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Hubris + Wine = Distribution

MobrestaurantcartoonleftGenerallyspeaking, I’ve stayed away from too much discussion of wine shipping,distribution and the shake-up that is  changing the wine industry.

I’mnot very qualified to speak with authority and, most importantly, otherpeople do it with far greater insight and experience then I do. Tom at Fermentation and a Wine ShippingCompliance Blog come to mind.

But,that doesn’t mean I can’t call a spade a spade.

And,to that end, I read a blurb in the July issue of Wine Business Monthly, a trademagazine in the mode of Variety magazine, for, say, entertainment, and itmentioned a merger of two distributors—Republic Beverage Company and NationalDistributing Company.

Neitherof these companies operate in my state, so overall I have no visibility totheir business, but the jist of the brief article was the merger of the 4thand 5th largest distributors nationally and it went on to mentionthe remaining distributors on the “chessboard” (their word, not mine) SouthernWine & Spirits, Charmer, Peerless, Young’s Market and Wirtz.

Thisis all interesting enough … but the reason I bring this up is a quote from anunnamed distributor source that really rankled me. He says:

“Myrecommendation to wineries is keep your head down and focus on brandbuilding. If you do that, you’ll alwaysbe wanted.”

Theimplication here that wasn’t fleshed out in the article was that continuedconsolidation amongst distributors would continue to crimp the ability for smallto medium producer’s to get their product on retail shelves.

Oh-man-oh-man.

Whereto begin?

“Keepyour head down?”

“Focuson brand building?”

Isthis some gangster-like reference to being seen, but not heard?

First,it sounds extremely condescending and second the comment, in general, belies alevel of insular cluelessness that can only occur when people that are ina position of power abuse that authority, or worse, can’t pull their head outof the spreadsheet to realize that all business is transacted through and withother people. Or, they do not realizethat their power is slowly being usurped.

I work in the channel in the technology industry and watching this is really curious because manufacturers in the technology space are really the tail that wags the dog and distributors work exceedingly hard to add value--in order to not be wagged, so to speak.   Here, the exact opposite  seems to take place.

In short, Iwill say that any brand building exercise has to start with an excellentproduct and secondarily has to have a route(s) to market. Only when a product is available toconsumers who transfer their consuming identity to the product is a brandborn. It’s not made at a marketingagency, or a winery for that matter.

Buildit and they will come works in some industries, but out of the gate brandbuilding in wine works as often as a winning lottery ticket.

 There is no magic bullet and brand building, in myestimation, has to occur with a partner that is interested in building apartnership. The distributor that onlywants to be a pass through mechanism while controlling retail slotting will beoutflanked in the next 10 years as alternate routes to market mature—notablywith changes in wine shipping laws.

“Keep your head down.” Sheesh.

credit for the graphic goes here.

 


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Appellation America Gets It …

Appamerica_logoI received word from communication folks representing Appellation America that their wine reviews will now be in a "recommendation" format that provides background and context to the wine they are discussing.  The email explained:

EACH WINE TELLS A STORY
“We believe that there is a compelling story in every good wine,” explains Appellation America Managing Editor Adam Dial. “Our writers seek to build their assessment around that story for enhanced and lasting consumer interest.”

Appellation America wine reviews are not carried out by collective panelists, but by individual, experienced wine writers, whom readers can judge separately and determine if they are the reviewer for them and their tastes. This personal, rather than panelist, approach to reviewing and recommending wine is designed to bring transparency to the wine review process.

CONTEXT AND TERROIR TRUMP SCORES AND RATINGS
“Appellation America’s wine reviews are designed to go beyond the brief description + cryptic score approach often carried out anonymously,” says Dial. “We live in an age of consumer access combined with transparency and believe wine reviews should be brought into this new world.”

Let me be one of the first to offer up a hearty and congratulatory, "BRAVO!" 

This is absolutely spot-on.  These guys seem to get it.

And, on some level I feel a sense of validation because I’ve written an entire business plan that called for wine retail around this very concept.  I took it a step further and called for wine stocking not by varietal, but by winery with extensive point-of-purchase materials that  explained the story of the winery via a narrative controlled at retail and not by the distributor or winery.  And, in my plan, I was planning on doing this all within the framework of a strong retail branding effort to maintain consistency on look and feel.

Alas, the plan remains just a plan, but AA’s approach, in my opinion, is market timing that should offer a compelling point of interest for consumers.

Consider that:

1)  Blog posts are proliferating at an exponential rate with a velocity so intense that measurement is very difficult ... and ... blogs are mostly written in the first person narrative style ... i.e. ... conversational--a story from one person to another.  And, in fact, many notable bloggers write wine reviews in this manner--Alder at Vinography notable as one example.  I noted as much in a recent post that can be found here and I took my own crack at it here.

2)   Word of Mouth or "viral" is the new way to market, and in the absence of that, tell a story in a genuine, trusted way ... or, as Appellation America says, in a "transparent" fashion.

3)  People buy wine either based on recall or at the point of sale  and anything that can increase recall will aid sales

4)  Wine ratings haven’t evolved in any meaningful way in at least 20 years.

The one thing they are missing, though, is some sort of metrics on the actual mechanics of theProjectmanagement1en
wine--legs, nose, body, clarity, etc.  Because they are focused on appellations, it can be assumed that their audience is savvy, or at the least they’re not dumbing down to their audience, so a visual using some sort of dashboarding graphic might be appreciated and interesting.  Though, I plan on doing this on v2 of the Good Grape web site, so perhaps I can offer it up as an idea ... I’ve been meaning to inquire about that Ohio River Valley appellation assignment for AA.

Long story short, congrats to these guys because they are doing an exceptional job at delivering either one of two things:  1)  What the public wants or 2)  What I think is a good idea. 

The former will pay their bills a lot better than the latter, though. 

Continued best wishes on successful growth to Appellation America.


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The American Vine-Dresser’s Guide

Vintage_bottle At the beginning of Chapter II, Dufour wraps up his chapter I narrative that detailed his travels in the states and review of vines and winemaking operations--all of them had largely met with failure.  Chapter II begins with his review of his failed operation in Kentucky, before moving to Indiana to again try to create a grape-growing and winemaking operation. 

The American Vine-Dresser’s Guide
John James Dufour
Pages 22-25

Chapter II

Divers attempts at vineyards in the United States, viz.--at Monticello--Spring Mill near Phila­delphia--at Carol Manor near Baltimore—near the Susquehannah, in the vicinity of Middletown -Fate of them all with the exceptions--.Cape grapes,the only one reared near Vevay; prejudice against those grapes, and description—Coarse grapes and bad apples often make the best Wine or Cider—Spirituous quality of Wine—Sexes of Vine--Wild being of the Dioeciae family and the Tame Hermaphrodite of the Potendria Monogenia family of Lineus.--Wild American vines, found also in Europe—Description of the blossoms of both sorts—Burgundy grapes plant­ed at the Cape of Good Hope, underwent a great change—Expectation of an amelioration of our climate--Obstacles met by the first vine-dressers in Indiana—Home-made wine, will in time stop the distillation of grain.—Vineyard Association at Philadelphia—New Mexico vineyards—Madeira grapes.

The various attempts at vineyards that I heard of, which I went to see, at Monticello, President Jefferson’s place; which, in 1799, I perceived had been abandoned, or left without any care for three or four years before which pro­ved evidently, that it had not been profitable: At Spring Mill, on the Schuylkill, near Philadel­phia, planted by Mr. Legaux, a French gentleman, and afterwards supported by a wealthy Society formed by subscription, at that City, for the express purpose of trying to extend the cul­ture of the grape. I saw that Vineyard in 1796, 1799 and 1808.

On the estate of Mr.Caroll, of Carollton, below Baltimore, in Maryland; whither I went on purpose from Philadel­phia in 1796, there was a small vineyard kept by a French vinedresser, and where they had tried a few sorts of the indigenous grapes.

At the Southern Liberties of Philadelphia, I saw in 1806, a plantation of a large assortment of the best species of French grapes which a French vinedresser had brought over the Atlan­tic. They were at their 2nd or 3d years: they had not been attacked by the sickness: their nursery was yet full of hope.—In 1796, I saw also, near the Susquehannah river, not far from Middletown, a vineyard that had- been planted by a German; but who having died some time before, the vineyard had been wholly neglected. I. was told, it had produced some wine but it had suffered so much dilapidation, that I could not recognize the species of grapes.  And at last the trial we made in Kentucky, in 1799, under the auspices of an Association made similar, and for the same purpose as that of Philadelphia, before stated, with 35 different species of best grapes, procured from different parts of the world, but principally from the gardens of New York and Philadelphia. 

M. Legaux’s vineyard, and a nursery lately established near Baltimore by Mr. Kewster; all shared the same fate; being destroyed by the sickness above spoken of except about one hundred plants that I got from the few that were prosperous at Spring mill vineyard, that we have called Cape grapes, because Mr. Legaux certified having received them from the Cape of Good Hope, and with which we the Swissers have made our subse­quent and prosperous plantation near Vevay, on the borders of the Ohio, in Switzerland County, State of Indiana, and which must have now spread much through the country: for we have sent, and have to send abroad a great quantity of the scions every year.

I have drank some good wine made from these Cape grapes, near Glasgow, in the barrens of Kentucky: and I have no doubt but the same grape is the one which succeeds best with the Harmonites, near the Wabash in the State of Indiana: and I doubt if any other sort will do well with the French at Demopolis, in the State of Alabama; but they will meet with the same fate as all those I have yet seen on any other. As no things in this world,—be it good and useful as it may—but has met with enemies when first introduced: The cape grape has been slander­ed and cryed down to a mere wild grape. It is true, that it is a very coarse grape, unfit for table use, for those who have eaten the best sort in Europe, or who can get a better one. It has a very thick skin and pulp, but the juice is very sweet, when perfectly ripe and has the taste of the strawberry, which gives a fine perfume to the wine; such as made the President Jefferson say, that there was no other such tasted wine within his knowledge in the world.---It requires, about twelve pounds of grapes to produce a gallon of clear wine, they are similar, as to roughness and thickness of skin, with the grapes from which wine is made in the warm countries of Europe, where they distinguish the fruit by the respective appellations of wine grapes, and table grapes; the former being commonly too coarse to be pleasing at a dessert, and the other …


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Wine Sediments

Wellfed5_8I have an off-beat post on the Wine Sediments portion of the Well Fed Network today.  When I sat down to write it I had a cup of coffee and nary a notion of what was going to come out--part of the fun is I usually have an idea of what I’m going to write, but I never outline it.  My editor, I’m sure, loves this because I usually submit a draft that is somewhere in between version 1 and version 1.5 when in fact, version 3 is probably decent enough to publish. 

Tongue firmly in cheek, I wrote a column on remainly appropriately unapproachable at wine tasting parties--the parties are a phenomenon that is attracting the likes of Mr. & Mrs. Joe Average.  Which, really, leads me to the notion that maybe I am a bit of a wine snob.  Eek. 

You can find the post here.

In related news to the wine tasting parties, I’ve been in house cleaning mode in order to get myDrinking_smoking_screwing_1 bachelor pad ready to sell so my wife and I can move to a house a little more accomodating the development of a family.  Interestingly, I found a book that I had forgotten about called, "Drinking, Smoking, Screwing."

It offers short stories and essays from notable writers on the vices in our life.  And, Art Buchwald wrote a short and funny essay in 1954 on having wine at a dinner party.  With full attribution to Mr. Buchwald, I’m appending the entire, short essay below. 

                                  Some Heady Phrases on Wine

Art Buchwald

1954

The problem of besting your friends atwine talk becomes increasingly difficult. It isnt enough to drinkwines—you must be able to talkabout them, if not intelligently, at leastat length. Alexis Lichine, who wrote a book called “Wines of France,"and who is up to his neck in the wine, has given us some provocative phrases that can be used at thedinner table, either in your own home or as a guest in the home of a friend.

If youre serving wine in your own home Mr.Lichine advises you to be very modest. When the bottle is put on table, apologize to your guests. "Illhave to beg your pardon," you might say, "but this isa small, red wine, inconsequential, withhardly any character." If your guests contradict you, startbuilding slowly. After tasting it, remark to some one, "Inspite of everything, I do believe some breed,even if it hasnt hit its pinnacle." If no takes the bait, go a peg higher. "Youknow something, I believe this wine is declaring itself. Why yes, it certainlyis. It does have manifestations of greatness at.” By this time, if your remarks still go unheeded, let out all stops. "The French consider this wine as one of most magnificent sovereigns. Theylaughingly call it the Napoleon of Burgundies. Its a pity it has to be wasted h clods."

Drinking wine in some one else’s homeis a much easier problem The host is alwayslooking for compliments and if yourenot careful, some of the sillier people at the table may start giving them.

The thing to remember is always bepolite. After tasting the wine a comment like this might be used, "Yes, itdoes have a pleasingshimmer. Isnt it too bad the nose doesnt live up to thecolor for it could have been a big, stout boy." Dontlet up just because youve won the first engagement. You couldcontinue by saying, "How sad it didnt come fromnoble soil, because Im sure it might have taken on a prestige ofits own. Yes, I’ve seen it hap-pen, time and time again, with underprivilegedwines." Or ifyou wish, "Its provocative, Im sure, but Iwouldnt dareput it up against a Haut Brion." Or, "What adelightful name. It almost tastes domestic in flavor."

When speaking of vintages, never referto a wine as 1935 or 1936.Always drop the nineteen and refer to them as thirty-fours, thirty-fives, thirty-nines, etc. Learn the names of afew rare wines and throw them around as much as you can. If you can associatethem with a good Frenchrestaurant, it always helps. For example, never say, "I like a Margaux." Itsmuch better to reminisce, "I remember a Margaux I once had atthe Grand Vefour in forty-six. What a noble lunch that was."

Never refer to "wine, woman andsong" in front of connoisseurs. Next to wine, the other two are soinferior they should not be mentioned in the same breath.

It may be useful when talking aboutwine to know that Bordeaux comes in slim bottles and Burgundy in squat ones.This always impresses.

When ordering wines in restaurants, study the card for a long time evenif you don’t understand what you’re reading. Cluck occasionally, and then turn to the som­melier and ask himto advise you on what to order. Never accept his first suggestion. He istesting you, and you dont want to lose face.

Always carry a vintage chart with you.If youre not sure of the best wine years, take the wine card to thewashroom and check it against your vintage chart.

When drinkingchampagne, always make a remark about the bubbles. You can either take the sidethat you like the bubbles, or that youre against them. Our favoriteline on this subject is, "I like champagne—because it always tastes like my foot’sasleep."

What is really interesting to me is the fact that this was written over 50 years ago.  Truly, the more things change, the more they stay the same.


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Tell Me What You Drink …

Brillat-Savarin noted French gourmand said, "Tell me what you eat, and I will tell you what you are."

Ahem.  I bought one of those Wine Enthusiast corkboard thing’s where you glue in your corks and then use it as a trivet or a corkboard--it now holds 108 of the past 175 bottles or so I’ve drunk. 

Freakishly, I’ve probably saved corks to 90% of the bottles that I’ve participated in drinking.  You can even notice in the upper left hand corner of the photo the initials "NSPI" from a customer dinner I had at Ruth’s Chris in Vegas a couple of years ago. That dinner is, in and of itself a whole ‘nother story.  I mean, honestly, if you’re in a city like Vegas staying at the The Venetian, why would you drive off strip to go to Ruth’s Chris Steakhouse?  I wasn’t in charge, otherwise we would have been eating at the Thomas Keller restaurant Bouchon.

Despite my good taste in food, what does the wine corkboard say about me and wine?

It says I drink a lot of inexpensive wine. 

Wine_corkboard


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