Tag Archives: wine trends

Paid posts: Welcome to the 21st-century world of wine blogging

paid posts

Who cares if the wine tastes like vanilla cherry cough syrup? We’re being paid to say nice things about it. Stop acting so 20th century.”

Who cares about integrity or honesty or legitimate reviews? I’ll just run paid posts

The following email, asking me to run paid posts for a wine club, shows just how little the wine business cares about the people who buy its products. I’ve changed the name of the wine club (which is reasonably well known) so I don’t get sued; otherwise, it’s verbatim:

Hey Wine Curmudgeon Team,

Big Time Wine Club wants to create some new partnerships with influencers. Our wine club works with acclaimed wineries and vineyards to curate a portfolio of highly rated wines from all over the globe, and then bring those wines to lovers of great wine across the US. You have great blog posts, and I want to find out if we can work with you to create new content around a few of our featured wines. We have some ideas on potential Spring themes, but we are more than happy to talk with you on your ideas for incorporating wine!

We have wine available to send, some paid placement budget, and an affiliate program. I’d love to get your thoughts on the best way for us to work together. Are you available to talk wine this week or next?

The jargon is annoying enough, but what’s worse is asking me to pimp for their products — “create new content around a few of our featured wines.”  The only thing in the email that’s fair to consumers is the affiliate program, in which I’d get a tiny, tiny commission if anyone bought one of the wines I pimped for. The rest is an insult to me and to everything the blog stands for. As well as to you.

But hey, why not? It’s the 21st century. Facebook sells our personal information to dirty trickstersGoogle censors the Internet for the Chinese . The world’s biggest beer company owns a leading beer review site. So why shouldn’t I take the wine club’s money? It’s all about the cash, right? Integrity? Honesty? Principles? That’s just crap for cranky ex-newspaperman, who still think they’re supposed to write for their readers. That’s just so quaint, isn’t it?

Needless to say, I sent a polite email declining their offer. But how many of my colleagues didn’t?

podcast

Winecast 34: Dave McIntyre, Washington Post

Dave McIntyre

Dave McIntyre

Dave McIntyre of the Washington Post says those of us who care about affordable, quality wine should be worried about the direction of the wine business. But he says we can fight back.

Dave McIntyre, the wine columnist for the Washington Post, has spent the past decade fighting for affordable, quality wine — no scores or winespeak, but intelligence and passion. He’s one of the best wine writers in the country, and I’d say that even if we weren’t friends who suffered through interminable wine trip bus rides and even longer Drink Local Wine conference calls.

Dave and I talked about the challenges of the wine business in the second decade of the 21st century and what those of us who care about quality and value can do to overcome those hurdles. Something is very wrong, Dave says, when the average bottle of Napa Valley cabernet sauvignon costs $67. But there is hope, as our experiences with drink local demonstrate. Consumers will buy interesting wines that don’t taste exactly like each other, which is the promise of the regional wine movement.

Click here to download or stream the podcast, which is almost 20 minutes long and takes up 7.2 megabytes (and that’s Dave’s dog, Ringo, chiming in at the end). The sound quality is very good to excellent; we used Skype’s new recording feature, which works surprisingly well for a Microsoft project.

Big Wine 2019

Big Wine 2019Big Wine 2019: It still has a stranglehold on what we drink, but the biggest companies aren’t quite as big

A funny thing happened to Big Wine 2019: The three biggest companies didn’t dominate the market in 2018 the way they did in 2017. Neither did the top 10. But the top 50 still sell 90 percent of the wine made in the U.S., according to the 15th annual Wine Business News magazine survey,

In other words, it’s business as usual for Big Wine. They’ve just rearranged the profits.

Still, before you get too depressed, know that the magazine study acknowledged that the wine business is in trouble, citing the usual reasons – aging Baby Boomers, competition from craft beer and spirits, and the neo-Prohibitionists. Or, as the woman who runs the company that makes the ubiquitous Kendall Jackson chardonnay told the magazine: “It seems tougher this year and it probably will be tougher next year. It doesn’t seem like it’s as easy as it was.”

Which, hopefully, is good news for those of us who are tired of higher prices, declining quality, and more plonk on the shelves. If Big Wine sees the problem, maybe they’ll do something to fix it besides putting sugar in dry red wine.

Among the highlights

• Sales by volume were almost flat, from 403 million cases in 2017 to 408 million in 2018. That’s a 1.2 percent increase, far less than the growth in the legal drinking age population. Which means younger drinkers are drinking something else or aren’t drinking at all.

• The average price of a bottle of wine sold in 2018 was $14, which includes restaurant sales. Hence, the number is higher than the average usually cited for retail sales, $9 or $10 a bottle.

• Imports, as a share of U.S. wine sales, were only 23 percent. That’s also much lower than the numbers usually cited, which range from one-third to 40 percent of all the wine sold in the U.S.

• E&J Gallo controls 17 percent of U.S. sales, and its Barefoot brand accounts for almost 5 percent of all the wine sold in this country. Which succinctly describes the power of Big Wine.

• The share of the three biggest producers – Gallo, The Wine Group, and Constellation Brands – fell to 55 percent in 2018 from 60 percent in 2017. The share of the top 10 companies declined for the third year in a row, from 84 percent in 2016 to 81 percent in 2017 to 78 percent in 2018. Was this decline caused by premiumization, since these producers tend to have the least expensive wines? Or was the cause something more ominous, related to the decline in wine’s popularity?

• The magazine said there are 10,047 wineries in the U.S. Take out the top 50, and the other 9,997 sold 31.5 million cases in 2018, or about 3,150 cases each. The average Big Wine company sold almost 6 million cases – making it almost 2,000 times bigger. Which, regardless of any changes in the market share among the 50 producers, shows just how top heavy the U.S. wine business is.

More about Big Wine:
• Big Wine 2018
• Big Wine 2017
• Big Wine 2016

A tale of two Italian wines, one of which tastes like it came from New Zealand

Italian winesTwo Italian wines from a Big Wine company, but only one of them tastes like it came from Italy

This is where we are in the wine business in 2019 – two Italian wines from the same Big Wine company, one of which is varietally correct, terroir-driven, and a pleasure to drink, while the other tastes like it was put together by a marketing company and is about as Italian as a pair of panty hose. Why does anyone think this will advance the cause of wine?

The wines are from Zonin1821, which owns nine Italian producers (as well as one of the best wineries in the U.S., Barboursville Vineyards in Virginia). Zonin1821 is best known for its $13 Zonin Prosecco, a pleasant enough bottle for a $13 Prosecco. But many of its wines are interesting and well worth drinking, and there are many worse Big Wine companies.

The insolia white wine ($14, sample, 12.5%), made by Zonin1821’s Feudo Principi di Butera subsidiary in Sicily, is Big Wine done right. The insolia grape is native to Sicily, and it’s not necessarily easy to work with. But the Butera is all should be – tart green apple fruit, lots of spice and almond, an almost stony finish and even some green herbs. It’s Hall of Fame quality, a white wine that is neither chardonnay nor sauvignon blanc and a reminder of how much value Sicilian wines can deliver. This is seafood wine – risotto with shrimp, perhaps?

Which brings us to the panty hose. The second wine is a sauvignon blanc from Zonin1821’s Ca Bolani in northern Italy’s Fruili region. Italian sauvignon blanc has long taken a back seat to pinot grigio, which probably explains why the Ca Bolani ($14, sample, 12.5%) tastes the way it does. Or, as a friend said when she drank it, “Why did you open this wine? You know I don’t like New Zealand sauvignon blanc.”

Which is exactly what it tastes likes – big, huge smacking gobs of grapefruit. It’s a well made wine, and there is even a little something trying to peek out from behind the grapefruit. And $14 isn’t a bad price. But none of that really matters, since it raises a larger question: Why would I want to buy Italian sauvignon blanc that tastes like it came from New Zealand? Isn’t that what New Zealand sauvignon blanc is for? Shouldn’t Italian wine taste like it came from Italy?

Apparently not. These days, the goal seems to be to make all wine taste the same, so it will be easier to market. Because Big Wine. Hopefully, no one at Butera will realize this and turn the insolia into Paso Robles chardonnay. Because then I would have another reason to worry about the future of the wine business.

Bud Light debuts new and improved ingredient labels

If Big Beer understands the need for ingredient labels, why is it so difficult for wine to do the same?

ingredient labelsBudweiser is beefing up the ingredient labels on its Bud Light beer. Yes, that Budweiser, whose marketing gurus think the above video is witty and whose product is seen by many as the reason for craft beer.

Yet, somehow, Bud and its parent, Anheuser-Busch, are smarter and more modern and more progressive then the wine business. Wine has  viewed nutrition and ingredient labels as the spawn of the devil since the end of the 20th century, despite their value in the fight against the neo-Prohibitonists. Is it any wonder I’m not the only one worried about the future of the wine business?

Writes the Associated Press: “Bud Light went with a big, black-and-white label, similar to the ones required by the U.S. Food and Drug Administration on packaged foods. … ‘We want to be transparent and give people the thing they are used to seeing,’ said Andy Goeler, vice president of marketing for Bud Light. … [He] said the brand’s research shows younger drinkers, in particular, want to know what’s in their beer.”

Shocking news, of course, to everyone but the wine business. I’ve been writing about nutrition and ingredient labels for wine since since my newspaper days, and the message has remained the same: Why ketchup and not wine? Why not transparency? What is wine trying to hide?

Or, as consumer advocates said in this 2009 story I did for Palate Press, the refusal to add ingredient labels ”puts the industry outside of the mainstream given developments in food labeling and consumer information. The goal, they say, is more information, not less. ‘It’s all about transparency,’ says dietitian Kathleen Talmadge, RMA, RD. ‘Any time the consumer gets more information, that’s a good thing. You want them to be knowledgeable about what they’re buying.’ ”

So Bud Light, one of the most simple and inexpensive alcohol products, has better ingredient labels than a $25 California wine. How much sense does that make?

2019 SVB wine report

2019 SVB wine report

SVB’s Rob McMillan: “The U.S. wine industry needs new direction and a changed focus.”

2019 SVB wine report says U.S. retail wine sales may decline this year, and the future  doesn’t look much better

Someone in the wine business may be more worried about its future than the Wine Curmudgeon. Consider these projections, from the 2019 SVB wine report that was released yesterday:

• How about a forecast that says retail wine sales in 2019, as measured by volume, could actually decline? This would be almost unprecedented in the post-1980s history of U.S. wine.

• Or that growth by value may be less than one percent, with even premiumization starting to slow?

• Or that younger wine drinkers, more interested in legal weed and paying off their student loans, aren’t showing any interest in picking up the slack left by the aging Baby Boomers?

Why does this matter to those of us who drink wine? Because Silicon Valley Bank’s Rob McMillan, the study’s author, is one of the smartest people in the wine business. How important has McMillan’s annual report become? This year, a vice president for Big Wine’s Constellation Brands participated, and the company doesn’t usually do those sorts of things.

So if McMillan says a slowdown is coming and the wine business needs to reexamine how it does business, then it had better. Or else we all suffer.

“This is probably the most important report we’ve ever put together,” McMillan said during Wednesday’s live videocast. “Starting now, wine has reached a tipping point. We’re not closing in on a tipping point, we’re feeling it.”

The videocast threw around a lot of jargon – I even heard psychographics – and several of the other panelists nitpicked about some of the conclusions.

But that didn’t change the hard news: Younger people don’t care about about wine the way their parents and grandparents did, They are focusing more on beer and spirits and legal weed, and they’re hampered by lower relative incomes and intimidated by the repeated attacks on wine drinking by the neo-Prohibitonists.

In other words, wine is too old, too Anglo, too snotty, and too out of touch with the younger consumers. So, said McMillan, “We have to look at what the wine industry is doing about it now and what can we do in the future to fix the problem.”

Also worth noting: McMillan, who invented the term premiumization to describe consumers trading up to more expensive wine, said he’s surprised to see it slow as it faces price resistance from consumers. Price resistance? What an amazing concept.

Finally, the Wine Curmudgeon’s suggestion to the wine industry: Sweetening dry wines and calling them dry ain’t going to do it. How about giving younger wine drinkers quality and value? I know — almost as revolutionary as the idea of price resistance.

The wine retailer’s New Year’s resolutions 2019

wine retailer’s New Year’s resolutionsFive wine retailer’s New Year’s resolutions for 2019

The Wine Curmudgeon has long supported the independent wine retailer, both here and in the cheap wine book. The best independent retailers are the wine drinker’s best friend – someone more concerned about making the customer happy than selling them plonk because it seems like a good idea at the time.

In addition, those of us who care about quality and value have fewer and fewer options in a wine world of ever more gigantic producers, ever more massive distributors, and ever more mega retailers. This makes the quality independent wine store more important than ever.

Hence, these five wine retailer’s News Year’s resolutions, because we’re all in this together:

• The customer is not your enemy. This seems obvious, but I am always reminded of the pizza restaurant owner I once interviewed. Yes, he said, the pizza business would be a lot of fun if not for the customers – always complaining about tardy deliveries, cold food, and incorrect orders. Retailers, caught up in the day-to-day aggravations of small business, can lose sight of why they’re in business. Once that happens, it’s not too long until you’re as irrelevant as Montgomery Ward.

• The employee isn’t your enemy, either. That same pizza operator disliked his employees almost as much as his customers – how dare they ask for a raise or time off? I don’t think it’s a coincidence that the two best independent wine retailers in Dallas respect their employees and are rewarded with minimal turnover and top-notch efforts.

• The customer is not stupid. This is an especially irritating 21st century development, in which we’re treated as if we’re sheep ripe for shearing. How else to explain things like World Market’s phony pricing? Treat the customer with the same respect as your employees, and that’s most of the battle.

• Sell wine for a reason, not because you think you know best. I wrote a trade magazine story this month, asking long-time wine industry types about their biggest mistakes. One told me that he always goofed up when he thought he knew more than the customer did. This was not necessarily about wine knowledge, he said, but that he thought he knew what they should drink instead of helping them find what they wanted to drink. The best independent retailers always do the latter.

• Keep showing why you’re different from everyone else. Walk into any grocery store, regardless of who owns it or where it is, and the wine department looks exactly the same – the same Big Wine labels, the same deceptive pricing, the same stupid shelf talkers promising wine quality that only a marketer could believe in. That’s why there’s room for someone who offers interesting wine af fair prices, and why so many small wine shops continue to thrive.