Articles Tagged wine buying
1WD reader Matt (that’s all your getting, as I don’t have permission to print the person’s full name here) recently wrote to me via an email with a title so intriguing, it sparked the first-ever “reader mailbag” style post on this site in its seven-some-odd-year history:
“Trying New Wine Is A Pain In The Ass”
There’s much juiciness to be squeezed from Matt’s email, so I’ll first reprint it here before addressing Matt’s questions in detail:
“Let me rephrase that… Trying new *quality* wine is a pain in the ass, literally in the wallet. Its all a gamble really and I’d bet that the average person, let alone the active wine drinker wants to bet on a $50 bottle. We are not all in your position where nice wines may be shipped to us for tasting purposes in hopes that you blog about it.
So… My reason for contact is this. Today I read the article, ‘Wine execs are scared of the craft beer and spirits growth.’ You probably read it since its well circulated. Following the gambling terminology, beer and spirits have a relatively low buy-in. If that bet pays off and I like it, then I can opt for the higher price points. Quality wine, on the other hand, does not have this low cost of buy-in. It’s all or nothing and if you get burned once, then you will likely never go all-in on a 50+ bottle again.
I’m curious, do you have any opinions on opportunities of low buy-in options for higher priced wines? The tasting room is the only opportunity I can think of and that is not exactly mass market. When exactly does the average person opt for that $50 bottle cab? marketing fluff? friends advice? impressing the boss? Do wine drinkers randomly buy expensive wines that they have never had before? If not, when are they exposed to them that creates a buying opportunity? I’d love to hear your comments and what your readers may think. I’ve never met a wine I didn’t like… to try. Thanks Joe! Matt.”
Talk about food (or drink?) for thought! And Matt seems to want to hear your responses to all of this as well, so it’s giving us a nice opportunity to argue in the best internecine fashion that is the hallmark of modern wine discourse!
Well, Matt, following are my responses. I hope you don’t mind the delay, I just wanted to share the dialog with a (much) wider audience!…
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By now, you’ll probably have heard that alleged fine wine counterfeiter Rudy Kurniawan has been found guilty of fraud in court (well, he was found guilty of wine fraud during trial in court, not found guilty within a court, although technically actually he was found guilty within a court room… oh, forget it).
You’ll also, no doubt, be nursing a raging New Year’s Eve hangover. So I’ll try to make this pithy since most likely I will also be nursing some manner of raging NYE hangover.
In the event that you’re a self-professed wine geek who hasn’t yet gotten up to speed on the whole Kurniawan Kerfuffle, I recommend taking a quick diversion over to the fine summary of Kurniawan’s alleged fraudulent activities at NPR, so that you can do a rapid catch-up.
All set? Good. Now I can explain why Kurniawan’s guilty verdict means almost nothing whatsoever to the fine wine market, and why I think it will almost certainly not even make a dent in the purchases of fraudulent wine worldwide.
But, in order to do that, I first need to explain why the collecting of rare fine wines is like having sex with animals…
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In this episode of 1WDTV, I rant about why it’s stupid to make a distinction between wine bloggers and fine wine consumers, as if the two populations couldn’t possibly overlap (they do); and yet, the wine media tries to make this distinction time and time again, effectively setting everyone off on a wild goose chase.
To illustrate this, I play off a theme I tackled during a recent interview I gave in South America, only this time with a (very crude) graph to show how I believe the U.S. population of wine consumers and wine bloggers is distributed, which involves a standard deviation bell curve (actually, alcohol consumption probably more closely follows a Gamma distribution, but that’s splitting hairs).
The Artificial Distinction Between Wine Bloggers and Consumers
Anyone remember back in 2011, when we talked about the fact that Boomers – who by and large account for the vast majority of current wine sales – wouldn’t be around forever, and so the wine biz really needed to get off of its duff and start thinking about how it would court Gen X and Millenial buyers?
Well, I’ve got some bad news for those who’ve been ignoring that advice.
In the 2013 incarnation of Silicon Valley Bank’s annual State Of The Wine Industry Report presentation, a round-table style discussion between author Rob McMillan (from SVB’s wine division), Paul Mabray of VinTank, Tony Correia of The Correia Company and MJ Dale of KLH Consulting, who discussed the results of the report live in mid-January 2013. During the discussion (uber-interesting for wine geeks and insiders, probably not so much for normal people), McMillan (who is a nice and interesting guy, by the way, something I found out when I had dinner with him at Nickel & Nickel) discussed the sobering fact that the exit of Boomers from the wine market will be a potentially enormous blow to wine sales, and that the Millennial generation requires focus to help fill the expected gap.
To ease in the understanding of this, I’ve taken a graph from the SVB report and “enhanced” it so that the implications are more, well… transparent (click to “embiggen”):
In other words, Boomers don’t just exit the wine market “feet first” (though many, hopefully, will continue to love wine and keep on buying it until they shuffle off this mortal coil); they exit it in droves when they retire. The message is this: if you’re a wine producer who hasn’t been courting younger generations as well as Boomers (And as we’ll see in a minute or two, chances are good that you haven’t), you ought to be crapping a brick right about now…
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