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Does Consolidation Put a Pinch on Consumers? Pt. I of II

An article in last week’s San Francisco Chronicle raises a couple of good questions--particularly related to the consolidation of wineries and distributors:

Richard Peterson was an enologist at historic Beaulieu Vineyard in 1969 when it was bought by the Connecticut spirits company Heublein Corp., which also owned food brands such as Grey Poupon mustard. Peterson says then-Heublein executive Andy Beckstoffer  --  now one of the largest vineyard owners in Northern California  --  tried to persuade Peterson to use Thompson seedless grapes, cheap grapes meant for eating, rather than pricier wine grapes in BV’s sparkling wine. 

"Heublein never caught on," Peterson says. "The big wine companies today, they’re all very sharp."

Peterson and many others say inexpensive wines today are more consistently palatable than ever, and the wine savvy of the industry’s leading corporations has much to do with it.

One point that the article misses is that the guys in the 1970s that were doing the consolidating aren’t really the players as today (except maybe Gallo), so the times have changed and so have the names.  And, really the brands and wineries that are being bought might not have been around in the 70s--creating an economic cycle that might actually be good for smaller wineries to grow.


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What the Hell is Good Grape?

Wine Most every mainstream wine writer, magazine, website or other media outlet seeks to demystify wine. 

And, at the same time, we know that Generation X & Y are adopting wine as a part of their lifestyle.

Regional wineries are proliferating at an exponential rate and so called "Adventure" wines  http://www.msnbc.msn.com/id/9633031/site/newsweek/   are flying off the shelves.

Stop into any regional winery on a Saturday and you will find a packed parking lot and a tasting room with throngs of people under the age of 40--most under the age of 35, and many still in their 20s. 

Based on research at Wine Market Council:

This report will show that Generation X adults, now mostly in their 30s, are finally taking to wine in significant numbers. Moreover, the Millennial generation, now entering young adulthood, is exhibiting the same receptivity to wine that leading edge Baby Boomers did more than 30 years ago. Like the Baby Boom generation, their numbers are so great as to make their dominance in the market inevitable, and they offer the wine industry the kind of growth potential not seen in more than thirty years.

We know that people are quaffing simple, fruit-forward wines.

So, what’s to demystify?  Not much. Like most things related to the Internet and a younger generation the rules have changed and the old guard is clinging to a model of business that is no longer valid for young coveted consumers. This blog is dedicated to wine for people that like wine, but not necessarily the conventions of the current wine industry. 


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Good Grape Commandments

The Good Grape Commandments

10) Wine is regional& historical

9) Pity the winesnob

8) Taste isrelative

7) Quality is notproportional to price

6) 100 pointrating systems are subjective

5) Enjoyment oflife & wine is a function of time, place and company

4) Every wine andwinery hasa story

3) If you can’tgo to the winery, let the winery come to you

2) Life is measured by experiences

1) Drink. Taste. Celebrate the Good Grape!


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