Quantcast

Category Archives: Wine trends

Terroir as a brand, and not as something that makes wine taste good

winetrends

terroir as a brandDoes terroir — the idea that the place where a wine is from makes it taste a certain way and helps determine its quality — exist? This question has generated reams of cyber-ink over the past five or six years, pitting those of us who think terroir matters against those who think we’re bunch of old farts and that technology has made terroir obsolete (if it ever mattered at all).

Now, the second group has an unlikely ally, a French academic who claims terroir is a myth, and that what the wine tastes like doesn’t matter to its success in the marketplace. Rather, says Valéry Michaux, director of research at NEOMA Business School in Rouen, the “best” wines have more to do with their brand and how well producers in the same area work together to market that brand.

In one respect, this is not new. Paul Lukacs, one of the smartest people I know, has argued that terroir is a French marketing ploy dating to the 1920s. What’s different about Michaux’s approach is that it claims that a wine’s brand is more important than terroir, which is about as 21st century, post-modern, and American business an approach as possible. Especially for the French.

Michaux’s theory says that the soil and climate in Bordeaux doesn’t make Bordeaux wine great; rather, it’s the producers in Bordeaux agreeing on what the wine should taste like and presenting a common front to the world. She cites the cluster effect, seen in both sociology and economics, where disparate parts of a whole come together for a common purpose. “The presence of a strategic alliance between professionals contributes significantly to the development of a single territorial umbrella brand and thus its influence,” she writes. “A strong local self-governance is also essential for a territorial brand to exist.”

It’s like saying no one reads what I write here because it’s well-written, offers quality content, or is even especially true. Instead, they like the idea of the Wine Curmudgeon, be it my hat, my attitude, or my writing style, and I should promote the latter to be successful

Michaux’s analysis is both correct and completely off the mark, because she misses the point of terroir. Of course, terroir can be a brand. Look at what Big Wine has done with $10 pinot noir, which doesn’t often taste like pinot noir but is successfully marketed as such, or the idea of grocery store California merlot, made to be smooth and fruity and not particularly merlot-like. But the difference between cheap wine and cheap wine I recommend, the quality that makes the best cheap wine interesting, is often terroir, the traditional idea of the sense of place where the wine is from.

But to argue that Bordeaux or Burgundy or Napa makes great wine because the producers agreed to make a certain style of wine and to market it with a common approach is silly. For one thing, my dogs know more about marketing than most wineries do. But what matters more is quality, because the best wines from Bordeaux are incredible in a way that has nothing to do with a strategic alliance but with where the grapes are grown, how the grapes are turned into wine, and the region’s history and tradition. Why does cabernet sauvignon from Napa not taste like cabernet from Bordeaux? Terroir is a much better explanation than a cluster effect.

Why grocery stores love wine

winetrends

grocery store wine salesBecause they sell so much of it — and a lot more than most of us realize. Hence the reason for the Great Wall of Wine.

Wine was the seventh biggest category by dollar amount for supermarkets in the 52 weeks ending June 15, recording $6.9 billion in sales. That’s up 3.7 percent from the same period a year ago, and works out to an average of $9.27 a bottle. The figures come from a study by the IRI marketing consultancy and published in the Supermarket News trade magazine.

How impressive are those numbers?

• They don’t include wine sales in New York or Pennsylvania, two huge markets that don’t allow supermarkets to sell wine. Yet, even without those two states, grocers account for about 20 percent of U.S. wine sales.

• They don’t include wine sales at Target, Walmart, and Costco. Throw those in, and that 20 percent total should increase by more than a few points.

• Wine was bigger than a host of established items, including cereal, coffee, bottled water, cookies, and soup. Some of that was because wine is more expensive; we bought three times more cans of soup than bottles of wine. Even so, it’s an impressive total, given the restrictions on wine sales. In Texas, for example, we can buy soup as long as the store is open, but we can’t buy wine on Sunday until noon.

• Wine’s growth was bigger than soft drinks, which lost 3.9 percent, as well as cereal (down 4.3 percent), ice cream (down 0.3 percent), frozen pizza (unchanged), and toilet paper (-0.2 percent). I can’t even pretend to make sense of that. Since when did we need wine more than toilet paper?

These numbers, more than anything else, explain why there is so much opposition to supermarket wine sales in the 19 states where it’s still prohibited. We’re not buying jug wine at the grocery store. That $9 average price means we’re buying many of the same wines we’d buy at wine shops and liquor stores, and small retailers don’t want the competition.

The irony is that, as has been noted on the blog, small retailers may prosper competing with grocers, since they offer something supermarkets can’t — someone to answer questions. The Great Wall of Wine has nothing to do with service.

Photo courtesy of Houston Press food blog, using a Creative Commons license

Why wineries change their label design

winetrends

wine label designMostly, because they can. That’s one of the conclusions of an article I wrote for the Beverage Media trade magazine, trying to figure out why so many producers seem to be changing the look and design of their labels. Because, given the changes in the wine business, with more and bigger companies controlling more brands, it’s going to happen more often.

Or, as one retailer told me: “Sometimes I wonder why they need to fix something that isn’t broken.”

And, though the article was written for retailers, it has lessons for consumers as well. Ever go into a store, look for your favorite wine in its regular place with its regular label, and not see it? Chances are it’s still there; it just has a different label. Don’t laugh. Retailers told me this happens all the time.

So what’s going on with all the re-labeling?

• It’s difficult to get a firm grasp on how often this happens. Brands that have changed labels over the past several years include Blackstone, Columbia Crest, La Vieille Ferme, Jacobs Creek, Columbia Winery, Cuvaison, Hahn, Parducci, and Langhe Twins.

• Producers, facing a need to make their product stand out among what may be 15,000 different wines in the U.S., are more willing to change the label than ever before. In addition, they know more about this kind of marketing, and will spend the money to do it where they may have been reluctant before.

• Consumers aren’t always the primary target for label changes. Producers sometimes do it to impress distributors and retailers, to reassure them that they care about the brand and will put marketing dollars behind it. This is completely different from every other consumer packaged good, and we have the three-tier system to thank for it.

• Most label changes aren’t complete makeovers, although that seems to be happening more often. Usually, the changes are tweaks to reinforce the brand’s image, and are only noticeable over time.

• Once-popular wines that aren’t anymore are the most likely to get a new label. Also, producers aren’t shy about changing labels on popular brands, if they see a chance to keep the current audience, which may be older, and attract a new, younger one.

Powered by WordPress | Designed by: suv | Thanks to toyota suv, infiniti suv and lexus suv