Shaw Organic: Is This the Next Miracle from Bronco Wine & Trader Joe’s?

shaw1“It’s very popular — one of the varietals is nearly sold out already.” That was my friend Kelly’s response to a question about a new wine at her Trader Joe’s store: Shaw Organic. It is the latest wine from the people who brought you Charles Shaw (a.k.a. Two Buck Chuck) and I think it might say something about where the wine market could be going in the U.S.

Two Billion Buck Chuck

I wrote about the “miracle of Two Buck Chuck” in my 2011 book Wine Wars. The miracle, I said, wasn’t that the Bronco Wine Co.  could make a wine that Trader Joe’s could sell for just $1.99 (the price has gone up over the years, but it is still inexpensive). Making value wine is all about controlling cost and there are many ways of doing that. In Europe some hypermarkets have sold what I call One Buck Chuck:  one liter for one Euro in a tetrapack container. That’s about a dollar per 750 ml bottle equivalent.

No, there’s no miracle in making a wine to sell for two bucks. The miracle is getting people to buy it because they tend to confuse price with quality and are suspicious that anything that costs so little could be any good.

I gave credit to Bronco for making clean, consistent, drinkable wines and Trader Joe’s for backing the wines with their reputation for quality and value. The miracle continues — Fred Franzia announced in 2016 that Bronco/Trader Joe’s had reached the one billion bottle milestone, which provoked  Paul Franson to christen Franzia “two billion buck Chuck” for the massive total expenditure on this modest wine.

Organic Wine vs “Made with Organic Grapes”

shaw2Shaw Organic is an extension of the Charles Shaw / Two Buck Chuck line that is noteworthy in several respects. First, there is the organic element. Bronco is very careful not to call this an organic wine, noting correctly that it is wine “made with organic grapes.”

What’s the difference? To be certified an organic wine by the USDA it must use only organic grapes and be produced with no  added sulfites in a certified facility. Wine that is “made with organic grapes” is allowed up to use  100 ppm of added sulfites, which is how Shaw Organic is made. Most but not all conventional wines have less than 100 ppm of added sulfites, according to my quick wine wine literature review.

The Shaw Organic wines we saw were priced at $3.99 per bottle for Rosé, Cabernet Sauvignon, Chardonnay, Pinot Noir, and Pinot Grigio. How is it possible to make a sell a wine made with organic grapes at such a low price? Well, as with Two Buck Chuck, economies of scale are part of the answer. In this case, the story starts in the vineyards.

You may know that Bronco is America’s largest vineyard owner, with about 40,000 acres of grape vines. You may not know that Bronco is also the largest grower of organic wine grapes in the United States. According to a 2016 article by Deborah Parker Wong (pdf)  Bronco has converted more than 5000 acres of vines to certified organic status — enough to produce 400,000 cases of wine. That’s roughly a third of all the organic wine grapes produced in the U.S.

Unscrew the Cork? 

Alternative packaging is a hot trend in wine markets these days and Shaw Organic features the latest twist from Amorim Cork: a twist-cork closure called Helix that allows consumers to have the cork stoppers that research shows they often associate with wine quality along with the convenience that comes with a screw cap.

shaw3The Helix cork closure  is a special cork and bottle combination. You grab the cork, which looks a bit like a fat sparkling wine cork, and twist it out to open. Reverse to re-close the bottle. Helix has been around for a couple of years, but not everyone has seen it yet. The Shaw Organic wines we saw had informative tags on the bottle necks to explain the how cork system works.

Amorim and Bronco worked closely on this project so I asked Antonio Amorim to comment on the partnership. “Shaw Organic features an innovative packaging that seamlessly matches the unique sustainability of cork with easy-to-open, consumer-driven convenience,” he said.  “All this is now available enhancing the premium aspects of an organic wine ”

Sue and I have been on a Rosè wine binge recently, so we bought a bottle of the Shaw Organic Rosè to try at home. We were surprised at the quality, especially given the $3.99 price tag. The Shaw Organic Rosè was subtle but refreshing and opened up a bit with time. It’s quite dry, which I didn’t expect. I’d be pleased to have it in my glass at a party or reception or just sitting on the patio any time.

Do You Believe in Miracles?

So will I be writing about the Miracle of Shaw Organic in my next book? Well … maybe. But if it does perform a miracle, it will be a different one from Two Buck Chuck. TBC democratized wine — the low price and consistent quality gave millions of consumers the confidence to try wine. Many of them stuck with TBC, but others moved up the wine wall to more expensive products.

Can Shaw Organics do the same thing for consumers who are interested in organic products? Maybe. It will certainly draw consumer attention to the organic category for wine. The conventional wisdom is that there are so few mass market wines with “organic” anywhere on the label because producers fear that buyers will be turned off by the designation. (It’s a complicated problem — I wrote about the “Organic Wine Paradox” here.)

Bronco and Trader Joe’s are bold to push the concept to the fore. Maybe they will give other producers confidence to “go organic” and it would be great if they could expand the overall market for these wines the way that Two Buck Chuck did for wine generally.

Three Faces of Languedoc Wine: Aimé Guibert, Robert Skalli & Gérard Bertrand

rosesAimé Guibert and Robert Skalli — these were the key protagonists in my analysis of globalization and wine in the Languedoc in my 2011 book Wine Wars.  Both Guilbert and Skalli revolutionized Languedoc wine, but in different ways. And they had different opinions of globalization, too.

If I were writing a second edition of Wine Wars today (readers: do you think I should?) I would add a third name — a champion of Languedoc wine who is revolutionizing it in another way today. That name is Gérard Bertrand.  Here’s the story.

Mondovino meets Mondavi-no

Aimé Guibert starred as one of the heros of the 2004 anti-globalization wine documentary Mondovino (flying winemaker Michel Rolland was one of the villians!).  Guibert helped revolutionize Languedoc wine at his estate Mas de Daumas Gassac  Working with Emile Peynaud and others, Guibert produced exceptional wines that changed the way that many viewed the Languedoc and its potential for fine wine. An impressive achievement and a great story.

That’s not the story that Mondovino told, however. The film was more interested in his opposition to Robert Mondavi’s plans to invest in the Languedoc and produce large quantities of branded varietal wine to be sold around the world. The local uproar eventually discouraged Mondavi, who turned his attention elsewhere. Did Guibert and his activist colleagues win? Mondavi was gone, but not the market strategy he represented.

That’s because, as I argued in Wine Wars, Robert Skalli was already at work to revolutionize Languedoc wines in a Mondavi-esque way. Skalli met Mondavi in California and was inspired by both his modern wine-making and by his marketing strategy, which focused on easy-to-understand varietal labels rather than sometimes-obscure appellations. Skalli was so impressed that he opened his own Napa winery (St. Supery, sold a few years ago to French icon Chanel) and invested in clean, modern, market friendly varietal wines at home including especially the popular brand Fortant de France.

Skalli embraced globalization just as Guibert shunned it, but they both drove change in a region that surely needed it and helped set the stage for the emergence of the new Languedoc wine world that Sue and I discovered during our recent visit. They also helped pave the way for the Languedoc’s current global market champion, Gérard Bertrand.

Celebrity Wine?

laforge.jpg

It didn’t take long for Gérard Bertrand’s name to come up. We landed in Toulouse and on the road to our hotel in Carcassone our well-informed driver pointed to a vineyard on the right and said that he’d been there the day when the crowds gathered and a helicopter descended carrying Bertrand and his special guests, rocker Jon Bon Jovi and his son. Bon Jovi is famous for his music. Bertrand is possibly more famous (at least in this part of France) for his exploits for club and country on the rugby field.

Sport, music, and wine — a potent mix! Bertrand’s father was in both businesses– wine and rugby.  Besides running the family estate he was a professional referee; his son learned both disciplines from the earliest age.

The helicopter gathering was the launch of a joint Bon Jovi-Bertrand project — a Rosè wine called Diving into Hampton Water. A limited edition celebrity wine, for sure, its first vintage sold out on allocation in short order.  The wine lists for $20-$25 here in the U.S. when you can find it.

I don’t know much about Diving into Hampton Water, which has received mixed reviews, but I’m pretty familiar with another Gérard Bertrand Rosé, the Cotes des Roses pictured above. It’s a lovely wine in a distinctively graceful bottle that is easily found on the shelves of upscale supermarkets and even in Costco bins in my region. There is a red and a white wine in the Cotes des Roses portfolio, according to the website, but I see only the pink one in my market.

tj

You can think of the Cotes des Roses as an upscale evolution of the Robert Skalli idea of Languedoc wine. It is a wine made for the market, that represents the Languedoc very well, but does so by reaching out to consumers with a clear image and strong brand. That’s kind of how I thought of Gérard Bertrand wine at the start of my visit — and the Bon Jovi connection reinforced that perspective. But I soon learned that there is a good deal more.

The first formal masterclass in Carcassone was devoted to tasting a cross section of Cru du Languedoc wines and one of the favorites was the Gérard Bertrand 2011 La Forge.  This was very different from Cotes des Roses — it was a serious wine of origin and it made me rethink the whole Bertrand project. Bertrand is Cotes des Roses and Hampton Water, but it is also a collection of very well made wines that celebrate and explore the multiple regions and terriors of Languedoc and Roussillon, Gérard Bertrand’s home (he first played rugby for Narbonne).

legendAmbassador Bertrand

Bertrand’s wines appeared twice more in our program, reinforcing this more complex view. Tasting through a lineup of Crèmant de Limoux sparkling wines, I stumbled across Gérard Bertrand Cuvée Thomas Jefferson. Jefferson fell in love with Crèmant de Limoux when he was U.S. ambassador to France and championed the wine, shipping quantities back home to Virginia.

Bertrand’s bottling honors the appellation and its historic connection to Jefferson. I was beginning to think of Gérard Bertrand as more of an ambassador (like Jefferson) of the Langeudoc than a simple celebrity. His project includes many of these terroir wines that together paint a picture of the region.

Then, at a gala dinner at Château de Pennautier, we were served a lovely mature sweet wine, the 1974 Gérard Bertrand Legend Vintage Rivesaltes. What a wine! And a wonderful tribute to this appellation. The Legend Wine series includes select Rivesaltes vintages going back to 1875! Bottled history.

I’ve Got a Little List

And so I think you can see why I have added Gérard Bertrand to my Languedoc icons list. He seems determined to push Languedoc forward, but not just in one direction and always with an eye on his roots. A fine ambassador indeed.

Every emerging wine region needs a brand ambassador to help break into the market and get attention. Napa had Mondavi, for example. Strong brands, if linked to time and place, can open doors a bit wider. As Languedoc and Roussillon re-emerge in their contemporary form, effective ambassadors like Bertrand are especially important.

Languedoc has many faces and these three tell a story of the ways that the region has changed to adapt to new market conditions. Bertrand’s complex inks to and respect for the past make him a particularly interesting addition to my little list. But there are many more faces to consider — you should pull some corks and see for yourself.

>><<<

The Wine Economist will pause for a couple of weeks while Sue and I are in Italy. We’ll visit old friends in Bologna (I taught at the Johns Hopkins/SAIS Center there years ago) and tour Eataly World before heading to Forte dei Marmi, where I’m speaking about Money and Wine at VinoVIP on June 18.