Try It, You’ll Like It: What Can Wine Learn from the Cruise Ship Industry?

cruiseI keep finding cruise brochures folded into the weekend newspapers that arrive here at Wine Economist world headquarters. Ads of various sorts for wine clubs associated with those same papers show up frequently, too. That got me thinking, which is usually a mistake. What do ocean or river cruises and those wine clubs have in common? Intrigued? Read on.

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They come in the mail and stuffed in weekend papers — brochures for ocean and river cruises and barge-and-bike tours. It is hard to resist the temptation to thumb through them and imagine visiting all these far-away places. You’ve done it, haven’t you?

Thousands and thousands of full-color printed brochures — this seems like a pretty expensive way to solicit customers. There must be something about having those pages and pictures in your hands that is especially important. Or maybe it is that the demographic that still reads a physical weekend paper and can afford to pay for it is a juicy target.

Experience Deficit Disorder

Several things about the tours strike me as important and relevant to wine. The first is that tours are “experience goods” — you cannot really know if you will like river touring, for example, until you actually try it. And then, if your experience is a good one, the odds of a second trip go way up (and the cost of customer acquisition way down).

The most important thing in marketing an experience good is to get people to try it the first time. The cruise industry seems to be good at this, so perhaps there is something to be learned by studying their strategies.

Wine is obviously also an experience good. Hard to know if you will enjoy a wine (or how much) before you pay the bill and open the bottle. If you like it, you are likely to come back for more. No wonder winemakers go to so much effort and expense to hold tastings of their wines.

The Olive Garden restaurant chain has a very successful wine program that is built around their practice of offering free tastes (as allowed by local law). One taste makes a customer more often than not.

Those colorful cruise brochures and television videos (think  PBS’s “Masterpiece Theater” sponsorship) try do the same — they give potential customers a “taste” of what cruise life is like. But for the most part neither wine now cruise ships can entirely overcome the obvious experience deficit disorder. So they need a strategy around it to give buyers confidence to take the plunge.

A Little of What You Fancy

Since cruise lines and independent “professionally curated” wine clubs of the sort that are often associated with newspapers and airline mileage programs cannot give all their potential customers actual samples of their products, they both seem to sell the glamour and exotic nature of the experience and hedge their bets in an interesting way.

Cruise tours seldom spend more than a few hours in any single port of call. If you love today’s stop, you can always come return on your own, but if you find you hate Venice (is this even possible?), don’t worry. You’ll be back on the boat and headed for another destination before you know it.

Some of the wine clubs that advertise in the weekend papers seem to work in the same way. Don’t worry about getting a case of even a six-pack of a particular wine you don’t like. Each case has at least six and sometimes twelve different wines. Don’t like this wine — don’t worry, because it is gone just like that. But you can order more of anything you fall in love with.

The fact that the details of the experience — the particular wines, the particular travel route — are made by experts, not the buyer, seems important, too. You buy the package and leave the rest to the experts. The modest commitment comes with relatively modest effort and emotional investment.

The low commitment strategy doesn’t appeal to everyone (see my personal note below) among either tourists or wine buyers, but its persistence in both spaces suggests that there is a market for it. Especially when there is a big discount involved.

Affordable Luxury

Nice wine and ocean and river cruises are luxuries from an economic point of view. No one has to buy them and there are always cheaper alternatives. The trick to getting the weekend newspaper-reading public to try them seems to be to make them simultaneously very luxurious and a tremendous bargain.

Thus the cruise lines advertise stratospheric rack rates for their services, which are then deeply discounted. The “full brochure fare” for the cheapest stateroom on a 10-day Mediterranean cruise in the flyer that arrived a few weeks ago is $9,999 (including economy airfare from certain gateway US airports). Wow, that’s a lot of money. Must be quite a cruise.

But wait, if you act now this wonderful experience can be yours for just $2,999 (airfare included) or $1,999 if you book your own flight. Lifestyles of the rich and famous at a fraction of the list price. Who can resist?

For the record the full brochure price of the most expensive cabin for this 10-day cruise is … wait for it … $33,998! But your price is just $14,999 or $13,999 if you pay your own airfare. Needless to say, this top-of-the-line listing makes the $2,999 of that bottom-tier inside stateroom seem an even better deal than before. Or maybe you would like to upgrade to the $4,599 veranda stateroom?

Wine club ads (and most supermarkets) adopt a similar strategies. Wine club ads seem to stress both the high retail value of the wines and the low low price that you will pay. Sometimes the introductory offer prices are so low that they must be intended solely to entice buyers into the first “experience” purchase, counting on repeat order for profits.

Foot in the Door?

I don’t see anything wrong with how cruise lines and wine clubs market their services. If this low-commitment affordable luxury strategy is successful in introducing people to wine and travel — and if they enjoy themselves — then that’s a plus.

Remember this. Most consumers don’t drink wine (here in the U.S. about 40% of adults don’t consume any alcohol at all). And most of those who do drink wine do it only a couple of times each month. There is much work to be done to introduce these consumers to the pleasures of wine and if thinking about wine as if it were a luxury river cruise can help, I am all for it.

The point of this that sometimes those of us in the wine space think that wine is so special that we fail to see how it relates to other products and experiences. It’s a good idea to pay attention to how other  experience goods present themselves to consumers and to note how those consumers react.

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For the record, Sue and I don’t seem to fit the wine club/cruise ship profile. We signed up for one of those wine clubs years ago and never ordered again. The wines were fine, we just wanted to make the choices ourselves. We’ve taken just one cruise: a Holland America Inside Passage cruise to Alaska. We had a great time and met many nice people, but were never were tempted to repeat.  Chacun a son gôut, I guess.

At least we had good experiences, unlike the diner in this vintage television commercial.

 

Which Brexit? Good, Bad & Ugly Scenarios for Global Wine Markets

41njy9jreolAs last week’s column explained, Britain’s exit from the European Union (a.k.a. Brexit) will disrupt global wine markets in a variety of ways. British wine drinkers will be affected, of course, but so will consumers and producers in other countries as global markets react, redirect, and seek out new market equilibria.

How much will the global wine market be disrupted? It depends upon exactly how Brexit unfolds. There are good, bad, and  ugly scenarios (although, as in the famous Sergio Leone film, the good is really only not-so-bad compared with the bad and ugly story lines).

The British Pound’s swift fall has increased UK wine prices already, as I said last week, but this isn’t the end of higher prices. I expect tax increases to be the next shoe to drop.

Mind the Gap: Higher Wine Taxes

Why would the May government raise wine (or alcohol) taxes? Brexit is going to be expensive. Really expensive. The UK will be on the hook for as much as £50-£60 billion of obligations for EU projects that are currently in progress. These payments may be negotiated to some degree, and are sure to be a point of contention, but they won’t go away. So outflows to the EU will continue.

In the meantime, the UK government will need to staff up domestically to replace government functions currently handled by EU personnel. One estimate suggests that 30,000 new government employees will be needed. Some of the first to be hired will be the trade negotiators needed to negotiate Brexit. Incredibly, the now-defunct Cameron government that called the referendum on EU-membership had no contingency plan for Brexit or staff to implement it ready in case it passed.

Higher expenses will come on line just as the British economy weakens (growth estimates for 2017 have been halved already — from 2.2% growth down to 1.5% — although the economy help up very well in 2016), so tax increases will be needed to span the budget gap. I expect wine/alcohol taxes to be part of that package. Such taxes already account for about 50% of the cost of inexpensive supermarket wine in Britain.

Beyond the exchange rate and tax effects, the impact of Brexit on wine depends upon what kind of Brexit is finally agreed — and there is a wide range of possible agreements (and disagreements!).ap-frame-622-good-bad-ugly-sergio-leone-italian-movie-poster-1966

Too Good to Be True: Buffet Brexit

Many in the UK would prefer what I call “Buffet Brexit” where the UK government picks and chooses what it wants from the relationship (access to the Single Market, please, and special considerations for the London financial sector) and what it prefers to skip (free labor movement and immigration).

Buffet Brexit would be not-so-bad for wine. The British market would retain free access to European wine markets and also the existing system of tariffs and trade agreements with outside countries. The tax and exchange rate issues would not go away, however, but might be less severe.

Buffet Brexit is, however, the least likely outcome. Probability = zero. If the EU lets Britain dine at the buffet, other members will want the same options and benefits and the union could quickly collapse.

Not-So-Bad: BFF Brexit

I call the second option BFF (Best Friends Forever) Brexit but the more common term is “Soft Brexit.” The UK formally leaves the EU but both sides pledge to stay best friends forever and so exit expenses are minimized and spread over many years, “passporting” agreements are made to allow the UK to remain a major financial hub, and access to EU markets, perhaps through customs union membership, allows continued access to EU markets.

Precedent (the Norwegian model) suggests the Britain would have to pay for the privilege of having market access, however, and remain subject to EU regulations without a voice in setting them.

BFF Brexit might not dramatically change the UK wine market depending upon how trade relations are negotiated. UK sales would still fall, however, creating a global surplus that would spill out into other markets, increasing competition and lowering margins elsewhere.

But even BFF negotiations are problematic. In case you haven’t noticed, trade agreements these days are detailed and negotiations take a long time — some believe it will take 10 years to reach complete agreement!

Even if the UK and EU remain BFFs through all this, the uncertainty the comes with these negotiations will be bad for wine and bad, really, for most sectors the British economy. Probability of BFF Brexit = only 10 percent, mainly because the exit cost conflict is likely to turn friends into enemies. That’s what often happens when couples divorce, isn’t it? And this divorce is very complicated and there is a lot more than custody of Fido at stake.

The Bad: Break-Up Brexit

Break-up Brexit (a.k.a. “Hard Brexit”) is a more drastic option and would have important impacts on global wine. Significantly, this is the option that Prime Minister May seems to favor. Britain would cut ties to the EU, with free access to the single market replaced with WTO “most favored nation” status which, according to the Economist, is a best understood as an open can of worms and not a simple process. Britain would need to start from scratch negotiating deals with its trade partners.

Interestingly, President-elect Trump, who says he hates trade deals, has recently said he would push through a UK-US trade agreement quickly in the case of a hard Brexit. Apparently he hates the EU even more than he hates trade deals. Go figure.

The cost of wines from France, Italy, Spain and other EU countries would jump in the UK as would those from non EU countries when existing trade preferences end. Chile, which has a preferential trade agreement with the EU, would be a big loser at least until a separate trade agreement with the UK is agreed after Brexit talks are concluded.

Break-up Brexit would give UK “Leavers” what they want most — control over immigration and trade barriers — but at a very high price.The impact on the UK wine market would be very substantial and the side-effects around the wine world would be quite large as the markets adjust to the loss of British sales. The UK’s central place in the wine industry would clearly change. Probability of Break-up Brexit = 40 percent.14565124

The Ugly: Train Wreck Brexit

Financial Times columnist Gideon Rachman argues that the most likely outcome is what he terms “Train Wreck Brexit” and I will give it a 50 percent probability, although that’s just a guess.

The train wreck occurs, in Rachman’s analysis, when EU and UK negotiators realize that they just can’t agree on critical elements of the exit deal throwing some issues into the courts (the International Court of Justice in the Hague might have to decide how much the UK owes for transition payments) and other issues into limbo. It could take years and years before the smoke completely clears and in the meantime the uncertainty would have terrible effects.

The train wreck scenario isn’t good for anyone and certainly not good for wine, which would suffer all the problems of hard Brexit plus others due to the lack of a clear path ahead. The stress and uncertainty levels would be high. Scotland might vote to exit the UK to gain some control over its destiny, which would add to the crisis.

Perhaps the threat of the train wreck will be enough to convince the parties involved to find a better solution. Interestingly, it is not clear that the Brexit process can be reversed once Article 50 is invoked. Like the doomsday machine in Dr. Strangelove, the idea seems to be to deter EU exit by making it a total and inevitable disaster. But, that doesn’t work if no one knows about doomsday plan (the Dr. Strangelove scenario) or if voters don’t believe it or just don’t care (Brexit).

Bottom Line

As you can see from my speculative analysis, the most likely options are also the most disruptive for the wine industry. Wine prices are likely to rise dramatically in the UK due to the falling Pound, rising taxes, and higher trade barriers. Price-sensitive British buyers will react accordingly, creating a surplus of wine on the global market and disruptive market arrangements generally.

EU wine producers will be hurt the most by lower UK sales and others like Chile, with its preferential access undermined, will also suffer. But the impacts will extend far beyond as the wine not sold in the UK looks for a home elsewhere in the global marketplace. Winemakers in California who never gave a thought to UK sales will find themselves the unintended victims of increased competition.

The odds are that Brexit will be a game changer for wine, but it is hard to know for sure what the new game will look like. Stay tuned.

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The Wine Economist takes a break next week — I’ll be at the Unified Wine & Grape Symposium in Sacramento moderating the “State of the Industry” session and talking about Brexit and other wine market issues. Hope to see you there!

In the meantime, enjoy this clip from Dr. Strangelove.

The Beat Goes On: Kevin Zraly’s Windows on the World Wine Course

9781454913641_p0_v2_s192x300Kevin Zraly Windows on the World Complete Wine Course (revised & updated edition)New York: Sterling Epicure, 2016.

I don’t know if Kevin Zraly has a theme song — a tune that they play when he enters the room or takes the stage — but if he doesn’t have one I would like to suggest “The Beat Goes On.” I think it fits him like a glove.

Windows on the Wine World

Zraly was instrumental in getting the wine beat going here in the United States through his work at the Windows on the World restaurant in New York and his high-impact teaching at the Windows on the World Wine School.

Zraly’s tenure at the restaurant lasted from its first day of business in 1976 (a key year for wine in America) until September 11, 2001. You know that date, I am sure, and it will make sense when I remind you that Windows on the World was located at the top of One World Trade Center.

The restaurant was gone after 9/11, but the beat went on. The school moved uptown, but didn’t really miss a beat until Zraly decided to retire from teaching this fall, after 40 years and more than 20,000 students. So now the school is gone, too, but the beat still goes on in the form of the latest edition of this book.

A Confidence Game

The Windows on the World Complete Wine Course is the closest thing that most people will have to taking the actual course with Kevin Zraly and it is valuable resource both for the wine novices that it was written for and for wine veterans, too.

Newbies learn enough about wine to develop the personal confidence they need to enjoy wine and not be unnecessarily intimidated by it. This confidence is vital to wine sales in restaurants and shops, too. Remember: no one has to buy wine and many do not because they are afraid of making a mistake.

Wine veterans will appreciate the book, too, because Zraly’s enthusiasm is totally contagious and reading it reminds us of why we fell in love with wine in the first place.kevin-zraly-sm

What’s new for this edition? The basic structure remains the same, which is a good thing. Zraly’s brilliant original strategy was to organize the class and then the book around a typical restaurant wine list — whites on this side, reds on the other, sorted by regions and so on.

You get key information about the regions and the wines plus suggested producers, food pairings, comparative tasting prompts and a lot more. Where some books seem to be written for technical WSET exam prep classes, Zraly aims to prepare his students for real world exams — choosing and enjoying wines at restaurants and shops.

More. Give Me More

The text has been updated along with the graphic design and I think both are great. Wine is changing so fast that it is hard to keep up (and impossible to be really complete), but this edition does a good job in both respects. The graphics work because the bright colors stimulate the mind’s eye and are used to convey information in a consistent style. Sue noted that the design allows a great deal of information to be packed onto each page. It is attractive and useful, not distracting as is so often the case.

I have always admired previous editions of this book, but I wanted more. More countries and regions and maps and — most important — more Kevin Zraly. More Zraly because it is his dynamic personal relationship to wine (and his student/readers) that makes this book great.

I think I will always want more in terms of wine regions, etc. — love to see information here about Portuguese wines besides Port and maybe Georgian wines now that I have visited here. But I understand that this isn’t an encyclopedia and, at 360 pages, it is already pretty big.

But what makes me happiest is that the sense that you are listening to Kevin Zraly, learning from him and getting excited by his excitement — that sense is fuller than ever before. More Zraly? Simply irresistible! That’s what makes the Windows on the World Complete Wine Course essential reading for all wine lovers.

Congratulations to Kevin Zraly on his achievements, awards, and contributions to wine in America. And thanks for this book, which extends his influence into the future. The beat goes on!

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“The Beat Goes On” is a Sonny and Cher tune (Sonny Bono wrote it), but I thought you might enjoy this version by the Buddy Rich band — it really swings. Cheers.

 

Flashback Friday: Revisiting Open That Bottle Night 2010

Tomorrow is one of my favorite days of the year, Open That Bottle Night! It is a holiday invented especially for wine lovers.

In honor of OTBN, here is a Flashback Friday column excerpt that returns to a rather fantastic celebration in 2010. Enjoy! (And use the comments section to let everyone know what bottle you uncorked this year!)

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The last Saturday of February is a holiday for wine lovers: Open That Bottle Night (OTBN). It’s the evening when wine enthusiasts come together to share wine and stories.

Although the wines are the official reason for these gatherings, the people and their stories are what it is really all about.

This year Sue and I will be getting together with Bonnie & Richard, Ron & Mary and Michael & Lauri at Ken & Rosemary’s house in Seattle. Everyone’s bringing wine and a story about the wine and Rosemary is making another of her spectacular meals. I’ll report the specifics in a note at the bottom of this post.

Vino Exceptionalism

The premise of OTBN is that wine is different — or maybe that we are different when it comes to wine.  Americans are famously interested in instant gratification — we want what we want when we want it. That’s one reason the U.S. saving rate is sometimes a negative number. Can’t wait — gotta have it now. That’s our typical consumption profile.

Isn’t it interesting, then, that we sometimes behave in exactly the opposite way when it comes to wine. Yes, I know that 70% of wine is consumed within a few hours of its purchase. That is unexceptional.

No, what I’m talking about is our counter-stereotype tendency to tuck special bottles away and save them for … for what? For the right occasion, I suppose. For the moment when they will mean more than they do just now.  Sometimes it is about proper aging of the wine, but usually there is an intangible component that transcends the bottle’s contents. For whatever reason, it seems we need to be reminded once a year to get these wines out and enjoy them!

Frequently (in my case, at least) we hold them too long so that when the cork is finally pulled the wine within is a shadow of its former self.

Liquid Memory

The interesting thing is that it usually doesn’t matter that the wine has faded away. Turns out it was the story that mattered most. Liquid memory!

Dottie & John

John Brecher and Dorothy Gaiter invented OTBN in 2000 as a way to celebrate wine by releasing its pent up stories. Dottie and John wrote the weekly wine column for the Wall Street Journal until quite recently and each year they invited readers to send them accounts of their experiences, some of which appeared in post-OTBN columns.

It was quite an experience reading what other people were inspired to say by the wines they opened that night. Kind of a peek into their souls. I think that was the point, however. As Dottie and John wrote in their final column on January 26, 2010.

Wine isn’t a spectator sport. It’s utterly intimate. Don’t let anyone tell you what you should like, including us. Try wines broadly—there have never been so many good ones, at all prices, on shelves—and keep raising your personal bar for what is truly memorable, so that you are always looking for the next wine that will touch your soul and make you feel you’ve gone someplace you’ve never been before. It’s not about delicious wines. It’s about delicious experiences. May your life be filled with them.

Post OTBN: Here’s What We Opened

We had a delicious experience on Open That Bottle Night 2010: great wine, spectacular food and fascinating stories. By the numbers: five and a half hours, ten people, thirteen wines, 75 wine glasses. Here are the food and wine menus — you will have to imagine the stories. Special thanks to Rosemary and Ken for hosting. And thanks to Dottie and John for inventing OTBN.

Wine Menu (listed by vintage year, not the order tasted)

Solter Rheingau Riesling Brut Sekt 2006

Casanova di Neri Brunello di Montalcino Tenuta Nuova 2004

Callaghan Vineyards Sonoita (Arizona) Padres 2003

Shanxi Grace Vineyards (China) Tasya’s Reserve Cabernet Franc 2003

Racines Les Cailloux du Paradis (Loire) 2003

Chateau Haut Brion Blanc 1998

BV Georges de Latour Private Reserve Cabernet Sauvignon (magnum) 1997

Champagne Charles Ellner Brut 1996

Chateau d’Yquem 1996

Paul Jaboulet Hermitage La Chapelle 1990

Chateau Figeac St-Emilion Premier Grand Cru 1967

Chateau Cheval Blanc 1961

Taylor Vintage Port 1960

The Food Menu 

Rosemary Flatbread with Artichoke and Green Olive Spread

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Wild American Shrimp and Fennel Salad

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Roasted Tenderloin of “Wild Idea” Buffalo

Polenta with Cremini and Porcini Mushrooms and Mascarpone

Green Beans with Sautéed Shallots

Cranberries and Cherries in Madeira sauce

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“The Cheese Cellar” Cheeses

Gorgonzola Hand Picked by Luigi Guffanti

Piave High Mountain Cow Cheese

Sottocenere with Truffles, Clove and Cinnamon Rub with Ash Rind

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Panna Cotta with Blueberry Compote

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Chocolate Biscotti

Soft Amoretti Cookies Sandwiched with Chocolate Ganache or Raspberry Jam

Call for Papers: American Association of Wine Economists Mendoza, Argentina Meetings May 26-30, 2015

The American Association of Wine Economists will meet in Mendoza, Argentina on May 26-30, 2015. The National University of Cuyo, Mendoza is hosting the gathering.

The organizers have issued a “Call for Papers” on subjects related to wine economics and business including analyses in statistics, history, psychology, law, viticulture and enology. They are also open to papers related to beer and food.

Details can be found on the AAWE’s website. Those interested in participating should send a 500-word abstract to aawe@wine-economics.org by January 20, 2015.

Sababay Wines of Bali: New Latitudes, New Flavors, New Frontiers

BottlesThe Wine Economist’s chief Hanoi correspondent Ali Hoover recently visited Bali, Indonesia and volunteered to investigate the local wine sector, focusing on Sababay wine. Here is her report.

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A decade ago, one of my personal favorite wine celebrities, Jancis Robinson, wrote about a new breed of wine emerging on the market – New Latitude Wines. Joining existing wine region categories of Old World and New World, New Latitude’s name suggests it all: these alternate regions seek to break out from the +/- 30 to 50 degree latitude belt considered the bookends of quality viticulture, due in part to climate change, but also enabled through increasing human understanding of how and when vines grow and advancements in refrigeration and irrigation techniques. Jancis ended her article with hesitation, though, admitting “I still find it hard to believe that New Latitude Wines will ever be seriously good, but then that’s what was said about New World Wines not that long ago.”

Since then, wine has begun to pour into the international market from a myriad of unexpected places. I certainly didn’t think Kenya, Azerbaijan, or Thailand were producing wine, and apparently I’m not alone; the Wine Explorers estimates 80% of wine producing countries are poorly known to the general public.

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Among the surprisingly extensive list of non-traditional wine producing countries is equatorial Indonesia, and Bali in particular. After my visit to Bali last month, I’m happy to report it deserves the overuse of the word “paradise” in reference. Despite a confluence of tourists and a disproportionate amount of surfer types, Bali has preserved much of its cultural essence. The crowd favorite ‘homestay’ accommodation looks more like a new-purposed temple, replete with impressive stonework, koi ponds covered in lotus flowers, and breakfast served on sunny patios in the morning. Crystal blue water, lush green vegetation, infamous coffee shops, yoga retreats, and small boutiques have created a getaway nothing short of idyllic. The abundance of fresh fish and produce, coupled with the laid-back attitude and stunning views lends itself all to easily to a crisp glass of wine, but producing local wine posed its own difficult set of challenges.

The Sababay Project

At a mere -8 degrees latitude, low-quality grapes considered unfit for consumption flood the Balinese market, destined for the omnipresent sidewalk religious offering (pictured below). But it turns out climate wasn’t the biggest barrier to quality wine – education in farming sustainability and viticulture standards was. Seeking to use these advances in modern technology to contribute to their native homeland, Evy Gozali and her mother founded Sababay Winery and the Asteroid Vineyards Partnership. In exchange for agricultural & technical support, Northern Balinese grape farmers commit their yields exclusively to Sababay—the 175 farmers currently producing have experienced yield increases of up to 50% in the first year alone with the new viticulture practices, and some have even reported a ten-fold annual profit increase since engaging in the partnership.

bali

What struck me most was Sababay’s strong Indonesian identity, a true achievement in an industry with a constant tug of war between terroir and global appeal. Beyond their tangible contributions to local agriculture, Sababay produces wine to match the cultural preferences and local flavors. Marketing wine to the largest Muslim country by population in the world is no small feat, but the demand is growing, and Sababay provides an alternative to these new consumers who’re looking for a twist-top wine that tastes good with dinner. The resulting wines, designed to be poured young, are sweet, with low alcohol content, and are a perfect pair for the complex, spicy flavors of Indonesian dishes.

Think Global, Act Local

Sababay does not currently export its wines – they’re 100% focused on local consumers. In keeping with advancements in technology and understanding, they have machinery imported from all over the world and a French winemaker to make the magic happen, but in all other facets of their operation they maximize Indonesian involvement in their leadership, staff, production, branding, and promotion. Sababay’s focus is a wine for the people, as opposed to an award winning wine – though they’ve incidentally done that as well! Their sparkling Moscato d’Bali (my personal favorite) recently won the silver award at the WSA Wine Challenge 2014 in Singapore.

As wine expands its boundaries, both in terms of production and consumption, I believe local identity and alternative branding will play a critical role in New Latitude’s potential success. There are untapped demographics with unique preferences and flavors, and New Latitude presents an opportunity to break out not only from geographic constraints, but traditional flavor profiles as well. In our increasingly global world, it seems the time is right to engage these regions and step outside our delimiting 30/50. Rather than expecting New Latitude to produce “seriously good” wines by our preexisting standards, I think we ought to encourage them to create “seriously relevant and unique” wines that appeal to emerging demographics and engage local consumers. So keep your eye out for these intriguing New Latitude wines on your next vacation, it’s bound to shake up your wine experience and add an extra dimension to your cultural experience.

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Update: All of the Sababay wines entered in the Chine Wine & Spirits Awards competition have received medals.  The Sababay Pink Blossom received a double gold! Congratulations to Sababay on this international recognition. To see the details click on the awards link and search for Sababay.

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Thanks to Ali for her report. Here is a photo of Ali (red blouse) and the Sababay team.

I’m also impressed by the Sababay wines and also by the values they embody. Here is the winery’s mission statement (taken from the website):

Our mission is to elaborate local products of international standard that are accessible to all to enjoy and to give back to the land and to the local community.

  • Developing a diversified and performing agriculture in Indonesia with reduced impact on the land.

  • Recycling solid and liquid wastes at every steps of the production.

  • Social responsibility in the local community by creating jobs.

  • Constant training of the work force.

  • Harmonious relationship with trading partners and consumers.