Winebits 193: Successful wineries, wine prices, cheap wine

? What makes a winery successful? It's not the quality of the wine, says a survey of winery owners. Instead, it's five factors that have more to do with controlling costs than anything else, according to a study done by two professors at Sonoma State University ?s Wine Business Institute. Winery owners are more concerned with things like selling wine directly to consumers and developing a strong business strategy. The first is especially interesting, since direct shipment is such a small part of the wine business — as little as one percent. And the lack of concern about quality? And the industry wonders why it's in such trouble.

? State stores mean higher prices: A Michigan think tank has found that liquor prices are higher in Michigan and in the 17 other states where government acts as a statewide liquor wholesaler — the so-called control states. The Mackinac Center report estimates that residents of those 18 states pay 6.3 percent more for booze than the rest of us. The language in the news release gets a little hysterical, and I'm not sure the methodology is as good as it could be, but the point is well taken. When there is no competition, prices are higher — and you get wine kiosks.

? Does cheap wine cause recessions? Australian newspaper columnist John Birmingham asks "whether the problem with the economy isn ?t structural or political but simply attitudinal. We ?ve talked ourselves into a funk. We ?re buying cheap wine, holding our dollars tight, because we ?ve convinced ourselves that ?s what we need to do." A couple of caveats: Birmingham is talking about the Aussie economy, which doesn't compare exactly to our faux-recession in the U.S., and lot of this is written with tongue firmly in cheek (and in Australian, which makes it difficult to decipher in several places). But his approach made me smile. Who knew that those of us who like quality and value had such a significant impact on the economy?