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Forget the wine...Watch the Ratings...then Act

Let me start by saying some nice things about distributors and those who work for distributors.

Some of America's most knowledgeable wine people, the kind of people who understand the market intimately, have a keen appreciation of what retailers and restaurateurs want, and have palates that are built on broad tastings, work at distributorships across the country. Many of them care deeply about wine, where where the industry is going and, just as important, where it has been.

But then there are others who work at distributorships who are so lazy that they relinquish their integrity simply to make life easier on themselves.

Listen to this tale. It's a common one.

Before a distributorship agrees to take on a new winery or producer, they give lots of consideration to many issues: Is the wine good? Will the wines of this new winery fit well with the other wines we sell (Don't want to have too many Paso Robles Syrah). How much work is the winery willing to put into promoting the brand? Is there room in the geographic market we serve for another wine priced at this level?) A number of questions are asked and answered before the paperwork is signed and the distributor takes its first shipment of cases that it will then sell to retailers and restaurateurs.

Sales begin well as new items in a market often do. The distributor's sales people show the new brand as they make their rounds. They are selling the wine based on its quality: "You'll like this wine, we think. It packs lots of California fruit into a tight package with nice acidity. It's concentrated but you can recommend it to diners too."

The distributor is happy because a newsletter in CA gives the wine a GREAT review. it makes it easier to sell. All's well.

Then, the Wine Spectator or Robert Parker come out with a score of 84. Eighty-Four. Seems odd to everyone. This is not an 84 point wine. Nevertheless, within days of the score being published the winery can't get it's calls returned by the distributor. The sales reps stop pushing the wine. Finally, when the producer of the wine that was once fantastic get a hold of their contact at the distributorship and they proceed to hear the following:

"Well, you know, that score makes it tough. We don't know if we can sell the wine. We don't know if it's the right style for our market."

What happened to all the promises and praise?

What happened is something that happens in the wine industry all too often. Distributor sales reps and retailers have relinquished their palates and their opinions to a small group of critics and reviewers who, taken together, make up a schizophrenic collection opinions and palates. Too few sales people will stand up in the face of the opinion of the wine reviewers and demand that the buyers taste the wine on their own merits.

Why? Because they probably have so many other wines to sell they can easily ignore the ones that got a score or review that, while not matching their opinion of the wine, gives them reason to disregard it.

The problem is that with the number of distributors dwindling by the day, and the number of wineries represented by each distributorship rising each day, there is little incentive for a sales person to personally get behind a brand for he sake of selling good wine.

The bottom line is that it is very difficult to do your best work when you over-commit yourself. Distributors have over-extended themselves now for years. The result is that they have become order takers rather than sales people. Few have any public relations people on staff and most of the training of sales people occurs by wineries who pay for it.

What's the solution? There are few. This might be a case of having to wait for the distribution market to become so consolidated that you naturally see new, smaller, more nimble, more committed distributorships spring up who are willing to put their palate and sales skills behind the brands they take on. They will have a number of willing clients. There are probably hundreds of very high quality wineries in CA alone who would give up extra margin to work with a distributor willing to put their backs into it.

"Other States" Wines...The Reputation Grows

I've worked with wineries outside the big three wine states (CA, WA, OR). Let me tell you, it is very very difficult to get a wine writer, let alone writers at the major wine magazines, to give consideration to wines from Michigan, Ohio, Texas and other states where the wines really can be quite good.

Bruce Shoenfeld of The Wine Spectator showed just how difficult it is to get America's top wine magazine to give consideration to "other states" wines when he commented on Missouri wines in a story printed in the Springfield News Ledger on the up and coming wines of Missouri:

"I have some familiarity with Missouri wines. There's no region of the country that doesn't say it does well in blind tests. I have a hard time believing Missouri wines would do well (at tasting contests)....If you have a great meal in Missouri wine country, you want a great wine, not a norton."

This kind of attitude is common. It results from a number of factors. First, for a long time wines from "other states" really were not that good. Second, rarely is there an active promotional body in these states representing their wineries outside their home states. Third, most wine journalists have VERY LITTLE experience with the caliber or scope of wines from "other states". Fourth, because it is very difficult to find Missouri, Michigan, Texas or New Mexico wines in New York and San Francisco, Wine Journalists simply don't write about these wines because they assume access to them is nearly impossible.

Reason number four is one reason why nationwide, legal direct shipment to consumers is probably just as important to "other states" wine industries as it is to California's wine industries. Given the ability to ship wine across the country, Missouri's wines would be perfectly available to wine lovers reading about them in magazines, newspapers and newsletters no matter where they live.

There is every reason to believe that as states begin to allow direct shipping we will see more acknowledgment of wines from a variety of states besides CA, WA and OR. In turn, this will lead to more "wine tourism" in those other states. This in turn leads to a broadening "wine economy" in these states.

Reputations are built slowly and built on the shoulders of quality-minded winemakers. Reputations can be built somewhat faster if the media is willing to look at these "other states" products with an open mind and palate. The reputation of a number of states is growing as we speak. Michigan for one is a state whose wines could grab the attention of a number of wine lovers. Texas too makes some outstanding wines.

I'm hoping we see direct shipping legislation open more markets and more minds.

Average Is Good!

Average is good!

So say the growers who are carefully watching the crop in the vineyards of California's North Coast. The past three years (thankfully from a market standpoint) have been below average. it's been a situation that has helped the oversupply of grapes come back into balance after the downturn in the economy that  so forcefully hit the high end wine market beginning in 2001.

Now, growers are seeing "crop sets" that are in the neighborhood of 20%-25% above last year and even previous years. This is good for growers who would like to be able to sell more grapes.

Can the market handle more grapes? I don't see any fear out there of a lake of grapes and reports suggest that prices for grapes are holding steady. These are good signs for the industry.

I've been predicting a resurgence in the wine market for six months now. I see no reason at this point to believe that positive market movement won't continue. The economy is in better than decent shape. As long as there are no disasters such as  breakdown in the housing market or another economy-affecting event things should continue to move ahead steadily.

For the consumer, I think this means a slight increase in prices, but nothing really outrageous like the price increases of the late 90s when things were...well...just silly. Come the holidays there should be a slew of good wines in the $10 - $20 range and even in the $6-$10 range.

Reminder: Taste What's Next in Pinot

Reminder:

A taste of perhaps the next truly important Pinot Noir growing region happens tomorrow:

THE MARIN COUNTY PINOT NOIR CELEBRATION.
Tomorrow, June 1, Larkspur, Marin County, CA

For tickets: Dutton-Goldfield Winery

For More info: About The Event & Marin Pinot

Attack a Supermarket, Sell more wine??

Riot
Winemakers in the south of France are rioting again and destroying public property. They are upset because things just aren't going their way. Sales are down. production is up, imported wine sales are up. So, naturally, they choose to...

-Burn railway crossings

-Rail cars were set ablaze

-Rail communication networks were disabled

-Supermarkets were vandalized with imported wines swept off the shelf

-Tanks at a local distillery were destroyed leaving 13,000 hectoliters of Chilean wine running in the streets.

What doe the rioting French vintners want? Besides amelioration of their woes in the form of tax breaks and the government to purchase more of their wine, it's likely they want the world to back up to the 1960s when French wine was the king of the hill.

This is really the essence of the French problem. The French vintners simply have not adapted to a world in which very good wine at very good prices is now being produced at every corner of the globe. Clearly the French people have adapted as they are buying more Australian, Chilean, New Zealand, and Argentina wine, and less of the French wines.

I'm certain the French vintners know they must change how they market their wines. How could they not? But first, they want financial help to get them through this crisis. But do they also realize they need to drastically improve the quality of their low end wines? This I doubt.

Wine Greatness: Old School vs New School

Can a wine be considered "GREAT" and should it attain a score of 98 or above if it isn't likely to improve with age?

Put another way, given that it is not meant to age, what score would a perfect dry rose garner?

Robert Parker, among other reviewers and wine lovers, reserves a portion of his assessment points for a wine's ability to age. If the wine is, in their assessment, likely to improve and develop complexity with age, it will have more points added to it's score.

This is "Old School" thinking. It turns out more and more aficionados take the position that the evaluation of a wine should be based primarily on the enjoyment it delivers now. If the wine delivers the peak of enjoyment, it is great, regardless of what it becomes. Twenty years ago, maybe even ten years ago, it would have been near impossible to find a knowledgeable wine person take this position. what has changed?

In a recent issue of his "Vintage Experiences" newsletter Dan Berger makes a revealing point on this issue. When all those people ran to red wine after the 60 Minutes story on wine and health in the early 1990s, these new wine drinkers went for the wine they were most familiar with: Cabernet. The problem was that Cabernet had tannin. It was this tannic, astringent quality of red wines, that turned off many people. So, they turned to what was easier to drink: Merlot. The Australians caught on to this trend very early, Berger points out, and began selling boat loads of soft, easy to drink red wine. For many, this, soft Aussie Red and soft Merlot, was their first introduction to wine they liked, wine that was not overly tannic. These people stayed with wine. Some stayed in the $5-10 category. Others moved up, but looked for something better, yet still soft. Winemakers were happy to deliver.

As always, Berger delivers a keen, unexpected and eye opening explanation of the wine world. Still, there is more going on.

Today's hottest wines, whether from California, Australia, France or South America are those with a softer, riper, fruitier, less tannic personality. Critics have endorsed them. Winemakers have found new technology to produce them with less risk of spoilage. Viticulturists have found farming methods and clonal selections that allow them to grow such wines.

The bottom line is this: The definition of quality has changed is rapid fashion. Today, a 15% alcohol, 4.0 pH, Inky black, soft, fruit bomb is regularly hailed as the pinnacle of quality. Will they age? Not likely. But it doesn't matter. That isn't part of the criteria that drives consumers to these wines or drives winemakers to produce them.

Me? I believe I am old school. I've tasted from the well of well-age wine. I used not to be such a minority. Aged wines, though always the province of very few wine drinkers, had far more adherents than they do today. You can find people who have tasted hundreds and hundred of wines, explored every wine-corner of the globe, are able to describe the style of wine produced by numerous winemakers and wineries. Yet, they have little or no experience with well-aged wine and have no need for it.

Will the definition of greatness one day come back to primarily include the ability to age. I think it will. But slowly. And when it does, there will be a number of wineries still producing wine who were around when soft, sweet, big and extracted was not the be all end all of the wine experience. And thank goodness. Because we will have the opportunity to find wines that were made with aging in mind to confirm what the "Old School" of today always believed.

Wine Wholesalers: Holding the Baby Up to Block the Bullets

Baby
Claims being made by the the Wine & Spirit Wholesalers Association, and the Wholesaler supported groups such as "Coalition for Safe & Responsible Arizona", "Florida Coalition to Prevent Underage Drinking", and "Coalition for Safe & Responsible Michigan". That claim?

"According to the 2004 National Academy of Sciences report “Reducing Underage Drinking: A Collective Responsibility,” about 10 percent of children who use alcohol get it through the Internet or through home delivery, and that the number is likely to grow. By this estimate, more than a million underage drinkers nationwide may be using the Internet to illicitly obtain alcohol products."
Florida Coalition to Prevent Underage Drinking, May 16, 2005

Here's another one:

Based on federal statistics on underage drinking, more than one million minors now get alcohol through the Internet or by home delivery. This number could have the potential to increase greatly if the regulations are eased.
Coalition for a Safe & Responsible Arizona, May 16, 2005

And another...

A Congressionally-mandated report which examined strategies to reduce and prevent underage drinking, warns that the unregulated direct shipping of alcohol through home delivery and the Internet is a new way for teens to buy alcohol. Fully 10% of young people report obtaining alcohol in this manner and the NAS predicts the percentage will grow. The report also suggests that there are valid reasons for states to consider banning Internet and home delivery sales outright.
Wine & Spirit Wholesalers Association

1,000,000 young people?  10% of America's youth? This is an extraordinary claim. Where does this number come from? And what is meant when Wine & Spirit Wholesalers (WSWA) says that "the report also suggests that there are valid reasons for states to consider banning Internet and home delivery sales outright."

What it means is WSWA isn't telling the whole story (big surprise there). Plus the 1,000,000 young people number is HIGHLY Suspect.

First, let's look at this report.

The 2004 National Academy of Sciences Report being referred to by the Wholesaler supported "citizen groups" does address Internet and home delivery of alcohol. It says:

"Surveys of underage purchase of alcohol over the Internet or through home delivery show that small percentages (10 percent) of young people report obtaining alcohol in this manner (Fletcher et al., 2000); however, increasing use of the Internet may increase the percentage. Although an argument can certainly be made for banning Internet and home delivery sales altogether in light of the likelihood that these methods will be used by underage purchasers, the committee recognizes that some states may not be willing to curtail legitimate access to alcohol through these means and so recommends, instead, tightening access. Recommendation 9-6: States that allow Internet sales and home delivery of alcohol should regulate these activities to reduce the likelihood of sales to underage purchasers. States should require all packages for delivery containing alcohol to be clearly labeled as such"

WSWA doesn't mention that the National Academy of Sciences Report's ONLY suggestion is to require deliveries to be labeled as "wine". But why would they mention that in their and their minions' press releases? It would undermine their arguments.

But still, what about this 1,000,000 kids or 10% of youth getting wine sent to them direct claim? This claim comes from a 2000 study entitled: "Alcohol Home Delivery Services: A source of Alcohol for Underage Drinkers" from the Journal of Studies of Alcohol. It turns out that this is the only study ever done on youth access to alcohol delivered to the home. But here's the real story about that study from a report commissioned by the National Institute on Alcohol Abuse and Alcoholism:

"The only published study of teen use of home delivery found that 10 percent of the 12th graders and 7 percent of the 18- to 20-year-olds reported consuming home-delivered alcohol (Fletcher et al. 2000). A limitation of this study is that it did not ask whether it was the underage youth or an adult who had ordered the delivery of alcohol."

Let me translate that for you: The study is useless! In other words, the wine that kids drank may have come from dad's liquor cabinet after dad ordered the wine legally. And it's not 10% of America's youth. It's 10% of 12th graders!

Yet somehow this translates to 1,000,000 children once the WSWA, Juanita Duggan, and her the groups she supports gets their hands on the information.

Over and over Juanita Duggan has demonstrated she's and her organizations of Wholesaler supported  "citizen groups" are willing to say and do whatever it takes to protect their monopoly on wine sales. If the truth is damaged in the process....Oh well. If family wineries in states across the country are hurt...oh well.

Here's the bottom line: The Juanita Duggan's use of children to advance the cause of wholesaler monopoly on wine sales is akin to holding the baby in front of you to block the bullets.

Wine, Fog, Summer, Good

Sonomafog
It's May 26th and it's finally beginning to look conspicuously like normal in this neck of the woods (Sonoma County). I woke up today, dragged my self to the driveway to pick up my newspapers (San Francisco Chronicle, Santa Rosa Press Democrat, New York Times) and notice that it was gray...everywhere gray...

Fog2

...The fog had returned!

Fog1

During the Summer months, up and down the California coast, the fog shows a familiar cycle of rolling in over the land, often about 5p or 6pm, then rolling back out anywhere between 9am to Noon the next morning. This natural cooling and limiting of the sun's effect is critical to the slow maturation of our grapes. Without this cycle grapes would ripen too fast and not have the time let flavors develop.

"Draft Law" Allowing Mich. Wine Shipping in Works

Crain's Detroit Business Journal reports that a Draft Bill has been prepared by WineMichigan, a new association of Michigan wineries that has formed quite recently. The bill seems quite reasonable on its face and is described as follows:

"WineMichigan proposes legislation that would allow out-of-state and in-state wineries to direct ship, with limits. Under a draft bill, non-Michigan wineries would have to apply for a state permit, similar to the license that in-state wineries hold. Out-of-state wineries would have to agree to abide by all Michigan laws and regulations, including collecting applicable taxes and remitting them to the state and keeping their records on file and available for state audit at any time, (Donald) Coe said.

"The bill would limit the amount of wine an in-state or out-of-state winery could sell to an individual, and would also restrict the total amount one winery could ship in the state. As proposed, a winery could sell two cases of 12, 750-milliliter bottles a month to a consumer, and could sell no more than 50,000 gallons in all of Michigan. "

It's looking more and more like the Michigan Beer and Wine Wholesalers and their advocate-in-office Nida Samona are facing stiff competition in their quest to kill Michigan wineries by banning all direct shipping."

Top Five Under Appreciated Wine Regions

Northern California winemaker is nearly always talked about in terms of Napa Valley and Sonoma County. That's just the way its. Visitors to "wine country" head to either of these two areas and if they hear about other wine regions besides these, they've probably done their research.

So, in the interest of helping with that research, I'd like to suggest...

THE TOP FIVE MOST UNDER-APPRECIATED,
GREAT WINE REGIONS IN NORTHERN CALIFORNIA

ANDERSON VALLEY
Mendocino County
Andersonvalley
In my mind among the top three Pinot Noir growing regions in America (Oregon and Russian River Valley are the other two) and America's premier Gewurztraminer region. Located about two and a half hours north of San Francisco in Mendocino County, Anderson Valley is a narrow little valley quite close to the coast, making it among the coolest growing regions in California.  It is perfect for early maturing varietals that need a long, cool growing season.

What makes it particularly attractive however is its raw, rural beauty. We are talking about "out of the way". It's nothing like Highway 29 in Napa or even the much calmer Highway 12 in Sonoma Valley. It is sheltered, rural, nearly pristine. The drive from Highway 101 across Highway 128 into the Valley is one of my favorite in California.

The Wineries That Make Great Anderson Valley Wines
Adrian Fog
Handley Cellars
Lazy Creek
Goldeneye
Navarro
Copain
Littorai

ATLAS PEAK
Napa Valley
Atlaspeak
The Atlas Peak appellation overlooks the bottom of Napa Valley and in fact is inside the Napa Valley appellation. It's best known for being the source of average to mediocre Sangiovese. But that happens when you have a large winery of the same name as the appellation. Yet there are a number of other vineyards and wineries in Atlas Peak that are making tremendous Cabernet Sauvignon and Zinfandels. In fact some of Napa's most famous wineries look to the Atlas Peak appellation for cabernet grapes.

The grapes start growing at about 1200 feet on Atlas Peak. The soils tend to be terribly shallow, the climate quite cold, yet the growing area is above the fog line. It truly is winemaking on the edge when it comes to Napa Valley. The best way to check this area out is to drive up Soda Canyon Road off of the Silverado trail. It twists, it winds and the landscape changes dramatically as you go higher and higher up.

Wineries that Make Great Atlas Peak Wines
Astrale e Terra
Veraision
Pahlmeyer
Elan

GREEN VALLEY
Sonoma County
Greenvalley
Green Valley is a small sub-appellation tucked inside the huge and diverse Russian River Valley appellation. It is alongside Anderson Valley the coolest California appellation and the home to remarkable Pinot Noir as well as Chardonnay and a decent amount of Zinfandel planted in its warmer pockets. The appellation doesn't get spoken or written about much because of the fame of the Russian River Valley that surrounds it. Yet it is a distinct region define by the cool fog that regularly blankets the area during the summer growing season.

What I like so much about Green Valley is that it a perfect example of what the "appellation system" should do: identify and define specific pieces of terroir that are small enough and distinct enough to have some meaning. It too is quite rural, studded with hills and rises, hidden valleys and stands of redwood trees that thrive in the fog.

Wineries that Make Great Green Valley Wines
Dutton-Goldfield
Iron Horse
Marimar Torres
Tandem


SONOMA MOUNTAIN

Sonoma Valley
Sonomamountain
Sonoma Mountain stares down at anyone who tours the Sonoma Valley, yet very few people go up the mountain. There is no reason to if you are looking to taste wine. But up there are a number of vineyards of great acclaim. The wines from this appellation tend to be Cabernet and Zinfandel. I can count on the Cabernets to offer great finesse when in the right hands.

However, for those of you who are adventurous I advise you next time you are in the Sonoma Valley area to seek out Enterprise Road off of Bennett Valley Road. Take slowly, the circular drive that is Enterprise road will take you up the mountain, exposing you to a number of vineyards, great views and some of the most stunning country road driving north of San Francisco. It is a hidden treat.

Wineries that Make Great Sonoma Mountain Wines
Laurel Glen
Benziger Family

Bennett Valley
Sonoma County
Benvalley
One of California's newest appellations is Bennett Valley which sits in the Shadow of Sonoma Mountain between the city of Santa Rosa and the town of Glen Ellen in Sonoma County. For many years there was really on one reason for a wine lover to find Bennett Valley and there still is only one reason to head out there if you are looking to taste wine: Matanzas Creek Winery.

However, more and more vineyards are being planted in Bennett Valley led by Kendall-Jackson which purchased Matanzas Creek a few years ago. Prior to that and since then they have planted more vineyards in the foothills that surround Bennett Valley. It is a warmer than the nearby Sonoma Mountain appellation and suited for a number of varietals. Of course Matanzas creek gained great fame for its Merlot and Chardonnay grown here. Bennett Valley Road, which winds its way from Santa Rosa to Glen Ellen is another beautiful, narrow country road that is a find! Vineyards line the road, ponds and old barns are in sight and of course the final destination, Glen Ellen (my home town) is a great place to have lunch then head out for more wine tasting.

Wineries that Make Great Bennett Valley Wine
Matanzas Creek Winery
Sable Ridge
Kendall-Jackson properties

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