Archive for the ‘Wine Marketing’ Category

Estate bottling

Monday, June 30th, 2014

jeff-smby Jeff Miller of Artisan Family of Wines (Seven Artisans, Sly Dog Cellars, Red Côte)

One of the things that you as a winery are always happy to put on a label is that the wine is “Estate Bottled”. Unfortunately, the vast majority of wine does not meet the requirements, since the grapes and wine pretty much need to be, at least in theory (more on this later), under the control of the winery from beginning to end of the process.

While there is a general perception (which may even be backed up by some evidence) that having “estate bottled” on the label helps when it comes to sales and/or pricing, there is less evidence that “Estate Bottled” wines are really any better. Or maybe it would be more accurate to say that they are really any better because they are Estate Botttled.

Or, put another way, I do think it is probably fair to say that, broadly speaking, estate bottled wines are better. But correlation does not equal causation. And I certainly would much rather have grapes that are well grown by an outside farmer than grapes that aren’t as well grown under the direct control of the winery. Which is all kind of obvious. And there is no particular reason to think that the winery will, necessarily, do a better job of it than a dedicated farmer.

Of course, it can be argued, with some legitimacy, that the winery’s goal is to produce grapes that will produce superior wines. The farmer may have other goals, such as higher yield. However, it is really hard to sort all of this out, as one winery may in fact be more interested in yield and one independent grower may more interested in quality. It’s hard to come up with any across the board generalization.

But I do think it is fair to say that a winery that can control the entire process from vineyard to bottling is going to have deeper pockets than one that cannot. So to the extent that “estate bottled” implies higher quality, I think it’s more because of more money behind that winery than anything pertinent to the estate bottling process itself.

“Estate bottled” in fact implies a little bit more than it necessarily delivers. What it requires is somewhat limited. And, to some extent, irrelevant. While the winery is supposed to have a certain degree of control over the grape growing process, that degree of control is really not very great. With many estate bottled wines, the winery in fact does have a very high degree of control and in many cases actual ownership and stewardship. However, neither is in fact required. A fairly loosey-goosey supervision passes muster.

Some of the requirements to qualify as Estate Bottled really are more in the category of crossing T’s and dotting I’s. If you remove the wine from the “estate” even for a short period of time for some fairly minor processing, you lose the right to call the wine Estate Bottled.

There is also the designation which I see from time to time “Estate Grown”. As far as I can tell, this is not an official designation of any sort. At least in theory, I would assume that it means that it meets the requirements for estate bottled up to the point of harvest. But as a legal matter, I don’t think it means anything at all.

So like so much in the wine world, what on the surface seems fairly clear is anything but once you get down into the nitty-gritty.

More on “natural” winemaking

Monday, June 16th, 2014

jeff-smby Jeff Miller of Artisan Family of Wines (Seven Artisans, Sly Dog Cellars, Red Côte)

After last week’s post on “natural “versus “unnatural” winemaking, this post appeared in Palate Press:

“A touch of sulfur”: Sulfites (or not) in Natural Winemaking

Erika Szymanski

I think this post goes to show that when you want to reach a given result, you can do it. Albeit, you may need to twist logic out of all proportion, but it can be done.

I think this post epitomizes the worst of the worst when it comes to the natural winemaking movement.

By some logician’s magic, the addition of sulfur dioxide, something that for all intents and purposes does not exist naturally in wine (in fact, it does, but only in microscopic quantities) is deemed to be natural, while the additional of Tartaric acid, the main acid in grapes, and a critical ingredient for wine to taste anything like wine, is unnatural.

It would be far more reasonable to just face up to the obvious fact. No matter how natural a winemaker you want to consider yourself, you had better damn well throw some sulfur dioxide into your wine if you want it to be any good. Because if you want to rely on the idea that you are totally natural, then you can forswear sulfur dioxide, and make a go of trying to peddle oxidized vinegary wine. Since “natural” winemakers are as interested in anybody as anybody else in selling their products, they aren’t about to take this suicidal route, so they throw in the so2, and rationalize it as best they can.

I would have far more respect for them if they would call themselves something more like “minimalist” winemakers, which in fact more accurately describes what they profess. But since consumers like the word “natural” and could easily confuse “minimalist” with some avant-garde art and music trend, “natural” it is.

Of course, all of this involves a certain amount of hypocrisy. But if the real goal is to sell wine, then that is something that can be readily tolerated.

It is worth focusing in on another point of this post: “Feiring’s definition is useful precisely because it discriminates: it includes some wines and excludes others. It is, moreover, relatively clear about what falls on either side of the line. Nothing added: no acid adjustments if the grapes come in too ripe, no sugar if they’re not ripe enough, no commercial yeast or “yeast food,” certainly no MegaPurple to punch up color and sweetness. Nothing taken away: no reverse osmosis to strip volatile acidity or other faults or to reduce alcohol, and not filtered.”

Without putting too fine a point on it, most of these interventions are undertaken precisely because there is something wrong with the wine. If, in fact, the grapes come in too ripe, then is it really better to leave them that way in the interest of being “natural”, or throw in some tartaric acid to make them more palatable.

Well, correct me if I am wrong, but I thought being palatable is what wine was all about.

I could go on and address the other interventions, but you get the point. I am certainly not an advocate of making interventions right and left for no particularly good reason, or as a matter of course. My experience has been that most interventions don’t work out quite as well as you expect. But I certainly would not refrain from adjusting the acidity if the wine needed it, and I certainly would not refrain from adding “yeast food” to avoid the yeast becoming stressed and doing all sorts of nasty things.

But once you have made the choice to do something different than what nature would do to the grapes without human intervention (which of course all winemakers must do if you want to end up with something called wine) then it’s just a matter of which interventions you choose to make. In that sense, all wines, including “natural” wines, are unnatural, as they should be.


Monday, June 9th, 2014

jeff-smby Jeff Miller of Artisan Family of Wines (Seven Artisans, Sly Dog Cellars, Red Côte)

“Natural” and “unnatural” are really very charged words. But they are words that we use and accept superficially, and which, on examination, really have nothing to do with much of anything, really.

Take, for example, something that I’ve heard many times in my life, “homosexuality is unnatural”. Well, it only takes a second’s thought to realize that this statement is factually false. Homosexuality exists in nature. When someone says homosexuality is “unnatural,” that is not a comment on whether it is really natural or not, but the moral judgment of the speaker. And that’s generally the case when it comes to “natural”. When someone says something is unnatural, it’s not a comment on whether it exists in nature (which it always does), but the moral condemnation of the speaker.

Which brings us to wine. And the “natural” wine movement. If you can call it a movement. I guess when it comes to “natural” wine, there is a little bit more validity to the idea in that it bespeaks an adherence to low-tech wine production (though there is no real agreement about what qualifies and what doesn’t, since there are no clear standards on what you need to do to qualify as a “natural” winemaker).

For example, I think most “natural” winemakers would at least tow the line that they are against the use of chemicals. Of course, since everything is chemicals, that really doesn’t advance the discussion one whit. Now you can say it’s okay to use naturally occurring chemicals, but not those made in a laboratory. But is it okay to use sulfur dioxide? If you want to talk about relatively noxious chemicals, sulfur dioxide certainly meets the bill. But only the most extreme of “natural” winemakers eshew the use of sulfur dioxide for the simple reason that it is almost impossible to make a good wine that will last very long without it. So orthodoxy has to yield to expediency.

What about something like a centrifuge? In a sense, this is pretty natural since all it does is spin something around to clarify it. But I don’t think most “natural” winemakers would have much tolerance for centrifuge use.

So, “natural” winemaking really doesn’t have a whole lot to do with what is truly natural, but with what a group of self-proclaimed prophets want you to buy. Which is, not surprisingly, their wines.

I do think that there is a type of “generally” minimalist winemaking which “generally” adheres to the idea that when in doubt, do less. I myself subscribe to this winemaking philosophy. But I think it is fair to say that to the extent someone describes this philosophy as “natural”, he is engaged in an exercise in marketing more than anything else. The things that you do to wine which are in excess of minimal, are every bit as natural, in the sense that they use natural processes and exist in the real world.

And much of what the most minimalist winemaker does uses techniques that are intended to inhibit what wine would otherwise do. After all, left to itself, the endgame for wine is not wine, but vinegar. And nobody wants that, except maybe on their salad.

For, truth be told, even the most minimalist schools of winemaking routinely use materials and techniques which, though natural, or not “natural”. But, then again, if “natural” is really just a marketing moniker, then what difference does it make as long as you’re moving cases.

The wine business in 20 years

Monday, June 2nd, 2014

jeff-smby Jeff Miller of Artisan Family of Wines (Seven Artisans, Sly Dog Cellars, Red Côte)

SVB on Wine posted an interesting blog on the projected state of the wine business in 20 years. It is well worth reading and can be found at: “What Will The Wine Business Be in 20 Years?”,

While there is much of interest in the post, I think the following quote sums up the gist of it:

My crystal ball sees that we will be far more international in our sales efforts, the Millennials will be the dominant consumer with the Boomers an afterthought, there will be more roll-ups of wineries to deliver great quality wines in larger volumes, we’ll apply unimaginable technology to production and management, there will be more hedge fund and family office ownership, the AVA’s outside the West Coast will find their stride with some being recognized internationally for their high quality unique wine production, and far from label consolidation, I expect to see double the number of wineries and labels.

To put this all in perspective, suppose you come up with a new idea for a superior toothpaste. You borrow money from your relatives, put together $100,000 or two, and start producing the superior toothpaste. Is it truly superior? Well, for all intents and purposes, it doesn’t matter. Your chances of beating out Crest and Colgate to establish even a small niche in the marketplace are someplace between slim and none, with none the far more likely alternative.

When you look at almost any product, you see the same thing. The combination of existing market share, marketing power, and the ability to force products into distribution by the existing leaders makes entry by new, small, competitors almost impossible. You can add in regulatory burdens which almost require a large entity to able to absorb those costs and spread them across a large production.

The wine business for who knows what reason has been far more resistant to this trend than most businesses. But more resistance does not mean anything close to total resistance. While there are many small players in the business, when you tally up the total production of small producers against large producers, it is impossible not to conclude that even in our industry, the big players dominate the marketplace.

So I think what the future is going to bring is a bifurcated marketplace. National distribution, which includes all major grocery chains, the larger wine and liquor outlets such as BevMo and Total Wines, and even most local wine shops, is going to be dominated by the huge wineries such as Gallo and Kendall Jackson.

Small wineries will continue to exist, but they are going to need to go smaller and smaller. In the food business, you see the giant companies such as McDonald’s dominating the large chain and national marketplace, and then you see your mom and pop local restaurant or deli that caters to a clientele that want something a little different, something a little less corporate, and something where there is some human connection between buyer and seller. The same dynamic is playing out in the wine industry as well.

I think middle sized wineries are going to have the most difficult time of all. Based upon our own experience trying to sell into national distribution as a smaller company, it is really really hard. The large distributors have little interest in the volumes that small wineries can provide to them. Why sell 10 cases of the small winery’s product when you can sell 1000 cases of Kendall Jackson? The smaller distributors that can be an outlet for the smaller winery are a dying breed.

So while I think SVB on Wine may be correct that in 20 years will you will see even more wineries than we do now, the vast majority of those wineries will be very small catering to local clientele, and relying largely on direct to consumer sales. While we may see twice as many wineries, I think we will see the market share of all but the largest wineries shrink.

I, personally, don’t look upon these developments with any glee. But, realistically, in a nation where everything is trending towards dominance by a small number of large companies, it would be naïve to think the wine business is going to be able to dodge the bullet.


Monday, May 19th, 2014

jeff-smby Jeff Miller of Artisan Family of Wines (Seven Artisans, Sly Dog Cellars, Red Côte)

I always enjoy reading Jamie Goode’s posts, even if I often disagree with him. In a recent post he lambasted the wine media for giving a pass to wines and wine regions that don’t live up to the standards that they should. (The entire post, “What do I really think? Some unfiltered opinions on the world of wine“, can be found at

While Bordeaux was not alone, it figured prominently: “Bordeaux is the world’s leading fine wine region, and yet I find it hard to love at the moment. I love great old Bordeaux, but so much has changed of late (more selection, more concentration, later picking, more winemaking) that I’m not sure that we can guarantee that the current crop of top wines will all age gracefully for 20-50 years. Wouldn’t it be a disaster if suddenly people began to realise that all these investment grade wines actually tasted better after 5-10 years rather than 20? There’s such a lot of hype surrounding Bordeaux, and the en primeurs circus, and so many of the wines are being judged so early in their life. And I don’t understand the journalists who criticise and moan about the primeurs, but who then dutifully trek there every year and publish their scores. You can’t have it both ways.”

There are really two main points that Goode makes. First, Bordeaux is not what it used to be. Personally, I do not have a big problem with that, because what Bordeaux used to be was, at least in my opinion, not all that special. But when Goode says that Bordeaux has changed due to “more selection, more concentration, later picking, more winemaking”, I think what he is saying is that Bordeaux now conforms more to the “international style” and has strayed, for better or worse, from its traditional style. Looked at from a grape growing and winemaking point of view, Bordeauxs used to age for long periods of time because they were somewhat underripe, and therefore high in acid and with harsh green tannins. I don’t think that the intent was to make wine from underripe grapes. It’s just that that’s what they were able to get. In the unusual year when they could fully ripen the grapes, they did so, and declared a vintage of the century.

I for one don’t buy that the wines were made this way so that they can age. I think they were made that way because that’s what they were capable of doing, and a wine that is high in acidity and tannins is probably going to age pretty well. In fact, it has to, because at a young age it is undrinkable.

With advances in viticulture and winemaking, Bordeaux is now able to emulate California more than it was ever able to. The wines are more accessible wines at a younger age. Pretty much by definition a wine with lower acidity and lower tannin levels is not going to age as well as a wine with higher acid and tannin levels, other things being equal. Bordeaux, like most of the rest of the world, has opted for wines that can be consumed younger. In this respect, I have no quarrel with the trend. But Bordeaux’s reputation for being a long lived wine will probably not survive this trend.

The second main point that rears its ugly head is that, if there is one thing that Bordeaux is better at than making wine, it is marketing it. Bordeaux is a brand. I, personally, have never been that huge a fan of Bordeaux wines, so I have always thought that they were overpriced and overhyped. But if you’re in the business of selling wine, being overpriced and overhyped is not such a bad place to be.

Of course, tasting a very young wine out of barrel, particularly a barrel handpicked for the superiority of wine it contains, is a meaningless exercise when it comes to judging the quality of the wine. But when hype and not reality is your goal, it makes perfect sense. And if you can get a bunch of supposed experts to come and taste these barrel sample wines and then opine at how great these wines are going to be, why wouldn’t you? So I don’t blame these wineries in the least. They are simply doing what pretty much anybody else would do in similar circumstances given the opportunity.

Of course, the problem with most brands is that their continued success is based more on marketing than anything else since, even if they started off with a quality advantage, that quality advantage is almost impossible to maintain over time (See Mercedes Benz and Lexus). After all, there is only so much that anybody can do when it comes to growing grapes and vinifying them, and Bordeaux winemakers have no monopoly on these techniques. They may have advantages of climate, etc., that some other regions may lack, but that not all regions will lack. I personally see no reason why California, Australia, Chile, and any number of other wine regions cannot make wines just as good, if not better, than Bordeaux.

And, as other wine regions catch up (as many already have), the ability to stay on top in the mind of the consumer depends not so much on better quality, but on better marketing.

I wish the world were otherwise. But it is not. It is simply the way of the world. It always has been, and always will be.