Book Review: What Can Wine and Coffee Learn from Each Other?

51wdqn2bcpyl._sx324_bo1204203200_Morten Scholer, Coffee and Wine: Two Worlds Compared. Matador/Troubador, 2018.

What can the coffee industry learn from wine (and vice versa)? That’s the question that Morten Scholer wanted to examine when he set out to write Coffee and Wine: Two Worlds Compared. It is the kind of question that gets attention here at The Wine Economist, where we search for lessons about the future of wine by looking at all sorts of other products ranging from craft beer to almond milk and beyond.

Coffee and wine are an interesting pairing. Both are global consumer goods, traded around the world for centuries. But, as Scholer points out, they differ in a hundred ways. Coffee, for example, is relatively young as an international commodity — 800 years compared to maybe 8000 years for wine.

North-North versus North-South

The most important markets for both coffee and wine are in the advanced industrialized world, as you might guess, but while a lot of wine is also produced there (Italy, France, Spain, Germany, the U.S.), coffee comes mainly from the developing world. Wine trade is thus mainly north-north (with important exceptions such as Argentina and South Africa), while coffee trade tends to be north-south.

So what can wine and coffee learn from each other? Scholer probably knows, but he wants his readers to find their own answers, which is both frustrating and engaging.  It is frustrating because it is natural to seek out an over-arching narrative to help organize and guide the reader through the dozens and dozens of topics covered. You won’t find that here.

Serious Fun

Some of the comparisons are just plain fun, as in the chapter on quality and quality control when the wine aroma wheel is set alongside a coffee tasters flavor wheel. Who knew that flavors and aromas could be so complicated and that coffee and wine could have so many sensory qualities in common?

Other comparisons are seriously revealing. I found the comparative analysis of the development of sustainability movements in coffee and wine very interesting.  Sustainability in coffee began as a top-down movement initially focused on assuring that growers received a fair return on their efforts, although a wider range of concerns are now addressed. Sustainability in wine, on the other hand, was a bottom-up movement based on grower concerns about environmental issues that has also broadened.

There are three main global sustainability programs for coffee, Scholer tells us, and almost half of world production meets these standards, although only about a third is marketed that way. In wine there are many different sustainability standards and programs reflecting the localized bottom-up origins of the movement. It is a complicated situation, Scholer argues, and he believes that sustainability standards for coffee are more complex than for wine in part because coffee has a long and complex value chain and meaningful sustainability must extend across the entire chain. Market structure really matters.

Everything You Ever Wanted to Know?

Scholer’s eleven chapters take pretty much every aspect of wine and coffee and then breaks them down into comparative elements. Thus the reader moves from history to botany and agronomy, processing and quality control, patterns of trade, packaging and logistics, consumption patterns, sustainability issues, organizations and competitiions, cultural values, and finally a country-by-country side-by-side snapshort. An appendix briefly expands the book’s domain, adding cocoa, tea, and beer to the comparative mix.

Each section is peppered by boxes, charts and tables and illuminated with maps. If you are just looking for interesting tidbits, they are there on every page. Hard to put the book down.

Back to the Big Picture

But if you are looking for the answer to that big question about what wine and coffee have to say to each other, more effort is required. Scholer’s method is a bit like pointilist painting, where the image only becomes clear when you stand back a ways. What’s the big picture? Honestly, I am still working on it. Maybe one big macro answer doesn’t exist and that the insights are best appreciated at the micro level.

But I think it’s worth the effort to think about coffee and wine seriously. I tried to do that in a pair of Wine Economist columns back in 2009. My focus then was on the question of why the price difference between the cheapest and most expensive wines was so much greater than for the cheapest and costliest coffees. Wine does better than coffee in spanning the space from everyday commodity to luxury product. But, I wrote then, coffee will try to catch up and I think that’s happening today.

Scholer’s Coffee and Wine is an intriguing book. You can try to solve its riddle or just enjoy learning all about these two global industries. Either way, there’s food (and drink) for thought.

Finding Growth in a Stagnant Market: What Can Wine Learn from Beer?

Although it is hard to pick out trends with confidence in the current topsy-turvy wine market environment, it is fair to say that there is growing concern that global wine consumption has reached a plateau. This is not a new phenomenon, as I wrote back in January 2019, when I pointed out “global wine’s lost decade.”

Where do you find growth in a stagnant market? One strategy, which I pointed out in a March 2019 column about Precept Brands success, is to take advantage of the fact that there are always some growing market  segments. Flexible producers will follow the money, investing where the growth is. Trying to take market share from other beverage alcohol categories in another strategy, of course, but wine suffers a cost disadvantage here. Wine’s per-serving cost is higher in general that either beer or spirits.

So what is to be done? A recent Rabobank report about global beer provides food for thought about what’s ahead for global wine. Beer? What can wine learn from beer? Well, beer hit a global sales plateau first and so has had more time to develop strategies.

Rabobank’s Beer Quarterly Q3 2021: The Beer Wars analyzes the beer industry’s response to stagnant demand in terms of the different strategies adopted in Japan, the US, and Europe.

Japanese Beer’s Diversification Strategy

The Japanese beer industry faced a crisis earlier than brewers in the US and Europe according to the Rabobank report, and so have had more time to find new growth strategies. Starting in the 1980s the beer market was disrupted by a combination of generational transitions (younger drinkers turned off by what they saw as grandfather’s beer), shifts in path to market (the rise of convenience stores and vending machine sales), and the advent of new competition in the form of chul-hai, an easy-drinking RTD cocktail.

Japanese brewers responded in many ways, including the innovation success of Asahi Super Dry, but the main strategy that the Rabobank report identifies is diversification into other product lines. Japanese brewers compensated for stagnant or falling per-capita beer sales by expanding into other markets from production technology to pharmaceuticals to nutritional supplements where existing strengths could be exploited. The process was slow, the report suggests, and required considerable investment.

It is easy to see wine industry parallels in the problems that Japanese beer faced. Generational transition? Shifting market pathways? Easy-drinking alternatives (think hard seltzer today). Constellation Brands has diversified within the beverage alcohol space through its Mexican beer business and made initial moves into cannabis, too. LVMH has long pursued a diversification strategy — its wine business is part of a diversified portfolio of luxury brands.

US Beer Follows the Money

A second strategy, which the Rabobank report associates with the US beer market, is diversification into other beverage categories such as ready-to-drink coffee and tea, energy drinks, sports drinks, hard seltzer, and so forth. Part of the logic, I think, is to exploit scale economies in beverage distribution and the name recognition derived from established brands and part is simply following market growth wherever it takes you. MolsonCoors changed its name to MolsonCoors Beverage to signal that it isn’t just a beer company any more.

I admit that I was stunned to see Pabst Blue Ribbon hard coffee on beer aisle of the local Safeway, but it fits with this strategy and reminds me of the time a few years ago when Coca Cola decided that it could leverage its distribution network  comparative advantage to enter the wine business by purchasing Taylors wine company (transforming it into Taylors California Cellars) as well as Napa Valley’s Sterling Vineyards. Coca Cola lost interest in their wine diversification strategy after a few years, however, as the margins on wine couldn’t match its soft drink profits and sold the brans to Seagrams.

It is easy to see some wine producers adopting this strategy in the US, too, especially in the canned segment where wine, various wine spritz drinks, and hard seltzer products fill the shelves.

European Beer M&A and Internationalization

Finally, the Rabobank report identifies an M&A and internationalization strategy that it associated with European beer producers. This is the “go big” part of “go big or go home.” European brewers such as Heineken and Carlsberg have evolved into firms with both multinational markets and multinational production networks, too.

Heineken is currently negotiating purchase of control of South Africa’s Distell, the world’s second largest (after Heineken itself) cider maker as well as an important spirits and wine producer. This transaction would further expand Heineken’s footprint in Africa, a market with substantial potential for growth.

Consolidation has been an important recent theme in the wine business, too. Gallo’s scale after the Constellation Brands deal is quite incredible. And I think this trend will continue both in wine production and distribution. But the global wine is still quite fragmented compared with global beer.

What Can Wine Learn?

Beer has had to face a stagnant global market for longer than wine and has developed a number of strategies to expand volume or grow margins. Very large wine companies have learned the lessons of their beer industry colleagues and pursued similar approaches, but it is still early days for wine compared to beer.

Can beer provide insights for medium sized wine producers, of which there are many around the world? This is less clear simply because consolidation in the beer industry has hollowed out this market segment

Wine Book Review: Adventures on the China Wine Trail

chinaCynthia Howson & Pierre Ly, Adventures on the China Wine Trail: How Farmers, Local Governments, Teachers, and Entrepreneurs Are Rocking the Wine World. (Rowman & Littlefield, 2020).

I remember my first taste of Chinese wine very well. My university student Brian brought a bottle of 1999 Changyu Cabernet Sauvignon back from his study abroad semester in Beijing. It didn’t really taste much like Cabernet, but it was the smell that really got me. “Ashtray, coffee grounds, urinal crust” was the tasting note I found on the internet. Exactly. Quite an experience.

The second taste was not much better. Matt, another student, found a case of Dragon’s Hollow Riesling in a Grocery Outlet store in McMinneville, Oregon. He gave me a couple of bottles that I tried (but failed) to serve at a student tasting. The smell (something rotten?) got in the way of tasting and the wine went down the drain.

I learned two things from these tastings. First, maybe my students were out to kill me! And second, Chinese wine had a long way to go.

And a long way it has come, too, in only a few years. That’s one of the messages of Cynthia Howson’s and Pierre Ly’s fast-paced new book, Adventures on the China Wine Trail. Howson and Ly, partners in life as well as wine research, might have been initially attracted to Chinese wine by its peculiar taste and unexpected existence. But as they have immersed (I nearly said marinated) themselves in the wine, the people, the geography, and the culture they have discovered so much more, which they enthusiastically share with their readers.

Adventures on the China Wine Trail works on many levels. It is in part the record of the authors’ personal journeys and it is interesting to travel with them as they lug their seemingly-bottomless wine suitcase from place to place. The authors have an amazing mastery of the detail of the people and places, food and wine. It’s almost like being there.

In fact, the book works as a travel guide as well wine journey account, providing information of where to go, what to do, where to stay, and so on. But beware: Howson and Ly aren’t your typical tourists, so while they do take us on a walk along part of the Great Wall, this is only because they took part in a wine conference quite close by. They still haven’t seen the famous Terracotta soldiers despite spending time in that region.  They couldn’t pull themselves away from the wineries. Maybe next time, they sigh.

More practical advice appears in the closing chapters. Where should you go to buy or drink excellent Chinese wine if you visit China? They have recommendations for you. And when will you be able to enjoy Chinese wines (good ones, not the drain-cleaner stuff) at home? Sooner than you think, they say.

Some of the wines are already here, including the $300 Ao Yun that Pierre bought at a Total Wine in Washington State. But that is just the iceberg’s tip and if you are reading this in London or Paris you may know that Chinese wines are no longer the shocking discovery that they were just a few years ago.

And how are the wines? They vary in quality, just like wines from any place else. But many of them (more each year) are excellent and even distinctive. I know this both because Howson and Ly tell us about the wines and also because Sue and I have been fortunate to share some of their Chinese finds — including that luxury Ao Yun.

There’s a final layer to the story that I can’t forget. Howson and Ly are both professors and serious scholars. Although the book doesn’t read like an academic treatise, it has a serious purpose. The authors began their study of the Chinese wine industry wondering where it might lead? Could wine possibly be the basis of sustainable rural economic development? Or was it an alcoholic dead end in terms of a greater purpose?

Chinese wine’s journey has been anything but simple or smooth and continues today. It will be a long time, I suspect, before we know for sure how the story will end. But as for economic development, Howson and Ly have overcome their doubts. Wine in China is the real deal, whatever specific shape it takes in the future. All the hard work of the farmers, government officials, teachers and entrepreneurs we meet in the book has succceeded in building a viable industry.

So here’s my tasting note:  Adventures on the China Wine Trail is a fast-paced journey through the world of Chinese wines that will appeal to readers who love wine, China,  travel, or who just looking a good adventure yarn. Highly recommended.

Got Wine? Is It Time for a Generic Wine Promotion Campaign?

 

I’ve had several conversations recently that circled back to the idea that the wine industry should invest in a generic promotion campaign. You know what I mean. Not “Got Milk?” (maybe the most celebrated generic promotion of all time), but something along the lines of “Got Wine?” or “Got California Wine?” depending on who’s talking.

“Got Wine?” is too copy-cat to work, of course. You can come up with something better if you give it some thought. But you get the idea.

Subsidy Wars?

One argument for generic promotion of wine is based on the realization that wine isn’t connecting with new, younger consumers the way we hoped or expected. If we want consumers to have a particular image of wine (or of the wine-drinker identity), maybe we should be more proactive in shaping perceptions.  Laissez-faire isn’t working so well. Let’s do something.

A second argument, which would support “Got California Wine?” or “Got American Wine?” is provoked by the  subsidies the European Union is giving to its member states to promote their wines in the U.S. market.

Years ago the EU used to support prices and winegrower incomes directly, but buying up surplus grapes and wine (we called the result the European Wine Lake). Now the EU has changed tactics and supports the modernization of wine production and the promotion of exports. Basically, they want the wines to be marketable and if the EU market won’t buy it all (and it won’t), then exports are promoted to avoid re-filling the dreaded lake.

This is a better approach from an economic standpoint, but you cannot blame American producers for thinking that it creates an uneven playing field. It might be better, many argue, to get the EU to stop subsidizing wine export promotion. But that would be complicated and take time. In the short run, the argument goes, generic promotion of U.S. wines might even things up a little.

Milk is All Over

Talking about wine promotion got me thinking about milk. That “Got Milk?” promotion ran for 25 years and attracted lots of attention. All sorts of celebrities posed with milk mustaches (aka moo-staches) to draw attention to milk and its broad appeal.  Everyone enjoys milk — that was the message. The Whoopi Goldberg ad was my favorite.

But, memorable as these advertisements are, they were fighting a losing battle. Increasingly, American consumers don’t follow the “Got Milk?” path.

milkI first realized this a few years ago when I heard wine economics guru Karl Storchmann talk about trends in various consumer beverages. He examined Google data about searches for wine, tea, coffee, milk, and water and concluded that  while water was rocking it, milk was fading fast. “Milk is all over,” Karl said at the time (here is a pdf of his study).

Karl wasn’t wrong. Dean Foods, America’s largest milk producer, filed for bankruptcy in November 2019.  Milk sales fell for 4 years in a row as Americans shifted to plant-based cow-milk alternatives, including oat milk and especially almond milk.

Wine vs Milk?

Got Milk? Yes. Always. But increasingly it doesn’t come from a cow.

When you think about it, what happened to milk is a little bit like what seems to be happening to wine. There are lots of new products available that compete with wine including craft beer, craft spirits, and alcoholic sparkling water.  Some of these products are popular in part because they have less alcohol than wine, addressing a health concern  in the same way that almond milk avoids a health problem for some dairy-intolerant consumers.

Is wine all over? I don’t think so. But the industry is obviously not as healthy as we’d like it to be.

So what should wine do? A generic campaign is fine, but it matters a lot who it is aimed at, what it says, and how it is organized. And someone has to pay for it. A “Got Wine?” style consumer-focused campaign isn’t the only option.

Sue and I recently attended a promotional event for Italian wine that was aimed at trade — importers, distributors, sommeliers, journalists, and various “influencers” — but not consumers themselves (there was no consumer tasting).  The product chain for wine is long and complex and there are several points where promotion can be effective.

Come back next week for thoughts on some of the issues that a “Got Wine?” push needs to take into account. In the meantime, I have discovered that there already is a GOT Wine — GOT stands for Game of Thrones!

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The chart comparing Google search term data for wine, milk, etc. is taken from Karl Storchmann, “Wine Economics.” Journal of Wine Economics 7:1 (2012), p. 3.

The video above is the very first “Got Milk?” commercial.

We Are All Terroirists Now

The third section of my book Wine Wars, which is celebrating its 10th birthday this  year, is called “the Revenge of the Terroirists.” As I explained in last week’s Wine Economist column, Wine Wars argues that globalization pushes the wine market forward, which is great, but one market reaction to this “creative destruction” is rationalization, which can be both good and bad.

What’s to keep wine from going off the rails and becoming just another branded consumer good? Well, it could easily happen and has happened in some cases, but I’m an optimist and, in Wine Wars, I argued that people who understand wine and appreciate what makes it different from commodity products would be a force strong enough to keep wine safe.

It’s a Wine World After All

I wasn’t the only person to see the wine market as this sort of conflict. Jonathan Nossiter’s  2004 film Mondovino took a decidedly less optimistic view of this battlefield. The forces of globalization and commodification (symbolized by the Mondavi family brand in this poster for the film), are determined and powerful. Can the first terroirist we meet in the film, Giovanni Battista Columbu, guardian of Malvasia di Bosa in Sardinia (shown here below the Mondavis) possibly stand in the way of the global market juggernaut?

If that’s the war — big vs little, money vs traditional values — then it would seem like the wine wars have already been lost. But that’s not necessarily how things have to work out.

Large wine businesses are not all the same. For one thing, only a surprisingly small proportion of wine business are public corporations with professional managements than have to answer to investors with constantly rising quarterly profits and share prices. As I have pointed out before, a great many wine businesses, even the largest of them (think Gallo!) are family firms that think in generational terms. This long term thinking doesn’t guarantee a terroirist attitude, but it at least sometimes points in that direction.

B Corps, Slow Wine

Indeed, a number of important wine businesses are benefit corporations (B-Corps for short). Oregon’s A to Z Wineworks was the first in this growing group and  Portugal’s Symington Family Estates one of the most internationally recognized. Fetzer, the California winery long known for its environmental focus, was the world’s  largest B Corp wine company … until last Friday! That’s when its parent company, Viña Concha y Toro, announced that all of its global operations had received B Corp certification. Amazing!

B Corps make no specific commitment to terroir, of course, which is natural since they can be found in all sorts of industries (the little coffee shop on the corner hereabouts is part of a B Corp operation). But the values that B Corps commit themselves to supporting are different from those of the stereotypical corporate behemoth.

I’m also encouraged by my study of the Slow Food movement. Founded in Italy but now spanning the globe, Slow Food is a grassroots counterpoint to industrial food and agriculture. It doesn’t confront global corporations directly by, for example, bombing McDonalds restaurants the way French anti-globalization protestors used to do. Slow Food instead works to identify products and practices of tradition and terroir and then seeks to promote and preserve them using the very tools of media and markets that we usually associate with industry. Slow Food uses the weapons of global capitalism against itself, an elegant irony, don’t you think?

Slow Wine is a thing, too,  and the guide to Slow Wine USA 2021 has just been released. You should check it out.

We Are All Terroirists Now

To paraphrase a comment attributed to both Milton Friedman and Richard Nixon (see note below), we are all terroirists now. Well, almost all or at least a lot more of us. The reason: climate change. Climate change is real and it is a crisis, even if we don’t treat it like a crisis (compare the reaction to the Covid global pandemic to climate change and you can see that climate isn’t given the same priority). Last year’s wildfires and this spring’s killer European frosts are reminders of the climate’s destructive volatility.

The wine business needs to take account of changing environmental conditions and, while this isn’t the same vision of terroirism that you see in Mondovino, it is a step in that direction.  More steps are needed, both to address the environmental risks and to secure the future of wine.

I’m trying to figure out where the natural wine movement fits into the revenge of the terroirists. Natural wine producers often fit the terroirist stereotype that Jonathan Nossiter established in Mondovino. In fact, Nossiter has written a book about them called Cultural Insurrection: A Manifesto for Arts, Agriculture, and Natural Wine.. Natural wine advocates in Nossiter’s telling of the story tend to define wine more narrowly than I do (something that I pointed out in reaction to Nossiter’s book), but they still contribute to the “revenge” I hope to see.

Not Exactly a Manifesto

Nossiter’s vision of wine sees a world of industrial wine versus natural wine and industrial wine needs to disappear because, well, it isn’t really wine at all. It’s just a toxic chemical concoction. A lot of people see wine in terms of a dichotomy — wine of the market versus wine of place, commercial wine versus fine wine, you get the idea. Generally they make this distinction in order to favor one type of wine — almost always the terroirist side of the equation.

My realist perspective is that there many types of wine, including high volume commercial  wines. They are all wine and each category fills a consumer niche. What is important to me is that the big doesn’t crowd out the small, that terroir wines and the terroir that produces them endures. And that consumers  understand the choices they make and their implications.

It’s a complicated situation, a fact easily illustrated by the case of Canadian billionaire Anthony von Mandl. Terroirist or not? You be the judge!

On one hand, von Mandl is the head of the company that makes Mike’s Hard Lemonade and White Claw hard seltzer. These terroir-free alco-pop beverages are insanely popular and my market research friends tell me that they are partly responsible for declining sales of inexpensive (and, it must be said, also relatively terroir-free) commodity wine.

On the other hand, however, von Mandl is the Robert Mondavi of the Okanagan Valley in Canada. He’s the founder of iconic Mission Hill Winery and, according to a recently VinePair report, is a driving force in British Columbia’s organic wine movement. Six wineries in von Mandl’s Mark Anthony Group are leading the charge, converting about 1300 acres to organic viticulture:  Mission Hill Family EstateCedarCreek Estate WineryRoad 13 VineyardsLiquidity WinesMartin’s Lane and Checkmate Artisanal Winery.

Do you appreciate irony here? White Claw money funding a terroirist revenge in the beautiful Okanagan Valley.

Whether  you think of terroirism as a broad phenomenon or a narrow reaction movement, I hope you can see its importance in the wine wars of today and the battles of tomorrow. Are we all really terroirists now? No, not really. But the I think the wine world has come a long way from the David versus Goliath world of Mondovino.

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“We are all Keynesians now” is the comment commonly attributed to Friedman and Nixon and if they were still alive they would probably repeat the saying again. I cannot think of any time in the past 40 years when fiscal policy has been more important.

Wine Wars: Curses, Miracles, and Revenge

Wine Wars 2011: the first books arrive.

As I explained in last week’s Wine Economist column, this is the tenth anniversary of the publication of my first book on the wine business, Wine Wars. Although the catchy title (suggested by the smart marketing people at Rowman & Littlefield) gets your attention, it is the long subtitle that outlines the book’s argument. This is a story of “the Curse of the Blue Nun, the Miracle of Two Buck Chuck, and the Revenge of the Terroirists.”

Here is a quick sketch of the book’s argument. I’ll return next week with thoughts about how things have changed (and how the argument has held  up) in the decade since publication.

Curse of the Blue Nun

Blue Nun was arguably the world’s first global wine brand, so it represents the argument that globalization has been a powerful force in the wine world. What’s the curse? Well Blue Nun began as a very high quality German wine but, as it and other wines like it became more successful, eventually quality suffered. Blue Nun continued to sell, but it wasn’t the same. The curse of globalization is therefore that success on the global market can be double-edged, both creating and destroying.

Globalization has brought a world of wines to our door, which is also good and bad. This is the paradox of choice. No choice is bad. It is like the old Soviet joke where everything is either mandatory or forbidden. But too much choice is bad, too, and can be a particular problem for wine. It is not unusual for upscale supermarkets to have more than 1000 different wines on the shelf at prices ranging from a few dollars to hundreds of dollars. Wow! Not always easy to make sense of such an over-whelming selection.

Miracle of Two Buck Chuck

One way that many consumers react to this, the most confusing aisle in the store, is to confuse price with quality. Cheap wines must be bad. Expensive ones must be good. Clever marketers take advantage of this misconception in all sorts of ways that I discussed in the book. Hence the miracle of Two Buck Chuck. For many years Trader Joe’s stories in the U.S. sold a wine called Charles Shaw for $1.99 (do you see the two buck Chuck in that)? And millions of people who might otherwise have drifted away from the wine wall bought it and enjoyed it. TBC is an important element of the democratization of wine in America.

People think the miracle of Two Buck Chuck is its price, but let me assure you that you can make and sell a wine for $2 if you want to. In Europe I saw a wine that was one euro for a liter in tetra-pack carton. That’s equivalent to one buck Chuck! No the miracle is that consumers would buy it despite its bottom shelf price. They bought TBC because they trusted Trader Joe’s to sell good value products and then, having tried it, they trusted  Two Buck Chuck to deliver consistently. Trader Joe’s and the Bronco Wine Company that makes TBC created a powerful brand that has sold millions and millions of bottles.

Commercial brands are one way to help consumers break out of the paradox of choice by economizing on trust. You don’t have to trust the grape variety or the appellation or the vintage year. You only have to trust the brand. That simplifies things for sure. But there’s a risk. Albert Einstein said that everything should be as simple as possible, but no simpler. And that’s true of wine, too. If branding and commoditization simply wine too much and undermine its quality, then the miracle can quickly become a curse!

Revenge of the Terroirists

What is there to keep wine from becoming just another branded commodity? I am an optimist, so I proposed a counter-force that I called the revenge of the terroirists. This term, taken from the French terroir, has caused a little confusion over the years. I am sure that Wine Economist readers know what I mean, but auto-spell programs always try to correct it and there was even one case where a gentleman came to one of my talks thinking that I was speaking about terrorists and wine. Terroir. Terror. Hmmmm. Easy to see how that could happen.

In fact, some terroirists back then were terrorists, or at least they used terrorist tactics to oppose the incursion of industrial wine into the south of France. But I wasn’t counting on violence to hold back the commodification tide. No, I put my money on the dedicated few who opposed industrial wines the same way that the Slow Food movement (which I wrote about in my Globaloney books) opposes industrial food — by fostering an alternative rooted in and celebrating tradition but using the best appropriate modern practices.

Would the terroirist resistance endure? It wasn’t a sure thing then (or now either, I suppose) but I was cautiously optimistic. As the last line of the book says, I still have grape expectations.

A Trip to Napa Valley

Each of Wine Wars’s three sections ends with an invitation to taste some wines that illustrate the relevant part of the argument. The final tasting re-creates a trip that Sue and I took just as work on the book was coming to an end. We were in California for a meeting of academic wine economists at the University of California at Davis. We skipped the sessions one afternoon and drove to Napa Valley. We made three stops: a small family winery, a larger and more famous firm — Frog’s Leap — whose winemaker John Williams is world-famous for his terroirist work. We ended the day at the Robert Mondavi Winery where our academic colleagues had gathered for the conference closing banquet.

Frog’s Leap is still going strong, principles in-tact, with the next generation hard at work. That small family winery no longer exists. The wine business is hard and every year new wineries spring up while old wineries quietly fade away. Robert Mondavi is still there, of course, but it is no longer owned by the Mondavi family. They incorporated their winery in order to get resources for new projects and then lost control of it. Constellation Brands is the owner now.

The China Syndrome

The penultimate chapter of Wine Wars is called The China Syndrome and it provides an interesting perspective on how much things have changed in just ten years.  China was best known in the wine world back then as place to sell Bordeaux wines, both the iconic first growths but also lesser wines, even from questionable vintages. The Chinese couldn’t get enough Bordeaux.

Submerged under that sea of Bordeaux, however, was a growing Chinese wine industry — that’s what caught my eye. I reported on my first taste of a Chinese wine and it wasn’t very pleasant. Ashtray, coffee grounds, a whiff of urinal crust. Ugh! Bad Chinese wine was very bad indeed, as bad wine is everywhere.

But I also reported on a much different experience — a bottle of Grace Vineyards Cabernet Franc that we shared at an Open That Bottle Night dinner. Very nice indeed and it made me wonder where Chinese wine was headed (a question that continues to interest me — I’ve written  about China in each of the subsequent wine books). Not good vs bad — I was pretty sure that better wine would rise to the top. No I wondered if Chinese wine would try to copy-cat the French as wine has done in so many other places. Or would the wine industry there develop in a way that reflects its particular terroir — wine with particular Chinese characteristics?

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I do think that the overall argument of Wine Wars has help up pretty well, which is a bit of a surprise given how much has changed. What would I change if I were writing it again now? Come back next week to find out.

What’s Ahead for Wine Tourism in Mendoza? Lessons from a Rock Opera

monteviejoThe United Nations World Tourism Organization’s global wine tourism conference in Mendoza, Argentina was full of contrasts as you might expect in a high desert region that is punctuated by isolated vine-filled green oases.  The morning sessions featured conventional conference formats — speakers, panels, Powerpoint slides, dark rooms, coffee breaks (and really good simultaneous translation — thanks for that!). And then …

Hardly Working?

The afternoon and evening session moved out of the conference center and into the wineries, so that international participants could take in the landscape, marvel at the wonderful winery architecture,  appreciate the warm hospitality, sample the many winery experiences, and of course enjoy food and wine as any wine tourist would.

Does this sound like hard work? Very few of our friends feel sorry for us when we post about these experiences on Facebook, but it really is work because Sue and I are always observing and analyzing both what the wineries do (and how they do it) and the reaction from their guests.

moonshot2This was particularly interesting at the UNWTO conference because our fellow delegates were mainly tourism people who see opportunities in wine whereas Sue and I come at this more from the wine side, where tourism is one important element. The organized winery visits were interesting to us because they highlighted the tourism offerings rather than the wines themselves.

A reception at Bodega Séptima, for example, showed off its striking architecture and invited guests out to the big patio to stare at the moon and stars through telescopes while sipping wine. Wine tourism and astrological tourism combined.

A visit to Bodega Norton featured an opportunity to ride bicycles through the vineyards followed by a late lunch and then a chance to paint with wine (I saw a rabbit in the vineyard, so that was my artistic contribution). Norton’s program stresses active involvement, which is always more engaging than passive participation.

asadoThe historic buildings and ancient vines were a highlight of our asado lunch at Bodega Nieto Senetiner, where we were treated to a sensory experience organized around a Torrontes perfume and a Malbec cologne. This was interesting even though it violated the first rule of a wine tasting — don’t introduce any scents that might mask the wines’ aromas. It worked as a tourist experience, but would turn off any serious wine lover.

The Missing Link?

Sue and I enjoyed these experiences, but we noticed that something was often missing. The wineries worked very hard to show off their delightful wine tourist offerings, but they missed many opportunities to tell their stories and reinforce their brands. Perhaps this was by design because of the special character of the UNWTO audience, but it seems to me that it is always important to tell your story and build your brand.

Two of the most effective wine tourism programs we have experienced are Larkmead Vineyards in Napa Valley and Sandeman in Porto. The two wineries differ in almost every way but this: there is a clear story, which is told in several ways, and everyone you meet tells the same essential story, reinforcing the message.

A goal might be for each winery visitor to encounter the defining story three times in three different ways during a visit and to be able to share it with friends. You might call it the “Tommy” tactic (after the rock opera composed by The Who). See me, feel me, touch me, heal me. Stimulate all the visitors’ senses and touch them in a way they won’t soon forget.

The Next Step?

Perhaps this is the next step that Gabriel Fidel hinted at in his conference presentation, which encouraged the Mendoza wine tourist industry as well as the rest of  us to think beyond the current focus on creating experiences.  The facilities in Mendoza are world class and the experiences, including food pairing sessions, vineyard walks and rides (on both bikes and horses), and so forth are great, too.

All the pieces are here in Mendoza. Now the wineries and local wine tourism officials need to steal a tune from Tommy so that they all come together with the defining stories of the wineries and the region to create an total experience that resonates with visitors from around the world.

amdes

Eight Flavors of American Wine? Reflections on Sarah Lohman’s New Book

51svceuoerl-_ac_us160_Sarah Lohman, Eight Flavors: The Untold Story of American Cuisine. Simon & Schuster, 2016.

Sue and I have been reading Eight Flavors, a fascinating new book by Sarah Lohman about food products that have transformed the American palate. Once exotic, now they are ubiquitous. Can’t imagine American cuisine without them.

This Changes Everything?

Lohman passes on coffee, chocolate and a few other “usual suspects,” she says, because they have been examined in great depth by other authors. Fair enough. So what are her eight flavors?  They are: Black Pepper, Vanilla (which replaced rose water as a flavoring), Chili Powder, Curry Powder, Soy Sauce, Garlic, MSG (the umami flavor), and the most recent addition, Sriracha

Each chapter presents the history of the flavor along with elements of Lohman’s  personal investigation and a handful of recipes, too. In its approach and deft writing syle Eight Flavors reminds me of another of my favorite food books, Lizzie Collingham’s Curry: A Tale of Cooks and Conquerors. rogue_sriracha_stout__32156-1423592442-451-416High praise!

The story of Sriracha is particularly interesting to me because I have watched as this product and its intense flavor have moved from “ethnic” to mainstream right before my eyes. Once upon a time I found Sriracha mainly at Vietnamese restaurants, but now it is everywhere: in ketchup, potato chips and popcorn, jerky, candy canes, lip balm, cans of baked beans, a special Big Mac sauce, and even craft beer (the Rogue brewery makes a Sriracha hot stout beer). Amazing.

Readers are treated to a personal tour of the huge California factory where Sriracha is made, which is also amazing. What’s the next big flavor? There are several possibilities, but Lohman thinks that pumpkin spice might become flavor number nine.

I haven’t seen Sriracha wine yet, but I suppose it is only a matter of time.There is a version of Sriracha from Colorado that is flavored with Ravenswood Zinfandel! Searching the web I discovered someone who added Sriracha to a glass of red wine (not a total success) and an innovative wine-Sriracha pairing event (looks like it sold out).

What About Wine?

Eight Flavors got me thinking (which usually means trouble) about wine. Are there eight flavors that have entered the world of wine and transformed it the way that chili powder and soy sauce have changed food in America? Not particular wines or wine brands (although it is difficult not to think that way), but flavors associated with the wines?

Here are a few half-baked ideas that I have come up with to get things started. I invite you to comment on my choices and to suggest wine flavors of  your own.

Lemonade. This flavor is suggested by the great success of Gallo’s Thunderbird wine in the 1950s. Thunderbird took flight when a Gallo salesman noticed customers adding lemon drink mix to white port, giving it a fruit flavor that appealed to the American palate of that generation and was so successful that it provided a solid financial foundation for Gallo’s growth. Although Thunderbird fell out of fashion in most areas, the market for fruit-flavored wines has hung around in various forms (Google “fruit-flavored wines” and you will see what I mean). You might think of the many Sangria-style wines as falling into this category, too. Authentic Sangria shows that fruit flavoring done right can be delicious indeed.

Red Coke.  Cola drinks are typically sweet, with balancing acidity, a nice fizz, and served ice cold. Riunite Lambrusco was developed to be “red coke” for the American market — sweetish, fizzy, low in alcohol. It was for many years the best-selling imported wine in America. Riunite on ice, that’s nice — or at least that’s what millions of consumers said. If you are of a certain age you might remember Cold Duck wine, which is still produced under the André California Champagne label. (Canadian readers might recall “Baby Duck” wine.) This cold, soft flavor, or something like it, can be found in a  host of “chill-able” red wines today.

Butterscotch. I am sure you have already guessed that I am talking about a particular style of Chardonnay that partly fueled the Chard boom, then fell out of favor, and is now experiencing a renaissance in some circles. Buttery, slightly sweetish with lashings of oak, this was the taste of the 80s and 90s. That flavor transformed wine more than you might think. It helped introduce Americans to inexpensive Australian wines, for example, and it created a revolution in American vineyards. Fifty years ago there were only a few hundred acres of Chardonnay vines is all of California. Now it is probably the most-planted white wine grape and Chardonnay outsells all other varietal wines, red or white (although Cabernet Sauvignon is catching up).412bv6vgcoxl-_sx258_bo1204203200_

Silver fizz. After reading science editor turned wine writer Jamie Goode’s new book I Taste Red  I have come to understand that taste is complicated — it is hard to separate color, texture, aroma and flavor. They are all mixed together and it is probably impossible (or at least counter-productive) to deconstruct them the way that wine tasting notes often do. With this mind, I want to propose “silver fizz” as a flavor — the flavor of Prosecco and wines like it, which are sweeping through the wine world today much as Siracha has done over in food world. Is the secret the way that Prosecco (or Cava? or Champagne?) tastes, or how it makes you feel? And does it even matter which it is?

Vino Exceptionalism?

Four flavors — it is a start. Somehow I don’t feel like I have captured that transformative dynamic as well as Lohman did with her food flavors. Is it because my choices are poor? In that case, I would appreciate your critique and suggestions.

Or is it because wine is different? Is wine somehow more rooted in traditional methods and flavors and less able to accept or be changed by outside influences? If so, is that a good thing?

See, I told you there would be trouble. Instead of answers I seem to have questions. Typical!

Practical Guide to Wine Tourism in the Republic of Georgia: UNWTO Lessons

tbilisi-001Sue and I  recently returned from the United Nations World Tourism Organization’s (UNWTO) first Global Conference on Wine Tourism in Tbilisi, Georgia and we are still processing the experience.

One interesting feature of the conference is that the sessions weren’t confined to the usual convention center or hotel ballroom locations. The organizers boldly took the program on the road to four interesting wine tourist venues.

This experiment provided an interesting opportunity to talk about wine tourism while actually being wine tourists. Here is what I think I learned in the process.

First Impressions: A Georgian Supra

The conference opened with a gala dinner (hosted by Georgia’s Prime Minister Giorgi Kvirikashvili) at the beautiful Funicular Restaurant, which is located high on the hill overlooking Tbilisi next to the television tower. The view from the patio was spectacular (see Sue’s photo above), especially as the sun went down and the lights came up, highlighting the monuments. It felt like you could reach out and the touch the city.0a1_6242

There was good Georgian wine at the dinner, but the focus more more on Georgian food, wonderful polyphonic singers and traditional dance groups. Professor George Bagashvili was the master of ceremonies and he explained all that we were seeing and hearing. He deftly led us through the traditional series of supra toasts, but in a tourist-friendly way (without the feared requirement to drain endless glasses or horns of high-proof  chacha).

The gala dinner at the scenic restaurant was a reminder that wine tourism is first and foremost tourism and it is generally a mistake to think of it out of the context of other tourism opportunities. There will be some who will come to Georgia just for the wine, but most will be attracted by the complete package — sights, sounds, culture, people, food and so on with wine playing a larger of smaller part in each case. The dinner was a great introduction to Georgia’s best and a good lesson that wine tourism is most effective when it is embedded in the broader context.

1011 and All That

We loaded into coaches the next morning and headed east toward  Kakheti, the main wine region and the location of our first meetings. We stopped at the historic Alaverdi Monastery, were wine has been made using the traditional qvevri method since 1011.

We toured the monastery, visited the marani cellar with its qvevri vessels, and tasted one of the wines, a complex golden Rkatsiteli shown below. After the tour we adjourned to a cafe where we had coffee and cups of delicious matsoni (local yogurt) with local honey and walnuts (a fabulous combination).

The wine tourism here was seamlessly integrated into the cultural elements and featured local food products and the opportunity to purchase traditional crafts, too. A great tourist and wine tourist stop. And this is not an accident.p1110666

Georgia correctly sees tourism as an economic development opportunity, especially in rural areas like Kakheti. The Georgian government has worked to develop tourist infrastructure and marketing strategies in partnership with international development organizations including the World Bank, EBRD and USAID.

The Alaverdi Monastery is an example of how these efforts have come together successfully to leverage history, culture and wine to create real opportunities for local workers and producers while giving tourists a memorable experience.

Tunnel Vision?

If the monastery is a good example of adapting something quite old to create a wine tourism experience, our next stop showed a more contemporary touch. Khareba Winery offers a focused wine tourism experience built around a huge network of tunnels that date from Soviet days. The tunnels were reportedly built with military use in mind before eventually becoming a regional wine storage facility and now a wine tourist attraction.

Our afternoon conference session was held up at the Saperavi restaurant with its great view of the valley and then we walked down the hillside to the tunnel with its exhibits, wine tasting, and a group of polyphonic singers who filled the underground space with sound.

The tunnels are a noteworthy attraction, but there was more. A path meandered through the park-like grounds and along the way the visitor is offered the chance to bake bread in a traditional clay oven, watch chacha being made (and taste some, too), make churchikhela, which are strings of nuts dipped in concentrated grape must. A moveable feast was laid for us along with path with traditional dishes, including mountain trout and spit-roasted meat.

As at the monastery, the experience was orchestrated to create a complicated sensory experience filled with sights, sounds, smells and tastes mixed with a strong sense of Georgian culture. Wine was at the center of the experience, but there were many threads interwoven here.

A Georgian Chateaucastle

Chateau Mukhrani, the conference venue for the final day, was built in 1878 and, as the vintage image suggests, it resembles a French chateau to a certain extent. The likeness has been heightened by recent upgrades aimed at enhancing wine tourism.

The grounds and the facilities are beautiful and the wines are good, too, made mainly in the international style under the supervision of Frenchman Patrick Honef. We especially enjoyed the Reserve du Prince Saperavi that was served at the closing dinner

The reaction of some of the international conference participants was noteworthy. What is a French chateau doing here? Why isn’t this winery made along traditional Georgian lines, like the monastery, for example? The winery’s architecture, which most visitors will find appealing, was a turn-off to those seeking greater authenticity.

So why the disappointment? I think it is a example of something that I call the “globalization paradox.” We love globalization because of its ability to bring things from all around the world to our towns and cities. Good espresso, authentic wood-fired pizza, designer shops — it is great to have these things nearby creating a cosmopolitan local environment.

But there is a downside. Everyone wants these things and for the most part they get them. This means that when we travel abroad we see many of the same things we already have back home and not the quaint frozen-in-time images that we expect.

Globalization makes the local more diverse and interesting, but the foreign is rendered less exotic and disappointingly more like home. Sigh. Do you see how a French chateau in Georgia fits this pattern?  It definitely adds to the wine tourism experience in Georgia, even if it takes away a bit from the experience that  the seasoned international traveler may be seeking.

This video will give you a sense of Chateau Mukhrani and how it has been designed to serve as an attractive wine tourist destination. It is good to remember that wine tourists are a diverse group and a great many of them will enjoy visiting a chateau … even if they do it in Georgia, not Bordeaux.

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How did the conference’s experimental format work? As you might expect some venues worked better than others for particular purposes. And I am not sure that everyone realized that we were both discussing wine tourism and practicing it at the same time, meaning that some teaching moments were probably lost. But I applaud experiments like this and hope the organizers continue to innovate at next year’s UNWTO meeting in Mendoza, Argentina.

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A quick shout-out to George Piradashvili and the staff at Chateau Mere, where we stayed during our brief tour of Kakheti after the conference. Chateau Mere is a good example of how wine tourist infrastructure can be creatively developed to serve diverse visitor needs. Personal thanks to George for sharing his great food, fine wine, and Georgian wine business insights with us.

Flashback Friday: Malbec World Day

Wines of Argentina has designated Sunday April 17 Malbec World Day 2016. That’s only a week away, so you had better get started thinking about how you will celebrate this holiday. Please use the comments section below to share your Malbec World Day plans.

Malbec World Day is a good excuse for a Flashback Friday column since Malbec has appeared frequently in these pages in the context of the Argentinean wine industry. Malbec was, for example, the subject of an award-winning  documentary called “Boom Varietal: the Rise of Argentine Malbec”  (see video trailer above) that provided my first (and so far only) opportunity to be a supporting character in a film.

Here is a column from back in 2011 that honors all Malbec producers by revisiting Mendel Wines (a bottle of Mendel Malbec is on the short list of possibilities for our Malbec World Day celebration along with a “flashback” tribute Malbec from Colomé called Auténtico).

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Balance is the key to great wine (and profitable wine business, too). I was reminded of this truth many times during our visit to Mendoza, where wine makers are trying to chart a course between and among several extremes:

  • Competitive export sales versus the challenging domestic market;
  • Reliable value wine sales versus potentially more profitable premium products;
  • Popular and successful Malbec versus TNBT — The (speculative and uncertain) Next Big Thing.

The key to long term success involves finding the right balance in this complex economic environment.

I want to use this post to consider three types of balance that I think are particularly interesting in Mendoza – the balance between crisis and opportunity,  local and international winemaking influences and the simple tension between the old and the new.  We learned about all three dimensions during our brief visit to Mendel Wines in Lujan de Cuyo.

Crisis and Opportunity

Mendel is both very old and quite new.  The vineyards are old, planted in 1928. Somehow these Malbec vines survived the ups and downs of the Argentinean economy. The winery is almost as old and has a certain decaying charm. It stands in stark contrast to Salentein, O. Fournier, the Catena Zapata pyramid and the many other starkly modernist structures that have sprung up in this part of the world.

The winery project is quite new. Mendel is a partnership between Anabelle Sielecki and Roberto de la Mota and is the result of a balance between crisis and opportunity. When economic crisis struck Argentina ten years ago, opportunities were created for those with vision and entrepreneurial spirit. Anabelle and Roberto seized the moment and purchased these old vines and well-worn structures for their new super premium winery project.

That their impulse was timely and wise may not have been obvious at the time (crises are like that), but it is perfectly clear now. Wine Advocate named Mendel one of nine “Best of the Best” Argentinean wineries in a recent issue.[1]

Old and New

The winemaking that goes on in Mendel is also a combination of old and new. The technology is modern, of course, with stainless steel and French oak very visible. The setting, however, constantly reminds you of the past and the vineyard’s and winery’s history. Walking through the winery, for example, I was struck by the big original concrete fermenting tanks – a blast from the past for sure.

No, we don’t use them to ferment the wines anymore, Cecilia Albino told us, but we put them to good use. Peek inside. Sure enough, the tanks were filled with oak barrels full of wine aging quietly in the cool environment.

Mendel also illustrates the balance between local and global that characterizes wine in Argentina, where much of the capital and many of the winemakers come from abroad.  Roberto de la Mota, partner and chief winemaker at Mendel, personifies this balance. Roberto is the son of  Raúl de la Mota, who is sometimes said to be Argentina’s “winemaker of the [20th] century” so important was his work in developing quality wine in this country.

Roberto naturally grew up in the wine business both here and in France, where he sought advanced training on the advice of Emile Peynaud. He was the winemaker at Terrazas, Chandon’s still wine project in Mendoza, and then at Cheval des Andes, a winery with connections to Château Cheval Blanc. I think it is fair to say that Roberto’s resume represents a balance between local and global, between deep understanding of Mendoza terroir and knowledge that perhaps only international influences can provide.

Local and Global

I asked Roberto if it was important that Mendel is an Argentinean project and not owned by a foreign multinational. Yes of course, he said, but he hesitated a bit and I think I see why. Many of the influences and markets are international, but people, vines and inspiration are  purely local. Not one or another, but intertwined, balanced.

And this thirst for a complex balance defines the future. Talking with Anabelle over coffee in Buenos Aires, she was ambitious to break into new markets – Hong Kong, China, and so forth. Anabelle is an architect — another field where global and local intersect.

Meeting with Roberto at the winery in Mendoza, he was interested in learning even more about his vines and terroir so as to better develop their potential. And to bring more of the classic Bordeaux grape varieties (like Petit Verdot) into the mix.

Mendel has charted its balanced course quickly, purposefully and well.  It is a perfect illustration of both the tensions that define wine in Argentina and the potential for success if a clear but balanced path is boldly taken.


[1] The other “Best of the Best” wineries in Wine Advocate issue 192 are Achaval Ferrer, Alta Vista, Catena Zapata, Viña Cobos, Colomé Reserva, Luca, Tikal and Yacochuya.

:)