Anatomy of Australia’s New Wine Strategy

Click on the image to view one of the Restaurant Australia videos.

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In my last column I talked about Australian wine’s plans to re-brand itself on the global market through an integrated food-wine-tourism campaign called “Restaurant Australia.”  Delegates to Savour Australia were treated to four specially produced videos  (click on the image above to see one of them) that introduced the concept and, not coincidentally, also introduced the chefs and purveyors who would be providing some of our (delicious) meals over the next few days.

Beyond Sensory Overload

The audience seemed to pause, slightly stunned, after each video. At first I thought that it was just sensory overload. And it was. The stunning images presented on the big screen with rich surround sound was an intense experience, to be sure. The fact that we experienced it all again later, meeting the chefs, tasting the produce– that was intense too.

But now that I am back home and reflecting on the experience, I think that perhaps we also paused for a different reason. The whole purpose of our gathering was wine. We had journeyed long miles to Adelaide to see and hear Australia tell its wine story. But where’s the wine?

Yes, wine and a winemaker appeared in each video, but they seemed a bit of an add-on rather than the featured element of the message. What would happen if you left out the wine ? Nothing much else would change. Is that the way we want people to think about Australian wine — an afterthought in the grand “Restaurant Australia” concept?

Now There’s Your Problem

Obviously not — and it would be a mistake to judge the marketing campaign by a few introductory videos. But, as I thought about it, I began to recognize that it was related to a bigger problem.

One of the chapters in Extreme Wine is about wine and modern media — I call it Extreme Wine Goes to the Movies — and it concludes in part that wine’s inherent sensuousness seems to be difficult to translate to video. Yes, wine famously unlocks all the physical senses and a few of the mental ones, too. But it is an experience good. Like fly fishing and some other things you might be able to think of, its more fun to do than to watch someone else do.

That’s why there are surprisingly few films where wine plays a really central role. There are a few excellent ones (Sideways fans please put down your pitchforks!) but you’d really expect there to be far more than I found in my research. Food, on the other hand, seems to be something that video can capture very well. Does watching someone drink wine in a movie make you thirsty? Maybe. Does watching a celebrity chef eat a delicious dish make you hungry? You bet it does!

Hungry?

No doubt about it. Wine’s magic is difficult to capture on the silver screen (or that little screen on your tablet or smartphone). That’s why we have Master Chef but not Master Enologist.  There are rock stars in wine, but they don’t generally transcend the wine category the way the foodie celebrities increasingly do.

Wine Porn versus Food Porn

My foodie friends are always taking X-rated “food porn” photos of the the plates they are served at fancy restaurants. But my wino buddies generally don’t bother to snap “wine porn” images of their glasses (although I admit to some G-rated bottle/label shots myself).

Assume that I’m correct about this for a moment (or, better yet, grab a copy of Extreme Wine and read a more detailed account, which uses Sideways to show why really powerful wine films are so rare). Given video’s undeniable importance in communications today, what is wine to do? Well, one answer is to do what Australia wine seems to be doing, which is use what works (the foodie side of the campaign) to drive the message.  They call it “Restaurant Australia,” but I have a better name.

Strongest Brand in the World?

I call it The Italian Way. What region has the strongest generic wine brand? Well, here in the United States I would say that it is Italy (although France can make a claim because of Champagne’s powerful brand). Americans love everything about Italy — the food, the people, the art, the scenery, the food again, and now with the new Fiat 500, even the cars.

Americans love Italian (or sometimes Italian-style) coffee. And they love Italian wine. Just the fact that it’s from Italy gives it an automatic advantage at supermarkets, restaurants and wine shops.

It seems to me that “Restaurant Australia” aims to get Americans to love warm, friendly Australia in the same way that they have always loved warm, friendly Italy. A good idea? Yes. But not easy to do. If it was easy to achieve Italy’s reputation, everyone would do it. But it is worth trying. Australia has authenticity in its favor — it really is warm and friendly and the food and wine you can find there really are great– and that’s worth a lot.

Is it the only way to re-brand Australian wine? No — tune in next week for my report on another approach to this problem.

Restaurant Australia: Re-Branding Australia (and Australian Wine)

Click on the image to see a “Restaurant Australia” video.

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I’m back from Australia, where I spoke at Savour Australia 2013 (click here to view my presentation). The purpose of Savour Australia was to re-launch Brand Australia wine on the global market by bringing together about 700 domestic and international delegates and rolling out an integrated marketing plan that combined Australian food, wine and tourism.

Savour Australia was quite an intense and impressive global gathering and I am still trying to process all my experiences both at the conference and in independent travels (scroll down to see a brief list of extreme wine moments). I’ll be analyzing what I think I’ve learned over the next several weeks.

Food Stars, Porn Stars, Rock Stars

“Restaurant Australia” is the proposed new brand and you can perhaps best appreciate how its elements connect by clicking on the image above and watching the short video that appears. The basic idea is that food and wine have become much more important tourism drivers. Nature (think Grand Canyon) and culture (think Italian Renaissance art and architecture) are still important draws, but increasingly travelers seek out fine wines, great restaurants and cult foodie experiences. Then they become brand ambassadors, spreading the word across the internet and around the world.

This sea change should not come as a surprise. As I wrote in Wine Wars, this is an effect of the growing popularity of foodie television shows and networks, like the insanely popular international Top Chef and Master Chef series and the rise of foodie celebrities such as Jamie Oliver, Nigella Lawson, Anthony Bourdain and so on. Seriously, food stars get more exposure than porn stars and are sometimes more popular than rock stars (“rock star” being the gold standard for pop culture status).

The food’s the thing, don’t you know? The Australians are smart to realize this and to try to recast their image around it.

Shrimp on the Barbie

But they don’t start the process of re-branding with a clean slate (or clean plate, I suppose). For many people here in the United States, Australian cuisine is defined by Crocodile Dundee and Outback Steakhouse. Paul Hogan, the actor who portrayed the famous Crocodile Dundee character in the films, was featured some years ago in an Australian tourist campaign that generated the memorable line “throw another shrimp on the barbie.” Australian food (and culture generally) is warm and generous, if not particularly sophisticated according to this approach. A good image then (and Australians sure are warm and generous), but not especially useful now. The game’s changed.

For better or worse, Outback Steakhouse’s popularity has reinforced this idea of Australian food culture. Outback is a meat and potatoes kind of place, although I see they now also feature grilled chicken “on the barbie.” It’s signature menu item is a “bloomin” deep fried onion appetizer. Tasty, I bet,  but not really haute cuisine.

So the Australians have their work cut out for them and the videos we saw at Savour Australia (and the great food and wine we enjoyed there) suggest that they have both great raw materials to work with and a sophisticated understanding of the story-telling necessary to make their strategy work. Click here to view videos from Savour Australia, including four stunning chef-centered  “Restaurant Australia” themed videos.

Terroirist Revenge Strategy

I’m a big fan of this approach, as I told my Adelaide audience, because it fits very well into the analysis I presented in Wine Wars. I didn’t have Australia in mind when I wrote that book, but its argument fits the great land down under very well. Australian wine has experienced the double-edged sword of globalization and the problems of over-simplified marketing messages (these are the “Curse of the Blue Nun” and the “Miracle of Two Buck Chuck” of the book’s subtitle).

Now, I think, they need to channel their inner terroirists and tell a more sophisticated story that draws upon, to use a catch phrase of the Restaurant Australia campaign, the people, places and produce of their land. (People, place and produce is not a bad definition of terroir).

Will it work? Will “Restaurant Australia” be able to launch Australian wine on a new path? Come back next week for more analysis.

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Australia 2013: Memorable Moments

Herewith a few memorable moments from our trip, some of this will be featured in future Wine Economist columns.

  • A festive wine dinner with Australia’s First Families of Wine, an association of Australian producers who are doing their level best to change the way the world sees Australian wines.
  • A fabulous tasting of Australian wines from the Yalumba Wine Museum (I guarantee you will be jealous when you hear about the wines we sampled).
  • Wine writer and broadcaster Michael Hince and his wife Amanda  invited us to a dinner in Melbourne where they showed off wines from Victoria. It was a really spectacular demonstration. Wow! You can read Michael’s account of the wines and the dinner here.
  • Great hospitality during our time in the Barossa Valley, with memorable visits to Rockford, Torbreck, Hentley Farms and Charles Melton.
  • My wine economics colleague Kym Anderson gave us a memorable tour of his Adelaide Hills region (highlights: Ashton Hills Vineyards for the Rieslings and Pinot Noir and Hahndorf  Hill Winery for Gruner Veltliner and Blaufrankisch) and sent us to Seppeltsfield winery in Barossa, where we happily immersed ourselves in Australian wine history.
  • Tasting and talking with Peter Althaus at his Domaine A winery near historic Richmond, Tasmania (and staying at Tara’s Richmond Farmstay).
  • The fabulous family-style long-table winemaker lunches at Savour Australia. Outstanding food, wine and conversation.
  • Working (not just attending) the Wednesday “Grand Tasting”. Prue and Stephen Henschke let me pour their fabulous wines (including Hill of Grace)  for about 90 minutes so that I could see the conference and the delegates from the other side of the table.  What a treat!

Pawn Star Wine


It’s been a busy week so far. My new book Extreme Wine has just been released. Sue and I traveled to Portland, Oregon for the Pacific Northwest Booksellers Association trade show where I autographed 75 copies of Extreme Wine in 75 minutes before we ran out of books.

And now Wine-Searcher.com has published my latest column on fine wine investment. Click here to read the article, which is called “Pawn Shop Solutions for Wine Investors.”

My column has an unexpected “hook:” a 2010 episode of the U.S. television show “Pawn Stars” that featured a bottle of 1921 Dom Perignon. You’ll have to read the article to get the whole story, but basically I use this example as a way to talk about how investing in wine is different, in terms of financial economics, from other types of investments. It’s an unlikely approach, but I think it works.

We so often hear about the benefits of wine investments or the problems with it in only a very general way. I’m interested in doing more serious comparative analysis, while keeping the mood light. If you’ve seen the show “Pawn Stars” you know that you can actually learn a lot of history through its often funny “reality TV” stories. My column also comments and reports on some recent trends in wine investment.

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Hope you’ll check out my column. Here’s a photo from the Portland book event. Great to see all of independent booksellers (God bless them!), publishers, authors and volunteers (bless them, too) in Portland.

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Exaggerated Reports? Wine Writing and Wine Reading

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“The reports of my death are greatly exaggerated.” - Mark Twain

This post is provoked by Andrew Jefford’s now-famous speech “The Wine Writer is Dead,” which he gave at a meeting of European wine bloggers in Izmir, Turkey last month. It’s a great speech, full of wisdom and insight — click here to read the written version on Jefford’s website.

Jefford’s title made me think of the famous scene in Mondovino (see video above) where Aimé Guibert declares that wine is dead (and cheese and fruit, too). It seems to me that Guibert’s obituary for wine was based on the fact that people try to make a living from wine in an increasingly global and competitive market environment and this changes things, although perhaps not as much as Guibert suggests since money and wine have always intermingled and it is foolish to pretend otherwise.

Jefford talks about the problem of making a living, too, and the changing writers’ market environment, but he doesn’t suggest that wine writing has lost its soul in the way that Guibert mourns the death of wine’s essence. Certainly it is difficult to earn a living writing about wine, especially with the decline in paid print-media jobs, he says. So wine writing has evolved into something broader — wine communications  – which seems to be about story telling in all its forms using all available media outlets.

“The world probably doesn’t need more writers … [but] the wine world will always …  need multi-tasking communicators …”.

I tend to agree with Jefford that telling stories about wine is much more than simply writing for print publications, but I wonder if wine writing has ever really been such a narrow and focused endeavor as he describes? He’s been at this longer than I have, so I suppose he is right, but my sense is that the his distinction between wine writing (RIP) and wine communicating is not so sharp as he suggests and that if wine writing has died it probably did so a long time ago.  In any case his point — that people who tell stories about wine should seize every opportunity to do so — is certainly well taken.http://www.twainquotes.com/exaggeration2.jpg

Is the Wine Reader Dead, Too?

I’m not really worried about whether wine writing is dead or alive. I’m more interested in wine reading, which I specifically do not define as reading about wine exclusively in paid (generally print) publications. Wine reading seems to be changing dramatically and that’s the more interesting  trend. Unsurprisingly, I tend to think about this in economic terms.

Economists who study the economics of food choice believe  that a key factor in  the growing consumption of high fat fast food is  cost — fast food is relatively cheap both in  terms of money and time, which are strong economic incentives. Even when healthier food is available and consumers understand something about nutrition the economic incentives push and pull them into the drive-through lane on the margin.

I think the economics of readership (and wine readership) works the same way. I’m not saying that writing on the internet is the intellectual equivalent of “empty calories, ” but the shift of readership from traditional print publications to electronic media is influenced by economic incentives (as well as other factors of course).

Electronic texts are obviously cheaper in terms of marginal dollar cost since most of them are available free on the web and even the electronic versions of books are often cheaper to buy than the print versions. And you can often access electronic documents in a fraction of a second rather than the minutes, hours, days or weeks that it might take to get a copy of a print publication. Fast beats slow in a time-constrained world just as cheap beats expensive when money is scarce. No wonder readership patterns are changing.

The shift is magnified by the technology associated with electronic publications — especially tablets and smartphones. I may have already told you about my university student who explained to me that he was going to do his senior year on his smart phone — all his reading and writing would be iPhone-based or not at all. He succeeded after a fact, which I found a bit shocking. Shifting from iPhone to iPad, I think he might succeed quite well today and there’s nothing shocking about it.

Follow the Money, Deep Throat Advised

Reading has always been as much affected by economics as writing. Imagine the chaos created by the introduction of paperback books in the 1930s (or read about it here).  Some observers predicted that paperbacks would be the death of the traditional book world, but in fact it seems that they ended up creating more readers and therefore more writers, too.

Follow the readers. This seems like good advice and I think it is Jefford’s’ point as well. The readers (and viewers and listeners) are shifting, responding to technological change and the altered economic incentives they confront. Writing has to do the same in order to stay relevant, and if a certain idea of wine writing (or writing in general) is a victim of the changing times I think we have to accept that and move on. Joseph Schumpeter called this sort of process creative destruction and we need to take account of what has been created as well as what is lost. Jefford understands this, although he doesn’t put it quite this way, which is why I recommend his talk to you.

It seems to me that there are probably more wine readers today than ever before in history, which is good news for wine writing, however you define it. As Mark Twain might have said, reports of its death are exaggerated.

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Paperbacks then, Kindle today?

Thanksgiving Leftovers: Black Friday Wine

It’s the time of year when wine writers give advice about what to serve with Thanksgiving dinner. The wine of choice here at The Wine Economist will probably be Pinot Noir that I received in friendly books (Wine Wars) for bottles exchanges with the winemakers themselves: a 2007 Boedecker Cellars “Athena” from the Willamette Valley in Oregon and/or a 2010 Paul Cluver Pinot Noir from Elgin in South Africa. I think they will be delicious with the traditional turkey and fixin’s.

What’s the best part of Thanksgiving? Leftovers are the best part for many of us. Hard to beat the turkey sandwich that you enjoy the next day when the cooking (and clean up) are done. And for some people the best part of Thanksgiving isn’t Thanksgiving at all — it’s the day after, which we ominously call “Black Friday” in the United States.

Here, in the flexible spirit of the holiday, is a leftover column about Beaujolais Nouveau and  Black Friday, reprinted from The Wine Economist November 23, 2009. Enjoy!

A Wine for Today’s Thanksgiving?

Although the United States is not the only country to set aside a day for giving thanks, we like to think of Thanksgiving as our distinctive holiday. It was conceived as a day for deep reflection, but Thanksgiving has evolved into a long weekend of over-consumption and discount shopping. Some of my friends really prefer to celebrate Black Friday, the day after Thanksgiving, when the holiday shopping season formally begins and retailers find out if they will be “in the black” for the year based upon early sales data.

If you plan an Old Time giving-thanks Thanksgiving, then [Beaujolais] Nouveau is not for you. It is not an especially thoughtful wine. It is a sorta soda pop wine; if wine were literature, my friend Patrick points out, Nouveau would be the  trashy paperback novel you read at the beach. Nothing wrong in that — everyone needs an escape once in a while.

The grapes for Nouveau are picked in late September or thereabouts and the only thing that prevents instant sale is the necessity of fermentation and the mechanics of distribution.  It’s still a bit sweet when it’s bottled and sometimes a bit fizzy, too, when it arrives with great fanfare on the third Thursday in November (a week before Turkey Day). Best served cold (like revenge!) it is the ultimate cash flow wine.

Black Friday Wine?

Nouveau is not very sophisticated, so why do the French, who otherwise are known to guard their terroirist image, bother with it? The Beaujolias producers make very nice ordinary (non-nouveau) wines; character complexity, you can have it all and for a surprisingly low price.

Ah, but that’s the problem. Sitting close to prestigious Burgundy, the Beaujolais cannot command high prices for their wines, good as they are, so they must try to make money through turnover more than markup. They churn out millions of bottles of Nouveau to pay the bills.

At the peak of the bubble in 1992 about half of all wines made in Beaujolais were Nouveau. The proportion remains high even today. Ironically, Nouveau often sells at prices as high as Beaujolais’ more serious wines because it is marketed so well. So it is hard to see why you’d want to buy it instead of the region’s other wines. It’s easy, on the other hand, to see why you’d want to sell it.

Beaujolais Nouveau, it seems, is France’s Black Friday wine! If the makers can sell their Nouveau, then maybe the bottom line for the year will be in the black. If the Nouveau market fails, well that red stain on the floor won’t be just spilled wine.

More than the Usual Urgency

Nouveau is therefore generally marketed around the world with more than the usual urgency (just as those Black Friday sales seem a little desperate at times) — and not just because young wines hit their “best by” date pretty quickly. This year things are even more stressful than usual, as you might imagine, with the economic crisis still on everyone’s minds and 10+ percent unemployment here in the United States. [Editor note: the unemployment rate is lower today than in 2009, but the weak economy is still an issue.]

Nouveau is usually distributed around the world via expensive air freight rather than more economic sea transport in part because the short time between harvest and final sale makes speed a factor. This year [2009] Nouveau was bottled in plastic for the Japanese market in part to lower shipping cost — a controversial move that may not be repeated because of its negative product image potential.

Intentionally choosing to adopt a more casual image, Boisset put all its US-bound Nouveau in screw-cap PET bottles, with a resulting 40% reduction in shipping cost. [Note: the PET bottles were not a great success with tradition-bound Thanksgiving consumers and Boisset switched to lightweight glass bottles for Nouveau in later years.]

Here’s a fun video from 2005

An American Wine?

Sweet, fizzy and packed in PET bottles — Beaujolais Nouveau sounds like the perfect wine for American consumers brought up on 2-liter jugs of fizzy-sweet Mountain Dew and Diet Coke. If you were kinda cynical, you would think Nouveau was an American wine … made in USA.

And it is, in a way. Although the wine obviously comes from France (and there is actually a long tradition of simple and fun early-release new wines in France and elsewhere), I think it is fair to say that the Nouveau phenomenon is an American invention.

W.J. Deutsch & Sons, the American distributors, really put Beaujolias in general and Nouveau in particular on the U.S. wine market map when they became exclusive distributors for Georges Duboeuf some years ago. They took this simple wine and made it a marketing event. To paraphrase an old Vulcan proverb, only Nixon could go to China and only the brilliant Deutsch family could sell Nouveau!

In fact they were so successful that they partnered with another family firm — the Casella family from Australia — and created a second wine phenomenon tailored to American tastes: Yellow Tail!

So although Nouveau is an American wine of sorts and might be perfectly crafted for this American holiday as we actually celebrate it on Friday, I’m going to pass this year (on Thursday, at least) and see if I can nurse some thoughtful reflection from my holiday glass [of Pinot Noir!] instead. Cheers, everyone! And thanks.

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Thanks to Athena and Paul for the nice wine — hope you enjoy Wine Wars!

Frogs, Secrets & Satire: Extreme Wine Goes to the Movies


I’m working on the two chapters of Extreme Wine about wine and popular culture — celebrity wine and wine in film, television and on the web and I thought I’d share some of my discoveries with you and, as always, ask for your feedback in the Comments section below. Sideways and Bottleshock are the two best-known wine-centered films, but here are three others for your consideration.

Art Imitates Life: Grenouille d’hiver

Grenouille d’hiver means “Winter Frog” and it is the title of a short film by the director Slony Sow that was first broadcast on French television in 2011. It is making the rounds of film festivals, including Cannes;  I haven’t seen it yet except for the short trailer on YouTube. It stars Gérard Depardieu in an emotional role. “Benjamin, grower, sees his wife die in his arms following a long illness. Only one way out for him: death. But a young Japanese girl, came especially for its wine tasting, will bring it gently to mourn a series of symbols and exchange between two cultures,” according to the film’s official synopsis as quaintly translated from the French by Google.

Gérard Depardieu has played many roles in his long career – over 170 of them since he began in the 1960s according to his French Wikipedia page. He’s played everything from Cyrano the big-nosed patriot of the Edmond Rostand play to Oblex the big-nosed patriot of French cartoon fame. He’s worked with iconic directors like Francois Truffaut and won most of the top awards including the César and the Legion of Honor. He is scheduled to portray libertine French socialist politician Dominique Strauss Kahn in an upcoming film. That should be interesting!

Depardieu has played so many characters for so long that there might seem that Benjamin would be just another role. Except that the vines he stands among as he contemplates harsh fate and his own mortality are actually his own on his vineyard estate in Anjou. And I’m pretty sure the wine he sips with the young Japanese visitor, which opens the door to grief, is his too. Depardieu has owned Chateau de Tingé in the Coteau du Layon appellation since 1989. He owns the estate, which includes a 14th century castle, and oversees things generally in the way that a busy global media star can, leaving the actual winemaking to an old friend.

The film seems to be an interesting commentary on wine’s ability to store and release feelings and its power to transcend language. I’m looking forward to seeing all 18 minutes of this film when it finally becomes available.


Wine? We Have No Wine

The second film is completely different and yet manages to strike some of the same notes. I’m talking about Stanley Kramer’s 1969 The Secret of Santa Vittoria, which is based upon Robert Crichton’s best-selling novel. It stars Anthony Quinn, Anna Magnani, Virna Lisi, Hardy Kruger and Sergio Franchi. The entire two-hour plus film is available on YouTube — just click on the image above to watch as much or as little as you like.

The setting is a sleepy Italian town in the closing months of World War II. The film is played as a romantic farce with town drunkard Quinn  unexpectedly elevated to mayor just as German troops approach, intending to occupy the village and seize its only important asset — more than a million bottles of the local cooperative’s wine stored in the cellar under the town hall.

With Quinn as their leader, the townspeople risk death to save themselves by saving their wine, hiding it in the old Roman caves beneath the city. This act brings the divided town together in a way that probably nothing else could do, making the deception’s ultimate victory all the more miraculous.  Great fun!

This is Spinal Corked

The third film is called Corked! and it is a 2010 satire made, like “This is Spinal Tap” and “Best in Show,” in the form of a “mockumentary.” In this case an innocent film crew shows up in the Sonoma Valley and interviews a collection of increasingly outrageous caricatures of the “usual suspects” of the wine world including a world-famous wine critic with initials RP. (The naïve wine tourists are my favorite characters.)

Documentaries tend to be uneven and so is this film — the characters who get the most screen time aren’t always the funniest or most interesting but it all comes together in the end. The romantic image that we cultivate about wine and wine making (see films above) is a bit of a fraud. It isn’t a complete fake as Corked! suggests (by definition satire needs to go over the top), but it’s not a completely noble calling, either.

Wine is about people and relationships (the point of all three films, I suppose). No wonder it is so complex. No wonder it translates so well to film.

Against the Tide: Globalization vs Italy’s Indigeneous Wines

The tide I’m talking about is the globalization of the wine market and I frequently hear that its ebb and flow bring in the main international wine grape varieties and the styles associated with them and wash out unique local wines. There is a grain of truth to this — one winemaker explained it to me this way. If I make poor but distinctive local wine and can’t sell it, I can blame international market forces (and not my own lax wine making) and just plant Merlot. Classic cop-out, he said.

This maybe true, but it isn’t the whole story. There is also the pipeline effect. Global markets create big pipelines that need to be filled and sometimes it is easier to fill them with a few standard wine varieties and styles than with hundreds of different small production wines. (The current movement to ship wines in bulk — in big 25,000 liter containers — and bottle in the consumer market reinforces this trend.)

And of course the demographic of wine consumption is changing, too (the who, what, where, when, how and why) with more new consumers who face a steep learning curve that sometimes works against wines that lie outside the mainstream. There are lots of pressures on winemakers today and globalization is certainly one of them.

Arguable Premise

But I’m not sure that the premise of the argument is correct. Although the wine market is much more global than in the past, it is still surprisingly local compared to many other industries, with most production sold in the country of origin. And although it is easy to spot increasing consolidation within the wine industry, it remains remarkably fragmented compared to most other international businesses.

And, to keep the momentum going, while it is easy to look at the wine wall and see acres of Cab and Chardonnay (and other “international” varieties) from all around the world, it is just as easy to note how very many distinctly local varieties are present.  It is sort of a macro-micro thing. If you look at the wine industry in terms of Rabobank’s very cool map (above) of international wine trade, it is easy to see the world defined by those big international flows, but if you look at it in terms of DeLong’s even cooler Wine Map of Italy (below), for example, the persistence of local wine markets becomes clear.

Like a Coat of Paint

We explored this global-local tension during our recent trip to Italy to attend the meetings of the American Association of Wine Economists in Bolzano. Italy is far and away the world’s largest wine exporting nation according to Global Wine Markets Statistical Compendium data, with average exports of 1,861 million liters during 2007-2009 period. France and Spain are second the third with 1,379 million liters and 1,292 million liters respectively. Australia is a distant fourth in the data set with an average of 782 million liters for the two year time period.

So, if the global tide argument holds, you would expect Italy to be covered like a layer of paint with endless hectares of international variety wine grapes. And, of course, there is a lot of Merlot, Cabernet and Chardonnay to be found in Italy along with other international standard varieties like Sauvignon, Riesling and Pinot Noir. But what stands out when you think about Italian wine is the success of indigenous wine  varieties and styles. Italy makes and sells international varieties, but the indigenous wines are what define it as a wine country.

Support Your Local Winemaker

Sometimes this success is driven by export markets (think about the popularity of Chianti and Sangiovese) but there are many successes that are really quite local in scope and stand as delicious counterexamples to the the incoming global tide theory. Let me give you three examples from our Italian fieldwork (Pignoletto, Lacrima di Morro and Ruché) saving a fourth case study (Kerner) for  a more detailed treatment in my next post.

Pignoletto is a dry white wine grown only in the hills outside of Bologna. “Lively, crisp, aromatic” is how Jancis Robinson describes it in her Guide to Wine Grapes. Pignoletto is distinctly Bolognese — grown there, made there and I think that every last drop of it is consumed there, too, since it goes so well with the rich local cuisine (almost as if they evolved together … which I guess they did).  It would be hard to beat the simple meal of salumi, cheese and bread that we had with a bottle of Pignoletto frizzante at Tamburini‘s wine bar in the Bologna central market.

Lacrima di Morro d’Alba is a distinctive red wine from the Marche region. Robinson describes is as “fast maturing, strangely scented.” Burton Anderson says that it is a “purple-crimson wine with … foxy berry-like odor and ripe plum flavor.” Apparently it fades very quickly, but it is distinctive and intense while it lasts.  It sure stood up to the very rich cuisine of Ferrara when we visited our friends in that city. We were fortunate that the restaurant owner guided us to this wine from the Mario Luchetti estate.

Ruché comes from the Piedmont and we stumbled upon it by accident (which I guess is how we usually stumble …). We were attending the annual regional culinary fair in Moncalvo, a hill town half an hour north of Asti. Thirteen “pro loco” civic groups from throughout the region set up food and wine booths in the central square and sold their distinctly local wares to a hungry luncheon crowd.

I had never heard of Ruché and honestly didn’t know what it might be until I happened upon the stand of the Castagnole Monferrato group. They were cooking with Ruché, marinating fruit in Ruché and selling it by the glass — they were obviously very proud of their local wine. I had to try it and it was great. Suddenly I saw Ruché everywhere (a common experience with a new discovery) and enjoyed a bottle at dinner in Asti that  night. “Like Nebbiolo,” Jancis Robinson writes, “the wine is headily scented and its tannins imbue it with an almost bitter aftertaste.” An interesting wine and a memorable discovery.

I think we all have these great “ah ha!” wine experiences when we travel so why am I making such a big deal about these three wines? Well, that’s the point really. Distinct, truly local wines are commonplace in Italy. What is in some ways the most global wine country is also perhaps the most local. Global and local exist side by side and if they don’t entirely support each other all the time, they aren’t necessarily constant, bitter enemies, either.

The key, I think, is local support of local wines and wine makers. That’s why these three wines have survived and sustained themselves.  I don’t think “me too” wines are capable of gathering local support.

Why does this come as such a surprise to us in the United States — why do we so easily swallow the idea of the unstoppable global tide. It is, I suppose, a legacy of prohibition, which destroyed many local wine cultures in the U.S. Wine today continues the difficult task of recovering from prohibition’s long lasting effects.

Are There Really Local American Wines?

So are there American wines that are local in the same sense of Pignoletto and Ruché? Sue asked that question as we drove out of the Asti Hills and headed north. I don’t know, I replied. Maybe. Petite Sirah is kind of a California cult wine, but it isn’t local in the same way as these Italian wines.

Here in Washington State we seem to have a thing for Lemberger, which sells out in the tasting rooms of the wineries that make it and seldom shows up outside the region. It’s an Austrian grape, but it has made its home here. Can you think of any other wines like this? Please leave a comment if you have a suggestion!

Perhaps we buy the global tide argument because it is so foreign to us? I think it would be interesting if we imported more than Italy’s wines — perhaps we could share their idea of really local wine, too.

Vertical (Not Necessarily Sideways)

I’ve been reading Vertical, Rex Pickett’s sequel to his novel Sideways, which was the basis for the 2004 film Sideways that changed the world of wine. The rise of Pinot Noir in recent years and the slump in Merlot sales is often attributed to the Sideways Effect.

I didn’t read Vertical for pleasure (I’m more of a non-fiction kinda guy) or to evaluate it as a work of literature (my colleagues over in the English department will breathe a sigh of relief). I wanted to see if Pickett would do it again – create a scene or storyline with the potential to connect with wine enthusiasts and change the way they think about wine.

Dump Buckets & Dunk Tanks

What sort of scene would that be? Well Sideways the film had a number of memorable moments. (I’ll focus on the film Sideways here rather than the novel since I think people are more familiar with the film.)  Some are famous for being outrageous, like the scene where Miles has just received bad news about his book project and self-medicates his depression with wine – tipping a dump-bucket full of secondhand wine over his head and face, soaking his clothes and getting a lifetime ban from that particular tasting room. Yuck! If  you’ve seen the movie I guarantee you remember the sequence.

Vertical has its share of outrageous scenes, including a reprise of the dump bucket experience. There are several other scenes with a high Yuck! Factor including one where we learn what happens when you take too many Viagra pills all at once and another, set at the International Pinot Noir Celebration in McMinnville, Oregon, that features a dunk tank filled with Charles Shaw Merlot and two  over-sexed (there’s a lot of sex in this book), matronly wine lovers determined to get “sideways” with Miles.
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Getting Personal About Wine

I loved the dump bucket in the Sideways film, but that’s not the scene that created the Sideways Effect. It was this one, of Miles and Maya on the back porch, talking while Jack and Stephanie were getting “sideways” in the bedroom.

Miles and Maya are chatting about wine and why they love it and about Pinot in particular, but they are really talking about themselves, don’t you think? They are really talking about who they are and who they want to be and the words they use to talk about wine express something deeper that goes to what it means to be a human being.

Who doesn’t sometimes feel fragile, like Miles, and need a little TLC? Who wouldn’t want to grow and change, as Maya suggests in the concluding part of  the scene (not shown in this brief excerpt), even if it means eventual decline?

Who indeed? It seems to me that almost anyone can identify with the longings expressed here indirectly through wine. And so the Sideways Effect was born as some people projected their longings onto Pinot Noir and others just went along for the ride.

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It’s Not About the Wine

Did I find a similar game-changing scene in Vertical?  Well, no. There are some scenes that make you stop and think, that make you reflect a bit on life, but most of them come late in the book, after a whole lot of sex, drugs and Pinot Noir, and they don’t really have very much to do with wine. I would give away the plot of the book if I told you more, so I will draw a line here.

A Vertical movie, if they make one, will certainly be feature a lot of wine (especially Willamette Valley Pinot Noir), but I don’t think there will be a Vertical Effect on the wine markets to rival the Sideways Effect.

But why did I think there would be? After all, Sideways wasn’t really about wine, it was about people and relationships — as you can plainly see from the movie trailer I’ve inserted here.  Sideways just happened to strike a chord with wine lovers. Pickett builds on that chord in Vertical, as any sequel author does, but it’s not and never really was really about the wine.

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By the way, there is a Japanese version of the film Sideways — have you seen it? It’s set in Napa Valley, not Santa Barbara. Frog’s Leap and Newton are the featured wineries and Cabernet Sauvignon, not Pinot Noir, is the wine obsession.

To the best of my knowledge this film did not produce a Sideways Effect in Japan. Why not? Well, for one thing it focused on wines that were already well-known and popular in Japan, so it was using the wine to sell the film not using the film to change the way people think about wine.

Besides, I think, the Japanese version is even less about the wine and lacks that critical back porch scene. They did keep the dump bucket, however, as you can see in the trailer that I’ve inserted above.

There’s a [Wine] App for That!

Happy New Year! I’ve just finished reading final papers from The Idea of Wine class I teach at the University of Puget Sound.  This semester several students probed the intersecting worlds of wine and technology. Here, for your consideration, are quick summaries of five papers that explore variations on this very contemporary theme.

There’s an App for That!

Anna wrote about wine Apps. Apps are creatures of the 21st century — application programs that run on smart phones, iPads and similar electronic devices. There are thousands of Apps (the iTunes App Store and Android Market are full of them) and so it is no surprise that there are wine Apps, too.

Anna discovered five basic types of Apps, which she classified as wine journals, wine glossaries, wine-food pairing programs, electronic sommeliers that provide recommendations from lists of wines and wine quizzes and games. SmartCellar is an example of a sommelier-type App — restaurants can use SmartCellar-equipped iPads instead of printed wine lists to help their guests make well-informed wine choices.

Project Genome, a Constellation Brands study, identified six distinctive groups of wine buyers ranging from Overwhelmed to Enthusiast. Anna matched wine Apps with buyer profiles and concluded that there is something for everyone. But are any of them perfect?

No. Anna imaged the perfect wine App for her — given her particular interest in wine today. No single existing App would satisfy all her needs, she concluded, but there soon will be given the pace at which new Apps appear.

QR — the New Face of Wine?

Jack wrote abut QR (Quick Response) codes. QR codes work on the same principle as Universal Product Codes, but whereas UPC codes can store 12 characters of information, QR codes hold much more.  You scan a QR using an App on your smart phone and the App uses the embedded information to direct its display. QR codes are everywhere these days, especially in advertisements. Jack reports that some new graves in Japan feature QR codes that, when scanned, show photos of the deceased. QR codes at Japanese tourist sites provide detailed visitor information.

Jack found several applications of QR codes to wine, but he thought that the potential of this technology is not yet fully exploited. QR codes in advertisements or wine labels are a way to give the consumer more information. More advanced technology — already in use in other consumer goods markets — would allow QR Apps to connect with local retailers or to interface with online communities like CellarTracker.

“The more you think about it, the more it’s clear that QR codes have the potential to change everything about wine shopping,” Jack concluded. “They are free, easy to make and will soon have an army of smartphone users” to exploit them.  Japan has been using them for 16 years, he said. Time for wine makers and buyers in the U.S. to catch up.

Wine and Social Media

Alyssa and David wrote very different papers about wine and social media. Social media refers to electronic communities that link people in flexible arrangements and allow  them to interact and to  share information of various sorts. Alyssa examined Facebook, Twitter and the blogosphere to find the potential of each to forge durable wine-based interest groups.

David’s paper explored the role of the Internet (and social media)  in building or sustaining consumer communities using a very creative approach — comparing wine with beer. Beer has long been marketed as a group thing — a bunch of people get together and have a good time over a few beers. Wine’s marketing is not as consistently focused, David asserted, and the community element not so clearly developed.

This has an effect on how beer and wine build communities on the web. Beer brings community to the Internet, according to David, but wine tries to draw community from the web — an interesting point. “Every day, more and more people are being brought to wine through the Internet,” he concludes, “and lovers of wine are finally finding the community they’ve always wanted.”

Napa Valley versus Silicon Valley

Finally, Ben’s paper looked for linkages between Northern California’s two famous valleys. Not Napa and Sonoma (although that would be an interesting paper) but Napa and Silicon. What can we learn about wine, Ben asked, by looking at microchips? Quite a lot, he discovered.

Ben compared Annalee Saxenian’s account of the development of Silicon Valley in her book Regional Advantage: Culture and Competition in Silicon Valley and Route 128 with James Lapsley’s history of the Napa Valley wine industry, Bottled Poetry: Napa Winemaking from Prohibition to the Modern Era. He found rather interesting parallels between the two seemingly separate spheres of California life and concluded that Saxenian’s model of high tech regional development explains Napa’s evolution very well.

Going further, however, Ben asserts that both valleys reflect a certain regional spirit. “That this culture of creative destruction permeates as diverse of industries as IT and winemaking demonstrates the influence that a regional consciousness can have over all manners of activities that will within its physical purview.”

“In this sense,” he concludes, “Napa is a genuine reflection of its terroir …  Wine is a microcosm of our collective ties to our environment and the various techniques and technologies used to elucidate a certain character from a wine are ultimately efforts at understanding and strengthening this relationship. And in that pause given to us by that perfect glass of wine, we cannot help but feel closer to the world around us.”

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Sorry, I cannot distribute these papers directly, but if you are interested I will try to connect you with the student authors.

The Paradox of [Wine] Choice

I always look forward to the week between the Christmas and New Year holidays because that’s when the pace seems to slow down a bit and I can settle in to read The Economist‘s special double issue.

Of particular interest this year is the essay on page 123 called “Tyranny of Choice: You Choose.” The main point is simple, but the implications are quite broad, with particular relevance for today’s wine markets.

Good — Up to a Point

The simple point? Choice is good, but only to a certain degree. Too much choice is, well, too much and can sometimes stop decision-making dead in its tracks. I say that this is a simple point because we have all suffered from the problem of too many options overloading our preference systems. Or am I the only one who sometimes has trouble ordering coffee at Starbucks or a sandwich at Subway?

Government is a good example of this Paradox of Choice. One party rule is notoriously problematic.  Multiple parties provide useful competition. But at some point more political choice is really less –particularly less in terms of stability.  Fragile, shifting multi-party coalitions mean short governmental half-lives with no one looking after the whole since everyone’s focused on their own tiny slice of the electoral pie.

What makes The Economist article interesting is that it ties together so many elements of this dilemma, from literature to academic research and from potato chips to human reproduction.

Rollerblading Monstromart

Super-abundant choice is a fact of modern life. The Economist suggests that you …

Wheel a trolley down the aisle of any modern Western hypermarket, and the choice of all sorts is dazzling. The average American supermarket now carries 48,750 items, according to the Food Marketing Institute, more than five times the number in 1975. Britain’s Tesco stocks 91 different shampoos, 93 varieties of toothpaste and 115 of household cleaner. Carrefour’s hypermarket in the Paris suburb of Montesson, a hangar-like place filled with everything from mountain bikes to foie gras, is so vast that staff circulate on rollerblades.

One cost of this embarrassment of riches is confusion or, put another way, higher transactions costs. Making a choice means comparing the qualities and value of different options, which is difficult enough when there are only two brands of breakfast cereal, but mighty time-consuming and complicated when there are 200.

The Economist explores several dimensions of this problem, citing a Nobel Prize winning economist (Daniel McFadden), an Italian novelist (Italo Calvino) and cartoon character Marge Simpson!

Expectations have been inflated to such an extent that people think the perfect choice exists, argues Renata Salecl in her book “Choice”. … In one episode of “The Simpsons”, Marge takes Apu shopping in a new supermarket, Monstromart, whose cheery advertising slogan is “where shopping is a baffling ordeal”. “How is it”, muses Ms Salecl, “that in the developed world this increase in choice, through which we can supposedly customise our lives and make them perfect leads not to more satisfaction but rather to greater anxiety, and greater feelings of inadequacy and guilt?” A 2010 study by researchers at the University of Bristol found that 47% of respondents thought life was more confusing than it was ten years ago, and 42% reported lying awake at night trying to resolve problems.

Greater choice first delights us, then overwhelms us, then it can sometimes drive us crazy. There must be a “best” among all the rest. Which is it? And how will I know? The quest for the best can sometimes destroy the pleasure of the very good by introducing an unwanted but unshakable sense of doubt.

The Age of Anxiety

Which brings us to wine. It does seem like the problems of exaggerated choice apply especially to wine. Of those 48,000 items on the upscale supermarket shelves, chances are that 1500 or more are bottles of wine. Wine is the largest choice space in the modern grocery store, ten times richer in terms of the number of options than the #2 area (breakfast cereals) and much more complex.

Wine buyers have never had it better in terms of the number of choices available from around the world. And we’ve never had it worse regarding the possibility of confusion and the pressure to find our perfect wine. It’s the Age of Anxiety for wine.

I find it interesting that some of  the hottest products in the wine market seem to simplify wine just a bit and perhaps unintentionally  address this anxiety. Gallo’s inexpensive Barefoot brand wines have very done well in the last few years; most people view this as a price thing — the result of trading down. But Barefoot also offers consumers a more casual idea of wine that would appeal to anyone who wants to get out of “perfection” rat race and just enjoy wine without over-thinking it. (And every Barefoot bottle features a “Gold Medal” from a wine competition, giving buyers the security of a sense of quality.)

The hottest wine sectors today are Marlborough Sauvignon Blanc and Argentinean Malbec; is it a coincidence that these wines are easy to understand, with many good producers at various price points? The problem of choice still exists for buyers of these wines, of course, but perhaps more of the pleasure of choosing survives.

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Several people have asked about the series on BRIC wines.  Fear not — it will resume in a few days with a report on Russia,

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