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Category Archives: Wine trends

Liquor delivery apps: Are they the future?

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Liquor delivery appsLiquor delivery apps, which allow you to order wine, beer, or spirits on your phone the same way you order a car from Uber, are supposed to be the next big thing in the liquor business. You’ll be able to get whatever you want, whenever you want, and without stepping foot into a retailer. How can anyone not think that will turn into the next Internet, mega-billion dollar success story?

Which is why the Wine Curmudgeon is here, because anything that sounds that good has to have a catch or two, right? And especially if it deals with liquor delivery and the three-tier system, which regulates how liquor is sold in the U.S. My story in the current issue of the Beverage Media trade magazine talks about what retailers need to know if they want to work with the apps, much of which consumers need to know as well.

In addition, I tried one of the apps in Dallas, with mixed results. The highlights of the story, plus my research, are after the jump:

Wine, ingredient labels, and what’s next

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Wine ingredient labels

“I not, I not, I not want ingredient labels.”

More news last week that the food business is embracing ingredient transparency, and this included grocery stores — hardly the most progressive part of the food business. So why is wine still so adamant in opposing wine ingredient labels?

Panera, the high-end sandwich chain, said it would eliminate a variety of artificial preservatives, flavors and colors, as well as different kinds of sweeteners, reported the New York Times. This followed news that Nestle, which has been on the wrong side of many of these discussions, would eliminate artificial flavorings and colors from Butterfinger, Baby Ruth, and Nesquik. Meanwhile, Simon Unwins, former chief marketing officer for British mega-grocer Tesco, said it was time for his business “to be seen as leading the fight for less processed foods, on behalf of their customers.” And the woman at the deli counter at my local Kroger spent a couple of minutes telling me how the chain was eliminating fillers in its private label sandwich meat.

Said an expert quoted in the Times story: “To me, this has gone way beyond anything that could even be remotely considered a fad and become a powerful trend.”

Unless, of course, you’re in the wine business. Then you hold your breath, stomp your feet, and pound the table, shouting, “No, no, no, no!” when you do take a breath.

Which doesn’t accomplish much. As the expert noted, ingredient transparency is here to stay, whether the wine business wants it or not. Over the next couple of years, Big Wine will add ingredients and nutrition facts to its wine, thanks to the new voluntary program, and reap the benefits. And, as the rest of the wine business holds out for reasons that no one who isn’t in the wine business understands, consumers will start to wonder if wine has something to hide. The industry squeezed through the arsenic scare, but only because the people doing the scaring were so dodgy. What happens when the next scare comes from a consumer watchdog like the Center for Science in the Public Interest or the federal Centers for Disease Control, hardly well disposed toward wine? Or even the FDA?

Good luck squeezing through then.

One final note: It is possible, despite industry protestations to the contrary, to include nutrition facts on a wine bottle without the world coming to an end. This link shows how Toad Hollow did it on its Risque sparkling wine, which needed nutritional information because it was less than seven percent alcohol. Amazing how easy that was, isn’t it?

Restaurant wine prices: A better way

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Restaurant wine pricesWhat better way to follow up this month’s very popular post about escalating restaurant wine prices than with a story about restaurants that charge reasonable prices and sell more wine — and make more money — in the process? That was the theme of my piece in the current issue of the Beverage Media trade magazine, where one restaurateur told me: “We want our customers to be able to have dinner for two with a glass of wine each for $35 a person.”

Revolutionary thinking in a world where glass of wine costs $10 and bottles are marked up four times their wholesale price, no?

The highlights of the article, as well as a few of my thoughts:

• The debate centers around volume vs. margin; that is, does the restaurant want to sell a lot of wine, or is its business model focused on the amount it makes per bottle? This margin approach, which has been the model most restaurants use, has given us the $10 glass. Not surprisingly, those who use it still see no reason to change.

• Yet an increasing number of restaurants see a better way. “There is sort of this infrequently spoken gripe from consumers: ‘Why are we paying these kinds of markups?’… [T]hey are going to be cynical about your wine program.” says Stan Frankenthaler, chief officer of food, beverage and strategic supply for CraftWorks, which operates about 200 restaurants under 11 brands, including Old Chicago and Rock Bottom. That someone at a chain said this speaks to the failure of the margin model, since chains have some of the worst and most marked-up wine lists.

• A better approach: Pricing tiers, like 4 times wholesale, 2½ times, and 2 times, based on quality and availability. If the wine is difficult to find, for instance, or offers exceptional value, we’re more likely to pay 4 times markup — and especially if we have legitimate, less expensive choices instead of grocery store wine masquerading as something else.

• This story includes advice from my pal Diane Teitelbaum, who died shortly after I interviewed her. “You can sell a $100 bottle once a day, or you can sell $20 bottles of wine all day and all night,” she told me. No wonder everyone misses her so much.

 

 

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