Category Archives: Wine Marketing

Food, Wine and Climate Change

Harvard Business School Graphic
(Harvard Business School Reference Material)

Wine and Food Products by Location

The importance of climate in vineyard management can not be over-stated. The entire European culinary and beverage marketing model establishes food/wine character BY LOCATION. This European developed idea to turn place-names into unique trademarks defining specific flavors and aromas has been the cornerstone of worldwide food and wine marketing for decades. The same thinking caused governments to establish laws and trademark protections for food and wine production. Wine laws arguably could be the most stringent. Here are a few of the most famous wine examples: American Viticultural Area (AVA) in the U.S., Appellation d’Origine Contrôlée (AOC) in France and Denominazione di Origine Controllata (DOC) in Italy. This concept also applies to specialty foods: Parmesan Reggiano cheese may only come from Parma, Reggio Emilia, Modena and Bologna, IT, Roquefort cheese can only be made in Roquefort, FR, Prosciutto de Parma can only be made in Parma, IT, etc. If you have never tasted these original foods (and not imitations), you need to splurge a little and buy these imported products. The difference in flavor is astonishing.

Impact of Climate Change on Wine Production

The French terroir concept is the basis of this wine marketing by area idea and has been developing for hundreds of years in Europe. It is the primary driving factor behind the establishment of wine laws controlling vineyard and winemaking practices by location. The definition of Terroir:

Complete natural environment in which a particular wine is produced, including factors such as soil, topography, and climate. – AND / OR – The characteristic taste and flavor imparted to a wine by the environment in which it is produced.

(Oxford Dictionary)

Climate has a direct impact on the terroir idea defined above. It affects many choices for producers, ie. grape varietals to plant, when to harvest, control of crop size, how to water, conditioning/fertilizing of soil, etc. All of these affect wine character, flavors and aromas. So, what is coming for the wine and food industries due to climate change? Hang on… crystal ball is out, here we go…

Vineyards and Resulting Wine by Location

Common thinking has been that vineyards should be planted between the 30th and 50th parallels (latitude) around the globe, both northern and southern hemispheres. Cool climate reds like pinot noir often are best grown near the 45th parallel and warm climate reds like nero d’avola and shiraz near the 35th. Cool climate whites like riesling are often grown near the 50th parallel (ripening reliably compared to past) and warm climate like petit manseng near the 35th. Vineyard elevation can affect this range, but only minimally. The impact is not just temps, but also length and intensity of sunlight during the growing season.

The most consumed varietals in the world: cabernet sauvignon and chardonnay are best grown in a much narrower range: 40-45th parallel. Why is this important? What if the most famous cab sauv growing region in the world (Bordeaux, France) became too hot for premium cab sauv wine production? Would these producers accept: producing poor quality wine, over-manipulate the wine to change its character, or tear out cab sauv vines and plant warmer climate varietals like aglianico and petit sirah? French wine laws would fall apart with any of these options and as a result wine consumers might change their ideas about where the best wines in the world are produced.

Climate Impact on Commonly Grown Wine Grapes

When cab sauv is grown in cooler areas, the wine acquires vegetal flavors: green bellpepper and tomato are common. When chardonnay is grown in warmer climates, it becomes too fruity and loses it signature acidity. What would happen if Burgundy, France became too warm to grow quality pinot noir, or Napa, CA became too warm for cab sauv? The transition has already begun… I have been collecting and tasting wine since the 90’s and red burgundy has become fruitier and Napa reds have become flabbier. Many Napa producers have already begun manipulating their wines to adjust for the differences. One option is to harvest earlier, but then the pips (seeds) are not allowed to ripen and complex flavors are lost. In Napa, where the area’s signature cab sauv is very fruity, this option would change the whole character of the regions’ wine production.

Changes and Timelines

Climate change has been slowly accelerating, but still is not likely to have a serious impact on wine in my lifetime. Although, consider this thought: a wine vineyard requires 5-10 years to fully mature and begin producing premium fruit for wine production. This requires thinking in terms of decades, not years. The last 25 years of climate change has seen a noticeable difference in the character of wine in many regions. Not enough to change the wine industry substantially, but at this rate, what will another 25 years bring? Will vineyard managers have the vision to react in advance, when there is still time to save the current wine styles of today? Will the industry opt to tear-out current vineyards and replant warmer climate grape varietals, or decide to abandon warming vineyard sites for planting in cooler climate areas farther north? It is likely to be too expensive to abandon existing vineyard sites… so my crystal ball shows the younger generations of wine drinkers adapting to Petit Sirah and Petit Manseng…

This has been a very interesting topic. If others in the trade have different ideas regarding the impact of climate change on the industry, please drop me a note. I am always curious about new strategies… and no, please do not suggest adding citric acid to the final product, thank you…

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Austrian Wine Scandals

The Most Horrific Wine Event of the 20th Century

I was reading a recent Meininger Wine Business Report and found this piece: https://www.wine-business-international.com/wine/news/wine-adulteration-austria.

For those that are not familiar with Austria and its history with wine, this article will familiarize you with the 1985 scandal when millions of bottles for domestic and export sales were found to have had diethylene glycol (similar to automobile antifreeze) added. This stuff can be very unhealthy. But, on the upside, it does make the wine fuller bodied and sweeter. Nice trade-off there. Fortunately, no one was seriously hurt, but the result of that mess was the destruction of 36 million bottles of Austrian wine and the complete collapse of their wine industry. It would take almost 20 years and the addition of numerous laws and legal safe-guards for their wine industry to fully recover. There has finally been a huge resurgence in the popularity of Austrian wines in the last decade.

Latest Austrian Scandal

In several wine producing countries, it is illegal to add any type of glycerine to wine. Unfortunately, in the U.S., it is permitted. There is a huge difference between synthetic glycerine and vegetable glycerine. The synthetic type CAN be quite toxic. The vegetable version is very safe, but desirable as a wine additive? (discussion to follow below) 25,000 bottles were discovered and destroyed in Austria that were found to have synthetic glycerine added this year. The added substance in question was a trivalent alcohol that gives wine a higher viscosity and is harmless, but is forbidden by Austrian law. This synthetic glycerine was petroleum-based. Convictions and fines were the result. Sentences are not yet legally binding though. With Austria’s past, any chance of toxicity is serious bad form.

Wine Additives

Some of the additives listed below are illegal in certain countries, but most are permitted in the U.S. Although, we don’t get to know which are used in the wine we drink, BECAUSE WINE HAS BEEN EXEMPTED FROM USFDA FOOD LABELING REQUIREMENTS. What does this mean to you personally? Well, nothing here is outright dangerous, but don’t underestimate the impact on allergies, tolerances and such. For example, my wife has a known allergy to soy, others find they have limited tolerance to added sulfites, etc. In general, all of these can affect color, flavors, aromas and the viscosity of wine. Your reaction to this discussion might be: “but, these additives are only used in cheap wine”. You would be very wrong. This list is commonly used in all price categories.

Here is a short list of common wine additives:

  • Citric, Fumaric, Malic, Lactic and Tartaric acids – to acidify wine
  • Calcium Carbonate – to de-acidify wine
  • Oak and Oak Chips – to add tannin, flavors & aromas
  • Acetaldehyde – to stabilize color
  • Copper Sulfate – to eliminate sulfites and mercaptans (bad tastes/odors)
  • Sulfur Dioxide, Potassium Sorbate – to sterlize and preserve wine
  • Mega Purple – to add color and body
  • Tannin Powder – to add mouth-feel and make wine more ageable
  • Gum Arabic – to reduce astringency (tannin) in wine
  • Dimethyl Dicarbonate – to stabilize, sterilize and remove alcohol
  • Sugar, Saccharose, or Grape Juice Concentrate – to add sweetness also called “chaptalization”
  • Vegetable Glycerine – to add body and sweetness
  • Gelatin, Albumin (egg white), Bentonite, Casein – to remove haziness caused by free proteins
  • Water – to dilute over-concentrated wine
  • Engineered, Cultured Yeasts – to control the fermentation process (vs. wild yeasts)
  • Diammonium Phosphate – removes naturally occurring sulphur in wine
  • Protease – improves wine heat tolerance
  • Soy Flour – Feeds yeast to accelerate fermentation

Organic, Biodynamic and Natural Wine

All of this talk of additives has to lead your mind toward interventionist vs. non-interventionist winemaking philosophies. Have you considered the issue for your own wine consumption? Personally, I believe I can taste the difference in over-manipulated wines. Napa Valley producers in the low to medium price range have been utilizing these methods more of late. This is the key reason why my personal wine cellar has been moving towards a higher percentage of French and Italian wines, especially in the low-medium price ranges. France and Italy have very stringent wine laws regarding additives and in general, have winemaking cultures of less intervention. So, if you would like to address this issue, how can you know which U.S. wines to buy? It may be time for you to read the back label of that next bottle of wine… Wine in the U.S. can be “labeled” as organic, biodynamic, natural and sustainable… and can also be certified as such by a third party. Many U.S. wineries are implementing at least some of these practices. Here is what these terms mean:

  • Natural – Typically are made in a low-intervention style, fermented with native yeasts and contain only trace amounts of added sulfites. These wines are not filtered, or fined. This means they could contain particulates, or appear cloudy. Which is not necessarily a problem. These wines should have gone through the bare minimum of chemical, or winemaker intervention and are not often aged in oak. Wines produced with this approach may have limited stability and cannot be mass-produced, but are a different drinking experience, if you should choose to try them.
  • Organic – These wines fall into two categories: organic wine and wine made from organically grown grapes. Certified organic wines (USDA) have stricter regulations. Vineyards must not use synthetic fertilizers and all ingredients in these wines (including yeast) must be certified organic. No sulfites may be added, although naturally occurring is permitted. These wines will display the USDA organic seal.
  • Biodynamic – Unlike organic winemaking, biodynamic does not change between countries. When originally devised, the method had each day organized by fruit days (grape harvesting), root days (pruning), leaf days (watering) and flower days (vineyards to be untouched). Biodynamic practices are not required to follow this calendar, however. If you’ve seen biodynamic and organic wines grouped together at your wine shop, there is a reason. Biodynamic wines employ organic practices. They avoid pesticides and depend on compost, rather than chemical fertilizer. Therefore, the majority of these wines are also organic in practice. Certified biodynamic wines are permitted to contain up to 100 parts per million of sulfites, far more than the USDA certified organic wines. So, a wine that is organic is not necessarily biodynamic, although a wine that is biodynamic is often organic.
  • Sustainable – These wineries make an effort to utilize winemaking processes that protect the environment, support social responsibility, maintain economic feasibility, and are of high quality. This idea has less of a direct impact on the wine, but is an “eco-friendly” designation.

Here is a link to a page with detailed descriptions of all organic wine designations: https://organicvineyardalliance.com/organic-wine-definitions-behind-the-label/.

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Crazy Beer and Wine Distribution Laws?

Click Link Here: https://www.federalregister.gov/documents/2021/07/28/2021-16115/promoting-competition-in-the-beer-wine-and-spirits-markets

Take a minute to add your public comments to the effort by the federal government to understand the challenge of our crazy alcoholic beverage laws!

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Judging-Scoring Wines

Risky Business

At the risk of upsetting every wine critic/judge out there, I set out to create a wine scoring system that matched my view of fine wine. I will include this scoring template at the end of the article, for those that might be like-minded. Email me if you would like a self-calculating spreadsheet copy.

My Motivation

After pro Sommelier training (where scoring was discouraged), I was exposed to the WSET scoring method and wine judging courses. Both used a variation of the UC Davis 20 Point Scoring System. I was shocked how these systems were unable to separate amateur from premium wines effectively. In these classes, we scored fruit wines (cherry, blueberry, strawberry, etc.) and vitis labrusca wines (Concord, Chambourcin, Catawba, etc.). These wines were near undrinkable for me and were being given the same scores as mediocre Cali Cabernet. The methodology and scoring systems taught in these classes were intended to be appropriate for both amateur and fine wines. Although, away from class these same people would explain the intent of these systems was to score wines based on a comparison of LIKE wines. This is not how I understood the training and it is likely the public views this scoring similarly. This experience motivated me to build a scoring system that is weighted properly and could be used to provide comparatively accurate scores for amateur, professional AND fine wines, without a bias.

The Evaluation Criteria

First, it was necessary to determine what separates fine wine, from other wines. In that evaluation, I arrived at the following characteristics that are under-represented in the UC Davis System: Balance, Complexity, Finish and Aging Potential. All of these measures are intended to be scored in the UC Davis “Quality” category, but to make the scores more comparatively accurate, I decided these characteristics needed their own point categories. I then looked at what seemed to be weighted incorrectly in the UC Davis System and arrived at: Clarity, Color and Acidity. Four of twenty points for clarity and color is 20% of the score. This is weighted too heavily towards mediocre wines. Acidity was only 5% of the score – not weighted heavily enough. I realized, if I reduced the points for clarity and color, increased points for acidity and added balance, complexity, finish and aging potential categories… I might be able to devise a scoring system that could properly measure a Concord wine (for example) and build an appropriate score against say… an aged Bordeaux Gran Cru.

A Wine Scoring Template

Now I was ready to put my scoring template together. I realized that many media outlets still use the old Robert Parker 100 pt system and decided to add it to my template. I wanted to help both systems arrive at a roughly equivalent score. I realized this could only be done, if I started the 100 pt score at 50, instead of 0. You will see what I mean below. The closer the wine came to the premium category, the better my 100 pt method seemed to arrive at an accurate score. It was the opposite with my 20 pt method, albeit much closer to reality than the UC Davis 20 pt method.

After the long explanation, here is my effort to build a scoring system that can evaluate both a poor blueberry wine and a Gran Cru Bordeaux – with the same template – done accurately and with a logical systematic approach.

In the past, my Somm training won out and I tried not to add scores to my tasting notes. In retrospect, I think this was mostly due to being uncomfortable with the systems available. I intend to use my scoring template moving forward and hopefully develop consistency and comparative accuracy across my tasting notes.

Feedback

I would be very interested in other opinions regarding both the thinking that drove this creative process AND the relative accuracy using this scoring system. I am also open to modifying aspects, if the changes fit within the logic model used to build it. Please feel free to leave your comments on this page. Thanks!

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Sign, Sign, Everywhere a Sign!

122110calvin_resolutions

Calvin & Hobbes – Bill Waterson, Copyright – Andrews McMeel Publishing

I am not the only one seeing the changing face of the U.S. wine industry and the industry resistance to any kind of meaningful response.

Sources

Wine-Searcher just posted an article regarding a recent wine symposium where the topic of conversation has been adjusting to the changing market. See my previous article at this link: Trends Changing the Wine Industry and the Wine-Searcher article at this link: Gloomy Outlook for Small Wineries.

Can Small Wineries Survive the Changes?

Here are the data points changing the face of the wine industry with limited response by producers (the numbers across multiple sources had some variation, so the figures below are approximate):

  • 90% of all wine made in the U.S. is sold by the 320 wineries that exceed 50,000 cases of production. Of that 90%, more than half is dominated by the top FIVE: Gallo, Wine Group, Constellation, Trinchero and Delicato. The other 9,000+ wineries are bringing only 10% of all wine production to market in the U.S.**
  • With the recent on-going consolidation in wine distribution, the top FOUR by volume nationally (Southern, Republic, Breakthru & Young’s) deliver approximately 60% of all wine distributed in the U.S., but represent only 30% of the wineries.**
  • In the case of wineries producing fewer than 10,000 cases, distributors were responsible for only 33% of sales in 2016. A 6% decrease over the previous year and the trend is continuing.**

Is your head swimming with numbers yet? Suffice to say, BIG has become financially BETTER today and could very well push SMALL to the side of the road. Why? The answer is in the numbers above. How do those other 70% of under-represented wineries bring their wine to market? Winery Direct-to-Consumer (DtC) sales is only 2% of all wine sold in the U.S. currently.

Solutions

Small wineries better become experts at marketing, capturing clientele and earning their continuing loyalty… and fast! If they do not already have a developed DtC customer base, it is near too late. Those who wish to survive, should be investing now! The large distributors dominating the market already have large portfolios of wine labels and shelf-space and wine lists only have so much room.

There were two great hopes: the loosening of rules in cross-state shipping of wine allowing the emergence of online wine retailers and the advent of wine big-box retailers (think Total Wine). At one time, it was looking like these two channels buying winery-direct could represent small wineries and fill the gap. Although just like the DtC space, they are missing the expertise to deliver the volume of sales needed. Can online retailers get better at building inviting online platforms and tools to identify and explore the consumer palate? Can big-box retailers provide a better buying experience that allows thousands of labels to be properly represented? Unfortunately recently, wine commerce laws have become stricter (see recent changes in FL) and it is making it more challenging for both of these channels to grow fast enough to fill the gap.

Why Should Consumers Care?

Well, if you have favorite wines produced by wineries with under a 10K case output… supporting them with your DtC purchases will become important to their continued survival and your continuing supply. It is that simple. The survival of small wineries is in your hands…

 

**Reference sources for this article were: Various Wines & Vines articles, Grand View Research – Wine Market Trends Report, Forbes Food & Agriculture articles, L.E.K. Insights  – Trends Affecting the Wine Industry, Dr. Liz Thach MW – Blog and Statista – Alcoholic Beverage Statistics. The internet provides so much rich content, if you search!

 

 

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Trends Changing the Wine Industry

GallowinetrendsMillennials

Silicon Valley Bank has been producing state of the beverage industry reports for years. I try to make sure I read the formal report every year, but they also write a blog for the wine industry that I check-in on occasionally. The data can deliver insights that bring an interesting perspective to market trends.

Data is Predicting Changes

The U.S. wine industry has been on a steam roller building big gains in revenue and beverage market share drawing in new consumers from younger generations of social drinkers. The recent data is showing significant slowing of that growth, even in areas that have been hot in the past, such as: Napa Cabernet Sauvignon, Super Premium Wines, Direct-to-Consumer Sales and On-Premises (restaurant) Consumption. Unfortunately, the growth in the number of small growers and producers is not slowing to match pace. Many of these producers are being drawn to the lifestyle, not the business opportunity and the industry is reaching a tipping point for several reasons.

TRENDS

Restaurant Wine Sales is Slowing

Distribution is their own worst enemy here. In an effort to control local beverage markets, they are actually causing irreparable harm to their dealer’s ability to respond to market trends. Destructive strategies, such as:

  • Withholding well-known brands of beer and spirits, if specific high-profit wines being promoted are not purchased.
  • Extending credit limits, or terms to obtain leverage on buying decisions.

A successful restaurant wine inventory should have wines covering well-known lower priced labels, lesser-known value in the middle range and highly scored, high priced wine that garner recognition. This approach tends to satisfy a much wider range of consumer, offer a selection all can explore/enjoy/afford and provide up-sell opportunities for the staff when the occasion calls for it. Instead, distributors in many states are preventing this type of responsive approach. Read the piece at this link for additional info:  Restaurant Wine Sales

Fruit/Wine Supply Exceeding Demand

Wine travel in Europe teaches you one thing: don’t be afraid to order cheap table wine with a meal there. Even table wine in Europe can be very good. The growing over-supply issue may change the landscape in the U.S. For many years now, the $10-15/btl retail price has delivered poor quality in the U.S. I am hoping this market trend will bring more, better quality fruit and wine to the market at reduced prices, instead of vineyards dropping the excess fruit to rot in the fields. See information on this at this link:  Wine Supply

Premium Wine Sales are Flat

The continued growth in this category is coming primarily from price increases, not the volume of wine. Interestingly enough, consumption of premium craft beer has also weakened. This is very likely being caused by an aging Boomer generation drinking less wine, without Millennials filling the gap. The younger generation seems to be moving towards exploration and looking for value, rather than committing to older high-priced labels. See information on this at this link: Premium Wine Sales

Direct-to-Consumer Beverage Sales Continues to Grow

As long as State legislatures and the Supreme Court continue to keep their hands off this segment of wine/beer/spirits distribution… this will likely be the savior of the small producer… for those that get it right. With the extensive consolidation in the beverage distribution industry in the last few years, there is just not enough room on the shelf for the growing number of labels, especially for smaller producers without a sizable marketing budget. The continuing growth in the number of small producers will force an understanding of how to connect and maintain a relationship with a clientele, or fail. Wineries must continue to move towards improving the wine experience for potential customers, rather than provide a traditional tasting room as the only engagement. This is the only segment left in the wine industry that offers a solid business opportunity, but selling out each vintage will increasingly become a challenge, without the bulk purchasing distribution can offer. The trick will be how to build the DtC channel for each producer. With most small wineries being about the farming, or the winemaking… there will need to be a newly developed understanding of marketing and customer engagement. It will be a matter of survival. See information on this at this link: Small Winery Sales

Changes are Coming

The U.S. wine industry is likely to look quite different five years from now. There is a good chance, with the Millennial penchant for exploring new wines, that imported wine sales will grow faster than domestic in the future. This pressure may actually force the U.S. wine industry to get better at producing quality in that $10-15/btl range that typically does not exist today. An outcome I am looking forward to…

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Wine Scoring Systems: What You Need to Know

The Scoring Systems

Three systems are most commonly used for wine scoring today: Robert Parker’s 100 Point System, UC Davis’ 20 point System and the Gold-Silver-Bronze Medal designations. So, let’s dive into each and understand their components, focus and determine their real-world reliability.

UC Davis & Medal Scoring Systems

Often, these two are tied together.

Medal System:

  • Gold-medal:     18.5–20.0 points – Outstanding quality
  • Silver-medal:   17.0–18.4 points – Excellent standard
  • Bronze-medal: 15.5–16.9 points – Very good wine for its class

UC Davis System:

  • 17 – 20  Outstanding
  • 13 – 16   Standard wines with no defect
  • 9 – 12     Commercially acceptable with no defect
  • 5 – 8       Below commercial acceptability
  • 1 – 5       Completely spoiled
  1. Appearance (2 points)
  2. Color (2 points)
  3. Aroma and Bouquet (4 points)
  4. Total Acidity (2 points)
  5. Sugar (1 point)
  6. Body (1 point)
  7. Flavor (2 point)
  8. Acescency (Bitterness) (2 points)
  9. Astringency (Tannin) (2 points)
  10. General Quality (2 points)

The glaring missing pieces are Balance, Complexity, Finish and Age-Ability. Without these factors, fine wine cannot accurately be judged. The UC Davis System has an inherent bias toward poor to mediocre wines. The problem is the potential for a 16 pt. score (bronze medal) for a typical Concord sweet wine, in comparison to a 16 pt. score for a mediocre Mendocino Cabernet Sauvignon. The latter is eminently more drinkable, yet carries the same score. This system allows too much weight for components that would be assumed with fine wine, such as Appearance and Color and virtually none where fine wine shines, such as Balance, Age-ability, etc. This evens the playing field for amateur wines and narrows the gap between the professional and amateur wine categories. BEWARE of medal designations and UC Davis scoring. If you enjoy fine wines and in particular, if you collect Old World wines, this scoring system is not for you.

Parker’s 100 Point System

  • 50 Points for Showing Up 🙂
  • 5 Points for First Impression or Color
  • 15 Points for Aroma or Bouquet
  • 10 Points for Flavor
  • 10 Points for Finish
  • 10 Points for Aging Potential

OK, this has its problems too. Certainly not scientific, or very systematic, but it weighs the important characteristics of fine wines. This too is missing the balance and complexity components, but allows enough latitude to score (let’s say) a U.S. 1997 Robert Mondavi Private Reserve Cabernet Sauvigon versus a French 2000 Chateau La Gaffeliere. Something the UC Davis and Medal systems do not.

Frankly, this system will just not work for evaluating an amateur winemaker’s sweet 2017 Chambourcin (native hybrid grape), BECAUSE Old World style wine quality is in another category of its own. So far removed, that any 20 Point System equivalent would require adding decimal quantifiers (i.e. 19.1, 19.2, etc.) to attempt to make an equivalency work.


5/28/18 – I have had a few comments from those who follow my blog about not including the WSET “Systematic Approach to Tasting Wine”.  I have never seen this system used by a wine writer in their media product (although some components are similar to UC Davis system). I am not sure it would/could be a commercially viable solution. I would appreciate any feedback on this, though. I am sure there are some that are using it in the background and converting it to the more common scoring systems (WSET Graduates your thoughts?)


A ” Wine Judge Certification Program”

This year I had an interesting experience with a wine judge training/certification program (Wine Judge Certification Program – WJCP) run by the American Wine Society (AWS). There are very few programs like this, specifically certifying wine judges in the U.S.

This program introduced me to a whole new subset in the wine continuum: amateur winemakers, native grape species and fruit wines. It became very clear to me quickly, AWS has a significant piece of their membership focused on this area. In fact, they have changed the UC Davis scoring system to make it more internally friendly to these wines. I also found out, there are many wine competitions across the Eastern half of the U.S. specifically focused on these type of wines. Who knew!!

Full Disclosure: This focus seemed quite odd and I could never get my head around it. I did make the decision to stop investing in these classes and have since exited the program.

I had never seen a bottle of anything in this category, before these classes. My closest familiarity was the Mogen David Concord wine my parents drank over ice occasionally. Who knew there was a whole wine culture that focused on this type of wine. I still remember the worst hangover of my life from drinking 3 bottles of Annie Green Springs when I was a teenager. I suppose someone has to evaluate these wines, but using the same scoring system to evaluate an aged Napa Cabernet Sauvignon is nothing but tragic. What happened to the idea that wine and local cuisine is a match made in heaven? Certainly, not with these wines.

The Jumble and Ambiguity of Wine Scoring

If it hasn’t become clear yet, there is an enormous amount of confusion surrounding these scoring systems. So, how can we use them to choose wines to match our tastes? Personally, I ignore the 20 pt. and Medal Systems completely and I take the 100 pt. System scores with a grain of salt… unless I am familiar with the judges palate. For example, I have a pretty good idea of what these wine writers/judges rate highly: Parker, Suckling, Galloni and Tanzer. I can make a reasonable guess at quality from 100 pt. system scores generated by these wine writers.

So, what do you do? Well, if you are a fine wine drinker, I would surely ignore the 20 pt. and medal systems. From there, it is all homework. Get to know what your favorite wine writers tend to score highly, learn their palate a bit and use their scores to make your choices!

P.S.

If I could develop my own scoring system for the wines I drink, it would be a version of a 100 pt. system and look something like this:

  • 5 Points for First Impression or Color
  • 15 Points for Acidity
  • 10 Points for Tannin and its Texture/Mouth-Feel
  • 15 Points for Aroma or Bouquet
  • 10 Points for Flavor
  • 10 Points for Finish
  • 15 Points for Balance
  • 10 Points for Complexity (mid-palate & layered flavors)
  • 10 Points for Aging Potential

A red wine theoretically could have a perfect score of 100. White/rose wine with no tannin would have 90 as a perfect score. Without balance, complexity and aging potential, 35 points are lost! With this type of system you could easily get the point swing needed to separate amateur wines from bottle-aged fine wines.

Many of these components are too subjective to make it onto a judges sheet at an amateur wine competition. The focus there has to be on the basics: no faults, or objectionable components. How many people get to formally judge better wines anyway? Only a lucky few…

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The Future of Wine Marketing?

Premium Branding and Targeted Marketing

Market Research

I try to spend time occasionally researching wine consumption and how those trends affect the industry. Along that line, a couple of media items came to my attention this week. This article published by Beverage Dynamics on current wine trends at – https://bit.ly/2JZ1cjp and the NPR Radio program regarding the history of Grey Goose brand Vodka and Jagermeister brand liqueur at – https://n.pr/2Fk3ZEg. Take a look for some background, or just follow along below. I will do my best to take you through the impressions this left with me that caused my view of wine marketing to veer in a very different direction.

2017 Wine Trends

This Beverage Dynamics piece lists:  the largest selling wine labels in U.S. by volume, their growth in the last year and the fastest growing labels coming up. So, I am reading through this piece and it occurs to me – with over a 600 bottle personal cellar, I don’t have one bottle of any of the labels mentioned. Not one! Why is that? I am sure some of these are decent daily-drinking wine. Not everything in our cellar is expensive wine. Why hadn’t I found one of these as a daily-drinker for my enjoyment? Had me thinking. Then I listened to this radio program…

Guerrilla Marketing & Beverage Industry

It appears Sidney Franks (of Grey Goose Vodka fame) was the original mastermind behind the concept of “guerrilla marketing” in the premium beverage business. Relative to the Jagermeister brand, he took a product enjoyed in the USA by old German guys, and gave it a new hip, young and fresh make-over. This very successful re-branding effort was accomplished by sending out young, trendy brand ambassadors to college bars to promote the product face-to-face. Wow! Grass-roots demand generation from the ground up! It is hard to believe such a simple idea built a brand in U.S. with over $500M+ in revenue.

Wine Marketing

Hang in there with me… So, I am thinking about the wine labels from the Beverage Dynamics piece and I realize, I can’t remember a single piece of advertising regarding these brands! Broadly distributed, high-volume labels don’t register on my radar. Not because I am a snob, just because these wines tend to be homogenized. All much alike – very drinkable, but without much character. I tend to tune out products that I don’t believe will be of interest… there it is: “will be of interest”. How does my brain decide what wine information should be filtered out? Even more interesting, what would it take to grab and hold my interest? Fodder for another piece down the road…

Wine Collectors

It took me over ten years to find a group of guys that collect classic premium wines in the Phoenix Metro area. It always struck me, why was that so difficult? What organization in the wine industry identifies the individual market segments and brings like-minded consumers together? I was thinking at least one producer would attempt to do this to promote their product and build demand. Nope. Nada. Nothing. How is that possible? I did find an organization a couple of years ago that I thought might be the answer: the American Wine Society, or AWS (http://www.americanwinesociety.org/). It didn’t work out at the time. The chapters in my area were focused on typical, easy drinking, lower price wines. After some investigation, I just lost interest. Then recently I ran into Jay Bileti (an officer at AWS) and he “listened”. The net result was gleaning out of the current membership a few folks whose interests leaned in this direction. Voila!, we had a wine collector’s tasting group. The point is: where is the industry involvement? It is becoming increasingly clear as the baby-boomer generation ages, marketing must become more focused, target specific price categories and connect with consumer interests. Implementing a little of that “Guerrilla” thinking and investing in filling this gap would have a huge impact on label/brand awareness. Add a few smart folks to the mix and you would have the next great Sidney Franks-like story in the wine business!

Wineries & Marketing Investment

The first simple idea would be for wine producers/marketing reps to reach out to consumer organizations like AWS. No, not the way it is done now, but to invest in surveying wine enthusiasts to identify consumer market segments, categorize interests, separate price categories, build palate profiles and associated taste models. THEN, provide services to connect individuals. The best marketing ideas build a COMMUNITY! This is where brand loyalty begins. Right now, none are willing to invest this way, because there is no vision for how to monetize it. This has to be the future for premium brand wine marketing as Boomers age. Just holding local wine tastings and wine dinners is not the full answer. I wonder, what would it take for a few producers to embrace this idea?

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