Monthly Archives: May 2024

Wine Book Reviews: Getting Serious about Prosecco and Rosé

May 29, 2024 By in book reviews, wine, wine history 2 Comments

Here are brief reviews of two new books that tell the stories of two previously under-appreciated wines that have come into their own, but the books do so in completely different ways. Prosecco Superiore first, then  Rosé from Provence.

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The Story of Prosecco Superiore by Susan H. Gordon is a serious book about a serious wine. The first assertion is not hard to appreciate. Derived from Gordon’s doctoral thesis, the book is thick with the signs of academic research: useful and interesting footnotes, an impressive bibliography, and the sort of price tag that takes the breath away from non-academics (professors and their students are hardened by experience when it comes to the cost of these books).

Gordon has seriously thought about how she wants her readers to understand the story (or stories, I think) of Prosecco Superiore. Thus the traditional “Wines of fill-in-the-place” organization is nowhere to be found. Yes, we learn about grape varieties, climate, geography, production methods, and so forth (a.k.a. the usual suspects of wine books), but interwoven and in the context of other factors, especially the history of the people, the region, and Italy itself.

Gordon is very clear. She wants you to work, not be a passive passenger, so what she’s written is more of a workbook than a simple guide. Are you up for the challenge? Good, then you can begin.

Seriously Prosecco

My second assertion (that Prosecco Superiore is a serious wine) may take more convincing and it might be necessary to pour yourself a glass of the wine at some point just to be sure. Prosecco wines have been one of the great wine market success stories of the 21st century, but most of the attention has been focused on Prosecco DOC wines that come from vineyards on the plains. Less notice is given (perhaps because less wine is produced?) to the Prosecco Superiore DOCG wines that come from hillside vineyards in the zones that were the historical birthplace of Prosecco.

I never turn down a glass of Prosecco DOC because even the relatively simple ones, often with a touch of sweetness, are refreshing. Interestingly, many of the best-selling wines are either distributed by U.S. wine firms (Gallo, for example, has market leader La Marca in its stable) or bottled by Italian wineries as private label wines for U.S. wineries (Cupcake Vineyards Prosecco, for example, or the popular Kirkland Signature wine). The Prosecco Superiore you find is more likely to be made by the winery on the label.

Sue and I have been fortunate to visit the Prosecco Superiore region on several occasions (I’ve given lectures at the famous wine school in Conegliano) and we have come to appreciate the differences between Prosecco and Prosecco Superiore (structure and minerality among other things) and among the DOCG wines from different zones. It has been a fascinating study with an unexpected side-effect: happiness. Prosecco Superiore always makes me smile!

Take a Walk

Gordon’s book covers a lot of territory. The original subtitle, we are told, was “Histories, Geographies, Languages, Topographies, Personalities, and Typologies of Prosecco Superiore.” That’s a lot to think about.

But the organizing principle is easy to grasp and enjoy: let’s take a walk. A walk through history. A walk with Antonio Carpenè, without whom Prosecco would not exist. A walk in the Prosecco hills. A walk through the streets of Conegliano. Walking is good exercise, but more importantly, it is done at a pace that lets you notice and appreciate what you see and hear and think about the connections.

Walking is a good thing and walking with Susan H. Gordon as she (and you) encounter all these people, places, things, ideas, and forces is quite an interesting and worthwhile experience.

Like Prosecco Superiore, this book is a serious undertaking. But, also like Prosecco Superiore, it makes you smile the smile that comes from understanding something more serious than you thought it was.

 

The Book of Rosé: The Provençal Vineyard That Revolutionized Rosé By Whispering Angel and Château D’Esclans (photos by Martin Bruno and text by Lindsey Tramuta).

Is Rosé a serious wine? I suppose it depends on the Rosé and on the wine drinker, but there was a time when “serious” wine people tended to look down their noses at pink “swimming pool” wines. (Even today there are Rosé wines with swimming pool brand names or label graphics.)

A Hundred Bucks?

That situation has changed and a reason why is the subject of this book, Sacha Lichine and his Chateau d’Esclan wines. Lichine (son of the famous Alexis Lichine, the “Pope of Wine,” who did so much to develop wine market and culture in the United States) embraced the Rosé challenge almost 20 years ago. Working with Bordeaux’s famous  Patrick Léon and taking advantage of seriously old vines on the property, Lichine produced a wine called Garrus, which sold for more than $100.

A hundred bucks for a Rosé? He must have been crazy. But the impact was as dramatic as the price. Like Angelo Gaja, who raised prices and expectations in Italy years before, Lichine’s shockingly high price forced buyers to reconsider their prejudices and stimulated growers and other producers to up their game in terms of quality.

Whispering Angel

Old vine Garrus is still the top of the line, but Whispering Angel is perhaps the most popular of the portfolio of Provence Rosé wines on offer by Chateau d’Esclan. My favorite book chapter follows Lichine and colleagues as they set out to market Whispering Angel to a skeptical worldwide market. It is clear that Lichine and team knew who they wanted to drink their wines, where,  and on what occasions, with an eye to creating a luxury brand. They then set out purposefully and patiently to achieve this goal. Required reading for wine marketing students.

The Story of Prosecco Superiore demands a lot of its readers. The Book of Rosé is more relaxed. Indeed, it presents itself as a large, heavy, beautifully illustrated coffee-table book with some text woven in. Many will choose to own (or give) it for the photographs alone. But the text, although brief, tells an interesting story that is worth reading.

Two wines, two stories, two ways of telling it. Both worth your attention.

The Big and Hot Guide to Wine 2024

May 21, 2024 By in wine, wine markets 3 Comments

When you’re hot, you’re hot (and when you’re not, you’re not). That’s the way it is in the wine market today.

One of the most interesting charts at the “State of the Industry” session at this year’s Unified Wine & Grape Symposium was Danny Brager’s analysis of what I call the U.S. wine market’s “Big and Hot” situation.

The gist of the slide was that the market categories that are the biggest are not very hot (indeed, most of them are shrinkingly cold) and that the market categories that are hot and growing are relatively small. Under these circumstances, it is hard to see an “engine” category that might pull the overall market out of its current slump.

It has been a while since we published a Wine Economist “Big and Hot” column, so let’s take a closer look using the NIQ data for the 52 weeks that ended on February 24, 2024,  taken from the May 2024 issue of Wine Business Monthly. NIQ captures the big chunk of the U.S. wine market that flows through distribution channels that large wineries depend upon, but doesn’t include everything, especially DTC sales that many small and medium-sized wineries depend upon.

Reference Points

The NIQ data report both volume and value numbers. Total  measured sales for the 52-week period were $15.4 billion on 142 million 9-liter case equivalents. That was down 2.9% by value and down 4.2% by volume over the previous year.

The “Big” wines in various categories measured by value are as follows:

  • Domestic $11.1 billion vs Imported $4.3 billion
  • Among imports: Italy $1.4 billion, New Zealand $690 million, France $637 million.
  • Among domestic: California $10.0 billion, Washington $509 million, Oregon $290 million.
  • By grape variety: Cabernet Sauvignon $3.1 billion, Chardonnay $2.6 billion, Pinot Noir $1.5 billion, Sauvignon Blanc 1.4 billion.
  • Blends: Red blends $1.9 billion, Rose blends $608 million, White blends $237 million.
  • By price point (glass): super-premium ($11 to $14.99) $3.7 billion, Premium ($8 to $11.99) $2.5 billion, Popular ($4-$7.99) $2.4 billion.

What’s Big and Hot?

The Big and Hot winners are easy to identify because there are only two Big categories that experienced positive growth during the period under consideration and they are so closely related that they are nearly the same: New Zealand (+2.1% by value) and Sauvignon Blanc (+4.1%)! Indeed, tiny New Zealand accounts for almost half of all U.S. Sauvignon Blanc sales by value.

If you’ve noticed a lot of Costco shopping carts filled with Kim Crawford or Kirkland Signature Marlborough Sauvignon Blanc, you are not hallucinating. That’s the Big and Hot effect.

Three-liter boxes are pretty big ($856 million) and growing by 2.4%, but no other “Big” category grew during this period, although some declined by less than the overall market (which is sort of damning with faint praise). Chardonnay sales fell by only 1.9%, for example. A rising tide doesn’t always raise all boats, but this ebb tide seems to be dragging almost everyone out to sea with it.

Hot But Not Big

As Danny Brager noted at the Unified Symposium, the market is growing in smaller, niche categories, not the large segments. Red blends, a Big, are down more than 5%, for example. White blends are up slightly (0.3%), but are a small category by comparison. Two countries have experienced good growth recently, but from a relatively small base:

  • South Africa 5.5% growth ($37 million)
  • Portugal 3.4% growth ($53 million)

Two very different categories that experienced growth with substantial sales present something of a puzzle. Luxury glass ($20-$24.99) 0.6% growth ($867 million) beat the market average despite an overage price of $22.24. Chile 2.5% growth ($373 million) did much better in terms of growth, but sits at the other end of the market with average price of $4.93. It is hard to see the thread that connects these two wine segments.

Do these trends drawn from the NIQ data apply to smaller wineries that rely more on wine club and cellar door sales? I would be interested in reader reactions to this question. I am especially interested in the shifts among wine grape varieties and price points. As always, please keep comments short and to the point.

Starbucks and the Wine Market: An Update

Last week’s  Wine Economist column compared the current wine market situation with the problems being faced by Starbucks, the super-premium coffee chain. Tighter consumer budgets seem to be cutting into the sales of both wine, which is expensive on a per-serving basis, and Starbucks, which isn’t exactly a low-cost option either.

This week’s Economist newspaper features an article that compares Starbucks problem to that of President Joe Biden. You can evaluate this argument for yourself, but what interests me is the more detailed breakdown of Starbucks’ declining sales, which might be relevant for wine.

Starbucks has at least two types of customers. There are the committed regulars who most often visit in the morning. They load money on their Starbucks app, which they use to order coffee and other Starbucks products. I have read elsewhere that the “float” on the money that has been put on the app but not yet spent is a significant revenue stream for Starbucks, so these are really important customers.

Then there are the “occasional” customers, who more often show up in the afternoon and don’t necessarily use the app. Both the regulars and the occasional customers are important to total sales, just as they are to wine sales. And sales for both groups of consumers are down at Starbucks.

Regular customers are leaving more incomplete orders on the app, the article notes, changing their minds at the last minute. Is it because of unexpected long wait times? Are some of the millions of permutations of the chain’s drinks unavailable? I want what I want when I want it! Or is it because, once they see the total cost of their order, consumers, even regulars, hesitate to hit the order button? Probably some of all three explanations.

The Economist speculates that the decline in occasional customer  business is due mainly to tigher economic conditions, because similar reports are coming from McDonald’s, Shake Shack, and other businesses. It will be interesting to see how Starbucks responds to these challenges and if there are any lessons for wine is the results of their efforts.

Starbucks, McDonald’s, and the Global Wine Glut

May 14, 2024 By in Economic impact, wine, wine markets 3 Comments

Two of the most-read Wine Economist columns of 2023 analyzed theories of the global wine glut. The first focused on demographic theories (generational differences and life-cycle patterns) and the second took aim at economic forces (rising inflation, interest rates, housing costs, consumer and business debt). The first column got more attention. Until now.

A recent OIV report on global wine sales found that consumption measured by volume fell in almost every major consuming country between 2022 and 2023. It really is a global issue. And while there are many factors involved, including rising health concerns, the OIV stressed the economic theory of tighter budgets squeezing consumer choices. Why didn’t the OIV stress demographic trends? I can’t speak for them but it is clear that they are interested in the global problem and not every consuming country has the same demographic pattern as the U.S. Baby boom or lifestyle explanations don’t help us understand the sudden collapse of wine consumption in China, for example, but changing economic circumstances might.

Everyone knows that people are feeling economic strain these days, but can it really be affecting wine sales as much as that? Remember that sales in most countries haven’t collapsed (China being an exception). The volume of consumption has fallen by 2% to 4% in most countries. This is relatively small in percentage, but a big deal to winegrape growers and producers with unsold product.

This is where Starbucks and McDonald’s come in. Both are U.S.-based global firms and both have suffered significant declines, just like wine. I’ve been following the news about both companies recently and I think there are insights that wine producers need to consider.

Starbucks’ share price fell by 15% in a single day recently. Why? The Wall Street Journal published an article about persistently declining sales at the coffee giant. The problem, it noted, was that the company was running out of American customers who are willing to pay $5, $6, $7, or more for a beverage. Starbucks was premiumizing while their customers were belt-tightening. It turns out that many people don’t think they need Starbucks as much as Starbucks maybe needs them. Starbucks’ CEO announced a turnaround plan that seemed to miss the mark and the stock value took a dive.

What is the lesson for wine? Wine is sort of the Starbucks of its own category. Wine is more expensive per serving than other alcoholic beverages. It is a discretionary purchase. Consumers don’t need to buy wine. They don’t need to buy beverage alcohol at all. If only a few percent of them change behavior, you’ve got a Starbucks problem.

McDonald’s might also have lessons for wine. Once upon a time, fast food in general was seen as good value, but rising costs have increased the average drive-thru bill considerably and the volume of traffic has fallen. The McDonald’s CEO recently recognized the economic problem and vowed to restore the value proposition. There are rumors of a $5 hamburger meal, for example. Significantly, McDonald’s stock did not tank upon this announcement.

Perhaps wine needs to reevaluate its value proposition, too. Yes, there are inexpensive wines on the shelf, but are they good value? Consumers don’t seem to think so. Sales volumes have been falling for several years. Significantly, one of the few bright spots in the current market is the premium 3-liter box category ($4+ per bottle equivalent). Apparently many consumers see value here that they don’t find elsewhere on the wine wall.

I am not arguing that health concerns are over-stated or that generational and life-cycle explanations are wrong. But I think that the economic argument about the global wine market is important and wine producers need to take consumer budgets explicitly into account as they move forward. Consumers are feeling the squeeze. How can wine producers address this situation?

Is Orange the New White?

May 7, 2024 By in The Next Big Thing, wine 4 Comments

Orange wine (white wine made with extended skin contact) isn’t new, but some people think it might be the next big thing. Is Orange the new White when it comes to wine?

White the New Red?

These are interesting times for the wine business, as recent OIV studies have shown. Not only is global wine consumption volume falling, but the composition of wine purchases is changing, too. White is the new red, for example, as global consumption of white wines has now exceeded red.

The rise of orange wine might be part of this market reversal because, as Ray Isle wrote in Food & Wine magazine, orange wines are sometimes seen as the white wine for red wine drinkers because of the tannins they pick up during their longer skin-contact period. But orange wine volumes are still small relative to the broader market, so it is too soon to make bold claims about the future.

That said, orange wines may appeal to younger consumers who are also attracted to natural wines. Wine producers today pay close attention to any trend that might draw younger consumers into the market. It is no surprise, therefore, that most wineries Sue and I have visited in the last few years have had at least one tank of orange wine over in the corner to explore the possibilities.

From Georgia to California

Sue and I started thinking about orange wines when we visited Georgia, the cradle of wine, a few years ago and tasted white wines made in the traditional qveri process. The best of the wines were alive in the glass in a way that we seldom experience and, although skin contact wasn’t the whole story, it was part of the experience. Wines from Gotsa Family Wines, Pheastant’s Tears, Iago’s Wine Cellar, and the Alaverdi Monastery especially stood out.

Last year we enjoyed what someone called an “entry-level” orange wine from Bonny Doon called “Le Cigare Orange.” A skin-contact blend featuring Grenache Blanc, it was indeed a good introduction to orange wines made in a modern style.

The Vice Orange

It was easy to say yes, therefore, when we were offered orange wine samples from a Napa Valley winery called The Vice. The Vice focuses on small-batch single-varietal wines. Significantly, orange seems to be the new white at The Vice in the sense that a majority of their “white wines” (including our samples) get extended skin contact treatment.

We started with “Pickleball,” an Orange of Viognier made with grapes from Napa’s Oak Knoll District and aged for a year in neutral French oak. Tiny production: just 420 cases today. I was especially curious about this wine because normal Viognier is sometimes recommended as the white wine for red wine drinkers. How would the extra skin contact (plus oak aging) change the equation?

The answer was revealing. The wine was more restrained than I expected. It was clear that the winemaker aimed to make a stylish Viognier (that just happens to be orange) rather than an in-your-face Orange wine (that just happens to be Viognier). Do you know what I mean? Given the choice, I think I’d opt for this restrained approach every time.

Next Big Thing?

Next up was “Brooklynites 5.0,” an orange wine made with Gewurtztraminer from Los Carneros. It had been aged eight months in a combination of stainless steel tanks and concrete eggs. It was pretty, especially with the classy white and gold label. The aromas jumped from the glass followed by a spell by Gewurtz’s character and flavor. Dry, savory, great with prosciutto-wrapped asparagus. Restrained, like the Viognier, but with more going on in the glass.

The Vice has embraced orange wine, suggesting that “Orange is the New Napa,” which ought to get your attention. Their latest release includes five count ’em five orange wines according to the recent press release:

  • Orange of Gewurztraminer “Brooklynites 5.0”, Los Carneros, 2022 / 13.7% Alc. SRP: $35.00.
  • Orange of Viognier, “Pickleball”, Oak Knoll District, 2022 / 13.7% Alc. SRP: $38.00.
  • Orange of Sauvignon Blanc, “Sierra”, 2023, Los Carneros, 2023 / 13.4% Alc. SRP: $36.00
  • Orange of Albarino, “Sevilla”, California, 2023 / SRP: $38.00
  • Orange of Chardonnay, “Las Amigas”, Los Carneros, 2023 / 12.8% Alc. SRP: $65.00

Is Orange the new White? No, it’s a thing of its own, based on our sampling so far, and not a gimmick, either. Red, White, Pink, Orange, let a thousand colors,  hues, and shades come out of the tanks in the corner and onto the dinner table.

Wine could use a burst of adrenaline just now. Orange wine can’t do the job on its own, but it is a shot in the arm for anyone looking for something new to like in wine.

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Roger C. Bohmrich, Master of Wine, is the author of an excellent analysis of the Orange wine market, ” Orange Wines: Bridge to the Past and Trending Wine,” which appeared in Wine Business Monthly (January 2024, pp. 60-65). WBM subscribers can access the article on-line by following the link.