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Category: Wine Economics

Repackaged, Repriced: Trickster Branding in the 21st Century

Repackaged, Repriced: Trickster Branding in the 21st Century

In the February edition of Wine Business Monthly, Kevin O’Brien penned a noteworthy article filled with curious nooks and crannies. Good news! Wine sales continue to grow, especially in the $10-$25 category. Sales of $6-$10 wines have meanwhile declined. This has resulted in the “premiumization” of the wine business. Even better, wine drinkers are lusting for honest wines. “. . . consumers are continuing to demand premium products across all beverage alcohol categories as they seek an authentic, high-quality experience.” Of course, corporate…

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The Sandbox

The Sandbox

“He walked in, pulled out a roll of hundreds, and flipped me two,” gnarled the no-nonsense owner of a boutique wine shop. He had been paid by the largest distributor in the state for bringing in ten cases of wine. This is illegal. In his case, a customer requested the cases for a special event—he had no intention of stacking* them in his store. In fact, he thought the wine was shit. He also didn’t know he’d get the payout. From the perspective of…

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Tar, Barnyard, White Pepper, Compost

Tar, Barnyard, White Pepper, Compost

What makes expensive wine so expensive? I get this question more than almost any other. And it is a great question. Many layers weave together to create a wine’s price tag (Wine Economics Part I, Part II, and Part III only scratch the surface). However, a remarkable reality persists—the large majority of wine drinkers don’t particularly enjoy drinking expensive wines, especially the exalted wines of the Old World*. Blind tastings of regular folks have consistently shown no correlation, or even a negative correlation, between the…

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A Romantic Ideal Must Tumble

A Romantic Ideal Must Tumble

I recently read an excellent article on “White Label wines” by Madeline Puckette and Co. over at Wine Folly. Except for one glaring bullet-point: “Some wineries with tasting rooms will make a few own-vineyard wines, but will use bulk wine sources to make their cheaper, lower-end affordable bottlings. We’d ask what’s the point of selling something you pre-bought, rather than making at the winery? But it happens…” It certainly does. Frequently. And understandably so. First, what is bulk wine? Many established wineries…

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The Tiers Produce Tears: Tear it Down

The Tiers Produce Tears: Tear it Down

I recently returned from a marketing trip with my employer, a small Willamette Valley producer of Pinot Noir and Chardonnay. As we explored the Minnesota market, meeting with local wine shops, three separate owners asked pointedly, “Will you be in Total Wine? If so, we won’t carry you.” Early in 2014, Total Wine & More entered Minnesota, grabbed hold, and shook it like a martini. A few locally-owned shops have closed, including the beloved Four Firkins. While appreciated by many buyers for their substantial selection and…

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Focus on Fruit

Focus on Fruit

There are no short cuts. As a new “insider” to the wine trade, I walk the hallowed halls with antennas tuned for insight. For one, I hope to uncover the vineyard gems that supply the best value Pinot Noirs in the valley. I, like many of you, spend most of my nights sipping wines in the $10-$20 price range. The Willamette Valley, however, only seems to deliver $20-$60 Pinot. How can we reconcile this dilemma? Nearly half of Oregon producers purchase…

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Price Matters: Important Words from Giorgia Casadio

Price Matters: Important Words from Giorgia Casadio

“You must know the price. Ask! You are professionals!” Giorgia Casadio began to preach her gospel. Too many wine professionals had come to her table, tasted her wine, and failed to inquire about the price of each bottle. A group of Wine Bloggers Conference attendees shifted, alert on the chairs and bed corners of a fellow blogger’s hotel room. “I recently tasted a Cabernet in Napa Valley. It cost $140 a bottle. In Italy, it’s understood that it’s easy to make excellent wine when…

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Unscientific Reflections from a Millennial Wine Writer

Unscientific Reflections from a Millennial Wine Writer

As a wine writer, reader, and consumer, I hear a lot about the significance of the Millennial Generation on both the current and future wine trade. Millennials in the United States have taken to wine at a younger age than previous generations–my personal experience concurs. Projections suggest we, Millennials, will continue to play a substantial role in the evolving wine world. Therefore, I posit a few reflections as a Millennial wine enthusiast and writer. I was born in 1984, placing…

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Wine Economics Part III: Reputation

Wine Economics Part III: Reputation

“What’s in a name? That which we call a rose by any other name would smell as sweet.” The Bard strikes to the heart again. In many ways, the first two posts on Wine Economics (Part I and Part II) danced around the importance of reputation. Today, we will hit the nail squarely on the head. Haut-Brion, Romanee-Conti, Screaming Eagle (can you tell which winery is in the United States?), Margaux. Want a taste? Go take out a loan first….

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Wine Economics Part I: The Land

Wine Economics Part I: The Land

Why can I buy a solid, terroir-nuanced Cabernet Sauvignon from Washington for $18, while I can’t buy an equally alluring Pinot Noir from neighboring Oregon for under $30? Why the huge variety and volume of respectable Languedoc-Roussillon red blends (France) for under $15, while I can’t buy equally unadulterated* cabernet sauvignons for that price from California? These two scenarios only hint at the tip of the economic iceberg when it comes to wine. The price tag at our local wine shop…

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