Tag Archives: Big Wine

Winebits 385: Whole Foods, Big Wine, Cameron Hughes


whole foodsA new format: Whole Foods, the word’s most powerful natural grocery store chain, said last week it would launch a second, less expensive version aimed at 20-somethings who can’t afford to shop at the grocer. This is mind boggling, if only because no one has ever attempted it — like Walmart doing an upscale grocer to attract aging urban Baby Boomers who think Walmart is beneath them. It also probably won’t work, or else it would get a separate post, because Whole Foods Jr. could wreak havoc with the wine business. That’s because, assuming wine will be as important to Whole Foods Jr. as it is to the parent, the chain will have to stock cheaper wines without the noxious markups it currently uses, like Chateau Bonnet for $16. That means private label wine on the scale of Trader Joe’s, which Whole Foods Jr. sounds suspiciously like. And if that’s the case, all the gloom and doom about the end of the cheap wine business in California will be over. All that Whole Foods Jr. $5 wine will have to come from somewhere, and that’s what California’s Central Valley exists to do.

No, no, Big Wine: The Wine Curmudgeon is finally and apparently not the only one who has noticed the role Big Wine plays. A group of northern California activists met last week to call for a halt to Big Wine’s growth in wine country. “They hire a chef before a wine-maker. This has to stop. We cannot let them pave over more of our ag land,” said one of the speakers. In this, the new group may be echoing what has happened in France over the past 20 years, with farmers and vineyard owners protesting Big Wine in its European guise of internationalization.

Bankruptcy? The company that owns Cameron Hughes, the wine geek’s favorite discounter, has been forced into receivership and a sale or merger is possible, reports Lew Perdue at Wine Industry Insight. The bank holding Hughes’ debt forced the action, which is often part of a bankruptcy. In this case, though, says Perdue, that probably won’t happen, and the receivership appears to be part of tug of war between the company and its bank over unpaid loans. The Hughes parent company issued a statement saying it was trying to reach an agreement with the bank to restructure its debt and would continue in business.

Winebits 379: Big Wine, diet soda, regional wine


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


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.

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