Most Spanish wine producers do not want us to try some Spanish chardonnay. They want us to drink Spanish white wine made from Spanish grapes like viura, verdejo, and albarino, not wine made with an international grape like chardonnay that is only made in Spain to sell to Americans who buy wine at the grocery store; what do we know?

I’m lucky in Dallas, where there are two top-flight independent retailers and two chains that are pretty good. So I don’t have to buy wine at the grocery store, as so many of you do, and as so many more will as supermarkets soon sell the majority of the wine we buy.  I don’t expect Kroger to care as much as an independent retailer, but it would be nice if the chain pretended it cared. That Kroger and its ilk won’t even do that much, that they will treat wine as if it was laundry detergent — and which is the key to the terrible distributor management proposal — shows how difficult it might soon be to buy quality wine at the grocery store. This Spanish nonsense, sadly, might be a sign of even more terrible things to come.

Winebits 423: Kroger wine, direct shipping, Bordeaux

kroger wine ? The big get richer: The Wall Street Journal is reporting that Kroger wants to contract management of its wine and beer departments to Southern Wine & Spirits, the biggest distributor in the country, so that the grocer doesn’t have to worry about buying or stocking the shelves. If accurate, this represents another significant change in the way we buy wine and the choices we get when we do. For one thing, Kroger is one of the biggest wine retailers in the country, and has paid for political campaigns to allow supermarket wine sales in many states, including Texas. Second, Southern could favor its brands over those of other distributors, giving its products better shelf space. Third, and the story isn’t clear on this, producers would have to pay Southern for the privilege of having it manage the shelves, and how many small producers could afford to pay those fees? I’m going to follow this story, because if it happens, other big retailers will follow, and our wine-buying lives will get that much more difficult.

? Rapid growth: The direct shipping market — wine sold to consumers directly from the winery and the only exception to the three-tier systemgrew eight percent last year, to almost $2 billion. Which is a lot, though some perspective is needed: the U.S. wine market totaled about $39 billion in sales in 2014, so direct shipping represents less than five percent of the total. In addition, direct sales are focused on consumers in just five states, and one of them is California, where shipping costs are less of a factor. Also, the cost of the average bottle sold directly is $38, which means most U.S. wine drinkers are priced out of the DTC market. (And a tip o’ the Curmdgeon’s fedora to Steve McIntosh at Winethropology for sending this my way.)

? Cheap by whose standards? The Wine Curmudgeon has long advocated that Bordeaux’s sales problems in the U.S. are a function of price, and this gem from the Village Voice demonstrates that nothing has changed. It touts the value in the current vintages of Bordeaux, yet only one of the eight wines in the story costs less than $25, a $17 bottle from what’s called a satellite appellation — a lesser region of Bordeaux. To add insult to injury, the story says it’s difficult to find satellite appellation wines because they usually don’t have scores and you will have to consult a “Bordeaux connoisseur.” Yeah, like most wine drinkers have a Bordeaux connoisseur in their phone. And aren’t we done with scores yet?