What Are You Drinking Now...?

Now that we have the first quarter of the year behind us, the new president completing his first 100 days, the stock market making a slight comeback, and general consensus easing back in to the hope for the not too distant future, where have your wine dollars gone and where are the headed?

I'd like to present a few concepts and options for both the casual drinker and the dabbling collector that now is the time to spread your wings within the world of wine.

♦ Exploration of alternative domestically produced varietals. This is a great time look at not only more economic types of wines, but to expand beyond the mainstream or comfort zone of what you have always drunk. Instead of typical Chardonnay, Merlot, Zins & Cabs that most are used to, expand your horizons. Look at different wines such as various types of Rose's or whites like Pinot Gris, Chenin Blanc, Sauvignon Blanc/Semillon and reds such as Carmenere, Mourvedre, Malbec, Barbera, Sangiovese, Syrah, Cab Franc and general red blends that are done quite well here. Not only are they generally cheaper, but provide for delicious alternatives for your buds and are great food or seasonal wines.

♦ Discovery of new wine regions. Spain, Portugal, Chile, Argentina, South Africa and Australia are doing a fine job of not only the classic varietals, but some of the above mentioned as well. You get a much better "bang for the buck" overall without sacrificing quality. And these days, they are quite readily available at your local wine shop or grocer.

♦ Buying by the case. When you find either a wine you love or one of your favorite wines on sale, buy a case as your everyday go-to wine. Saves on gas to the store and makes those decisions just that much easier day-to-day.

♦ Join a wine club. When you know a producer that makes several styles of wines you like at reasonable prices, join their club and enjoy the benefits of membership. You generally get 20-30% off most wines and often can be presented additional deals that cover most of the extra shipping costs.

♦ Make good friends with a local wine shop owner. Nothing more valuable than personal relationship with someone that can turn you on to the wines you love, but can also secure good deals for you to buy in bulk if needed. Often times you can also have the opportunity to 'try before you buy' with regular local wine tasting events. Plus, they get special promotions or overstock wines on the cheap that they can give you the inside scoop on.

♦ Make your own wine. Believe it or not, this process has been made much more available at reasonable costs to do right out of your garage. And, I have to tell you, if you have some good sources and/or creativity, you can make some decent wine. it may not be the wine you wine a gold medal with, but can be comparable to what you'd spend in $7-$15 range for at the store.

♦ Drink your cellar. Let's face it, if you are a collector of any decent size, you will not drink all of your wines and you probably have several wines that are past their peak. I highly suggest looking at any CA cabs or Merlots past 7 years old and popping the cork. There are a few exceptions, but if you're like me, I have dozens of wines that need to be opened asap.

So, leap out of your comfort zone and get moving. Next time you're tempted to buy that Chardonnay or Cab off the shelf, explore the other regions of the store with some help and you'll be pleasantly surprised about the myriad of options before you.

Until the next sip, swirl ya' later!

James
Chief Wino

Wine Marketing 2.0

I recently attended a wine industry "Direct to Consumer" (DTC) symposium conducted by a consulting group here in Napa for wineries and tasting rooms. It was the first of its kind here for me and I believe only the second or third year that they have conducted such an event. The marketers came out in droves all very eager to find the next big thing in direct marketing (DM) for their brands or wine clubs to consumers. I was curious to rate the 'state of the union' of DM within this industry. I learned a few things and had a few surprises...but it was mostly a review of things I had been practicing for years and additions to my to-do list. But even still, all good stuff.

Now, keep in mind, I enter in a bit cynical in that I come from some of the most sophisticated and long-standing DMers of all, the catalog industry. I spent almost 15 years running my own catalog company and then consulting for some premium brand catalogers from back in the early 90's till recent (ooooh, I'm dating/aging myself here aren't I...?). However, this is what drew me to Napa and the wine industry...the opportunity to make a big difference AND introduce some of these tools to a trade category I love. It is wrought with opportunities.

Here is a summary of the most outstanding observation items from the show:

1. Social Networking. If you not in this space, you better get there quickly or it will blow right by you. Wine individuals, wine groups, sales websites, restaurants and wineries are all jumping in head first...some more diligently than others. This isn't new by any means, but the urgency to have a real presence here and the level in which you participate is. The clear message was also that you either enter this space and keep it current/relevant or don't enter at all.

2. Customer Data. Whether data capture or data-mining, you better have a good handle of what to do with the customers in your database or wine club. This is probably the most glaring distance from the catalog industry as few wineries know exactly what to do with their customer files to both maximize their communication channels with them or keep it current and updated/clean. There was some talk of a wine data alliance of sorts (which has been prolifically used in the catalog industry for well over a decade), but there were mostly "deer in the headlights" reactions to such a thing for the wine industry. Share names...? We wouldn't dare... our cusomters are unique and ONLY buy my wine for sure! Uh, yeah, OK.

3. Sales & Customer Data Analysis. The term 'RFM' was only mentioned once in all my seminars and discussions with other marketers...even then only briefed over. This is the data 'Holy Grail' standard with catalogers and is really only a base of which to begin looking at your customers and their activity/buying tendencies. It is a basic ranking system that stands for; Recency - how recent have your customers been active or made purchases, Frequency - how often your customers are purchasing from you, and Monetary - how much your customers are spending with you. This information is critical to know who, how, when, where and how much to communicate to your customers. The analysis and segmentation can get as complex as you want from there.

4. Customer Touchpoints. Just recognizing how many times or the opportunities in which your customer will be exposed to your product or brand is the first step. You'd be surprised how many of these opportunities get missed to either promote residual sales, get referrals, drive visitor center/wine tasting traffic, update data, or survey customers. This is one of the crowning points of DM in that you get to directly control your brand presentation at all of these points if you choose.

5. "Always On Economy". I loved this term from the CEO of Snooth, and it exemplifies the current status of both technology and the power of social networking. It refers to the level at which the customer is always 'watching' and you better be putting your best foot forward at all times. The old saying, "It is 10 times more difficult to acquire a customer than to retain one" could not be more prevalent than now. Your brand is only as good as its last memory of the customer. You get few chances to make up for a bad experience or poor exposure...there are just too many (better) choices for consumers now.

6. The New Economy. Hard to deny this at any level. The actual number of wine purchases is not down, but the category level of buying is. Luxury brands obviously taking the biggest hit here and wines in the $10- $20 space are rocketing with one of the fastest growing groups of buyers being the "millennials" (Gen Y) in their mid to late 20's. Liquor has almost always been viewed as 'recession-proof', and wine follows suit here for the most part. But, the everyday wines (commonly refered to as "Wednesday night" wines) are definitely falling in to the under-$20 category. Plus, women seem to be the biggest buyers here.

7. Food & Wine Pairings. One the best terms I heard throughout the conference was "home base phenomenon" referring to more people staying and dining/drinking at home rather than going out. This in turn creates more demand and interest in food and wine pairings or recipes that people can relate to and perform at home. This falls in to the 'added value' category that wineries can provide for their customers in their regular communications to their base.

8. Communications To Base Customers. How's that for a segue? This is not only the type of communication to customers but the frequency. Oddly, most are not communicating with customers enough with the consensus recommending at least once per month via email and 4-6 other times with direct mail or other marketing pieces. No surprise here.

9. Customer Relationship Management (CRM). This was big buzz-word with catalogers almost 10 years ago and wineries are just now realizing that this requires a true dedicated diligent effort. They discussed the three 'R's' - Relationship (building), Relevance (product/offer), Results (reading). It is way more about just keeping your good customers happy, it is truly about all of the above items I've touched on combined in to one big effort to create a real relationship with your customer and listening to their needs well beyond what type of wine they drink or buy. This also links back to the social networking aspect of getting more involved with people on an 'intimate' level and leveraging their circles of influence.

Well, 9 out of 10 ain't bad, I'll stop here...I could go on and on with this, but don't want to give up all my trade secrets at once. ;-} There is so much more to be addressed, but as usual, it comes down to prioritizing, resources, and the ability to execute programs fully.

In the end, it is kind of like breaking most comfort zones or habits people get in to...recognizing the problems/deficiencies first and then identifying a starting point then methodically working from top to bottom with the resources you have.

Best of luck and as always...

Till the next sip...swirl ya' later!

James
Chief Wino

THE First Major Napa Social Party of '09

Silver Oak just had their first big event since they rebuilt their facilities after the fire a couple of years ago destroyed everything. It was their 2004 vintage release party...and definitely more of a party than a true wine event. After fighting the throngs of crowds just to get near the front gates, I quickly realized this really wasn't so much about the wine as it was just the place to be, or, 'see and be seen' as the saying goes. I would argue to bet that 80% of the crowd couldn't name two of the varietals that make up the wine or any clue as to the makeup of the wine at all...or really even cared. Hey, it was Silver Oak for goodness sake...food, music, wine flowing freely (although it took forever to get measly pour of wine), pretty women, lots of guys, beautiful weather...what more do you need?

Well, for me, that was all fine...but I am much more inclined to pay more attention to a wine experience...maybe learn something, taste a vertical, listen to the wine maker, sit through a class about the vineyards/terroir...you know, an enriching experience of some sort. I am not sure the "cattle call" that this was is really my "cup to tea"...or in this case, my glass of wine. Maybe I'm just getting old or I'm just tired of fighting the masses when it comes to a wine 'party'. There were estimated 4,000 people that came through the gate that day...whew!

Here are a few items I'd rather see or experience when I go to winery release party or things I observe from a professional standpoint:

1. More information about the wine. There was really no direction or information about what we were tasting. Just wait in a long line to get your 2-3 ounce pour and then stand in line for 20-30 min. to get a bite of something to go with it. By the time you got your food, your glass was empty and you had to fight the crowd again...ugh! (Revised: To their credit, there were information tables and info sheets, but amongst the big crowds they could have easily been overlooked)

2. Comparative tasting of other vintages. OK, we're tasting the 2004. What was different about it over the past couple of years? How did stand up to other vintages? What was the blend for that year and why? I'd be willing to pay a little extra just to do a flight of say '02, '03, '04. Maybe they were just too focused on the '04, but then again, they did very little to provide info on it either.

3. Sell the wine more. They just assumed you knew how and/or where to purchase it. Again, there was very little direction about pricing or packages or what type of provision there was for the release party if any. I was never approached or suggested to buy the wine at any time. I'm sure they did OK with sales, but I can tell you, far less than they could have.

4. A welcome packet, brochure or map talking about what it was that I was experiencing. If it were my first time at one of these, I'd have been completely lost. I would not have known that there was also their TwoMey Merlot and their '99 vintage they were tasting in other areas. Nor was their a map or description depicting the 'story' of Silver Oak, family, or reference to the fire that forced them to rebuild this beautiful facility. I did finally find a map from someone after I asked, but they were not readily handed out when you first got there.

5. Very little personal interaction with the 'staff' of Silver Oak. You could tell that everyone with a Silver Oak shirt on was just trying to keep head above water to keep up with the massive crowds. Lots of activity and little direction.

6. No data capture of the party-goers. Nowhere did they allow anywhere to get some information about the patrons...4,000 of them! What a captive audience that got to experience your 'front door' first hand, and not one attempt gather my info. This amazes me, but I guess when you're Silver Oak, you do not need more people on your list...everyone knows you and loves you.

7. No materials to take back with me. They provided nothing to tempt me to visit them again or look them up online if I indeed had a great experience. Even just a small note card on the 2004 vintage with some details about it and contact info to follow up if I wish.

8. Nothing about their 'sister' property in Alexander Valley. I guess the focus was on the Napa property, and they had their own separate party up there. But, I actually really like the Alexander Valley wine and some reference to it would have been appropriate.

Anyway, I had a good time with friends, got to see some industry acquaintances, check out the new facility, do some great people watching and try the wine. I cannot say if I was the 'average' customer I'd be overwhelmed in to spending $100 a bottle on that particular vintage, but it was a decent enough event for my $30 entry. It was a pleasant day in the sun with my wife and friends and hey, I got two more Silver Oak glasses to take with me to replace the ones that were broken years back. Now THAT's the true "silver lining" to the whole experience...well worth it, eh?!

Until the next sip, swirl ya' later!

James

2009 - Time to Explore...More

One of my personal goals this year was to get a nice digital camera and begin shooting my own version of Napa Valley and the local areas. Well, after a very good referral from a photographer friend of mine, I'm off and running with my new gadget.

One of things I've quickly noticed is that you immediately become more observant about your surroundings...looking for any opportunity to shoot a good shot. I've gotten up early to catch a sunrise, taken the camera in the car on the way to work, taken it along while walking the dog, and pretty much looking at the vineyards much more diligently than ever before.

The Vineyards

There is a strange beauty in the depleted vineyards right now. The vines are being pruned back and the mustard flower is almost in full-bloom weaving its way throughout the land. Where the vines were once canopied and fully green, all the greenery is now on the valley floor and hills contrasting with the barren stalks of vines...almost giving it a sinister look to the vineyards.

Another observance is the the quicker assessment of the age of the vines. You can easily discern the young, newly planted 'skinny' vines along with the thicker, more robust aged trunks that denote its length of time in the ground. After being here for while, you can actually spot the 20+ year-old vines pretty easily in one glance.

The Land

The geology here is also pretty amazing. I had a tasting with a winemaker friend of mine that was a geologist in his former life. He now owns a vineyard up on Diamond Mountain (one of my favorite sub-appellations here) and he gave a quick lesson as we were standing atop the mountain area looking down at the valley floor. He said this area is so unique in that it comprises three primary topographies/landscape formations - 1) Volcanic, 2) Glacial, and 3) Tectonic. This was all "greek" to me, but when you look around, you can actually see these type geological activities results across the landscape.

The Seasons

Then there is the seasons as it relates to the sun. As you observe the path of the sun at different times of the year, you begin to notice how it affects the vines in various ways. As the sun goes from East to West and/or lower and higher during the seasons, you see that there is somewhat of a science to how the vines are laid out. some run North to South or East to West (or vise-versa) depending on their location in the valley or across a hilltop.mountain. This is no accident and when you talk to growers or vineyard mangers, you realize there is deep philosophy mixed with wine science that goes in to the entire process.

It never fails to blow me away when I really sit and write or think about these special things about 'wine country'. I love it here. These are just a few quick observations and I'm sure much more to come as I begin to explore this region and beyond start to train my new photographic eye.

Until the next sip, swirl ya' later!

James

My 2009 Wine Goals

Every new year I do goals, not resolutions. I've never really liked the idea of "resolutions" per-se...they always sounded to me like exposed past mistakes or failures attempting to turn in to a new positive movement of some sort...blah blah blah. Anyway, I do several 'categories' of goals - personal, business, family, etc. - and this year, I'm adding a new category, wine.

I never have really thought of doing 'wine' goals until now. Now, that I am living in wine country and working within the wine industry, I think it is more appropriate. I have a new position in the industry working for a high-profile premium winery that has solidified my presence here and staying in Napa Valley for a while. I couldn't be more pleased with starting 2009 in this manner.

Now for the goals...here goes:

1. Drink/open the wines in my collection that are probably near or past their prime. Believe it or not, this is no easy task. I have several 80's and 90's California reds that just plain need to be opened and drank asap. I see a "drink it or dump it" party in the near future.

2. Expand my collection to include more French, Italian and German varietals. 90% of my collection is CA red. This is primarily because when I collected a lot early on, I just flat out did not know what I was doing and made the common mistake more amateurs make. Through my wine training I've learned that regions like Piedmonte, Tuscany, Barolo, Burgundy, Bordeaux, Rhone Alsace, Mosel, Rheingau, etc. and the such provide for much more interesting wines to age.

3. Try more wines from Spain, Argentina, Chile and Portugal. Not only do these wines provide for some incredible values, the wine quality has surprised many experts in a very short time.

4. Join a dynamic wine club (or two). It's been over 5 years since I was a member of a wine club...and I miss this immensely. Only this time around instead of joining only from one winery, I am going to mix it up and try to include a club that exposes me to new varietals from around the world that I may not normally find on my own.

5. Take some more wine classes and possibly finish my 3rd level Sommelier training. The biggest thing I've learned in my training so far is how much I actually do not know. It is truly an endless vat of information that one can only hope to grasp a small percentage of within a keen area of interest.

6. Learn more about wine making. This is probably the area of least knowledge in my wine arsenal. Aside from constantly asking questions and observing about the process from winemakers I have met and/or worked with, I'd love to some day actually make a batch of my own wine.

7. Travel to new wine country/region. This one is pretty simple...Italy (Tuscany & Piedmonte). It has been on the radar for several years and it just needs to happen sooner than later.

8. Add more features on my personal wine website, LocalWino.com. I have had this site for over a year and have several new cool ideas/features I want to add to it...much more to come soon.

9. Work a wine harvest season. Now that I am working directly with a winery, I am very excited about working in the middle of a harvest (Aug. - Oct.). The amount of activity during this time is unparalleled and there is so much to learn. Lots of extra hours, but well worth it.

10. Keep up with my wine blog writing more regularly. Ideally, every week. But knowing what type of work schedule I am probably going to be dealing with, a more realistic goal is bi-weekly. I'll leave it at 2-4 times a month I will try and write about something new...I will have more 'material' to work with being more involved, so maybe I can make it happen.

So, there's my top-10. A great start already to the year...wine-wise that is. On New Year's eve, we did open three decades of wine spanning the 80's to 2005, I've updated my blog (here), I bought some Riesling and Piedmonte wines, made a 'date' with a winemaker to learn more about the processes and joining a local wine club this week that spans the globe...now about that vacation to Italy...better talk to my new employer soon.

Until the next sip...swirl ya' later!

James
Chief Wino

Testing the 1997 Vintage

Since the latest reuniting with my collection, I had to go through the laborious (yet fun) task of inventorying all my wines. During this, I discovered several individual bottles of the 1997 vintage (a case in total) that I decided were worthy of a 'horizontal' CA Cab tasting. For those of you not familiar with the term - horizontal - it refers to putting together several different wines of the same year/vintage (and preferably region) for comparison tasting. Vertical tasting refers to the same wine/winery of different successive years.

Anyway, I decided to invite a group out to share in the experience. As you can imagine, it was not hard to get a lot of takers to go out and taste a bunch of premium '97 California Cabs. I had read and heard various reports about the highly revered '97 vintage with very mixed reviews of the sustainability of these wines. Overall, the "word on the street" was DRINK NOW! OK, I'll oblige, if I have to.

So, we decided to make a go of it at the local restaurant that does not charge a corkage fee. Here was the line-up:

'97 Far Niente Cab
'97 Franciscan Magnificat Red
'97 Hess Collection Private Reserve (black label)
'97 Spring Mountain Reserve Cab
'97 Dry Creek Vineyards 'Epoch' Millenium Cuvee
'97 Cakebread Cab
'97 Bacio Divino Prop Red
'97 Beringer Alluvium Red

Without boring you with all of the details of the individual tastings, I'll provide the highlights of the 'event' in summary:

- Across the board, all the wines held up very well and with the exception of one that had a bit of leaky cork, the wines still had plenty of life

- The 100% Cabs seem to have held up a little better than the blends that had leaned out a bit

- Two wines in particular needed a lot of decanting time - the Far Niente and the Spring Mt.

- The "juiciest" of the wines was the Beringer Alluvium Red exhibiting the most upfront fruit

- The wine that held its structure the best was the Hess Collection Reserve

- The best food wines were the Franciscan Magnificat and Bacio Di Vino

- My overall winner was the Hess Collection Reserve - big fruit, structure, balance, got better with every sip, good with the meats, and still had legs to store longer if needed.

After reading so much about the '97 vintage and how it was under-performing, it was nice to get a chance to experience it for myself. I think the main thing is that with the huge expectations upon launch, it had nowhere to go but down. If I was to give the collective group a rating for the year, I'd put it in 92-94 category, which is still outstanding.

I've got a few more '97's to try along the way here that includes some more revered brands such as Harlan, Staglin, Caymus, Mondavi, Justin, La Jota and many more. So, I'll gladly report back as I begin to pop these during the holiday season.

In the meantime, I'll just have to suffer opening a myriad of other 90's cabs to sort through the collection to find the missing gems...tough work I know, but someone has to do it. Never has the cliche - "so much wine and so little time" - been more appropriate with the job at hand.

Once again, I'm getting lots of volunteers to assist in this tedious project. Hmmm, good to be popular in this respect I guess. Cheers!

Until the next sip, swirl ya' later.

James
Chief Wino