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Tag Archives: Big Wine

Winebits 379: Big Wine, diet soda, regional wine

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big wineBig and getting bigger: Wine sales in the U.S. were mostly flat last year, which makes the growth in E&J Gallo’s various brands. including Barefoot, all that much more impressive, reports Shanken News Daily. Total U.S. wine sales were 321.8 million cases in 2014, and 17 million of those were Barefoot — more than five percent of the total. Given the thousands of wine brands in the world, that one brand, and especially one that isn’t sold in many wine shops, accounts for that much wine is difficult to imagine. It speaks to Big Wine’s ability to put product on store shelves and to market it onces its there. It also illustrates the divide in the wine business between what we’re told we’re supposed to drink and what most of us do drink.

Is diet soda dead? Which matters to wine drinkers because the sales of diet Coke, Pepsi, and so forth appear to have started an irreversible slide, down 20 percent from their all-time high in 2009. The reasons are many, reports the Washington Post, but center on health, including the artificial nature of diet soda. So where will diet soda drinkers go next? It’s not soft drinks, which are also declining in sales, again for health reasons. The Wine Curmudgeon could offer wine as an alternative, pointing to the growth of Barefoot and what are considered wine’s heart health benefits. But that would mean the wine business is interested in attracting non-wine drinkers through education and outreach, something that we know isn’t true. Ah, missed opportunities.

The next Napa Valley: During my many years working with regional wine, the one thing that has always made me crazy is hearing someone from a U.S. region talk about how they wanted Texas or Colorado or Virginia (or wherever) to become the next Napa Valley. To which I always asked: Why do you need to do that? Why can’t you be the best Texas or Colorado or Virginia (or wherever)? Turns out I’m not the only who feels that way. Rob McMillan at Silicon Valley Bank writes that he sees the same thing all the time, and with California wine regions. “Do you really want to be like Napa?” he asks. The post is a little technical for consumers, but the point is well made. If you can’t make world-class cabernet sauvignon, why would you even think of being like Napa, let alone build a region behind that goal?

Winebits 378: Box wine, South African wine, nutrition labels

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box wineBring on the cartons: Box wine, since it’s too awkward for most store shelves and because consumers are confused about its quality, has been little more than a niche product in the U.S. But all that may be about to change with the news that E&J Gallo will sell a $20, 3-liter box called Vin Vault, which works out to $5 a bottle for something that will be the quality equivalent of $10 grocery store merlot. If Gallo — perhaps the best judge of consumer sentiment among Big Wine producers — figures the time is right for box wine, it probably is (witness the success of Barefoot and Apothic). Look for big-time promotions and price cutting for Vin Vault when it debuts next month, which should also spur price-cutting for Black Box and Bota Box, the brands that dominate the better-quality box wine market.

Whatever happened to Sebeka? The $10 brand all but disappeared in the U.S. after Gallo gave up on it a couple of years ago, realizing how difficult it was to sell South African wine in the U.S. The wine itself was OK, but as the Wine Curmudgeon has noted many times, South African wines have many problems in this country that don’t include quality. But Sebeka’s new owner figures the time is right to try again, though I have my doubts given this assessment from a Sebeka official: “We don’t know what will be the next big thing but hopefully it’s chenin blanc or pinotage. It just needs that one breakthrough that everyone writes about.” I don’t know what the next thing will be either, though I do know it won’t be pinotage or that anyone in the Winestream Media will figure it out. They’re still unsure about sweet red wine.

Ingredient labels: The recent arsenic scare is about more than contaminated wine; my take is that it’s just one part of the long battle over ingredient labels for wine. So the news last week — and before we found out we’d all been poisoned by cheap wine — that Big Wine producer Diageo would add calorie and nutritional information to its wine is worth mentioning. The company, whose brands include Chalone, Rosenblum, and Sterling, said it wants consumers to know what they’re drinking. In this, reports the Harpers trade magazine, Diageo is the first drinks company to offer the labels. Would that more producers, large and small, had that attitude.

Winebits 373: Big Wine, Treasury, direct shipping

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Big Wine How big is big? One of the most difficult concepts to get consumers to understand is that their wine probably isn’t made by who they think it is. As noted here, Big Wine controls a majority of the U.S. market, and Big Wine includes many companies most of us have never heard of. Case in point: Trinchero Family Estates, a 20-million case producer that wants to be a 30-million case producer. And how many of us have heard of Trinchero, a California company? It’s best known for Menage a Trois and Sutter Home, but those are only a fraction of Trinchero’s production and its three dozen brands. If Trinchero makes it to 30 million cases, it will be as big as the entire U.S. wine business was in 1965.

Now they’ve figured it out: Regular visitors may remember the Wine Curmudgeon’s attempt to cash in on Treasury Wine Estate’s financial woes, which — not surprisingly — failed. One reason, aside from my lack of financial acumen, is that the people running Treasury were a little confused about how to sell cheap wine. Luckily for the company, that seems to have changed, and its results in the U.S. are much improved. Ironically, it seems this success came from a formula that I suggested when I wrote abut Treasury’s problems last year. Not that the company needs to give me credit — I’m used to saving really rich people lots of money.

The judges like their wine: Supreme Court Justice Ruth Bader Ginsburg made a bit of news last week when she admitted she fell asleep during the State of the Union address in January because she had too much wine. This got giggles from many, but they missed the point, focusing on Ginsburg’s age, 81. Rather, it points to the real reason the court ruled in favor of direct shipping in 2005 in the landmark Granholm decision, which surprised many observers. Forget precedent and constitutional interpretation; the Supremes carved out an exception to the three-tier system because they liked wine and wanted to be able to have it shipped legally from their favorite California wineries. How else to explain that Ginsburg, Anthony Kennedy, and Antonin Scalia, all referred to in the BBC story in the first link, voted to allow direct shipping?

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