Tag Archives: Total Wine

Winebits 438: Regional wine, wine bottles, Total Wine

regional wine• Even in Nova Scotia: The government in the Canadian province will spend C$3.5 (about US$2.7) to help vineyards and wineries, an almost unprecedented investment in a part of the world where one doesn’t think of wine. But the provincial government sees wine as a way to create create jobs and boost economic development, which is something progressive and far-sighted governments do (right, Texas?). In fact, there are 11 wineries in the province, and the modern Nova Scotia wine industry is 25 years old.

• More than just a bottle: Will wine drinkers ever accept anything other than wine in a 750-ml bottle? Can the wine industry meet that demand? This is a chicken and egg question, and particularly since experts and consultants insist wine drinkers want something else and consumers keep buying wine in the traditional bottle. The Wine Intelligence consultancy parses the issue, and realizes that “part of the issue remains one of cost. One [750-ml] bottle incurs less dry goods cost than four mini [187.5-ml] bottles, and price sensitive consumers have historically been reluctant to pay more (relatively) for less.” In other words, wine drinkers don’t want to pay more for convenience, and this doesn’t take into account that smaller sized bottles (as well as cans, boxes, and what have you) have usually been used for inferior wine.

• Total Wine changes: The man who runs the country’s biggest liquor chain is stepping down to go into politics. David Trone, who started Total Wine with his brother Robert and led it to almost $2 billion in sales and some 120 stores, is leaving to go into politics. He was an unsuccessful congressional candidate in Maryland this spring, and says he wants pursue a career in public service, which may include another congressional run or a presidential appointment. This is intriguing news, and not just because of politics. Trone, whom I have interviewed, is one of the smartest retailers I have met, and Total’s success owes much to he and his brother’s vision. If he isn’t there, can Total continue to grow?

Winebits 275: James Tidwell, Amazon, national chains

? Appreciating wine: James Tidwell, who works for the Four Seasons in suburban Dallas, is not only one of the most knowledgeable people in the wine business, but one of the nicest. So I'm particularly happy to note this interview with James, where he talks about what it's like to taste some of the world's great wines: "I knew food and wine went well together, but this transcended all conceptions of how they can be paired. It really has influenced my understanding of what can be done with food and wine."

? Making the Amazon model work: A rare look at how and what Amazon is doing with its wine marketplace, courtesy of Wines & Vines magazine. Peter Faricy, the executive in charge of the wine marketplace, wouldn't discuss sales or how many wineries are participating, but did note that the Internet giant is "super pleased with the reception so far. ? More importantly, he said, Amazon is working as fast as possible to add other states to the current lineup — 15 plus the District of Columbia, while ensuring complete compliance with the various local liquor regulations. It charges wineries 15 percent of the sales price to be part of the marketplace, but is waiving some fees.

? Want to be a national chain? Then offer better service, says the man in charge of Total Wine & More, whiich is agressively expanding across the U.S. ?If we can have the best people, we win. You ?re not going to find those people in Walmart or anywhere else, ? said president and co-owner David Trone. This is, of course, easier said than done, and I've heard it about a zillion times in the two-plus decades I've written about business. I once spent 40 minutes in a Dallas Total Wine without an employee even looking at me, and the one employee I watched wait on another customer didn't seem all that interested. But maybe that's a small sample size.

 

 

Private label wines, value, and quality

We ?re in the middle of a tremendous price war in Dallas, where retailers are selling some wines more or less at cost. Segura Viudas, one of my favorite cavas, is $6 ? about half of what it cost here a year ago (and about what it costs in Spain).

Yet the retailers don ?t seem especially concerned that they ?re giving away wine. Items like Segura Viudas are loss leaders to get customers into the store; once they ?re in, they can switch them to brands with better margins ? and, increasingly, these brands are private labels. In fact, private and store label wines, which are sold exclusively at one retailer, are perhaps the most important development on the retail side of the business over the past couple of years.

Some retailers, like Trader Joe ?s and Total Wine and More, focus almost exclusively on private label, but national grocery stores and regional chains are doing them as well, tucked onto the shelf next to the Kendall-Jackson, Yellow Tail, and Barefoot.

The question, then, is whether these private labels offer value and quality, or if they ?re just dodges to sell wine that consumers wouldn ?t normally buy. The answer, sadly, after the Wine Curmudgeon ?s recent private label experiment (unscientific, but worthwhile nonetheless) is that more and more, private labels are becoming the latter.

Consumers have long known that private label is not quite as good as the national brand ? the ketchup doesn ?t taste quite like Heinz and the peanut butter doesn ?t taste quite like Skippy. But they buy it anyway, because they ?re willing to trade quality for price, and the store brands are cheaper than the national brands.

In wine, the equation is more complicated. A traditional wine retailer ?s business is based on the premise that better wines are always more expensive, so any foray into private label sticks to that line. Kroger ?s private labels, for example, don ?t try to undercut the national brands, and you can’t even tell which are which on the shelf. However, more retailers are junking that approach in favor of ?this wine is cheaper and just as good ? or even better. ?

The most obvious example is Trader Joe ?s and Two-buck Chuck, which Two-buck Chuck ?s maker, Fred Franzia, insists is just as good as any bottle of pricey Napa wine. I ?m not quite sure anyone believes him (or that Franzia even believes it himself), but, as a marketing approach, it has been incredibly successful.

Total Wine, with 82 stores in 13 states, has taken this one step further. It identifies its private label wines as such, which almost no one else does, and displays them next to the comparable national brands ? complete with little cards under the wine, or shelf talkers, that say that its private labels are cheaper and better (or as much as it can without running afoul of federal regulations).

Are Total ?s private labels cheaper and better? Or is this just a cynical ploy to prey on consumers who can tell the difference between ketchups but who can ?t tell the difference between wines? I ?ve argued for years that the wine business is not as interested in educating consumers as it is in selling them wine, and it ?s easy to see how this could be part of that. Given how confusing wine is to most of us, our first instinct is to trust whatever the store says. They ?re not going to lie about their product, are they?

One distributor I asked, who doesn ?t have Total in his state, is convinced that the chain is counting on the consumer ?s ignorance. My experience, in the short time Total has been in Dallas, has been much the same. Their private labels are less expensive, but you can also taste the difference ? and not in a good way.

Case in point: Victoire Champagne Brut Prestige ($20, purchased), which the shelf talker claimed was half the price of branded Champagne and just as Champagne-y. I ?ve done this long enough to know that this is all but impossible, but I also pride myself on my open mind. Besides, what if it was just like Champagne at half the price?

The Victoire wasn ?t, and it wasn ?t even as well made as $20 cava or French cremant (or many $10 cavas, for that matter). The Big Guy tasted it with me; he took a couple of sips and asked if I had anything else to drink. The wine had little structure, and tasted more like apple juice mixed with club soda than sparkling wine.

No wonder it ?s easier to buy ketchup. Or that it ?s more popular than wine.