This week’s wine news: Instagram made rose popular – who knew? Plus Yellow Tails’ profitability and a Texas wine overview
• Hipster rose foolishness: The reason for rose’s surge in popularity? It’s not quality or price or improved availability. It’s Instagram, the social media network that is popular among young people. The Wine Curmudgeon does not dispute the power of social media, but I will point out one thing that the woman who wrote this post apparently didn’t know. The people who buy the most wine in the U.S. are older than 40 or so. Nine out of 10 Instagram users are younger than 35. That’s a contradiction that needs to be explained. Until then, I will settle for quality and and price.
• Yellow Tail profitability: Want to know how the family that owns the Australian Yellow Tail brand makes so much money selling cheap wine? David Morrison has one answer on his Wine Gourd blog: Look at the exchange rate between the U.S. and Australian dollars. Every one penny movement in the currency equated to around $A2 million in higher sales revenue for Yellow Tail. Hence, a weak Aussie dollar means more money for the Casella family. That Yellow Tail and Barefoot can make money – lots of money – selling $6 wine in the age of premiumization speaks volumes about how well they understand the wine business and how well so many of their competitors don’t.
• Spot on on Texas: The Wine Curmudgeon regularly laments the poor coverage regional wine gets from the Winestream Media, as well as from the non-wine press. But that’s not the case this time, with a well done piece from Courtney Schiessl on Vinepair. Other than the very tired “things are bigger in Texas” opening (where was an editor?), she gets Texas right – what has happened here, what is happening, and what we need to continue to do to improve quality. That’s not always easy for someone not familiar with a region to do, but good to see when it happens.